FINANCE
13
CONSTRUCTION EUROPE
OCTOBER 2013
Delaying the
inevitable
A spurt in stock
markets around
the world in
September took
the European
construction
sector to its
highest for more
than two years.
Chris Sleight
reports
T
he statement from the US
Federal Reserve in mid-
September that it would
continue its quantitative easing
(QE) stimulus programme gave
stock markets around the world
fresh impetus.
The European construction
sector enjoyed a broad rally along
with the other equities, taking
the CET Index to its highest level
since May 2011.
PriortotheFed’sannouncement
on September 18, there had been
concerns that it would start to
wind-down the QE programme,
which currently sees it buy-up
bonds and other assets at a
rate of some US$85 billion (€63
billion) per month.
However, Federal Reserve
chairman Ben Bernanke said
he would delay the so-called
tapering
of
QE
because
unemployment in the country
was still high. In addition,
congress was squabbling over
forthcoming budget deadlines
and mortgage rates were rising.
Although the markets will
have to come to terms with the
gradual turning-off of the QE tap
at some point, September’s news
provided something of a boost.
The Dow jumped back above
the 15,000-point market to finish
week 38 at 15,451 points, a 3.26
improvement on its position four
weeks earlier.
The FTSE 100 was more
subdued with a 2.20% rise, while
other European indicators, the
DAX and CAC40 for example,
were more bullish with 3.34%
and 4.23% rises respectively.
Most striking of all was the 7.92%
Company
Currency Price
Price Change Change
at start at end
(%)
CEC Index
138.99 147.51
8.52
6.13
Acciona
€
40.20
41.79
1.59
3.96
ACS
€
22.42
23.50
1.08
4.82
Astaldi
€
5.86
6.30
0.44
7.60
Balfour Beatty
UK£
2.515
2.777
0.262
10.42
Ballast Nedam
€
11.45
12.10
0.65
5.68
Bam Group
€
3.70
3.80
0.10
2.68
Bauer
€
18.41
18.23
-0.18
-0.98
Bilfinger
€
72.88
75.43
2.55
3.50
Bouygues
€
23.67
26.95
3.28
13.86
Carillion
UK£
2.881
3.170
0.29
10.03
Eiffage
€
44.04
40.99
-3.05
-6.93
FCC
€
13.95
14.25
0.30
2.15
Ferrovial
€
13.13
13.37
0.24
1.83
Hochtief
€
55.14
62.38
7.24
13.13
Impregilo
€
3.44
3.46
0.02
0.64
Keller Group
UK£
11.100 10.770 -0.330
-2.97
Kier
UK£
14.916 16.510 1.594
10.69
Lemminkäinen
€
15.02
15.20
0.18
1.20
Morgan Sindall
UK£
6.835
7.405
0.570
8.34
Mota Engil
€
2.74
2.87
0.13
4.90
NCC (B)
SEK
171.70 191.10 19.40
11.30
OHL
€
27.43
28.34
0.91
3.32
Peab (B)
SEK
36.89
38.70
1.81
4.91
Sacyr Vallehermoso
€
2.92
3.45
0.53
18.28
Skanska (B)
SEK
122.30 126.90
4.60
3.76
Strabag SE
€
17.33
18.49
1.16
6.69
Taylor Wimpey
UK£
1.046
1.019
-0.027
-2.60
Tecnicas Reunidas
€
34.23
35.52
1.29
3.77
Trevi Group
€
6.28
6.40
0.12
1.91
Veidekke
NOK
46.00
47.00
1.00
2.17
Vinci
€
40.28
43.10
2.82
7.00
YIT
€
10.83
10.59
-0.24
-2.22
Period: Week 34 - 38
rise for the Nikkei 225 in Japan,
which also enjoyed something
of a lift with the news that Tokyo
had been selected to host the
2020 Summer Olympics.
Against this backdrop the
European construction sector
performed well. The CET Index
for the whole industry was
up 6.18%, and the gains were
evenly spread across three
sectors. Contractors’ shares were
up 6.13%, as measured by the
CEC Index, materials producers
(CEM Index) were up 6.17% and
equipment manufacturers in the
CEE Index saw a 6.21% gain.
Such a broad and concerted
CONTRACTORS
EQUIPMENT MANUFACTURERS
Company
Currency Price
Price Change Change
at start at end
(%)
CEE Index
239.86 254.76 14.90
6.21
Astec Industries
US$
35.47
36.36
0.89
2.51
Atlas Copco (A)
SEK
179.70 190.70 11.00
6.12
Bell Equipment
ZAR
23.00
23.30
0.30
1.30
Caterpillar
US$
84.17
84.75
0.58
0.69
CNH
US$
48.63
48.44
-0.19
-0.39
Deere
US$
83.25
83.82
0.57
0.68
Doosan Infracore
WON
14000
16900
2900
20.71
Haulotte Group
€
7.07
8.87
1.80
25.46
Hitachi CM
YEN
1997
2343
346
17.33
Hyundai Heavy Industries
WON 217500 266000 48500
22.30
Kobe Steel
YEN
161
179
18
11.18
Komatsu
YEN
2245
2572
327
14.57
Kubota
YEN
1365
1555
190
13.92
Manitou
€
10.55
12.20
1.65
15.64
Manitowoc
US$
21.17
20.04
-1.13
-5.34
Metso
€
29.32
31.20
1.88
6.41
Palfinger
€
25.50
26.15
0.65
2.57
Sandvik
SEK
88.10
93.85
5.75
6.53
Tadano
YEN
1440
1460
20
1.39
Terex
US$
30.97
34.37
3.40
10.98
Volvo (B)
SEK
97.95
103.00
5.05
5.16
Wacker Neuson
€
10.60
10.57
-0.03
-0.28
Period: Week 34 - 38
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