EOH loses R3.5bn in market value in two sessions
EOH lost another 12% of its value on the JSE on Thursday afternoon, bringing cumulative losses in just two sessions to about 33%.
This cost shareholders dearly in the process.
The precipitous drop in the share price implies that the market was caught unaware about the anticipated drop in the earnings of the technology services group, which was once a market darling.
The technology services group said in a statement on Wednesday that headline earnings per share would drop by between 20% and 30% in the six months to January, from the year-earlier period.
The downbeat trading update came as the company was under scrutiny, after certain directors were forced to sell their shares through so-called margin calls.
Late in 2017, the company also fended off allegations of procurement irregularity against the subsidiary.
Markets have also been hypersensitive to news flow since the collapse of the Steinhoff share price in December.
Aspen shares came under renewed pressure earlier this week as speculation rose that the drug maker could be the next target of a critical Viceroy Research report.
Capitec shares are still on the mend, after losing out on the so-called Ramaphosa rally in the wake of the Viceroy report, which cast aspersions on the unsecured lender’s lending practices.
EOH shares settled 11.76% lower at R52.50, valuing the company at about R8bn.