Sasol's shock slump has wiped out billions - but it's not even among the 10 biggest one-day falls on the JSE
- It has been a tough week on the JSE, with Sasol losing 13% in a single session.
- Massmart slumped 14% on Thursday.
- But painful as they are, these falls do not rank among the biggest one-day falls on the JSE.
- TimBukOne has compiled a list of the slumps among the JSE's largest shares - and Sappi tops the list.
- For more, go to Business Insider SA.
On Wednesday, Sasol’s share price lost 13% of its value, followed by another 5% on Thursday – wiping R38 billion off its market capitalisation.
The market was displeased after Sasol admitted that its embattled Lake Charles Chemicals Project in Louisiana in the US will now cost as much as $12.9bn - that’s almost $1bn more than the company expected three months ago.
JSE is becoming a minefield. Yesterday it was Sasol down 13%. Today Massmart down 13% and Brait down 11%. Thing is, a return of 10% per annum is hard to come by for most investors. And then it is wiped out in one day.— Karin Richards (@Richards_Karin) May 23, 2019
Sasol wasn't the only large company to suffer big losses. On Thursday, Massmart’s share price tanked by 14% in a single day - after warning that its earnings for the current six months will be at least 50% lower than last year.
Painful as they were, these losses do not even rank among the top 10 one-day slumps on the JSE
TimBukOne, a financial software company for the investment market, has compiled a list of the largest one-day falls among the forty biggest shares since 2000 (excluding unbundlings):
1. SAPPI 17 November, 2008 -41.39%
Sappi announced that it would launch a massive rights issue to fund its planned acquisition of Finland's M-real for 750 million euro. The market was not excited.
2. MR PRICE 21 November 2000 -30.69%
Mr Price warned of a steep profit fall for the six months to end September 2000.
3. ASPEN PHARMACARE 8 March 2019 -28.69%
The share price fell amid concerns that the sale of its infant formula business would be delayed. Aspen’s total debt burden reached R53.5 billion, which is more than its market value.
4. CAPITEC BANK 10 June 2002 -20.00%
On Monday, 10 June 2002, the company’s shares started trading ex-dividend – meaning that investors didn’t qualify any more for receiving a dividend of 28.5c per share.
5. MTN 30 August 2019 -19.41%
The share dropped to its weakest level in nine years after Nigeria’s central bank accused it of illegally moving money out of the country, and ordered it to repay more than $8 billion.
6. THE FOSCHINI GROUP 7 November 2000 -19.00%
The market was not pleased with a 22% slide in its headline earnings as its newly acquired Totalsports dragged on profitability.
7. ABSA 15 January 2002 -16.44%
Absa warned that its subsidiary UniFer, at that stage SA’s second-biggest microlender, had suffered “unforeseen losses”.
8. ANGLO AMERICAN PLATINUM 20 November 2008 -16.13%
The share slump followed a profit warning, revealing that its earnings for the year to December 2011 would be significantly lower.
9. REDEFINE PROPERTIES 4 July 2003 -16.08%
Redefine issued a trading update, warning of a "material reduction" in its income.
10. ANGLO AMERICAN 20 February, 2009 -15,89%
The company reported a 9% drop in earnings in its 2008 annual results.
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