Shares in pub companies rally after earlier slump
Pub stocks bounced back this morning after heavy falls yesterday.
Fresh concerns over the state of the US economy caused a shockwave in the London markets yesterday, with share prices in virtually all the UK's listed pub and brewing companies - as well as many other sectors - 'heading south'.
This morning saw a bounceback, with Marston's up three per cent at 434.5p, Greene King up two per cent at 1,083p, Punch Taverns up two per cent to 1,110p and Enterprise Inns up 2.2 per cent to 625.5p.
Other companies whose shares had slumped yesterday witnessed a turnaround this morning, including JD Wetherspoon, up 1.5 per cent to 695p and Mitchells & Butlers, up two per cent to 716p.
Hamish Champ, City & Business editor says: "More adverse comment from the US about the state of the economy across the Atlantic and lo! London shares hit the floor. OK, this is an exaggeration, but the knee-jerk reaction to more bad news from the States yesterday wiped millions off the value of UK corporates. This morning and smiles are back on the faces of companies and the boys and girls in the Square Mile. It is reasonable to ask if this is a 'dead cat bounce', a conservative response to yesterday's events or the start of a recovery. Whichever theory you opt for, my guess is a lot of people picked up some of their favourite pub stocks at bargain prices before the close of play yesterday."
