Wolseley defies FTSE fall

Builders and plumbers merchant group Wolseley yesterday saw its shares rise to their highest level since October.
The FTSE 100 share index saw its first real decline of 2010, but Wolseley rose 1.5% to £14.47 after Goldman Sachs flagged it up as a ‘buy’.

Strangely, it’s the potential strength of the US housing market which has prompted this as Goldman have predicted that around 850,000 homes would be built in the US this year. The US still accounts for more than half of Wolseley’s sales.

Goldman Sachs also believe that Wolseley’s programme of cost-cutting and tighter focus – the group sold off its Irish interests this week – would help first quarter earnings and expects shares to hit £17.80.

About Fiona Russell-Horne

Group Managing Editor across the BMJ portfolio.

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