Shares digital

The shares in plumbing and building supplies group Wolseley (WOS) continue to hit new lows as US trading weakens further. The stock fell 27.5p to 504.5p on Monday morning (17 March) after first-half results showed a 72% drop in pre-tax profit to £233 million from losses at its US arm, Stock.

Around £5.5 billion has been wiped off the company’s market valuation in the past ten months. North American trading conditions have deteriorated because of a slowdown in the residential housing market, and more than 10,000 jobs have been cut across Wolseley in the past 18 months.

Management believe the US market conditions will get worse over the coming months. It warns of a slowdown in the Canadian housing market and growth in Europe easing back. Confident of a longer-term recovery, Wolseley increased the shareholder dividend by 3.7% to 11.25p.

Shares says: Expect to see further short selling in the stock by traders playing on the pessimistic outlook.

by: Dan Coatsworth