MARKET WRAP: JSE flat despite Steinhoff recovery, with banks faring worst
The JSE was little changed on Monday, as banks and most retailers came under pressure, while companies recently hit by corporate governance scandals showed signs of recovery.Retailer Steinhoff surged 55.83% to R9.35, after it moved on Sunday to reassure investors by appointing management consultants and rescheduling meetings with its bankers. The group has lost 86.88% so far this year, amid allegations of accounting irregularities.Steinhoff would probably not collapse, but it seemed likely that its recovery would be very slow, said Vestact analyst Paul Theron.Technology group EOH rose 20% in intraday trade‚ but pared some of those gains to close 8.54% higher at R51.48. The group lost 40.64% last week and attributed this to "involuntary trading" due to forced sales of its shares by financial institutions.Some of its subsidiaries, however, face allegations they paid kickbacks, and the group earlier appointed law firm ENS Africa to conduct a full fact-finding review of some of the grou...
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