• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

Retailers pull JSE off record high

Jan 30 2013 14:32
I-Net Bridge
Johannesburg - The JSE closed in negative territory on Wednesday as it pulled back from a fresh intraday high following a serious tumble by retail counters.

A weaker than expected trading update from Cashbuild (CSB)‚ which caused the counter to shed 8% on the day‚ set the tone for the entire sector. Gold miners provided some upside‚ however‚ after the US announced a weaker than expected preliminary reading on US fourth quarter economic growth.

Cashbuild’s revenue in its second quarter to December 2012 was up 1% from a year earlier. In the past three years‚ revenue growth for the company had been above 8%.

At 17:00 the All Share [JSE:J203] index closed 0.47% lower at 40 461.18 points‚ with the Top 40 - (Tradeable) [JSE:J200] index giving back 0.43% to 36 082.03 points. Retailers closed down 4.17%‚ while gold miners closed 0.73% firmer.

Leading European bourses were also trading weaker in late trade‚ with the UK FTSE 100 index seen flat (-0.09%) and the Paris CAC40 index 0.56% softer at 17:00 local time. The Dow Jones Industrial index was trading flat (-0.07%) at 13 943.01 points.

“The retail sector stood out like a sore thumb today due to foreigners selling their shares‚ with a lot the retailers’ biggest shareholders being foreigners‚” said Francois Venter‚ equity dealer at Investec Asset Management.

“Retailers have had a massive run since 2008‚ with the index gaining 300% up till now‚ and this looks like a correction that everybody has been anticipating‚” he added.

“Gold miners traded higher after preliminary US 4th quarter GDP figures came out lower than expected at -0.01% from an expected 1% uptick‚ therefore gold counters added value‚ because investment in gold is seen as a safe haven‚” he said.

Among individual shares on the JSE‚ retailer Cashbuild (CSB) closed 7.90% lower at R136.68‚ Truworths (TRU) shed 5.71% to R99.00 and Mr Price (MPC) gave back 5.13% to close at R117.50.

Gold miners Harmony (HAR) added 1.61% to R61.98 and Anglogold Ashanti (ANG) added 0.88% to R252.

Platinum counter Lonmin (LON) was down 3.74% to R45.00‚ while ArcelorMittal SA (ACL) gained 2.16% to R35 and Kumba Iron Ore (KIO) lifted 3% to R598.43.

Poultry producer Astral Foods (ARL) shed 7.16% to R93.95 after the company said on Wednesday it anticipated its headline earnings per share in the six months to March 2013 to drop by between 75% and 95% from the same period a year ago.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

jse  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote