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Industrials pull JSE lower on Richemont

The JSE opened lower on Monday‚ dragged down mainly by industrial stocks following Richemont’s (CFR) poorly received trading update.

At 9.25am‚ the all share index was 0.39% lower to 40‚009.73 points‚ with the top 40 index shedding 0.50% to 35‚546.69 while industrials shed 0.66%.

The JSE is seen in this file photo: Leon Nicholas. Credit: INDEPENDENT MEDIA

“The heavy sell-off in Richemont stock is weighing on the on the overall market given that the counter makes up a big part of the index‚” said Devin Shutte‚ a trader stockbrokerage Newstrading. “It is a big disappointment given the big run-up in the share price in the lead-up to the trading statement.”

The Swiss-based luxury goods group reported a 5% rise in sales at constant exchange rates in the three months to December to €2.862bn. This was a rise of 9% at actual rates‚ the company said.

Leading Asian markets were mostly lower on Monday‚ with Japanese Nikkei closing 1.52% weaker while the Hong Kong Hang Seng Index was flat at 9.25am local time.

RMB analysts said in a note today’s trade may be limited by the US market holiday but the week will be a busy one. The key event comes on Tuesday when the Bank of Japan announces changes to its policy. It is widely expected to up monetary printing and to raise the inflation target to 2% from 1% as it gives in to pressure from the government.

On the JSE‚ ArcelorMittal SA was down 1.89% to R36.80‚ Pick N Pay lost 1.24% to R44.44 and Richemont tumbled 6.44% to R70.55.

Capital Shopping Centres gained 1.70% to R51.23.

In construction Basil Read Holdings (BSR) gave up 2.20% to R11. - I-Net Bridge

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