STOCKWATCH: Steinhoff adds R42bn in market value in two days
The rally was sparked by Steinhoff’s report of 20.3% growth in its constant currency quarterly retail sales
Steinhoff International came out tops among the blue-chip stocks on the JSE for the second session running, boosting its market value up to 15%, equivalent to about R42bn, and raising its capitalisation to R313.7bn. The two-day rally was sparked by the integrated retailer and manufacturer’s report of 20.3% growth in its constant currency quarterly retail sales. Steinhoff’s share price has been under pressure since August, when it announced the capital raise to fund the multibillion-rand acquisition of UK-based Poundland and US-based Mattress Firm. On Thursday, however, the share price rose 5.73% to R73.75 in late trade on the JSE. Its recent peak was about R93. The South African company, which moved its primary listing to Frankfurt in 2015, generates the bulk of its revenue from Europe, with Africa coming a distant second at 32% and Australasia making up the balance.
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