PPC shares on the ZSE plummeted a whopping 42+% on this year and is forecasted to fall by further, The Chronicle reports.
According to the publication the current economic crisis is the reason why PPC is having a hard time:
PPC’s shares hit a 53-week low after falling 21.28% in early trade. But the stock recovered to close 12.31% down at R3.42, the largest one-day decline since March 2002. Since the beginning of 2019 the stock has shed more than 42% of its value.
The company’s disappointing performance comes amid a surge in imports, lack of infrastructure investment, mooted price increases in Southern Africa and weak consumer demand. PPC must also make provision for carbon tax, which came into effect on June 1 2019. PPC has said that the effect of carbon tax would be R100m-R120m for cement and lime per year. PPC partially attributed the expected fall in earnings to inflation in Zimbabwe exceeding 150% in the six months to end September.
PPC has said the lack of demand in South Africa and lack of forex is Zimbabwe is frustrating the company.
More: The Chronicle