European Markets Plunge 4% as World Markets Near Bear Zone

Nigel Thomas
24 Aug, 2015
New York City

European markets dropped nearly 4% as world markets sell off extended to the second week. Amlin profit dropped 2% and the company denied reports that it is looking to sell its business. Bunzl profit surged 17% to

[R]4:00 PM Frankfurt – European markets dropped nearly 4% as world markets sell off extended to the second week. Amlin profit dropped 2% and the company denied reports that it is looking to sell its business. Bunzl profit surged 17% to £105 million. Punch Taverns divests its 158 pubs.[/R]

European markets extended losses after indexes in New York opened sharply lower and market gloom extended to bonds and commodities.

In London trading, FTSE 100 index declined 223.98 or 3.7% to 5,955.80 and in Frankfurt the DAX index dropped 358.11 or 3.6% to 9,763.18.

In Paris, CAC 40 index slumped 185.92 or 4% to 4,446.12.

Amlin Plc slumped 2.2% to 488.80 pence after the U.K.-based insurance company reported gross written premium in the first-half ending in June jumped 6.3% to £2.01 billion from £1.89 billion in a year ago period.

Net profit in the period fell 2.3% from a year ago to £133 million compared to £136.1 million and diluted earnings per share slipped to 26.1 pence from 26.8 pence.

Amlin rejected media report that it is in talk to sell its business for a $5 billion.

Balfour Beatty Plc dropped 4.5% to 252.55 pence after the U.K.-based infrastructure developer and Morgan Sindall and BAM Nuttall secured a contract worth £416 million to construct part of London’s new ‘super sewer’, the Thames Tideway Tunnel, for Bazalgette Tunnel Limited.

The project includes design, construction, commissioning and maintenance for a two to five year period following construction completion.

Separately, the company decided to drop out from the remaining phases of £75 million northern hub railway electrification project in the U.K. between Preston and Blackpool that was scheduled to complete by May, 2016.

Bunzl Plc plunged 5.3% to 1,693 pence after the U.K.-based outsourcing reported in the first-half ending in June soared 7% to £3.14 billion from £2.94 billion in a year ago period.

Net profit in the period surged 17% from a year ago to £105.1 million compared to £89.8 million and diluted earnings per share jumped to 31.8 pence from 27.3 pence.

Costain Group Plc gained 0.5% to 371.75 pence after the U.K.-based engineering solutions provider was awarded the £605 million contract for the East works package of the Thames Tideway Tunnel in London along with VINCI Construction Grands Projets and Bachy Soletanche Ltd.

Costain, will hold 40% share in the project that will commence work immediately and is expected to complete by 2023.

Punch Taverns Plc fell 0.8% to 126 pence after the pub operator agreed to divest its 158 non-core pubs estates to a real estate investment trust, NewRiver Retail and raise about £53.5 million.

Punch operates total 2,900 core pubs estate and 550 of non-core estate and the latest spin-off includes 150 of the non-core pubs estate and 8 core pubs estate.