Retailers pull JSE off record high
Jan 31st 2013, 09:29
Johannesburg - The JSE closed in negative territory on Wednesday as it pulled back from a fresh intraday high following a serious tumble by retail counters.
A weaker than expected trading update from Cashbuild (CSB)‚ which caused the counter to shed 8% on the day‚ set the tone for the entire sector. Gold miners provided some upside‚ however‚ after the US announced a weaker than expected preliminary reading on US fourth quarter economic growth.
Cashbuild’s revenue in its second quarter to December 2012 was up 1% from a year earlier. In the past three years‚ revenue growth for the company had been above 8%.
At 17:00 the All Share [JSE:J203] index closed 0.47% lower at 40 461.18 points‚ with the Top 40 - (Tradeable) [JSE:J200] index giving back 0.43% to 36 082.03 points. Retailers closed down 4.17%‚ while gold miners closed 0.73% firmer.
Leading European bourses were also trading weaker in late trade‚ with the UK FTSE 100 index seen flat (-0.09%) and the Paris CAC40 index 0.56% softer at 17:00 local time. The Dow Jones Industrial index was trading flat (-0.07%) at 13 943.01 points.
“The retail sector stood out like a sore thumb due to foreigners selling their shares‚ with a lot the retailers’ biggest shareholders being foreigners‚” said Francois Venter‚ equity dealer at Investec Asset Management.
“Retailers have had a massive run since 2008‚ with the index gaining 300% up till now‚ and this looks like a correction that everybody has been anticipating‚” he added.
“Gold miners traded higher after preliminary US 4th quarter GDP figures came out lower than expected at -0.01% from an expected 1% uptick‚ therefore gold counters added value‚ because investment in gold is seen as a safe haven‚” he said.
Among individual shares on the JSE‚ retailer Cashbuild (CSB) closed 7.90% lower at R136.68‚ Truworths (TRU) shed 5.71% to R99.00 and Mr Price (MPC) gave back 5.13% to close at R117.50.
Gold miners Harmony (HAR) added 1.61% to R61.98 and Anglogold Ashanti (ANG) added 0.88% to R252.
Platinum counter Lonmin (LON) was down 3.74% to R45.00‚ while ArcelorMittal SA (ACL) gained 2.16% to R35 and Kumba Iron Ore (KIO) lifted 3% to R598.43.
Poultry producer Astral Foods (ARL) shed 7.16% to R93.95 after the company said on Wednesday it anticipated its headline earnings per share in the six months to March 2013 to drop by between 75% and 95% from the same period a year ago.
Consumers are pushing transformation in the retail industry
18/10/2019 - 10:54
Hearing from some of the best speakers in the retail industry, 480 minutes of thought-provoking and relevant insights, amazing networking opportunities and the exchange of ideas. The realisation that the retail sector is rapidly changing and to survive and ensure sustainability, businesses need to evolve – it is no longer a ‘nice to have’ – it’s a necessity – this was the 2019 SACSC Congress.
Online shopping business to shake up retail sector
12/09/2019 - 09:40
Allsale Club is a members-only online shopping business that aims to save consumers money on everything from everyday branded items to luxury items.
Cashbuild flags tough environment amid rationalisation strategy
03/09/2019 - 12:51
Building materials retailer Cashbuild weathered a tough trading environment to deliver 3% growth in operating profit for the year to end-June, boosted by an extra trading week and the addition of 11 new stores.
Retail stocks: Look out for the potholes and opportunities
26/08/2019 - 16:22
Retailers and wholesalers on the JSE have been clobbered since their respective 2018 financial results.
Retail boost could steer SA away from a recession
12/08/2019 - 12:37
A rebound in economic growth in the second quarter of the year will likely see SA avert its second recession in two years.