Barratt hit by house sales data

Jan 14 2009 by Graeme King, The Journal

A FIFTH straight day of share declines saw the FTSE 100 Index of leading UK companies fall 27.04 points to 4399.15.

Further declines in metal prices saw heavy falls for the mining sector and the continued economic fears were widespread as most other sectors also fell.

Data from the Royal Institute of Chartered Surveyors indicated that the number of homes changing hands in the last quarter of 2008 had fallen to a record low, adding to news from the Department of Communities and Local Government which stated that house prices had fallen by a record of 8.6% in the year to the end of November.

The announcements hit the region’s house builders, as Barratt Developments fell 7.25p to 93p and Bellway ended the day 16.5p lower at 602p.

Following a broker downgrade the previous day, there was further bad news for Arriva, as three different investment houses turned negative on the company. UBS downgraded the transport group to a “sell” recommendation, as did Goldman Sachs despite only removing the stock from its Pan-European Conviction Buy List last week. Meanwhile Deutsche Bank reduced its price target to 795p from 813p. The shares fell 24p to 540p.

There were only three winners in The Journal North 40. Tanfield gained 0.2p to close at 7.95p, Hargreaves Services advanced 1.5p to 510p and Carrs Milling Industries rose 2.5p to end the session at 422.5p. The region’s biggest loser was Helius Energy which gave up 1.75p to close 7.5% lower at 21.5p

John Dance john.dance@brewin.co.uk