Investors are shell-shocked after the market witnessed a stunning crash yesterday. Shares in the biggest retailer in Africa, Steinhoff, went into free-fall and fell by more than 61% as the JSE opened – plunging from R45.64 to around R17.50. The company fell even further during the day. This means that more than R130 billion was wiped off the company’s market capitalisation or value in one day. And R180 billion was wiped off all related companies combined.
Christo Wiese Lost R28bn In A Day
Following Tuesday evening’s announcement that Steinhoff would not be publishing its financial results due to allegations of accounting fraud, South African billionaire and chairman of the company Christo Wiese has seen his net worth halved. Retail tycoon Wiese, who owns 23% of Steinhoff, was named as the fourth richest person in South Africa with a net worth $5.5 billion of according to a January 2017 report by Forbes. This amount was nearly halved on Tuesday as shares in the company dropped to R17.56, a loss of R28.09 or 61.53%, shortly after the JSE opened. According to Forbes’ real-time tracker, Wiese lost $2.1 billion (R28.3 billion) by 11:40AM on Wednesday. This equates to a loss of 54.2% of his total net worth since 5PM EST on Tuesday (midnight local time).
Bitcoin Soars Past R14000
Bitcoin climbed as much as 7.9% on Thursday as it surged above $14 000, extending this month’s advance to more than 40%. The price of the cryptocurrency touched $14 399.99, a new record, according to Bloomberg pricing
Mugabe’s Missing $15 Billion Saga
Zimbabwean opposition parties have welcomed a call by Zimbabwean President, Emmerson Mnangagwa for all persons who under Mugabe’s rule, externalised money to return the said monies within three months. Mnangagwa has set the amnesty deadline line to February for the return the ill-gotten wealth with the promise prosecution post deadline. Former Zimbabwean President, Robert Mugabe previously revealed that the country had “lost” an amount of USD $15 billion in diamond mining revenue. The missing money is believed to have been externalised and squandered by government officials with the aid of dodgy investors.
New Regulation Structures For Financial Services Sector
At present, South African insurers, pension funds, collective investment schemes and other financial services providers are regulated by the Financial Services Board (FSB), whereas banks are regulated by the South African Reserve Bank (SARB). Each institution is required to comply with its own industry-specific legislation. The current Financial Services Board (FSB) will be transformed into the FSCA – responsible for regulating how firms conduct their business, design and price their products and treat their customers. While the Prudential Authority will regulate financial institutions’ solvency and liquidity.
Tshwane Asks Treasury For Help
Tshwane city manager Moeketsi Mosola has approached National Treasury to help draft a financial recovery plan that might see it restructuring income and expenditure in its current approved budget. Tshwane’s creditors amount to R6.9 billion and include service providers such as Eskom, Rand Water and many small businesses that are normally dependent on timeous receipt of the payment for the services rendered.
Currencies: R223,400 . Ether R5,922 . R/USD13.54 . R/GBP18.07 . R/EUR15.97