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Johannesburg - South African stocks fell for a second straight session on Tuesday as Portland Pretoria Cement [JSE:PPC] C slid the most in more than a year after it reported flat full-year profit and cut its dividend.
The company, which has grabbed headlines due to a battle between its former chief executive and the board, said it was hit by weak demand at home and cut its dividend by 27%. Its shares, which are down 18 percent this year, fell 4.2% to R25.81.
"Their results were worse than expected. The market also doesn't like what is going on with the 'boardroom battle'," said Greg Katzenellenbogen, a director at Sanlam Private Wealth.
PPC's decline helped send Johannesburg's index of construction stocks to its lowest level in more than eight years.
Putting more pressure on the sector, last week South Africa's competition watchdog said it had evidence that four building firms had fixed bidding prices for stadiums for the 2010 soccer World Cup.
Sanlam's Katzenellenbogen said the charges could mean fines for construction companies, adding the industry "is not a good place to be at the moment".
Builder Aveng was the biggest decliner on the broad All-Share index, falling 5.1% to R16.41 while rival Murray & Roberts lost 1.8%.
The benchmark Top-40 index ended down 0.51% at 44 802. The broad All-Share index slipped 0.28% to 50 372.
Gold companies such as Gold Fields and its spin-off Sibanye Gold jumped by more than 8% each as the price for bullion rose to 2-1/2 week high on a weaker dollar.
Trade was slower than last year's daily average of 176 million shares, with 166 million shares changing hands.
