Retailers, platinums shine on JSE
Johannesburg - South African shares inched a whisker higher on Thursday as a weaker rand buoyed platinum miners while retailers Massmart and Truworths jumped on strong earnings.
"The results from the retailers suggest worries about rate hikes were a bit overblown and platinums are going through the roof," said one Johannesburg-based dealer.
Mid-cap mass retailer Massmart jumped 3.56% to R52.30 after it reported a 28% jump in annual headline earnings per share and said it expected a solid first half.
Fashion retailer Truworths strode 2.87% higher to R23.30 after it unveiled a 29% jump in annual profit and said the sales growth in the first 8 weeks of this financial year exceeded 20%.
The two sets of earnings, plus upbeat comments from food and clothing chain Woolworths on Wednesday, allayed investor jitters that two interest rate hikes since June would halt a consumer spending boom that has swelled retailer profits.
The news also boosted the country's biggest clothing retailer Edgars Consolidated Stores (Edcon), which rose 1.85% to R27.50.
The Johannesburg Top-40 index of blue-chip stocks nudged up 0.03% to 19 844.77 points while the All-share index edged 0.03% higher to 21 664.66 points.
A weaker start on Wall Street amid worries over consumer spending kept a lid on sentiment in South Africa, and some heavily-weighted mining stocks like BHP Billiton fell.
But platinum miners starred, boosted partly by a weaker rand. The world's biggest platinum producer Anglo Platinum leapt 5.81% to R820 while Impala Platinum climbed 2.8% to R1 323.95 rand.
"I think the weaker rand is the driving force. The platinum stocks are also playing catch-up with some of the other miners which have had a nice run but are now suffering from a bit of profit taking," said Abri du Plessis, Chief Investment Officer at Gryphon Asset Management.
Construction, steel and cement company Aveng rose 2.21% to R24.98 after it said it expected to lift full-year headline earnings per share and EPS by 40%-60%. Separately, Holcim said it would sell the biggest part of its South African business to local black investors. Aveng owns 46% of Holcim South Africa.
Black-owned mining group Mvelaphanda Resources Ltd rose 0.72% to R35 after it posted a jump in earnings driven by its investments in gold and platinum producers, and said it saw further gains ahead.
News source: www.news24.co.za
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