Re­tail sec­tor weighs on the bourse

The Star Early Edition - - PRICES -

STOCKS turned lower yes­ter­day led by the re­tail sec­tor after cloth­ing retailer Mr Price re­ported low third-quar­ter sales.

The bench­mark JSE Top40 in­dex dropped 0.62 per­cent to 46 045.01 points while the all share in­dex de­clined 0.64 per­cent to 52 817.73 points.

The re­tail sec­tor ended a two-day rally, drop­ping 2.07 per­cent after in­dus­try barom­e­ter Mr Price re­ported lower third-quar­ter sales. Weak eco­nomic growth and tough com­pe­ti­tion forced the no-frills retailer to sell its cloth­ing at lower prices.

“The weak sales per­for­mances re­flect an ap­parel mar­ket that is chal­lenged by a com­bi­na­tion of new com­pe­ti­tion, dis­count­ing of ex­ces­sive stock and a cau­tious con­sumer,” Kag­iso As­set Man­age­ment as­so­ci­ate port­fo­lio man­ager, Si­mon An­der­ssen, said.

Mr Price re­treated 4.79 per­cent to R156, com­peti­tor Tru­worths dropped 3.21 per­cent to R82.81 and jew­ellery and fur­ni­ture retailer The Fos­chini

Group was down 3.09 per­cent to close at R163.30.

Mean­while, US stocks came off ses­sion lows yes­ter­day af­ter­noon as gains in con­sumer sta­ples stocks coun­tered the de­cline in banks and health­care com­pa­nies.

The Stan­dard & Poor’s 500 health­care sec­tor was down 0.85 per­cent.

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