JSE rises despite disappointing data

THE JSE brushed off dismal domestic data, with Naspers leading the gains yesterday followed by banks and financial shares, while retailers slipped 1.6%.

Resources shares came under pressure from a firmer rand, while volumes on the bourse were well below average.

Retailers were under pressure after domestic data for the sector came in well below expectations, although banks gained on a firmer rand.

The unit found support from disappointing economic data out of both the UK and eurozone.

Retailers came under pressure over the poor economic data.

While the retail figures were disappointing – as consumer spending contributes to about 60% of GDP – activity was expected to pick up during the course of the year, Nedbank Group Economic Unit analysts said.

A Rand Merchant Bank spokesman said: “A striking deterioration in demand knocked manufacturing confidence from 37 to 27 in the second quarter – a drop that almost wiped out all of the improvement in sentiment in the first quarter.”

The US Federal Reserve raised the benchmark lending rate yesterday, the second increase of the year, and signalled two more hikes were expected and four next year, a possible sign of concern about accelerating inflation.

The JSE all-share gained 0.39% to 58 437.2 points and the Top 40 0.56%. Banks added 1.2% and financials 0.68%. Platinums fell 1.48% and general retailers 1.61%.

Diversified miner Glencore gained 3.65% to R70.38, after it emerged earlier that a subsidiary in the Democratic Republic of Congo had reached a legal settlement dissolving a joint venture with that country’s state miner.

Anglo American fell 1.02% to R318.30.

Sibanye-Stillwater lost 4.29% to R8.47, amid continued scrutiny of the safety of its operations after the deaths of mine workers.

Naspers, which jumped 5% intraday trade, closed 1.23% up at R3 393, after saying it expected headline earnings a share to rise by between 130% and 135% in the year to end March, compared with the same period last year.

Peregrine Holdings jumped 5.95% to R21.18, after earlier saying headline earnings an ordinary share rose 4% to 238.5c in the year to end March.

Aspen Pharmacare rose 3.07% to R273.13. – BusinessLIVE