SA stocks falter as investors sell retail shares

Johannesburg - South African stocks snapped a three-day winning streak on Wednesday as profit taking on retailers such as Woolworths and Mr Price who recently hit all-time highs, while ArcelorMittal rose after flagging a narrower full-year loss.

The general retailers index fell 2.3% after investors took profits as the indice hit all-time high of 84 327.63 last week.

Nolan Macnamara, a derivatives trader at Nedbank Private Wealth said the investors cashed in on high-end retailer Woolworths [JSE:WHL] and discount fashion seller Mr Price [JSE:MPC]. Woolworths shares fell 3.5% while Mr Price slid 1.9%.

READ: JSE takes a breather

Johannesburg's Top 40 index slipped 0.65% to 45 412 and the All-share ended 0.61% lower to 51 630.

Vodacom [JSE:VOD], whose shares fell as much as 2%, closed 0.17% down, after the company said revenue fell due to stiff competition and lower call connection tariffs in its third quarter.

"Margins are getting squeezed from the competition entering that specific sector is obviously getting to them," said Macnamara.

Shares in Africa's largest steel-maker ArcelorMittal [JSE:ACL] South Africa rose 5.3% after the firm said it expected to narrow its full-year loss. The company's shares are down about 30% over the last year compared to the All-share index's 13% rise over the same period.

Trade was brisk with some 271 million shares changing hands, compared to last year's daily average of 185 million shares.