News

Sector movers: Autos lower as downturn bites

03 November 2008 12:48:00

Ongoing fears about the economic downturn continue to batter GKN, leaving Automobiles & Parts in the doldrums, a week after the engineer warned on full-year profits.

The firm, which relies on the automotive sector for two-thirds of its revenues, said annual profit will plunge 20% this year, forcing it to axe 1,400 jobs.

Mobile Telecommunications is worst of the bunch though, dragged down by sector heavyweight Vodafone following Friday's profit warning from BT.

A 'sell' note from Collins Stewart is also plaguing the shares. Analyst Mark James has concerns about cash generation and dividend cover.

But hopes that the Bank of England will slash interest rates by as much as 1% on Thursday had Construction & Materials sharply higher.

Carillion, Morgan Sindall and Balfour Beatty are among the best performers.
Top performing sectors so far today
Construction & Materials 2,806.83 +5.28%
Technology Hardware & Equipment 192.28 +4.55%
Oil Equipment Services & Distribution 10,037.13 +4.05%
Industrial Engineering 2,283.68 +3.77%
Equity Investment Instruments 4,060.98 +3.36%

Bottom performing sectors so far today
Mobile Telecommunications 2,541.66 -6.56%
Automobiles & Parts 1,751.62 -6.53%
Food & Drug Retailers 3,833.09 -3.38%
Banks 4,418.45 -2.46%
Gas, Water & Multiutilities 4,364.40 -1.28%

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