Gold producers, retailers lift bourse
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.