TRADING OUTLOOK
Steinhoff share price bounces back from low point
Analysts say it is still impossible to gauge the embattled global retailer’s true share value
Embattled global retailer Steinhoff International recovered as much as 24.5% on Monday, before paring gains, as it bounced back from a low of R2.85 per share last week. The company’s share price has been volatile since December when CEO Markus Jooste resigned and as it emerged its financial results could not be trusted going back to at least 2015. Investors are waiting for restated results, while class-action lawsuits on behalf of shareholders have further clouded the company’s outlook. Analysts said it was still impossible to gauge Steinhoff’s true share value. Steinhoff’s financial picture remained opaque, but the possible sale of further Steinhoff Africa Retail (Star) shares pointed to serious liquidity issues, said Anchor Capital chief investment officer Sean Ashton. Along with the possible sale of Star shares, a number of senior managers at Steinhoff’s offshore operations had resigned, said independent analyst Syd Vianello. The sale of Star shares suggested the company was runn...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.