Wolseley shares fall on bank warning

Shares in builders and plumbers merchant chain Wolseley tumbled to a low point of 156.3p yesterday before closing at 161.3p.

The fall shows confidence in the group slipping after HSBC said they believe the company will breach banking covenants within the next two years if they do not carry out a rights issue to raise finance.

A rights issue has been rumoured for a couple of weeks but nothing as materialised.

By 11.30 this morning, shares had risen slightly to 167.6p