Stocks swell in choppy trade, but risk aversion looms

SHARES ended a choppy session a touch up yesterday, but continue to look vulnerable to risk aversion because of debt euro zone problems.

The Top40 blue chip index ended up 0.08 percent higher at 29 231.92 points and the all share index rose by the same margin to 32 774.83 points.

Retailers topped the list of advancers, with Richemont posting its second positive session after the firm announced the opening of its largest Montblanc store in China.

The bourse was bolstered by views that China could cut its bank reserve requirements.

“Although it’s positive news for the market in the short term, it suggests that growth could be slowing,” said Legae Securities trader Betzy Yang.

Richemont was the top gainer on the benchmark index, rising 2 percent to R42.83.

Truworths added 1.7 percent to R79 and Woolworths was 1.9 percent up at R40.70.

On the downside, Tiger Brandsweakened 2 percent to R249 as a deadline passed for investors to receive their next dividend pay-out.

Mining firms slipped with Exxaro down 2 percent at R173 and Lonmin 1.8 percent lower at R123.08. Anglogold Ashanti fell 1.3 percent and Impala Platinum slid 1.6 percent to R170.25.

Petmin rose 6.7 percent to R2.70. – Reuters and Bloomberg