Johannesburg - Shares in Africa's largest retailer Shoprite Holdings [JSE:SHP] provided the spark that helped South African equities to snap a three-day losing streak on Monday, though a gloomy outlook for resources companies capped gains.
Shoprite was the star of the session, rising more than 7% to R151 ($13.82), making it by far the best performer among blue chips after reporting revenue for the three months to September 30 up 12.3% on the same period last year.
Abri du Plessis, the chief investment officer of Shoprite shareholder Gryphon Asset Management, said the quarterly results allayed concerns that the company was losing market share to rival Pick n Pay.
"They aren't losing market share to Pick n Pay and this is a relief," he said.
Slow economic growth and heavy household debt have raised red flags about South Africa's retail sector and the Shoprite figures show consumers are still spending.
The benchmark Top-40 index rose 0.33% to 42 816 points while the wider all-share index climbed 0.36% to 48 051.
The biggest blue-chip decliner for a second session running was iron ore producer Assore, which slid 4.25% to R201.37.
Iron ore futures in China and Singapore slipped on Monday as traders struggled to sell cargoes in a market hurting from a glut in supply.
The resources rout was broad-based. Coal producer Exxaro shed 1.75% and Assore's bigger rival Kumba lost 1.6%.