Lower JSE bucks positive world markets
The JSE dipped on Thursday, as the value of Steinhoff shares sank further, dragging down associated stocks.
The consumer goods retailer has lost more than two-thirds of its value in two sessions, after CEO Markus Jooste quit amid accounting irregularity claims.
"Without clarity, markets tend to think of the worst possible scenarios," said David Shapiro, deputy chairperson at Sasfin Securities. "You can’t afford to be complacent, especially if you are managing people’s money."
ICT group EOH, which was recently tainted by allegations of government tender irregularity before being subsequently cleared, fell nearly 20% on Thursday, its lowest level since July 2013.
But other industrial stocks and resources rebounded from a recent sharp sell-off, a development that provided some cushioning to the blow in the local share market.
Thus, the all share was off 0.24% to 57,872.70 points at lunchtime, with the top 40 shaving off 0.15%.
Banks were down, in line with a weaker rand, but insurance stocks broadly held up, with Sanlam a standout performer, a day after releasing its operational update.
The global backdrop was positive, with Europe’s leading markets moving higher at midday, following a positive handover from Asia.
Steinhoff International Holdings was off 31% to R11.95, Steinhoff Africa Retail dropped 14% to R16.30 and Shoprite 3.2% to R215.98.
PSG shed 2.75% to R268.80 and Brait 3.86% to R40.59.
Capitec was off 2.25% to R955 and Discovery Holdings 1.73% to R160.48.
Vodacom dipped 2.26% to R141.49 and MTN 2.49% to R127.01. EOH slid 14% to R61.
But Naspers was up 2.53% to R3,532.06
AngloGold Ashanti was off 2.72% to R122.60 but Impala Platinum gained 3.8% to R31.94. Exxaro was up 2.32% to R143.25.