Gold pro­duc­ers, re­tail­ers lift bourse

The Star Early Edition - - PRICES - Reuters

STOCKS gained for a fifth con­sec­u­tive ses­sion yes­ter­day, reach­ing a four-month high as bul­lion pro­duc­ers ad­vanced on global un­cer­tainty and re­tail­ers ral­lied on a bet­ter-than-ex­pected sales up­date.

The bench­mark JSE Top40 in­dex climbed 0.58 per­cent to 46 333.08 points, while the broader all share in­dex was up 0.69 per­cent at 53 158.54 points, its best since Septem­ber last year. Re­tail­ers gained sharply af­ter

The Fos­chini Group (TFG) posted a 14.6 per­cent jump in Christ­mas sales, bet­ter than the firm had ex­pected.

Shares in TFG, which sells cloth­ing and home­ware, rose to a 20-month high of R170.90, but pared gains to 5.29 per­cent at R168.50.

The pos­i­tive sen­ti­ment spilled over to TFG’s com­peti­tors, with

Tru­worths In­ter­na­tional gain­ing 4.33 per­cent to R85.56 and

Wool­worths Hold­ings ad­vanc­ing 4.83 per­cent to close at R71.79.

The JSE’s gen­eral re­tail in­dex is still down 16 per­cent since Au­gust and in­vestors be­lieve the sec­tor of­fers value, ac­cord­ing to Cratos Cap­i­tal eq­ui­ties trader, Greg Davies.

“The mar­ket is an­tic­i­pat­ing the next six months will be a lit­tle bet­ter,” said Davies.

Bul­lion pro­duc­ers were also in

de­mand as the gold price climbed to a seven-week peak on buy­ing fu­elled by po­lit­i­cal un­cer­tainty af­ter com­ments by the US Pres­i­dent-elect Don­ald Trump on Nato and China.

Gold Fields led the bul­lion pack, gain­ing 4.54 per­cent to R47.46.

Stock trad­ing was be­low par with 212 mil­lion shares chang­ing hands, ac­cord­ing to pre­lim­i­nary bourse data, com­pared to the last year’s daily av­er­age of 296 mil­lion.

Mean­while, in­vestors sold stocks glob­ally yes­ter­day, seek­ing shel­ter in gold as un­cer­tainty over Bri­tain’s de­par­ture from the EU and the poli­cies of Trump curbed ap­petite for risky as­sets.

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