Fear weighs down housebuilders
AFTER Monday’s panic across global markets, the FTSE 100 Index showed signs of strain during the day as, once again, the finance sector took a battering.
Banking shares fell sharply, adding to the pressure on the Government to specify a rescue plan.
However, a welcome respite for investors saw the blue chip Index close 16.03 points up at 4605.22.
Fears that Taylor Wimpey may be unsuccessful in securing refinancing on favourable terms weighed down the house builders yesterday.
In The Journal 40, Barratt Developments PLC closed 9p down at 93p and Bellway ended the day at 483.25p, falling 33.25p.
Southern Cross Healthcare Group showed no signs of improving after Monday’s disappointing performance, finishing 12.25p lower at 76.5p.
Elsewhere, Sage Group – where we act as joint broker – did not fare well on the back of a profit warning from SAP, the German software company, which was announced yesterday. Sage closed down 5.5p to 182.5p.
Go-Ahead Group, where we also act as joint broker, announced yesterday that its interim management statement will be issued on October 23. The stock closed 25p down at 1633p. Wellstream Holdings, the designer and manufacturer of pipeline products for the oil industry, and the biodiesel specialist D1 Oils both underperformed yesterday as crude oil traded at lower levels. Wellstream Holdings ended the day 60.5p down at 764.5p and D1 Oils decreased 8.75% to 18.25p.
Demelza Claypole Demelza.Claypole@brewin.co.uk
