Market recovers after early sharp fall
Nov 14 2007 by Chris Knox, The Journal
AFTER Monday’s positive start to the week, the UK markets fell sharply into the red in the early hours of trading, subsequent to the American markets closing down overnight. The FSTE 100 Index was down 58 points by nine o’clock, though it did manage to recover, ending the session on 6362.4.
In The Journal 40, Northern Bear, the Chester-le-Street based company announced the acquisition of Jennings Property Limited and its subsidiary, Jennings Roofing Limited, for £5.1m. Northern Bear, which provides services and supplies materials to the construction industry, believes the acquisition of Jennings, the specialist roofing contractor, will compliment the existing business portfolio. The announcement comes only a week after the company entered into new banking arrangements with Yorkshire Bank, giving it access to an £11m facility. Since floating on AIM in December 2006, the company has undergone three other successful acquisitions and now has a market capitalisation of £19.51m, up 96% over the period. Shares in the company closed down 1p at 121.5p.
Angel Biotechnology, the North-East manufacturer and supplier of biological products, was the region’s strongest performer. Shares in the company topped the small cap leaders board, climbing 50% to 0.23p through the course of trading. Although there were no new announcements, the company last week extended an existing contract with ReNeuron Group, a leading player in the field of stem cell therapeutics. The extension is believed to mark the company’s significant capabilities and expertise in the area.
ScS Upholstery also had a good day’s trading in spite of no corporate news. The company’s share price has suffered this year, falling 71% from its peak of 531p in January, following a profits warning early on in the year and a disappointing set of final results in September.
The shares did however manage to make up some lost ground, rising 18.5% to close at 165p.
Anna McKechnie anna.mckechnie@wise-speke.co.uk
