Go-Ahead, Babcock and Taylor Wimpey

“The blue-chip index was in positive territory in early trading with investors awaiting US President Donald Trump’s much-anticipated speech to Congress later, and a second estimate of US fourth-quarter GDP,” says AJ Bell Investment Director Russ Mould.

“Transport group Go-Ahead was the FTSE250’s biggest faller after the group lowered its full-year forecasts. First half bus profits were stable despite a slowdown in passenger numbers but Go-Ahead’s main problem remains the lengthy and significant industrial relations issues on its Southern rail franchise. Go-Ahead owns 65% of the franchise through Govia Thameslink Railway where customers have endured months of disruption. Go-Ahead’s shares were down by more than 13.2% in early trading.

“Babcock’s shares were up in early trading following a bullish trading update. The FTSE100 engineering services company’s new order intake remains strong and it has maintained its order book and pipeline at £30.bn. The longer-term tracking pipeline has increased in size over the period and continues to provide significant opportunities for growth over the medium term. Babcock’s shares were up by over 3.1%.

“Housebuilder Taylor Wimpey has made a good start to 2017. The housing sector is underpinned by a competitive mortgage market and low interest rates and Taylor Wimpey believes the risk of a material impact from the Brexit vote in the short term has significantly reduced.”

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