Stocks show mild gains

SOUTH African stocks recovered slightly from last week’s declines yesterday, as retailers and industrials led the market higher. Gains in these sectors, however, were somewhat offset by a further slump in resources and gold miners, on global growth concerns.

At 5pm, the benchmark JSE all share gauge closed 0.21% firmer at 38,582.95 points, buoyed by drug retailers, general retailers and industrials adding 1.67%, 1.02% and 0.85% respectively. Resources gave back 1.06% and gold miners, after strong gains on Friday, ended 1.25% weaker.

The blue-chip top 40 index edged up 0.19%.

“Retailers took a knock on Friday after US job numbers came out worse than expected, affecting world markets negatively all around. Investors returned to the retailer space (yesterday) after the sell-off on Friday,” said Sudheer Singh, a market analyst at Sasfin Securities.

“Resource giant BHP Billiton was trading lower in London (yesterday) morning as copper prices were lower and this filtered through to our markets. There is still uncertainty about global growth leading to lower commodity prices, which will in turn push resource counters lower,” Mr Singh said.

“Gold shares were slightly lower (yesterday) as market sentiment was a bit stronger, resulting in safe-haven investments such as bullion being a bit out of favour. ”

BHP Billiton (BIL) closed 1.21% weaker at R258.85 and Sasol (SOL) lost 2.33% to R385.68. Kumba Iron Ore (KIO) gave back 2.78% to R442.80 and Alert Steel (AET) shed 3.57% to R1.35.

Among gold stocks, Harmony (HAR) dropped 3.36% to R54.30 and Gold Fields (GFI) dipped 1.83% to R64.22.

Barloworld (BAW) added 1.40% to R94.30 and luxury goods manufacturer Richemont (CFR) closed 1.41% firmer at R70.30. Retailer Mr Price (MPC) added 2.62% to R116.50, Shoprite (SHP) gained 2.07% to R178.62, while Pick n Pay (PIK) bucked the trend, slipping 1.27% to R41.10.

Meanwhile, maize prices picked up for the first time in four days on bargain hunting and higher Chicago Board of Trade prices. This follows a drop in domestic prices by a huge margin last week due to a larger than projected US stockpile report.

“US corn prices fell last week and we were playing catch-up with them for most of the week. Today we ended the session firmer due to stronger Chicago Board of Trade figures,” a trader said. Staff Writer