JSE hits a new high

The JSE's All Share Index reached a new high yesterday despite lingering tensions in the gold mining industry and moderate estimates for growth.

Furniture manufacturer Steinhoff International, Aspen Pharmacare and media giant Naspers led the charge as the Alsi gained 0.77% to close on 43752 points.

Concerns over economic growth has not derailed the index as it gained 11% so far this year.

A poll of economists by Reuters revealed that most expect growth to slow through the rest of this year after a strong second-quarter performance.

They blame widespread industrial strife for the slowdown.

Surveyed over the past 10 days, the poll's 19 economists trimmed their median growth outlook for this year to 2%, about 0.2 percentage points lower than last month's consensus.

This is in line with the Reserve Bank's latest forecast.

Slowing growth and fears that consumers are over-indebted have dampened the lust for shares in retailers. Last year, the darlings of the JSE, retail companies this year lost more than 9%.

Massmart, which has stores such as Game and Makro in its stable, made up some ground yesterday as its share price climbed 4%. Shoprite also rose about 2%.

Data two weeks ago showed economic growth hit an annualised 3% in the second quarter, up from 0.9% in the first three months of the year, partly due to the gradual improvement in developed world economies.

But that looks set to slow down markedly this quarter to 2.3% after strikes in the country's key mining industry.

And the possibility of a strike in the gold industry still looms large.

Gold shares yesterday took a beating for the third day this week as the gold price dipped by more than 2% and the possibility of an unprotected strike by the Association of Mineworkers and Construction Union.

Gold Fields saw its share price fall by nearly 6% yesterday, while AngloGold Ashanti dipped by almost 3.5%.

Steinhoff, which announced earlier this week that its operating profit increased 41% to R11-billion in the last year, gained 2.8% to close on R33.35.

Naspers's share price was up 2.6%, while Aspen Pharmacare climbed nearly 4% on the day. (Additional reporting by Reuters)