JSE closes lower as Steinhoff rally stalls and investor road show fails to boost Naspers
The JSE closed weaker on Wednesday, as Steinhoff failed to hold on to earlier gains, and Naspers dipped after an investor road show in New York. A recovery in the rand boosted banks and financials toward the close. Analysts have warned of the dangers of trading in Steinhoff shares at this stage, as very little information is available about the extent of the accounting irregularities in the group. PwC has been tasked with auditing Steinhoff, but no new information about the release of the group’s results has been forthcoming. A meeting with the group’s bankers is scheduled for December 19. About 40% of Steinhoff’s shares could be affected by short positions. This meant that market players would, in all likelihood, take profit on periodic rises in the group’s share price, which may have been what happened on Wednesday. Steinhoff rose 55.83% on Monday and 25.78% on Tuesday. Naspers closed weaker on muted investor reaction following a road show by CEO Bob van Dijk in New York on Tuesda...
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