Moneyweb
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3 minute read
27 Oct 2020
8:36 am

Slump for construction companies on JSE as govt defaults on promised developments

Moneyweb

Construction-listed market intelligence firm Industry Insight reports that its contractors index fell by 8.1% in September as confidence in the government’s ability to deliver on promises dries up.

Concerns regarding the state’s ability to deliver on its plans abound. Photo for illustration: iStock

A lack of confidence in the government’s ability to deliver on its promised multi-billion-rand infrastructure investment plan is being reflected in the lack of any major movement in the share prices of JSE-listed construction and construction material companies.  Construction-listed market intelligence firm Industry Insight reports that its contractors index fell by 8.1% in September as confidence in the government’s ability to deliver on promises dries up. Industry Insight senior economist David Metelerkamp said there has been much hype about large-scale infrastructure stimulus and so-called shovel-ready strategic infrastructure projects over the last few months – but to date it has been all...