Steinhoff – Where is it going?
Continued panic selling has resulted in Steinhoff dropping another 21.6% this morning, this on the back of losing 61% yesterday. SNH is currently trading at R13.80 at the time of writing this article. Steinhoff’s demise has had a knock-on effect on Steinhoff Africa Retail (SRR), Shoprite (SHP) and KAP Holdings (KAP).
Another fact to be mindful of is that the JSE has decided not to suspend the listing of SNH or halt trading in its shares. This can however change. The JSE has requested SNH and its sponsor for details regarding the “accounting irregularities” as a matter of urgency. According to Viceroy Research, the accounting irregularities may be related to “at least 2 off-balance sheet, undisclosed related-party entities”.
Please take care and account of all facts when considering whether to trade Steinhoff.
What to watch today
Gross and net reserves
Europe & UK
Head of Trading and Portfolio Analyst
Stephan heads up Sharenet’s trading desk and is a full-time trader and portfolio analyst, also responsible for equity research across industries. Stephan developed his passion for the markets while working in the Stockbroking division of Standard Bank and is especially passionate about CFD trading. Stephan studied at the University of Stellenbosch and completed a BComm Honours (Business Management) with a focus in Portfolio Management and Bonds. He has also passed the JSE Equity Trader’s Exam, RE5 (Representative) and RE1 (Key individual) Exams as well as the Registered Persons Exams (RPEs) in order to give advice on equities.