JSE higher, led by retailers, but resources strain

THE JSE closed higher yesterday – with retailers buoyed by positive economic data, but a US dollar rebound put pressure on many stocks in resources.

The dollar gained against the euro after US inflation for last month was higher than market expectations, with the rand paring earlier gains.

Domestic focus remained on the expected departure of President Jacob Zuma.

Statistics SA reported that retail sales in December grew 5.3% year on year‚ beating a consensus forecast of 4%. This is likely to provide a fillip for South Africa’s fourth-quarter GDP figure.

Nedbank economist Johannes Khosa said the figures suggested that the economy sustained reasonable momentum in the fourth quarter.

The JSE all-share closed 0.33% higher at 57 399.6 points, and the Top 40 added 0.3%.

Food and drug retailers rose 2.82%‚ general retailers 1.77%‚ industrial shares 0.8%‚ banks 0.75%, and platinum stocks 0.68%. Property dropped 1.48% and resources 0.62%. Sasol dropped 1.33% to R388.45. Remgro rose 2.51% to R229.63. Harmony Gold leapt 10.51% to R23.34, continuing its rally from Tuesday, when it reported a 49% rise in first-half headline earnings per share.

Standard Bank rose 1.41% to R207.93, while Capitec was off 3.74% to R813.26.

Steinhoff shed 2.22% to R5.28, while Shoprite climbed 1.52% to a record R252.43.

Among property stocks, Resilient lost 5.88% to R96 and Hyprop Investments 2.97% to R108.

Naspers rose 1.88% to R3 169.99.