SHARES SURGE
Stronger rand lifts clothing retailers
Share prices of clothing retailers rose strongly on Tuesday, lifted by the stronger rand, but analysts suspect the rally may end soon. South African bonds strengthened shortly before midday on Tuesday, while the rand was steady, as events at the ANC national elective conference continued to unfold. On Monday, the rand rallied to a nine-month high to the dollar after Cyril Ramaphosa won the ANC party leadership vote. A statement by ratings agency Moody’s Investors Service also supported sentiment. It said Ramaphosa’s victory opened up the prospect of a policy shift and a rise in business confidence that could reverse the deterioration in the country’s credit fundamentals. Mr Price rose 9.97% to R250.18, Truworths gained 9.5% to R95.76, while TFG increased by 13.92% to close at R194. Momentum Securities equity research analyst Brian Mugabe said the surge in the share prices was driven by the stronger currency. "When the rand strengthens, so do these retail companies," he said. Retaile...
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