City Watch

Another tough week for engineering shares saw the sector index down 30 points at 2841.74 from 2870.26 a week ago. The week’s trading started nervously, ahead of the monthly meeting of the Bank of England’s monetary policy committee. Growing fears of a quarter of a percentage point interest rise added to concerns about the impact […]

Another tough week for engineering shares saw the sector index down 30 points at 2841.74 from 2870.26 a week ago.

The week’s trading started nervously, ahead of the monthly meeting of the Bank of England’s monetary policy committee. Growing fears of a quarter of a percentage point interest rise added to concerns about the impact of the strong pound on exporters.

Negative sentiment was increased by figures out on Monday showing a fall in manufacturing output in May, with sterling’s strength largely blamed for reducing export production levels.

Glynwed shares eased after meetings with brokers on Monday. Analysts gave a mixed reaction to a series of presentations, with several said to be thinking about cutting full year forecasts. On Tuesday Glynwed shares fell 2.5p to 247p.

TI Group was one of the sector’s biggest fallers, down 19.5p at 462p, compared with a 698.5p high for the year and a low of 424p.

Alumasc also fell, by10p to 175p, while British Aerospace fell 12p to 486p in response to rumours of potential consolidation in the aerospace defence industries.

Siebe continued its downward run, falling 5p to 1210p well adrift of its high for the year, 1580p.

Wyko was down 3.5p at 142.5p, as was FKI, down at 175p, but David Brown bucked the trend at 208.5p, and Sterling Industries rose 4p to 325p.