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03 Jul 2018 17:18
The retailer's stock is still down by over 95% from where it was before news of Markus Jooste's resignation reached the market. (Gallo Images)
The share price of Steinhoff jumped by over 40% on Tuesday, taking the Stellenbosch-headquartered global retailer to its best level since early May 2018.
At 14:08 the stock was changing hands at R1.95 a share, after opening at R1.42.
On Friday Steinnhoff released its unaudited financials for the first six months of the financial year.
While the results were far from positive — and included a R2.4-billion operating loss — they seem to have at least provided investors with a measure of clarity.
“We have actually seen Steinhoff trade as high as R2.13 [on Tuesday],” said Musa Makoni of GT247.com, in response to a request for comment on Tuesday afternoon.
“After the release of its interim results on Friday, I believe there is more information in the market with regard to the remaining assets/business’s ability to continue as a going concern. Losses were reported for the period, but at least the market can make a somewhat more informed decision,” Makoni said.
“We are still waiting for the restated financials from as far back as 2016, if not further. However, if Steinhoff continues to take the necessary steps to improve its liquidity and negotiate with creditors, it might start to look attractive for some investors, as [Tuesday’s] move has shown.”
Steinhoff’s share price plunged in December 2017, when its CEO Markus Jooste stepped down after auditors flagged accounting irregularities in its financial documents. An independent forensic investigation by PwC is ongoing.
Its share price rise on Tuesday came off a low base. The retailer’s stock is still down by over 95% from where it was before news of Jooste’s resignation reached the market. — Fin24
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