Bridge collapse: Murray & Roberts stock price falls almost 10%

Share on facebook
Share on twitter
Share on linkedin
Share on email

Murray & Roberts (M&R), the construction company responsible for the building of the pedestrian bridge that collapsed over the M1 highway in Johannesburg yesterday, has seen its stock price fall by 7.73% since the incident.

Opening the market at R12.03 a share yesterday, it was up and down by a couple of cents throughout the day. As soon as news broke about the collapse, M&R’s stock took a nose-dive at around 16:25 from R11.95 per share.

Only a half-hour later, the stock price rested at R11.15 per share to close off the day, a drop of 7.73% from its opening high earlier in the day.

At the opening of the Johannesburg Stock Exchange this morning, the stock has somewhat recovered, opening 2% higher than the previous close at R11.62.

M&R stock

Martin Lentsoane, the managing director of Lehumo Capital, told eNCA that a drop in stock price was somewhat expected.

“The news around the company would be negative after the accident and this contributed to the fall in the shares. There are questions on how the bridge was constructed, there could be lawsuits, regulators will be investigating – all these could be more bad news,” he told the news agency.

This is not the first time that M&R has been in the news for all the wrong reasons. While it has a seasoned past in the country, it was found guilty in 2013 of colluding with other construction companies in the country for the construction of 2010 World Cup stadiums. It was eventually fined R309 million by the Competition Commission for anti-competitive behaviour.

[Image – CC by 2.0/Pedro Moura Pinheiro]

Charlie Fripp

Charlie Fripp

Charlie started his professional life as a motoring journalist for a community newspaper in Mpumalanga, Charlie explored different journalistic angles since his entry into the fast-paced world of publishing in 2006. While fostering a passion for the arts, Charlie developed a love for technology – both which allowed him to serve as Entertainment and Technology Editor for an online publication. Charlie has since been heavily involved in consumer technology for various websites and publications. He thoroughly enjoys World War II films and cerebral documentaries; aviation; photography and indie music. Oh yes, and he also has a rather strange obsession with collecting coffee mugs from his travels.