Friday morning's trading activity on the JSE centred on Richemont
[JSE:CFR] as investors started to take profits after the share moved
steadily upwards over the past few days.
More than 6.4 million
shares were traded by midday on Friday for more than R691m, twice the
volume of any other stock, and the share price dropped 1.63% to R108.21.
That was enough to subdue the Industrial index on Friday morning which was 0.04% lower by midday, but the rest of the market was moderately higher.
The All-share index was just in the black and traded only 0.14% higher at 54 200 points. The Top 40-index was 0.18% stronger, still hovering around the support level of 48 000 at 48 003 points.
The Resource index gained 0.83% and the Gold index 0.49%, while the Financial index traded 0.4% higher.
Richemont announced a drop of 42% in headline earnings for the full year on Friday, but this news did not come as a surprise to the market as there had been enough announcements to prepare investors for the news.
In fact, the last trade warning was on Monday and the share price responded positively over the past four days. Even after Friday morning’s drop, the share price is still 4.52% stronger over the past seven days.
Richemont said the decrease in earnings was due to market-to-market losses on its cash holdings, which can be ascribed to the strengthening of the Swiss franc against the euro after the Swiss government decided to delink the value of the Swiss franc from the euro.
That was enough to subdue the Industrial index on Friday morning which was 0.04% lower by midday, but the rest of the market was moderately higher.
The All-share index was just in the black and traded only 0.14% higher at 54 200 points. The Top 40-index was 0.18% stronger, still hovering around the support level of 48 000 at 48 003 points.
The Resource index gained 0.83% and the Gold index 0.49%, while the Financial index traded 0.4% higher.
Richemont announced a drop of 42% in headline earnings for the full year on Friday, but this news did not come as a surprise to the market as there had been enough announcements to prepare investors for the news.
In fact, the last trade warning was on Monday and the share price responded positively over the past four days. Even after Friday morning’s drop, the share price is still 4.52% stronger over the past seven days.
Richemont said the decrease in earnings was due to market-to-market losses on its cash holdings, which can be ascribed to the strengthening of the Swiss franc against the euro after the Swiss government decided to delink the value of the Swiss franc from the euro.
No comments:
Post a Comment