The JSE Closed Higher Yesterday Following Positive Retails Sales Data for September

The JSE closed 0.05 percent higher yesterday as investors were pleased with data released by Statistics South Africa (Stats SA) showing a firmer retail sales performance for September. According to the figures released, retail trade sales increased by 2, 3% year-on-year in September 2014. The highest annual growth rates were recorded for, retailers in hardware, paint and glass (6, 1%); retailers in pharmaceuticals and medical goods, cosmetics and toiletries (4, 6%); retailers in household furniture, appliances and equipment (3,6%); and; all ‘other’ retailers (3,6%). The main contribution to the increase was the general dealers who contributed 0.8% of the 2.3%. It was also noted that month on month change in retail sales was 0.5%. Retail trade sales increased by 2, 2% in the third quarter of 2014 compared with the third quarter of 2013. The main contributor to this increase was general dealers (2, 6% and contributing 1, 1 percentage points).

The markets responded positively to this with the retailers topping the list of winners on the JSE yesterday. Tiger Brands was the biggest winner with its shares up 3.9%, BIDVEST up 2.1% WOOLIES up 2.0%, Standard up 2.0% and Nedbank 1.9%

The biggest losers included Mondi LTD down 3.2%, Mondi PLC down 3.0% Medicine down 2.0%, Naspers down 1.8% and INTU PLC down 1.6%.

Investors on the JSE today will be watching three sets of data to be released by stats SA today.

  • Wholesale trade sales, September 2014,
  • Mining: Production and sales, September 2014
  • Motor trade sales, September 2014

Analyst’s expectations are that there will be significant improvement in both the wholesale trade sales and motor trade sales for September. Mining production and sales for September is also expected to show a rebound after production in the previous months were subdued due to strike actions in July.

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