RAND, BOURSE POST GAINS

THE RAND firmed against the dollar yesterday as November retail sales rose more than expected, giving insight into how the economy performed in the final quarter of last year.

Retail sales rose 2.6 percent yearon-year in November, as Black Friday discounts lured price-sensitive consumers into stores, data showed.

“Today’s (yesterday’s) figures will boost fourth quarter growth figures as household spending accounts for about 60 percent of GDP,” economists at Nedbank Group Economic Unit wrote in a note.

They cautioned though that strong retail sales growth was not expected to be sustained in the coming months as household spending would be contained by subdued consumer income growth and a deterioration in consumer confidence.

The rand bid at R14.3421 to the dollar at 5pm, 5 cents stronger than at the same time on Tuesday.

In fixed income, the yield on the benchmark government bond was flat at 8.26 percent.

In the equities market, stocks rose, boosted by gains from retailers and gold. The JSE all share index closed 0.17 percent firmer at 58 063.59 points, while the Top40 index 0.21 percent to 51 835.06 points.

The general retail index rose 0.66 percent to 5 756.8 points, buoyed by gains in Clicks, up 2.81 percent at R266.41, The Foschini Group, up 1.86 percent to R155.26 and Spar

Group, which gained 1.74 percent to R199.72, on the back of stronger than expected November retail sales.

Gold stocks benefited from higher prices, which rose on renewed worries about US-China relations ahead of the signing of an initial trade deal.

Sibanye climbed 2.99 percent to R35.84, while Royal Bafokeng Platinum rose 2.19 percent at R51.91 on the back of higher platinum prices.

Meanwhile, emerging market stocks fell from 19-month highs, as optimism around a long-awaited initial US-China trade deal was dulled by comments that US tariffs on Chinese goods would stay in place until the next phase of the agreement was reached. I Reuters