South African stocks falter

05 Feb, 2015

South African stocks snapped a three-day winning streak on Wednesday as profit taking on retailers such as Woolworths and Mr Price who recently hit all-time highs, while ArcelorMittal rose after flagging a narrower full-year loss. The general retailers index fell 2.3 percent after investors took profits as the indice hit all-time high of 84,327.63 last week.
Nolan Macnamara, a derivatives trader at Nedbank Private Wealth said the investors cashed in on high-end retailer Woolworths and discount fashion seller Mr Price. Woolworths shares fell 3.5 percent while Mr Price slid 1.9 percent. Johannesburg's Top 40 index slipped 0.65 percent to 45,412 and the All-share ended 0.61 percent lower to 51,630. Vodacom, whose shares fell as much as 2 percent, closed 0.17 percent down, after the company said revenue fell due to stiff competition and lower call connection tariffs in its third quarter. "Margins are getting squeezed from the competition entering that specific sector is obviously getting to them," said Macnamara.

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