Barratt shares hit by rumours
Apr 12 2008 by Iain Laing, The Journal
AFTER starting the session in positive territory, the UK stock market retreated into the red and closed down 69.6 points at 5895.5.
In The Journal 40 Metnor Group, the Killingworth based construction and property development company, reported its final results for the year ended December 31, 2007. Pre-tax profit fell to £3.1m from £5.4m and revenues dropped to £84m from £86.6m in the previous year.
The shares lost 2.5p and closed at 130.5p.
Elsewhere, Barratt Developments, the housebuilder, was in focus on reports that the company was considering selling its commercial property division to reduce its debts of £1.7bn. The company did not comment on the rumours and the shares fell by 0.75p and closed at 369p.
Transport companies were in the spotlight as investment bank Credit Suisse reviewed the sector. The broker cut its price target on Go Ahead Group to 1950p from 2500p and cut Arriva’s to 675p from 800p, while retaining its “underperform” rating on the company. Shares in Go Ahead Group fell 16p to 1552p and Arriva eased by 10.5p and closed at 679.5p.
Elsewhere, Cazenove, the City broker, initiated its coverage of Eaga, the UK’s leading residential energy efficiency provider, with an “outperform” rating. Cazenove stated that Eaga’s forecast 2009 earnings growth of 17% is being undervalued by the market and that the long-term prospects are excellent and should command a significant premium to the market.
The shares fell by 3.5p and finished the session at 178p.
Fergus Westwood Fergus.westwood@brewin.co.uk
