Rainbow Chicken falls most in a month

Johannesburg - Rainbow Chicken fell the most in a month after Remgro chief executive Jannie Durand said imports and a weakening rand will continue to weigh on earnings at South Africa’s largest chicken producer.

The stock fell 2.4 percent to 16 rand by 3 p.m. in Johannesburg, the biggest decline since February 18 on a closing basis.

File image. Credit: FREE IMAGES

About 355,000 shares were traded, 1.8 times the three-month daily average, according to data compiled by Bloomberg.

Remgro has a 73.4 percent stake in Rainbow.

Yellow corn, used mainly as animal feed, has risen 12 percent on the South African Futures Exchange this year, while an increase in chicken imports has cut producers’ ability to raise prices and recoup expenses.

The rand has declined 8.7 percent against the dollar this year, the worst slide among emerging-market currencies. - Bloomberg News