TFG Slumps as the Market Continues to Discount the Share

The Foschini Group Limited’s (TFG) share price struggles continue, with the stock on course for its fourth consecutive week of decline. Year-to-date, the share price has depreciated over 10%. However, there is a silver lining, as the company boasts a positive 52-week performance with a gain exceeding 4.6%. 

On a brighter note, TFG signed a significant franchise agreement with JD Sports Fashion plc, becoming the exclusive retail partner for JD Sports in South Africa. This collaboration brings a new, compelling international sports fashion offering to the South African market, potentially bolstering TFG’s existing sports retail presence. The first stores are expected to launch by year-end, with an aggressive rollout plan targeting over 40 stores within the next five years. 

Despite the positive developments, the company’s recent financial performance seems to be weighing on investor sentiment. TFG’s ROE currently sits at 12%, which is similar to the industry average. However, the company’s five-year net income growth average of 2.1% falls short, potentially contributing to the lack of investor excitement.  

Technical Analysis 

The daily chart paints a bearish picture for TFG’s immediate price action. The share price currently trades below all three key moving averages [50-SMA (blue line), 100-SMA (orange line), and 200-SMA (red line)], highlighting a downtrend.  

With the RSI (33.64) trading comfortably below the 50.00 level, a sustained push lower might bring the 9,217 cents into focus in the near term. A sustained break below the significant level on significant volume would leave 8,556 cents and the major support at 8,100 cents firmly within the bears’ reach in the coming sessions.  

However, renewed buying pressure could find significant resistance at the 200-SMA, with a break above likely to bring the 10,840 cents into play. A successful break above the 10,840 cents could confirm the bullish momentum and would leave the 11,396 cents and the major resistance at 11,913 cents as the next levels of significance higher. 


The Foschini Group Limited’s share price faces headwinds in the short term. The lacklustre financial performance and current valuation metrics are cause for concern. Technically, the bearish trend remains dominant, with a potential decline towards 8,100 cents on the cards if support levels are breached. However, a break above the 200-SMA could signal a reversal, with initial resistance at 10,840 cents and major resistance at 11,913 cents.  

Sources: TradingView, Simply Wall Street, MarketWatch, Business Live. 

Piece written by Mfanafuthi Mhlongo, Trive Financial Market Analyst 

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.