Group Five Falls Most in 8 Months as Profit as Much as HalvesNeo Khanyile
Group Five Ltd., South Africa’s worst-performing construction company this month, plunged the most since Nov. 17 after saying fiscal full-year profit fell as much as 50 percent.
The shares slid 12 percent to 22.22 rand by 1 p.m. in Johannesburg, extending losses this month to 22 percent, the biggest decline on the seven-member FTSE/JSE Africa Construction & Building Materials Index. Group Five is heading for a third day of losses, sending the 14-day relative strength index to 26, below the 30 level that signals it may have dropped too rapidly.
Earnings per share in the 12 months through June will be 40 percent to 50 percent lower, Johannesburg-based Group Five said in a statement on Monday, without giving more details before a full earnings report due Aug. 17.
South African builders including Aveng Ltd. and Murray & Roberts Holdings Ltd. have been hit in their home market by declining new orders as economic growth falters. Expansion slowed to 1.5 percent last year, the most lackluster pace since a recession in 2009.
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