JSE opens a little higher as Steinhoff and EOH show signs of stabilisation
The JSE opened marginally higher on Monday as Steinhoff and EOH reassured the market that everything possible was being done to stabilise both companies after sharp setbacks last week.
Steinhoff jumped 16% at the opening before retreating again in volatile trade. The group said in a statement that it was focused on safeguarding operational liquidity to continue funding existing operations throughout its subsidiaries.
"In this context, the group is asking for and requires continued support in relation to existing facilities from all its lenders to achieve an immediate stabilisation of the group’s financing," Steinhoff said.
A meeting with banking creditors that was set for Monday was moved to December 19.
Steinhoff plummeted 89.25% last week.
EOH pledged to act against any identified wrongdoing or misconduct involving any individual or entity. It has appointed Edward Nathan Sonnenbergs to conduct a full fact-finding review of three companies fingered in reports for alleged illegal share transactions.
EOH dropped 40.64% last week.
Retailers and banks were lower on the rand, which was trading at R13.6518/$ from R13.6874/$ soon after the JSE’s opening.
At 9.30am the all share was up 0.23% at 58,147.30 points and the blue-chip top 40 had risen 0.36%. Platinum added 0.7% and industrials 0.44%. General retailers shed 1.15%, food and drug retailers, 0.78% and banks 0.35%.
Asian markers were up following the Dow’s firmer close on Friday. The Hang Seng rose 1.09% and the Nikkei 225 added 0.56%.
Among rand hedges, British American Tobacco rose 1.11% to R910.
Anglo American Platinum rose 1.31% to R354 and Lonmin added 3.93% to R10.85.
Steinhoff rocketed 25% to R7.50 and Steinhoff African Retail 6.06% to R18.56. Brait shed 3.32% to R37.80 and Shoprite 0.39% to R215.50.
EOH was up 19.25% to R56.99.
Naspers rose 1.4% to R3,670.
Sappi lost 0.59% to R97.70.