IT has been a crazy see-saw month on the Stock Exchange as investors have responded nervously in the wake of the terrorist attacks on America.
Shares in companies with even the remotest connection to planes suffered amid fears that air travel would grind to a halt. After weeks of wildly fluctuating share prices, some degree of normality has returned to the market and the FTSE 100 Index has returned to the low 5000s.
But for the FTSE 14 companies - those which have either their headquarters or a significant presence in the area - the hangover lingers on. Just four of them saw their share price rise over the month and the quoted local companies fell in value by an average of almost seven per cent.
The 'fear of flying' factor, coupled with a high exposure to the USA's fragile economy, appears to have played a major role in East Lancashire's poor performance.
Lancashire-based travel giant Airtours had a roller-coaster ride after the bombings. After its share price had more than halved to under £1, the company rushed out a trading statement in an effort to settle investors' nerves. Within days, the share price had recovered to £1.50 and the stock has been rising steadily since.
Chairman David Crossland said the cost of repatriating customers and staff had been around £10 million, but stressed the financial strength of the company. "It is too early to predict any pattern of bookings given the uncertainty of circumstances," said the statement. "However, our previous experience of booking patterns during the cold war suggests that leisure travel markets are robust and that the disruption of bookings is more a timing issue than a loss of overall demand."
Rolls-Royce's share price fell by 20 per cent, from 177 to 142p, following the announcement of massive job losses at American plane-maker Boeing, British Airways and other airlines.
BAE Systems, with thousands of employees at its two Lancashire sites in Samlesbury and Warton, has flown steadily through the turbulence. At 336p, its share price is identical to its August rating, although it is down slightly on the month.
The biggest faller on the East Lancashire index was Scapa Group, which has its international headquarters in Blackburn, and has extensive interests in America. Its share price has slumped by 24 per cent to 64p.
Clitheroe-based Ultraframe remains unloved in the City as its share price continued its downward spiral to a new low of 170p - a fall on the month of 18 per cent. On the back of a 39 per cent drop in September, these are grim days for Ultraframe shareholders who include hundreds of employees. JJB Sports, the firm set up by ex-Blackburn Rovers star David Whelan, was the month's biggest riser, up eight per cent to 141p a share, following the announcement of impressive first half results. The Wigan-based group reported turnover for the six months to July 31 up by 14 per cent to £347.9 million and pre-tax profits of £40.9 million. Shareholders will be happy to receive an interim dividend of 2.25p.
No company can have had a more confusing month than Blackburn-based Interlink Foods. The company bakes cakes and other confectionery for supermarkets and must surely be as recession-proof as any business can hope to be. Yet from 411p, its share price went as low as 247p - then .
The crazy collapse was stopped its its tracks when an internet-based analyst alerted investors.
The share price has put on more than a pound and is now 350p.
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