Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Italtile Falls on Speculation Rally Overdone: Johannesburg Mover

Italtile Ltd. fell the most in almost seven months on a technical signal the shares would drop and amid speculation a 25 percent gain this year was overdone.

The ceramic-tile retailer dropped 6.2 percent, the most since Jan. 24, to 6.10 rand by the close in Johannesburg.

Italtile’s relative-strength index advanced to 85 yesterday, above the 70 level that signals a stock is due to decline. Before today’s decline, the company had climbed 13 percent since issuing a trading statement on Aug. 6 saying profit would be 17 percent to 19 percent higher, pushing shares to the most expensive since November 2007. Earnings per share increased 18 percent to 41.1 cents, the company said in a statement today.

“The multiple is trading around 16 times earnings; it’s fairly high for Italtile,” Anton Solomons, a retail analyst at Thebe Stockbroking Pty Ltd., said by phone from Johannesburg. “The market is seeing a lot of the earnings growth has been captured in the share price.”

Sales in the year through June increased 16 percent to 3.52 billion rand ($429 million). Profit margins narrowed as price increases were kept below inflation, even after higher energy costs and currency volatility, the company said.

The company’s RSI, which measures how rapidly the stock rose or fell, retreated to 58 today.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.