Pinnacle slides after suspending dividend

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IOL image JSE interior view INDEPENDENT MEDIA The JSE is seen in this file photo: Leon Nicholas.

Johannesburg - Shares of South Africa's Pinnacle Holdings tumble after the small-cap IT firm says it will not pay dividends this year to preserve cash and bring down debt.

Pinnacle reported an expected 19 percent decline in full-year earnings, hit by write-downs in the value of some inventory that was becoming obsolete.

Pinnacle is down 13.6 percent at 11.60 rand, making it the biggest percentage decliner on the All-Share index.

Shares of the company rallied last month after prosecutors dropped charges of attempted bribery against one of its directors due to insufficient evidence. - Reuters

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