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The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Michael Lewis, a non-executive director of listed retailer Foschini, has proven himself to be a savvy trader, netting a cool R5.2m with some smart trade in the company's shares.
Earlier this year, Fin24.com reported that since March this year, Lewis had invested nearly R98m in Foschini stock.
Lewis has purchased more than 2.7 million shares on the open market at an average price of R35.61 over the last six months.
On Thursday, Lewis confirmed that he had sold 888 460 shares for a total return of just under R37m.
If one ignores shares that were purchased before Lewis went on his buying spree this year, then he has realised a return of R5.2m in less than six months on these shares.
On top of the trading profit, Lewis got another kicker in the form of dividends.
Before Foschini announced its financial results in May, Lewis purchased one large tranche of 877 000 shares at R36.70 a share, totalling R32m.
With the company declaring a final dividend of R1.70 per share, Lewis enjoyed an additional R1.5m in dividends.
At a time when global stock markets are under enormous pressure and many of the world's best institutional traders are under struggling to generate a positive returns, Lewis has done extremely well for himself.
Since the start of the year, the JSE's Top-40 index has lost in excess of 35% as the global credit crisis has hit capital markets around the world.
Over the same time, the Foschini share price rose 19% from R35.62 to hit a high of R42.60.
By 16:00 on Thursday, Foschini had declined 1.9% (75c) while the all share index had lost 0.6% (160 points) to 24 762 points.
- Fin24.com