VIDEO: Record gains for construction shares in 2009
By Chris Sleight15 January 2010
Shares in the European construction sector enjoyed their best year for more than a decade in 2009 as stock markets bounced back from the turmoil of the previous year. Construction Europe's CET Index, comprising 60 leading shares in the sector, gained 37.9% over the course of the year.
Despite the difficulties in Europe's real economy last year, stock markets enjoyed a rebound from the huge losses of 2008.
Growth in the construction sector came from an unexpected quarter, with the CEM Index for the region's major materials producers growing more than +60%. This was due in part to more than half the companies that make up the index issuing new shares in 2009 at heavy discounts. As a result, the total number of shares in circulation in the sector rose by more than +15% from 11.4 billion at the start of the year to 13.2 billion by the end.
The best performing shares in the sector last year included Wolseley and Kone from the materials sector, along with the leading contractors in the Nordic region and equipment manufacturers with a significant presence in the mining sector, or the Chinese market.
For more information, see the full financial review of 2009 in the February edition of Construction Europe. For more information about subscriptions to the magazine, click here or e-mail email@example.com