Retail stocks are once again making their presence felt on the JSE, having gained substantially on the momentum created by Cyril Ramaphosa’s ascent to the presidency. Truworths International, TFG and Spar will, along with Imperial, be included in the JSE’s top 40 index later in March, replacing Steinhoff International, Intu, Resilient and Fortress. The three retailers will join Woolworths, Mr Price and Shoprite in the coveted index, which is closely tracked by institutional investors and other market watchers. Retailers have been some of the biggest gainers since November, when the market began to price in the expected positive political changes. The upshot of these shares’ higher prices is that as the local economy improves, so too will their earnings. TFG’s share price has jumped 60% on the JSE since November, Truworths 36% and Spar 32%. Prior to the improvement in sentiment, local retailers in general had a rough time stretching back several years, as weak economic growth shrunk ...
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