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.
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]