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Stocks bounce as Woolies and Barloworld set the pace

Stocks bounce as Woolies and Barloworld set the pace < News < Bet On Markets

Johannesburg — Stocks bounced from the previous day’s losses to fresh highs yesterday, buoyed by retailers, industrials and banks, with Woolworths Holdings and Barloworld setting the pace.

«There’s some stock picking in the retail, banking and industrial sectors,» said Wilmar Buys of FFO Securities.

«I expect Woolworths to do well in the festive season sales. Banks will remain buoyant, with Absa still a takeover target of Barclays.»

The FTSE/JSE Top40 index of blue chips clawed up 0.8 percent to 11 373.69 points and the FTSE/JSE all share index marched 0.7 percent to 12 577.93 points.

The banking index ticked up 0.21 percent, the industrial index was up 0.64 percent, while the gold index fell 0.73 percent.

Woolworths jumped 5.39 percent to R10.75 and diversified industrial group Barloworld rose 3.21 percent to R101.40.

Investment banking group Investec also helped push the bourse higher, rising 3.05 percent to R169.

Traders said the possible acquisition of a majority stake by Barclays in Absa, one of South Africa’s big four banks kept the sector upbeat.

Investment holding firms VenFin and Remgro ran up 1.96 percent to R26 and 2.55 percent to R90.24 respectively. Remgro last week announced a 3 percent increase in interim headline earnings.

Alliance Capital shares closed down 0.62 percent at R16.

Gold miner Harmony Gold fell 0.81 percent to R61.50 and its hostile takeover target, Gold Fields, lost 0.55 percent to R81.75 as the uncertainty of its intended takeover of Gold Fields persisted.

The world’s second-largest gold company, AngloGold Ashanti, fell 0.83 percent to R231.51.

Shares in Africa’s biggest mobile operator by revenue, MTN, fell by 1.23 percent to R40.

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