Finweek English Edition - - SIMON SAYS -

The con­struc­tion sec­tor re­mains a sec­tor best avoided and this was once again il­lus­trated by two re­cent an­nounce­ments. Firstly Mur­ray & Roberts an­nounced a R4.8bn con­tract that adds some 12% to the or­der book. Nice, but con­sid­er­ing we have no idea of mar­gins or any­thing else, it is hardly worth the ex­cite­ment we saw when the deal was an­nounced. More than any­thing, it shows how des­per­ate share­hold­ers are for any good news. We then saw a trad­ing up­date from Aveng in­di­cat­ing HEPS will be at least 50% lower. This sent the stock plung­ing, although it had run on the Mur­ray & Roberts an­nounce­ment. This sec­tor re­mains ex­tremely tough and I am leav­ing it well alone.

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