SA shares edge up on new-look Brait portfolio

South African shares edged up slightly on Friday, underpinned by investment company Brait, which said it would buy a majority stake in British budget clothes retailer New Look.

The African investment heavyweight rose more than 4% to R94.75 after saying it would pay $1.2-billion (about R14.1-billion) for a 90% stake of the retail group.

"This a lot of money that Brait is paying - and the market in the UK is highly competitive," said Wayne McCurrie, a fund manager at Momentum.

"But on the bright side, it is not as risky as Nigeria, for example, and to diversify over time is actually a logical strategic move."

The blue-chip Top 40 index rose 0.2% to 47935 and the broader All Share index was up 0.3% to 54028.

PPC ended 2.7% higher at R17.66 after South African authorities slapped tariffs of as much as 77.2% on Pakistani cement to curb dumping.

Property companies Capital Property Fund and Fortress Income Fund were some of the All Share index top gainers, after adding 5.4% and 7.5% respectively. Fortress plans to acquire Capital.

On the downside, Oceana Group lost the most value, dropping more than 14% after posting half-year earnings that were 11% lower.

Anglo American Platinum shaved 2.5% to R310.16 as ratings agency Goldman Sachs cut the company's price target by R80.

Trade in the market was above average, with 211million shares changing hands compared with last year's daily average of 183million.

The rand erased early losses against the greenback on Friday and was on track for a fourth consecutive daily gain after weak US data knocked the dollar back.

Analysts said hopes of a wage deal in South Africa's public sector also provided a fillip for the local currency, as this would avert a potentially crippling strike.

At 15.01 GMT, the rand traded at 11.7700 to the dollar, up slightly from 11.7820 - the level at which it ended the New York session on Thursday. It was off Friday's low of 11.8800.

US stocks were little changed after a rally on Thursday that pushed the S&P500 to a record-high close.

Data showed US industrial production fell for a fifth consecutive month in April, in part as oil and gas drilling declined.

Also underscoring a lacklustre economic picture for the US were data showing a sharp drop in consumer confidence in early May and a mild rebound in factory activity in New York state.

The reports follow weak retail sales and producer inflation data this week, suggesting the Federal Reserve will probably not raise interest rates any time soon.