JSE ends at record level, but Steinhoff slumps

The JSE closed at a record high yesterday, with broad-based gains led by banks, but trading was marred by a sharp retraction in Steinhoff.

It plummeted 14% to levels last seen in November 2014.

This followed reports that German prosecutors were investigating Steinhoff chief executive Markus Jooste and other senior managers at the group, in connection with suspected balance-sheet fraud involving hundreds of millions of euros.

Steinhoff was under immediate pressure on the news, falling 8% in morning trade, before recovering somewhat at midday, only to fall sharply again in afternoon trade as the company refused to comment.

Steinhoff ended 9.81% lower at R59.59, but Shoprite added 1.59% to R219.35.

Banks and financial stocks were supported by a steady rand and optimism about further interest-rate cuts, while retailers were under pressure following weak results from Woolworths and Massmart.

Industrials were buoyed by Naspers closing above R3 000 a share, with analysis indicating it could reach R3 250 a share in the short term.

Again, it was its interest in Chinese internet company Tencent that caused the hike. It was uncertain if the JSE allshare will be able to sustain the higher levels on the back of low economic growth and pressure on consumers.

The index closed 0.76% higher at 56 589 points and the blue-chip Top 40 added 0.74%.

Platinum stocks rose 1.73%, banks 1.48%, financial shares 1.29%, industrials 0.6%, general retailers 0.51% and property 0.45%. –