City Watch

Engineering shares were among the chief victims of the stock market slide triggered by Wall Street’s panicky reaction to the Russian crisis. British dealers returning from holiday on Tuesday initially took a calm view of a 513-point fall overnight on Wall Street’s Dow Jones Industrial index its biggest one-day fall since the crash of October […]

Engineering shares were among the chief victims of the stock market slide triggered by Wall Street’s panicky reaction to the Russian crisis.

British dealers returning from holiday on Tuesday initially took a calm view of a 513-point fall overnight on Wall Street’s Dow Jones Industrial index its biggest one-day fall since the crash of October 1987.

The 100-share Footsie fell more than 170 points first thing on Tuesday, but steadied when no massive wave of selling developed.

However, the 250-share index, which includes many large engineering share prices, was harder hit, despite brokers suggesting many engineering prices were discounting a recession.

Rolls-Royce was a nota-ble casualty, falling from 236p early last week to 193p, despite highly respectable half-year results.

Similarly, British Aerospace saw no benefit from British Airways’ big Airbus order; its shares skidded from 430p to 382p.

Even GKN’s news that it had succeeded in an appeal against a colossal US courtroom award did nothing for the shares. They fell from 724p to 665p, even though the US verdict could enable it to write back as much as £200m previously set aside for damages and legal costs.

Bright spots were few and far between. One on Tuesday was Rubicon, whose shares jumped 65p to 225p after a £207m agreed bid from the American Allied Power Inc.