Woolworths jumps 5% after trading update

Woolworths' (Woolies) shares jumped more than 5% on Wednesday, boosting its market value by R5bn, as investors welcomed its trading update.

The retailer expects sales in the 52 weeks to June to jump by 54.9%, boosted mainly by David Jones, which it acquired last year for just over R20bn.

Excluding the Australia-based David Jones, total sales rose just 12%. Woolies, which is geared to predominantly high-end consumers, said food sales lifted 13.5%.

The top-40 counter, which will release its full-year results on 27 August, was up 5.23% to R99.74 in mid-morning trade, giving the company a market cap of R104bn.