Johannesburg - Group Five [JSE:GRF], South Africa’s worst-performing construction company this month, plunged the most since November 17 after saying fiscal full-year profit fell as much as 50%.
The shares slid 12% to R22.22 by 13:00 in Johannesburg, extending losses this month to 22%, 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 to June will be 40% to 50% lower, Johannesburg-based Group Five said in a statement on Monday, without giving more details before a full earnings report due August 17.
Builders including Aveng [JSE:AEG] and Murray & Roberts Holdings [JSE:MUR] have been hit in their home market by declining new orders as economic growth falters. Expansion slowed to 1.5% last year, the most lacklustre pace since the 2009 recession.