The JSE powered above 65,000 yesterday before retracing some of its strong gains in afternoon trade. The usual suspects, Naspers and Prosus, were behind the strong gains. But Woolworths also rallied after the retailer released a better-than-expected trading statement for the first half of its financial year, with particularly strong food sales in the run-up to Christmas.

Meanwhile, it seems that South Africans are also spending more on DIY and home improvement projects. Cashbuild has reported a strong rise in first-half sales and expects earnings to at least double. That ties in with Massmart's sales update last week, which showed resilience in those categories.

Steinhoff's shares also rose after it said it was evaluating options for its European retail business after putting its plans on the back burner due to Covid-19. Meanwhile, Ascendis is reevaluating the planned disposals of some of its businesses after a consortium of creditors stepped in proposing an alternative.

Finally in today's newsletter, Harmony Gold is on track to meet this year's production guidance, supported by the acquisition of AngloGold Ashanti's SA gold assets, and Old Mutual says it will report a decline in earnings due to the impact of Covid-19 on its operations.

I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

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