Picture: Reuters.

Johannesburg - Shares of Sappi fall more than 4 percent after the paper and pulp producer reports a drop in first-quarter profit due to lower selling prices.

Sappi says its diluted headline earnings per share for the quarter to the end of December fell nearly 63 percent year-on-year to 3 US cents.

The company says it expects market conditions to remain tough.

The shares are down 4.03 percent to 29.52 rand. - Reuters