Shares of Anglo American Platinum fall 0.7 percent to 404.50 rand rand, adding to a 3.8 percent slide on Monday, when the world's top platinum producer reported a 78 percent drop in first-half earnings and cut its target for both capex and production and said it would hold off on paying a dividend, citing weak demand and prices.
The stock is also hit after Credit Suisse cuts its target price to 415 rand from 485 rand. “The reduction of capex and the suspension of a dividend signalled to us that the company are preparing for a tough H2,” Credit Suisse says in a note to clients.
“We think the benefit of doubt (PGM price recovery, strategic review) is more than priced in”. - Reuters