Few takers for high street shares
Jan 10 2008 by Graeme King, The Journal
THERE was another heavy session of selling in the UK market yesterday, after a dismal fall overnight on Wall Street, prompted by a string of disappointing trading updates and poor home sales data. In London, Marks & Spencer was the biggest casualty as the FTSE 100 index closed down 83.8 points at 6272.7.
The high street group surprised the city with interim figures well below analysts’ already downbeat expectations, and forecast that trading conditions would remain tough during the next 18 months. The shares lost nearly 20%, falling 94.25p to 409.25p.
Retailers were hard hit on the M&S news, including supermarket groups, even though US-owned Asda reported a record Christmas.
Despite bid rumours earlier in the day, the mining sector also saw heavy fallers, while banks and builders were again sold lower.
Journal North 40 constituent GlaxoSmithKline was one of the few stocks to make ground, gaining another 24p to 1385p, as pharmaceutical companies found favour with investors for their perceived defensive qualities.
Elsewhere in the regional portfolio, bakery chain Greggs – where we act as joint broker – bucked the high street trend in a trading update and reported continuing sales growth throughout the second half of its year, despite having to pass on price rises to customers.
Managing director Sir Michael Darrington announced that up to 40 more stores could be opened in 2008, after the increase of 32 in 2007. The shares closed 34p higher at 4544p. Helius Energy managed to recover some of its previous losses, rising 3.25p to 52p. There were plenty of fallers, however, as Barratt Developments declined 29p to 333p, Bellway 42.5p to 688p, Tanfield Group 10p at 103p, and Southern Cross 25.5p down to 484p.
John Dance John.dance@ wise-speke.co.uk
