FINANCE
13
CONSTRUCTION EUROPE
SEPTEMBER 2013
Construction
catch-up
In a reversal of
recent fortunes,
July and August
saw shares in
the construction
sector continue
to climb,
while several
mainstream
indicators fell
back.
Chris Sleight
reports.
E
arly July to late August saw
shares in the construction
industry enjoy reasonable
gains, and the same seven-week
period from weeks 27 to 34 saw
several mainstream indicators
fall back, albeit from impressive
recent highs.
Overall
the
European
construction sector saw a 4.41%
rise in share prices over the
seven week period, as measured
by the CET Index for the whole
industry. There were gains
across the equipment, materials
and contracting sectors, with
European contractors’ shares
performing particularly well.
The same period was a mixed as
far as the mainstream indicators
were concerned. On the positive
side, the CAC40 and Dax were up
5.80% and 4.52% respectively. On
the downside, the Dow slipped
-0.17% and the FTSE 100 was
down a marginal -0.04%. More
striking was the -4.54% loss for
the Nikkei 225.
To put these losses in context,
all three indices have had a
remarkable time of it in 2013.
The Dow, for example, hit a new
record high in March and has
been above the 15,000-point
mark for much of the time since
early May. Indeed, a new high
of 15,658 points was set in
early August, before the tail-off
towards the end of the month.
But for most of the year, the
construction sector has not
been a part of the rally that
the mainstream markets have
enjoyed. The CET has made no
net gain for the year to date,
whereas the Dow, even its recent
Company
Currency Price
Price Change Change
at start at end
(%)
CEC Index
129.17 138.99
9.82
7.60
Acciona
€
40.15
40.20
0.05
0.12
ACS
€
19.61
22.42
2.81
14.33
Astaldi
€
5.28
5.86
0.58
11.00
Balfour Beatty
UK£
2.192
2.515
0.323
14.74
Ballast Nedam
€
10.08
11.45
1.37
13.59
Bam Group
€
3.80
3.70
-0.10
-2.66
Bauer
€
19.20
18.41
-0.79
-4.09
Bilfinger
€
71.92
72.88
0.96
1.33
Bouygues
€
19.63
23.67
4.04
20.59
Carillion
UK£
2.752
2.881
0.13
4.69
Eiffage
€
38.35
44.04
5.69
14.84
FCC
€
8.37
13.95
5.58
66.67
Ferrovial
€
12.71
13.13
0.42
3.30
Hochtief
€
52.24
55.14
2.90
5.55
Impregilo
€
3.27
3.44
0.17
5.33
Keller Group
UK£
10.190 11.100 0.910
8.93
Kier
UK£
12.190 14.916 2.726
22.36
Lemminkäinen
€
14.60
15.02
0.42
2.88
Morgan Sindall
UK£
6.000
6.835
0.835
13.92
Mota Engil
€
2.24
2.74
0.49
22.02
NCC (B)
SEK
161.20 171.70 10.50
6.51
OHL
€
27.90
27.43
-0.47
-1.68
Peab (B)
SEK
33.29
36.89
3.60
10.81
Sacyr Vallehermoso
€
2.41
2.92
0.51
21.00
Skanska (B)
SEK
113.50 122.30
8.80
7.75
Strabag SE
€
16.15
17.33
1.18
7.31
Taylor Wimpey
UK£
1.040
1.046
0.006
0.58
Tecnicas Reunidas
€
36.33
34.23
-2.10
-5.78
Trevi Group
€
6.31
6.28
-0.03
-0.48
Veidekke
NOK
46.80
46.00
-0.80
-1.71
Vinci
€
39.12
40.28
1.16
2.97
YIT
€
10.44
10.83
0.39
3.74
Period: Week 27 - 34
slide, is up some 12% for the 34
weeks to the end of the August.
So perhaps the July and August
rally for the construction sector
was overdue. In any case, it
was certainly against the run of
play compared to the first eight
months of 2013.
CONSTRUCTION SHARES
The strongest gains were seen
in the contracting segment, with
the CEC Index for this sub-sector
rising +7.60% over the seven
week period to 138.99 points –
not only its highest this year, but
its highest since mid-2011.
Most of the companies that
CONTRACTORS
EQUIPMENT MANUFACTURERS
Company
Currency Price
Price Change Change
at start at end
(%)
CEE Index
232.56 239.86
7.30
3.14
Astec Industries
US$
35.23
35.47
0.24
0.68
Atlas Copco (A)
SEK
162.20 179.70 17.50
10.79
Bell Equipment
ZAR
24.00
23.00
-1.00
-4.17
Caterpillar
US$
81.85
84.17
2.32
2.83
CNH
US$
41.57
48.63
7.06
16.98
Deere
US$
80.99
83.25
2.26
2.79
Doosan Infracore
WON
10750
14000
3250
30.23
Haulotte Group
€
6.72
7.07
0.35
5.21
Hitachi CM
YEN
2035
1997
-38
-1.87
Hyundai Heavy Industries
WON 178500 217500 39000
21.85
Kobe Steel
YEN
135
161
26
19.26
Komatsu
YEN
2290
2245
-45
-1.97
Kubota
YEN
1500
1365
-135
-9.00
Manitou
€
10.31
10.55
0.24
2.33
Manitowoc
US$
18.52
21.17
2.65
14.31
Metso
€
26.77
29.32
2.55
9.53
Palfinger
€
22.75
25.50
2.75
12.09
Sandvik
SEK
80.45
88.10
7.65
9.51
Tadano
YEN
1380
1440
60
4.35
Terex
US$
27.10
30.97
3.87
14.28
Volvo (B)
SEK
89.35
97.95
8.60
9.63
Wacker Neuson
€
10.25
10.60
0.35
3.40
Period: Week 27 - 34
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