NATIONAL NEWS - Market analysts say the resignation of Steinhoff’s chairman Christo Wiese could be viewed as a positive move to clean up the retail group.
Wiese resigned on Thursday night following mounting pressure after the company admitted to fraud.
Steinhoff lost about 90% of its stock value on the JSE after CEO Markus Jooste stepped down last week.
Viv Govender, a senior analyst at Rand Swiss, says that much of the damage has already been done.
“Even if there's like a 50% move this morning, when compared to what happened in one day [when Jooste resigned], because the share price has already fallen so much.”
Meanwhile, Wayne McCurrie agrees, saying that market shares might react positively to Wiese's resignation.
“Because then at least you have a brand new person in there who can hopefully see a little bit more objectively because, of course, Wiese had a significant portion of his wealth in Steinhoff.”
Calls have been made for those working at Steinhoff to come forward to conclude the investigation with speed.
