JSE to review trading activity ahead of Dis-Chem report
The drop in Dis-Chem’s share price on Thursday – just before its financial results were released – was probably due to the market realising that it would miss earnings expectations, the retailer’s management team said on Friday. Analysts expressed concern that Dis-Chem stock fell as much as 5.6% on Thursday, the day before the group released annual results that fell short of consensus forecasts. Dis-Chem chief financial officer Rui Morais said investors had expected a trading statement saying earnings would jump by more than 20%, although they had not factored in the group’s investments in its wholesale business, which dented profits. "It’s not our place to comment [on the share decline], but from a governance perspective, we handled the results as we should have," he said. "There was no need to release a trading statement, but I suspect that there was an expectation of one based on consensus, and as of [Thursday] it wasn’t out, so there would have been trade on the basis that we we...
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