Richemont soars 6% but JSE closes flat
STOCKS were flat overall yesterday, but luxury goods group Richemont gained 6 percent to reach a 10-month high after posting stronger than expected sales.
The benchmark JSE Top40 index declined 0.06 percent to 45 720.20 points, while the all share index rose 0.01 percent to 52 444.36 points.
Richemont jumped 6.02 percent to R102.89 on the JSE. Strong demand for jewellery and improved watch sales in its own stores helped the company beat forecasts with a 5 percent rise globally in sales in the quarter to December, in a sign the watch industry may see a recovery this year.
Swiss watchmakers have been grappling with weak demand in their biggest markets, Hong Kong and the US and Chinese tourist shoppers avoiding Europe for fear of extremist attacks, so the improvement across all Richemont’s major regions is good news for the industry.
Gold mining firms rallied after the bullion price surged to more than $1 200 (R16 503) an ounce, its highest level in seven weeks, following US President-elect Donald Trump’s news briefing on Wednesday.
AngloGold Ashanti was the leader of the pack, advancing 4.28 percent to R163.85, while Gold Fields gained 2.16 percent to end the session at R45.88.