MARKET WRAP: JSE weakens as general retailer index slumps
The index had its worst day in more than three years after disappointing updates from Woolworths and Mr Price
The JSE fell on Thursday, with a hair-raising crash by general retailers the main event, although banks were also under serious strain. Disappointing trading updates from both Woolworths and Mr Price prompted the slide, which spilled over into other sectors of the market. A weaker rand — partially due to a more dovish tone from the Reserve Bank — benefited precious metal miners but put banks under strain. Mr Price plunged 16.69% to R215.90 after saying in a sales update for the December quarter — the third quarter of its financial year — that sales grew a pedestrian 1.9% year-on-year. Retailers had been relying on the festive season and Black Friday to bolster their bottom line. Woolworths fell 9.98% to R49.44 after reporting 1.9% growth in group sales for the 26 weeks to December 24 2018. Analysts said the results were poor, reflecting the strain put on consumers amid tepid wage growth, rising fuel costs, and the increase in VAT. TFG, however, gained 3.24% to R175.49, saying earlie...
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