Housebuilders took a battering on the stock market today after a profits warning from Wilson Connolly unnerved investors.
The firm slumped 11% – off 17.5p to 137.5p – after warning full-year profits would be below expectations, as its chief executive also left.
The blow hurt shares in other firms as investors worried about a softer housing market.
A number of FTSE-250 firms slid, with George Wimpey off 16.5p at 137.5p, Bovis Homes down 20p at 325p, Barratt Developments 19.5p cheaper at 319p, Persimmon off 18{.5p to 321p, Alfred McAlpine slipping 15.5p to 385p and Berkeley Group 18p lower at 544p.
Among the FTSE-100 stocks, builders merchant Wolseley was hit, falling 5p to 454.5p.
However, despite the downwards influence, the benchmark FTSE 100 Index held up, and by lunchtime was 46.2 points ahead at 5132.8, helped by a strong finish to trading on the US markets on Thursday.
Shares were also lifted by stronger-than-expected GDP figures which showed Britains economy grew by 0.6% in the last quarter.
Oil stocks were helping keep the market up, with heavyweight Shell 8p ahead at 521p, BP rising 12p to 561p and Enterprise Oil up 14.5p to 519.5p.
Advertising group WPP was also a strong riser, up 6% – 35.5p up at 626p. After the market closed last night, WPP said it intended to appeal against theTakeover Panels refusal to sanction its escape from a £434m deal for media buying group Tempus.
Other media stocks rising included Granada up 4p at 131p, Reuters ahead 25p at 674p, and Financial Times group Pearson 27p higher at 809p.
Telecom stocks were among those helping to reverse losses from yesterday, with market heavyweight Vodafone ahead 2.5p at 163.5p.
Rival BT was ahead 6p at 359p, while last nights biggest FTSE faller, Cable & Wireless added 0.5p to reach 314p.
But among the fallers was airports operator BAA, down 30p at 545p ahead of its interim results announcement on Monday.
Outside the FTSE, a number of former blue-chip telecom firms were doing well, with equipment group Spirent ahead 7.5p at 127.5p, Telewest Communications 3.5p stronger at 53.5p and Energis up 3p at 71p.
Drug firm Xenova also soared ahead – rising 14%, up 4.5p at 35.5p – as it reported the successful completion of two cancer studies.
EGi News 26/10/01
