South African fashion and grocery retailers increase inventory

A street trader counts change for a customer in Durban, September 8, 2015. REUTERS/Rogan Ward

Join now for FREE unlimited access to Reuters.com

Register

July 26 (Reuters) – South African stocks closed higher on Tuesday, led by fashion and grocery retailers, which reported better-than-expected sales growth.

Retailers’ results eased investor concerns about constrained consumer spending in an environment where rising inflation, interest rates, fuel and utilities are putting pressure on household disposable income.

Fashion retailer Truworths (TRUJ.J) jumped 9.7%, posting its biggest one-day rise in a year and a half, after posting a 9% rise in annual sales

Join now for FREE unlimited access to Reuters.com

Register

Biggest grocer Shoprite (SHPJ.J) rose 4.71% after recording a 9.6% increase in annual sales, while its smaller rival Pick n Pay (PIKJ.J) rose 3 .22% after a 10.7% increase in sales in the 18 weeks to July 3.

“Several JSE-listed retailers released strong operational sales updates this week. Shoprite and Truworths’ FY22 sales growth exceeded market expectations, translating into positive share price reactions. action on both sides that day,” Zinhle Mayekiso, an equity analyst at Anchor Capital, told Reuters. .

She added that the double-digit growth in Pick n Pay sales indicated possible market share gains.

The Top-40 index (.JTOPI) closed 0.95% higher at 62,017 points while the broader all-shares index (.JALSH) rose 0.99% to 68,421 points.

In the currency market, the rand weakened as the dollar appreciated after three straight sessions of decline ahead of a policy statement from the US Federal Reserve. Read more

As of 4:08 p.m. GMT, the rand was trading at 16.9325 to the dollar, 1% lower than its previous close.

The dollar index, measured against a basket of major currencies, rose more than 0.7% to 107.22.

The government’s benchmark 2030 bond was virtually unchanged, yielding 10.680%.

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Bhargav Acharya in Bengaluru, Anait Miridzhanian in Gdansk and Nqobile Dludla in Johannesburg; Editing by Bradley Perrett and Angus MacSwan

Our standards: The Thomson Reuters Trust Principles.

About Mitchel McMillan

Check Also

Allu Arjun and Sneha Reddy prepare to attend a wedding in South Africa. See the pictures

Allu Arjun and his wife Sneha Reddy are making the most of their time in …