Aveng’s share price slump signals lost hope of revival in sector
JOHANNESBURG – Aveng, the loss-making JSE listed construction firm, yesterday plummeted to 1cent a share after losing 50percent on the JSE yesterday.
The fall, although off a low base, is the latest blow for the company and signals that investors have lost hope of a revival of the ailing construction sector amid South Africa’s constrained economy.
Later in the day the share price recovered to trade at 2c.
Ian Cruickshanks, the chief economist at the SA Institute for Race Relations, said yesterday that the share price decline indicated that there was not much hope for growth in the construction sector.
“The market is saying that we think there are zero prospects for growth in the construction sector, and means that it is the end of the business case for Aveng,” Cruickshanks said.
Source: iol.co.za
