The construction sector enjoyed a stable performance last week despite the latest news of the inquiry into the industry by the Office of Fair Trading.
Analysts reacted positively to the early warnings from listed companies that they had been contacted in connection with the investigation. Dips by those that made announcements turned out to short term as the week ended. Of those that have so far admitted being under investigation Kier rose 4.4% to £23.54, ROK increased 6.4% to 246.75p, and Balfour Beatty crept up 0.5% to 457.25p. Galliford Try was the only one that did not enjoy such good fortune, dipping 1.7% to 174.50p.
Overall, the sector rose 0.7% to 6,907, up from 6,860 the previous week. The industry’s only significant loser was AIM-listed architect SMC, which dropped 5.3% in the week that founder Stewart McColl announced his resignation. The share price closed at 44.50p on Friday; it has halved since the company released a profit warning last month.