Stein­hoff’s new deal soft­ens min­ers’ blow

The Star Early Edition - - PRICES - Reuters Stein­hoff ican An­glo Amer- BHP Bil­li­ton Om­nia

STOCKS ended lower yes­ter­day, dragged down by min­ing shares as metal prices fell, but Stein­hoff jumped after the fur­ni­ture company un­veiled a $5.7 bil­lion (R62.5bn) deal to en­ter the ap­parel mar­ket.

The bench­mark Top40 in­dex was down 0.38 per­cent at 44 909.52 and the broader all share in­dex was off 0.43 per­cent at 50 507.59.

surged 4.5 per­cent to R58.49, its big­gest daily per­cent­age gain in more than a year.

The no-frills fur­ni­ture firm will buy cloth­ing re­tailer Pep­kor in a deal that gives ex­po­sure to Africa’s fast­grow­ing ap­parel mar­ket and strength­ens its business in east­ern Europe.

“It’s all about mov­ing low-mar­gin prod­ucts in high vol­umes. Stein­hoff al­ready does that with fur­ni­ture and Pep­kor does that with cloth­ing, footwear and house­hold goods. This deal will add a new di­men­sion to Stein­hoff,” said Reuben Beelders, a port­fo­lio man­ager at Gryphon As­set Man­age­ment.

Over­all, the stock mar­ket fell for a sec­ond straight day as fall­ing com­modi­ties hit min­ing shares. Bourse heavy­weight

was down 1.27 per­cent at R229.19 and ri­val lost 1.46 per­cent to R276.16.

plunged 11.23 per­cent to R191.50 after the fer­tiliser maker posted a 5 per­cent de­cline in firsthalf profit.

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