Stagecoach boosted by £70m deal

Published on Tuesday 27 January 2009 20:31

SCOTS STOCKS

TRADERS seemed to take a shine to Stagecoach Group in the wake of news of the transport giant's 70 million investment in new, more environmentally friendly buses.

In a show of capital investment that is increasingly rare in these recessionary times, the group will take delivery of 420 new buses in 2009-10. Its share price was up 7.9 per cent to 126.25p although it still has a way to recover from its early September 2008 peak of 327.5p.

Despite institutional investor Aviva's announcement that it had reduced its stake in Johnston Press, the newspaper publishing group rallied strongly. Shares were up 10 per cent to 8.25p. Aviva said it now held a 2.97 per cent stake in the group.

Scottish dairy Robert Wiseman also rallied, up 5.9 per cent to 340p. News emerged on Monday that the group was cutting the price paid to farmers by 2.2p a litre.

Oil and gas explorers Ramco and Bowleven were up 6.1 per cent and 5.7 per cent respectively. Energy services firm John Wood Group, on the other hand did not enjoy the same market largesse. Analysts at RBS were fretting that oil companies will put increasing pressure on energy services companies to reduce costs and provide better value, which ultimately could squeeze margins. Wood's shares fell 5.6 per cent to 200.25p.

Although Aggreko rival Caterpillar delivered a profit warning yesterday, Scotland's global temporary power company stayed on track and may even have been buoyed by Legal & General Assurance raising its interest from 3 to 4 per cent. Aggreko's shares rose 4.7 per cent to 384.5p.