South African investors will focus this week on retailers Pick 'n Pay and NuClicks, which are due to post half-year and full-year results, while watching out for the impact of volatile commodities.
"Retailers will be in vogue once again with the results and the trading update from Lewis today (Friday)," said Doug Blatch, chief trader at Investec Asset Management.
Food retailer Pick 'n Pay is expected to announce impressive half-year earnings on Tuesday. The company earlier said it sees an improvement of up to 20 percent in its headline earnings per share of 44.57 cents for the previous period.
Including the proceeds of the sale of its homeware division Boardmans, the earnings per share will jump by up to 40 percent. Headline earnings per share strip out non-trading, extraordinary and capital items.
Lewis's positive trading update added to already strong sentiment in the retail sector.
The furniture retailer, controlled by the UK's Gus, listed early this month and said on Friday it sees its headline earnings per share jumping by up to 60 percent for the half year to September. Health and beauty retailer NuClicks is set to disappoint, analysts said.
The company, which releases full-year results on Thursday, has warned that it would post a diluted attributable loss. It said this was due to a 273 million rand ($42 million) write-off stemming from its acquisition of pharmacy group Milton Purchase & Associates.
Analysts polled before the update expected a 17.5 percent rise in earnings in line with the company's most recent projection of between 12.5 percent and 17.5 percent.
Retailers have rallied on Johannesburg's stock market due to impressive earnings boosted by strong consumer confidence.
High prices could dampen the positive outlook for inflation in South Africa while petrochemicals group Sasol and BHP Billiton would gain, analysts said.
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