Share

Retailers lead local equities higher

Johannesburg - The JSE managed to close the day firmer as retailers led the local bourse higher.

Retailers got a lift from Rand strength which saw Mr Price [JSE:MRP], Truworths [JSE:TRU] and Woolworths [JSE:WHL] all closing firmer, as they gained 3.45%, 2.38% and 1.11% respectively.

Murray and Roberts [JSE:MUR] had a stellar day as the stock managed to gain 7.93% to close at R16.46 per share.

Banking stocks were mixed as First Rand [JSE:FSR] managed to inch up 0.97%, however Nedbank [JSE:NED] and Standard Bank [JSE:SBK] traded mostly under pressure to close the day down 0.65% and 0.38% respectively.

Mr Price [JSE:MRP] jumped on the back of an 18 week trading update which they released this morning. In the reported period retail sales grew to R6.5 billion which equates to a growth of 6.2%. The home segment did not perform as well as the apparel segment but nonetheless the overall result was descent for the reported period. Online sales grew 6.4% whilst cash sales expanded by 6.3%. The stock certainly looks attractive but at a price earnings ratio of 18, it is starting to look expensive.

Brait [JSE:BAT] announced on SENS this morning that the CEO of one its UK-based subsidiaries, Newlook, resigned. As a result, the stock traded under pressure to eventually close the day down 2.75%.

Barloworld [JSE:BAW] also released a strategic review which highlighted key areas that the business wants to focus on. The key areas highlighted were to fix and address underperforming businesses, optimise returns from the existing portfolio, and to look at high growth opportunities based on existing capabilities. The stock closed the day up 3.50%.

The JSE All-Share Index eventually closed flat, up just 0.02%, whilst the Top-40 Index was up by 0.05%.

The Industrials Index shed 0.10% whilst the Financials Index managed to gain 0.14%.

The Resources Index posted gains of 0.33%.

The Rand traded firmer today and managed to reach an intra-day high of R12.85/$ mainly because of US Dollar weakness.

The US Dollar came under pressure after the release of USA Non-Farm Payrolls data which came in below analyst expectations. The US economy added 165 000 jobs which was less than the forecasted 180 000 jobs.

US Average Hourly Earnings also came in worse than expected which added to the pressure on the greenback. However the initial reaction did not last as the US Dollar Index quickly jumped to 92.926 index points within an hour of reaching an intra-day low 92.100 index points. 

Gold spiked up to an intra-day high of $1328.91 per ounce after the release of US jobs data. However it subsequently reversed due to a turn in the US Dollar to trade at $1322.10 per ounce just after the JSE closed. 

Palladium had a big day as it jumped up by more than $30 to reach an intra-day high of $972.70 per ounce. It was trading at $964.93 per ounce just after the JSE closed.

Platinum also had a positive day and when the JSE closed it was recorded at $1002.25 per ounce, having reached an intra-day high of $1006.26 per ounce.

Brent Crude was trading above $52 per barrel as it managed to break through that level in overnight trading. The commodity managed to peak to an intra-day high of $52.95 per barrel, and when the JSE closed it was trading at $52.68 per barrel.

*This report is from the Trading Desk at EasyEquities, Fin24's latest content partner on equities and market moves.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.90
+0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders