* Rand at 3-1/2 yr low
* Retailers sold off, mining recovers
By Helen Nyambura-Mwaura
JOHANNESBURG, Oct 8 (Reuters) – South African shares edged
lower on Monday after the rand weakened more than 2
percent, hitting retailers reliant on dollar-denominated imports
such as Mr Price, but rewarding exporters producing in
the local currency.
Investors also punished AVI Ltd, a consumer foods
maker that also sells designer brands such as Kurt Geiger and
Carvela shoes, pushing it 7.3 percent lower to 56.45 rand.
The rand tumbled to a 3-1/2 year low on Monday, losing as
much as 2.4 percent to a low of 8.9950 per dollar, just shy of a
key psychological level at 9.
“All the retailers that are importing are getting knocked
down quite aggressively whereas all the rand hedges that are
producing in rand and exporting in dollars are up today,” said
Robert Towell, a senior portfolio manager at Consilium Capital.
The Top-40 index shaved off 0.55 percent to
32,183.45 while the All-Share lost 0.69 percent to
36,337.39.
Clothing and home goods seller Mr Price plummeted 9 percent
to 116 rand. Grocers Pick N Pay and Shoprite
lost over 4 percent to 41.95 and 157.62 rand respectively.
Continued…
