Troubled PPC seals JSE’s fall for second day

STOCKS continued to fall yesterday as PPC slid the most in more than a year after reporting flat full-year profit and cutting its dividend.

The benchmark Top40 index declined by 0.51 percent at 44 802.60 points. The broader all share index slipped 0.28 percent to 50 372.05.

which has made news due to a battle between its former chief executive and the board, cut its dividend by 27 percent. Its shares, which are down 18 percent this year, fell 4.23 percent to R25.81.

“Their results were worse than expected. The market also doesn’t like what is going on with the ‘boardroom battle’,” Greg Katzenellenbogen at Sanlam Private Wealth said.

PPC’s decline helped send the index of construction stocks to its lowest level in more than eight years.

Putting more pressure on the sector, last week the competition watchdog said it had evidence that four building firms had fixed bidding prices for stadiums for the 2010 World Cup.

was the biggest decliner, falling 5.14 percent to R16.41.

lost 1.8 percent to R21.30.

fell for a second day, losing 3.28 percent to R236.

Trade was slower than last year’s daily average of 176 million shares, with 166 million shares changing hands.