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Johannesburg - Retailer Shoprite [JSE:SHP] was one of the big losers on the JSE on Monday, where share prices mostly drifted sideways after a strong start.
Most of the top shares started trading higher but then lost momentum and were only marginally higher by mid-morning, with the major indices also barely in the black. A slightly stronger rand also pushed the big shares slightly lower.
The rand was 0.98% stronger at R14.09, benefiting from an uptick in other emerging market currencies and helped by local exporters selling dollars.
Shoprite was however almost 3% softer by mid-morning as the company indicated that it is considering entering the Kenyan market.
The retail giant, which lost more than 3% over the previous seven days, dropped 2.98% to R201.31 and shares worth more than R80m were sold in early trade.
Shoprite said it is in talks to open its first stores in Kenya by filling retail space left empty by the struggling Nakumatt Holdings chain. The group is awaiting the outcome of merger talks between Nakumatt and local rival Tusker Mattresses before deciding whether to proceed.
Taking over vacated outlets would be the preferred way for Shoprite to enter the Kenyan market, as the retail market there is “too well established” to build new stores.
The group also said it grew South African sales by 8.1% in the three months to end-September, but still kept price increases low amid weak economic growth. The company said it slashed the prices of staples such as maize meal and potatoes, reducing the company’s internal inflation to 0.9% across all products, compared with 7.2% a year ago.
The All-share index was 0.16% stronger at mid-morning on a new high of 58 807 points, and the Top 40 index traded 0.11% higher on a high of 52 462 points. The Industrial index was 0.14% up on a high of 89 685 points, but the Resources index dropped 0.14%. The three big commodity giants, which all made strong gains over the past three months, continued to lose ground after investors started to take profits on Friday.
The firmer rand supported banking shares, with the Financial index 0.40% higher.
The Industrial index was supported by Naspers [JSE:NPN], which gained 0.54% in morning trade to rise above R3 400 for the first time. At mid-morning the share was on another all-time high of R3 427.65.
Two other giants, British American Tobacco [JSE:BTI] and Richemont [JSE:CFR], were lower. British American Tobacco shed 1.25% to R919.83 and Richemont lost 0.49% to R129.68, after closing on an all-time high of R130.32 on Friday.
Sasol [JSE:SOL] was only 0.29% higher at R405.86 and MTN [JSE:MTN] 0.33% stronger at R122.91. Mediclinic [JSE:MEI], which lost more than 12% over the previous 30 days, gave up 0.37% to trade on a 52-week low of R109.59.
Another retailer in the spotlight was Famous Brands [JSE:FBR], which announced a big earnings drop. The share slipped 0.73% to a new 52-week low on news that half-year earnings dropped 59%, after its British business struggled after the UK decided to exit the European Union.
Among the top resources shares BHP Billiton [JSE:BIL] shed 0.27% to R252.00 and Glencore [JSE:GLN] was 0.12% lower at R68.35. Anglo American [JSE:AGL] was 0.37% stronger at R262.75.
Anglo American Platinum [JSE:AMS] continued its strong run and traded 0.71% up to reach yet another 52-week high of R389.97.
