| SHAREtrack joins the club and heads south |
| Written by Business Weekly | |
| Wednesday, 07 March 2007 | |
|
Unsurprisingly given the attitude of risk aversion that spread around the globe to equity,commodity and other markets, the SHAREtrack 100 - in association with PricewaterhouseCoopers – put in its worst performance to date last week, falling a whopping 6.2 per cent from 6930 to 6500.
A sharp fall in a restricted a market in Shanghai reverberated into the Far East, European and US stock markets. Subsequent comments by Alan Greenspan,the former head of the Federal Reserve, that the US might enter a recession was taken adversely, but the most material shock in the economic news was a sharp decline in the US Durable Goods orders. The reaction was evidenced in credit markets where the Crossover index rose 50 per cent,a sign that funds are taking out insurance against defaults on credit risks even though there has been little change in the benign macroeconomic environment. No fewer than twenty of the SHAREtrack's hundred constituents fell by 10 per cent or more. Biotech Asterand headed this list with a 49 per cent fall but there were significant falls elsewhere for plant design software company Aveva and pub operator, Weatherspoon, both down 15 per cent, and enterprise search company, Autonomy down 11 per cent. On the positive side, Molins rose 14 per cent and a further six stocks managed to put in more modest rises, but overall a dispiriting week for the Index. |
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