FINANCE
Shaky summer
J
uly and August witnessed
stock market volatility, with
some big swings in what is
usually a relatively quiet period,
with much of the negative news
stemming from Europe
There a weak economic outlook
and the threat of deflation in the
Eurozone had an impact.
On the positive side, the US
markets found some renewed
confidence towards the end of
August, with a strong rebound.
In fact August saw the S&P 500
set a new all-time high – just
the latest in a string of some
28 record closes for this broad
benchmark.
Week 34 also saw the Dow
bounce back above the 17,000-
point mark for the first time in
a month on the back of positive
economic growth data, better
than expected corporate results
and good job creation numbers.
On the downside for the
markets, there have been
problems in Europe with the
continuing saga of failing
Portuguese bank, Banco Espirito
Santo, combining with poor
economic growth figures.
In addition there is increasing
concern that the Eurozone may
fall into a deflationary spiral.
The European Central Bank’s
(ECB’s) own data put the annual
inflation rate at just 0.5% in June,
with some individual countries
seeing a negative figure.
Deflation, or falling prices, is
a problem because it increases
the real value of debt over time,
just as the opposite is true for
inflation – it means a debt is
easier to service as time goes on.
Deflation therefore penalises
borrowers, including companies
u
Company
Currency Price
Price Change Change
at start at end
(%)
CEC Index
192.88 185.41 -7.48
-3.88%
Acciona
€
61.78
60.66
-1.12
-1.81%
ACS
€
31.20
31.80
0.60
1.92%
Astaldi
€
7.55
6.53
-1.02 -13.52%
Balfour Beatty
UK£
2.22
2.42
0.21
9.30%
Ballast Nedam
€
5.60
3.79
-1.81 -32.34%
Bam Group
€
2.38
1.84
-0.54 -22.62%
Bauer
€
17.49
15.42
-2.08 -11.86%
Bilfinger
€
64.11
56.07
-8.04 -12.54%
Bouygues
€
28.98
28.52
-0.46
-1.57%
Carillion
UK£
3.26
3.38
0.12
3.55%
Eiffage
€
48.17
46.03
-2.14
-4.44%
FCC
€
15.84
13.73
-2.11 -13.32%
Ferrovial
€
15.40
15.24
-0.16
-1.04%
Hochtief
€
61.10
58.70
-2.40
-3.93%
Salini Impregilo
€
3.47
3.07
-0.40 -11.46%
Keller Group
UK£
9.02
8.87
-0.16
-1.77%
Kier
UK£
17.39
17.12
-0.27
-1.55%
Lemminkäinen
€
13.61
13.30
-0.31
-2.28%
Morgan Sindall
UK£
8.22
8.35
0.13
1.58%
Mota Engil
€
4.80
4.41
-0.39
-8.09%
NCC (B)
SEK
226.90 221.10
-5.80
-2.56%
OHL
€
31.14
27.27
-3.87 -12.43%
Peab (B)
SEK
51.80
48.39
-3.41
-6.58%
Sacyr Vallehermoso
€
4.38
4.13
-0.25
-5.62%
Skanska (B)
SEK
147.90 144.50
-3.40
-2.30%
Strabag SE
€
21.80
21.14
-0.66
-3.05%
Taylor Wimpey
UK£
1.12
1.17
0.05
4.63%
Tecnicas Reunidas
€
43.78
41.19
-2.59
-5.92%
Trevi Group
€
5.88
5.39
-0.49
-8.34%
Veidekke
NOK
66.50
65.75
-0.75
-1.13%
Vinci
€
51.83
48.42
-3.41
-6.58%
YIT
€
8.09
7.26
-0.83 -10.26%
Period: Week 28 - 34
and governments as well as
individuals.
There are also unhelpful
spending and investment effects.
When people know that their
money will be worth more in
the future, they tend to sit on it
and wait, rather than spending
it now.
This means investments are
put on hold, which weakens
economic growth and also tends
to increase the deflationary
effect.
The ECB could launch some
form of quantitative easing to
help deal with this problem. This
would see it using electronically
created money to buy up assets
CONTRACTORS
EQUIPMENT MANUFACTURERS
Company
Currency Price
Price Change Change
at start at end
(%)
CEE Index
260.19 261.36
1.18
0.45%
Astec Industries
US$
41.53
41.23
-0.31
-0.73%
Atlas Copco (A)
SEK
195.30 205.20
9.90
5.07%
Bell Equipment
ZAR
14.66
14.01
-0.65
-4.43%
Caterpillar
US$
109.36 107.97
-1.39
-1.27%
CNH Industrial
€
6.93
6.67
-0.26
-3.75%
Deere
US$
88.12
86.21
-1.91
-2.17%
Doosan Infracore
WON
12900
11650
-1250
-9.69%
Haulotte Group
€
11.65
11.68
0.03
0.26%
Hitachi CM
YEN
1998 2074.00
76
3.80%
Hyundai Heavy Industries
WON
162500 135500 -27000 -16.62%
Kobe Steel
YEN
155
169
14
9.03%
Komatsu
YEN
2302
2368
66
2.87%
Kubota
YEN
1383
1462
79
5.71%
Manitou
€
11.70
12.20
0.50
4.27%
Manitowoc
US$
31.88
28.33
-3.55 -11.14%
Metso
€
25.99
31.66
5.67
21.82%
Palfinger
€
26.76
25.75
-1.01
-3.76%
Sandvik
SEK
89.55
88.05
-1.50
-1.68%
Tadano
YEN
1704
1845
141
8.27%
Terex
US$
40.01
37.51
-2.50
-6.25%
Volvo (B)
SEK
92.00
86.25
-5.75
-6.25%
Wacker Neuson
€
16.59
16.64
0.06
0.34%
Period: Week 28 - 34
Stock markets had a volatile time over the summer, but
some stability seemed to return as August drew to a
close.
Chris Sleight
reports
12
CONSTRUCTION EUROPE
SEPTEMBER 2014
