Mr Price joins blue-chips, shares rise
By Reuters - Sep 19th 2012, 07:55
Shares in Mr Price Ltd rose more than 3 percent on Tuesday after the Johannesburg Stock Exchange (JSE) said South Africa's third-biggest listed clothes retailer would join its blue-chip index next week.
Mr Price, which is valued at 29.7 billion rand ($3.62 billion), rose 3.16 percent to 122.24 rand by 16:33 SA time, extending gains so far this year to more than 50 percent.
South African retailers have been the darling of investors in recent months despite domestic analysts' warnings their share prices have risen to levels from which they can only disappoint.
“Mr Price, as well as most major retailers, is hopelessly overvalued but because its market cap has reached a certain level, it qualifies for inclusion in the index,” Syd Vianello, an analyst at Nedbank Capital, said.
Vianello said foreign investors, benchmarking the sector against little or no growth in developed markets retailers, have been the primary drivers of share price rises.
A Reuters consensus of 11 analysts rates the stock - which trades at 20 times its forward earnings - as “underperform”. Four analysts have a sell rating on it.
More than 40 percent of Mr Price shares are held by foreign investors.
Mr Price is replacing mass market lender African Bank Ltd in the JSE Top-40 index. African Bank, whose share price is virtually unchanged this year, would be demoted to the JSE mid cap index.
The changes will take place from September 25, the JSE said after its quarterly index review
Tough economy put a chill on Mr Price retail sales
23/08/2019 - 09:24
A tough economic climate has put pressure on Mr Price's fashion retail sales, as customer spending remained constrained, the company said in a trading statement for the first four months of its financial year ended March 28.
With banana leaf lamps, H&M backs firms promising social change
15/08/2019 - 10:31
With lampshades made by Indian women and trays from East Africa, H&M said that it had become the latest retail giant to back businesses with a mission to do good, as pressure mounts to end throwaway consumerism.
Naspers's Superbalist eyes R1bn in annual private-label sales
11/07/2019 - 09:31
Superbalist, the SA online fashion retailer owned by Naspers, expects to generate more than R1bn in annual revenue from its private-label, or in-house products, within the next three years.
Mr Price rethinks international strategy after leaving Australia
03/06/2019 - 13:52
Mr Price Group’s new CEO wants the retailer to take a new approach to offshore growth after the group pulled the plug on its fledgling Australian business and as it considers doing the same in Poland.
Mr Price Group's shares rally on annual results
31/05/2019 - 10:16
Mr Price Group’s shares opened sharply higher after the company raised its annual dividend thanks to better earnings.