City watch

Shares continued their see-saw ride on the stock market, with a surge upwards on Tuesday contrasting with Monday’s poor performance. By midday on Tuesday, the FTSE 100 index of leading shares was up 141.8 at 5219.3. Engineers mostly showed gains on the back of their recent resurgence, although a new research note from Steve Medlicott […]

Shares continued their see-saw ride on the stock market, with a surge upwards on Tuesday contrasting with Monday’s poor performance.

By midday on Tuesday, the FTSE 100 index of leading shares was up 141.8 at 5219.3.

Engineers mostly showed gains on the back of their recent resurgence, although a new research note from Steve Medlicott at broker Albert E Sharp cast doubt on the SmallCap engineering sector as a viable home for investors in the medium term.

‘To buy now is to buy ahead of material down-grades and we do not believe a sustainable recovery in the sector will materialise until 1999 forecasts have been quantified,’ he said.

Mayflower shares, meanwhile, were unchanged at 132p, despite the company claiming victory in the long battle for bus chassis maker Dennis.

Rival Henlys, which has seen sufficient increases in its share price over the past week to lend weight to the theory it could still be in the race to acquire Dennis, was also stuck, at 435.5p.

Cables company BICC sparked rapid selling after a profits warning that saw its shares plummet 25% down 14p to 42p.

British Aerospace was down 7p at 429.25p after it named Matra BAe Dynamics deputy chief executive director Roger Hawksworth as group director and chief of staff to assist the company’s strategic development.