Business Report takes a look at some of the top stories that made headlines over the past year 2017
Steinhoff scandal pulverises shares
STEINHOFF International gives its shareholders a Christmas present they will never forget when it admits to accounting malpractices, dating back to December 2015, that send its share prices tumbling to their lowest-ever recorded level and sheds R190 billion in market capitalisation. The stock falls from R55.50 to R6 in one week of turmoil that sees Markus Jooste resigning his position as chief executive. (Jooste’s net worth is estimated at R5.8bn).
Steinhoff ’s board tries to limit the damage by appointing Christo Wiese as executive chairperson and also contacts PwC to perform an independent investigation. While the share price has rebounded slightly, it is still far from its days of glory as the retailer has yet to publish its audited results for the year to September. – Sandile Mchunu
A few weeks later, President Jacob Zuma axes Gordhan in a midnight cabinet reshuffle and replaces him with Malusi Gigaba. Rating agencies react swiftly with Standard and Poor’s and Fitch downgrading the country’s sovereign rating to non-investment grade in April.
In October, Gigaba delivers his medium-term budget policy statement. S&P immediately downgrades South Africa’s local sovereign credit ratings to sub-investment grade, Fitch keeps local and foreign currency ratings below sub-investment grade and Moody’s places the currency rating on review, keeping it within the key Citi World Government Bond Index (WGBI).
RMB Morgan Stanley projects a potential $5bn (about R67bn) in outflows should South Africa be excluded from this index. – Kabelo Khumalo