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STOCKS NEWS UK SMALL-Rail operators slump on Stagecoach warning
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12:15GMT 03Dec2008-Rail operators slump on Stagecoach warning
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Shares in rail and bus operators plunge after Stagecoach, which runs buses and trains across Britain, warns of a potential slowdown in its train business due to the impact on commuters of the economic downturn.
Stagecoach and Go-Ahead slide 18.7 percent and 14.7 percent respectively, while National Express (LSE: NEX.L - news) falls 10.3 percent and Arriva drops 5.7 percent on fears a sharp fall in jobs in London's financial sector and a decline in Britain's economy will hit profits.
'We see the entire bus and rail sector as oversold given buses' present lower prospects and much reduced headwinds on fuel and labour. However, rail still remains the share price swing factor, and presently Stagecoach and Go-Ahead have an over-proportionate exposure to UK rail,' analysts at J.P. Morgan (MGHL.PK - news) say.
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