Shares in Barratt lose ground
Feb 29 2008 by Peter McCusker, The Journal
THE UK stock market fell into negative territory for the second successive session yesterday as the FTSE 100 Index plunged by 110.8 points and closed at 5965.7.
The majority of companies in the UK’s headline Index finished down on the previous day, with Rentokil Initial, the support services group, the leading loser after the company warned that 2008 earnings would be significantly lower than 2007. Whitbread, the leisure group, headed the leader board after delivering a trading update.
Property prices were again in focus as figures published by the Land Registry showed that house prices rose by 0.9% during January after falling by 0.4% during December. This drove the average house price in the UK and Wales to £186,045. However, house price inflation fell for the fifth consecutive month, dropping to 6.4% from 6.7% in December.
In The Journal North 40, the US investment bank, Citigroup, downgraded its price target on Barratt Developments’ shares to 475p from 500p but maintained its “hold” rating. Shares in Barratt, which released half year results on Wednesday, fell by 13.5p to 422.5p. Shares in fellow house builder, Bellway, also lost ground, trading 31.5p lower to close at 805p.
Elsewhere, Sage Group held its AGM, at which all resolutions were passed. The shares fell by 7.5p and ended the session at 209.25p.
The biggest riser in the regional portfolio was Northern Bear, the building services specialists, whose shares rose by 5.5% and closed at 105p.
Fergus Westwood Fergus.westwood@brewin.co.uk
