Steinhoff former chief executive Markus Jooste. Photo: Armand Hough/African News Agency (ANA)

DURBAN – Steinhoff International share price was on a free-fall last week, shedding more than 17 percent after the allegations that its former chief executive Markus Jooste tipped some of his friends to sell the shares just before the accounting irregularities emerged in December. 

The latest developments have hurt the group’s share price as it declined to R2.05 a share on Friday afternoon on the JSE, its lowest levels in almost two months. 

The stock declined by 43 cents during the week after opening at R2.48 on Monday morning.   

Ron Klipin, a senior analyst at Cratos Capital, said the cover-up seemed to be deepening with insider trading allegations becoming more prevalent.

“This is obviously impacting on the share price with negative sentiment escalating with a potential widening in the credibility gap,” Klipin said.

In a period of just more than 10 months, Steinhoff’s share price has shed more than 95 percent and wiped more than R200 billion in market capitalisation.

BUSINESS REPORT