Distell’s shares sink on Ramaphosa’s alcohol ban

DURBAN – Distell tumbled on the JSE on Monday after the government reinstated its ban on alcohol sales and transportation on Sunday evening.

Distell fell more than 6 percent during early trade, but closed 3.58 percent lower at R75.12 on the JSE yesterday, compared to Friday’s close of R77.91, as President Cyril Ramaphosa extended strict measures to contain the spread of the Covid-19 pandemic.

However, Distell’s competitor, Anheuser-Busch InBev (AB InBev), closed only 0.12 percent lower at R887.67 on the JSE yesterday after the reinstatement of the ban. 

Citadel trader Jordan Weir said Distell wobbled on Ramaphosa’s announcement. 

“Yes, it is more than likely that the dip in Distell’s share price was directly linked to the reinstatement of the alcohol ban by President Cyril Ramaphosa on Sunday evening,” Weir said.