Myer shares tank

Kieran Salsone

SHARES of Myer touched a record low and David Jones stock hit their lowest since March 2009 after Goldman Sachs analysts cut their rating on the two department store operators and predicted the retail slump would drag into next year.

The investment bank said both retailers would suffer from weak sales and lower profit growth for the rest of this financial year because consumer spending appeared likely to remain weak.

Goldman's retail analyst, Phillip Kimber, cut the bank's rating on Myer from ''buy'' to 'hold,'' while the David Jones was downgaded from ''hold'' to ''sell.''

Myer shares had recovered to end the day up 1 cent for the day, or 0.5 per cent, to 199 cents. Earlier, though, they fell as low as 195.5 cents - their lowest since the company relisted in late October 2009 at $4.10 each.

David Jones shares were down as much as 6 cents, or 2.5 per cent, to $2.39, their lowest level in about 33 months. The overall share market is up about 1 per cent for the day.
Advertisement: Story continues below

The Goldman downgrade caps off a horror stretch for retail stocks, which have been battered after profit downgrades from JB Hi-Fi, Billabong and Kathmandu.


Topics:  david jones investment myer retail shares stock market

Parents in favour of new vaccination laws

VAX LAWS: North Coast Health District officials are hoping new vaccination laws which prevent children not yet immunised from attending day care will persuade parents to protect their youngsters.

Children's lives saved through vaccination laws

Cycling video secures driver conviction

VIDEO EVIDENCE: A motorcyclist has lost his licence for 18 months after his assault on two cyclists in June 2017 was captured on a rear-light bicycle video camera.

Motorcyclist loses licence after cyclist assault

Dangerous swell and surf continues on coast

There was a big swell at Snapper Rocks on Tuesday, October 17.

Surfers, boaters, swimmers and fishers to take caution.

Local Partners