Pub stocks slide again as gloom worsens

Shares in listed pubcos took another battering today as the stock market responded to yet more bad news surrounding the consumer, the viability of some banks and questions over the finances of private investors in the sector.

Troubled Icelandic bank Kaupthing was said to have dumped parts of its holdings in a number of UK pub and brewing groups late last week in order to generate cash, and the wider stock market was spooked by reports that the German government would provide an unlimited guarantee to savings in domestic banks. The British government is believed to be shying away from giving such a guarantee to UK savers.

As investors took flight from consumer-led stocks Marston's led the slide, its shares off by more than 13 per cent at 115p. Its regional rival Greene King saw its stock down seven per cent at 390p.

Despite briefly lifting the market last week with news of a bond repayment, rumours of looming financial headaches continued to dog Punch Taverns, whose shares were down nearly nine per cent at 138p.

Enterprise Inns' shares were down 11.5 per cent at 149.5p, while Mitchells & Butlers' stock slipped more than 10 per cent to 188.5p. JD Wetherspoon was also hit, its shares down more than 12 per cent at 221.5p.

"No-one is willing to believe or believe good news right now, and everything is being compounded by bad news from the banking sector," said one pubco insider.

"Trading is the least of the issues at the moment, but the sector is performing reasonably robustly if you look at companies like Marks & Spencer reporting like-for-like numbers down six per cent," he added.