Restructuring within engineering sector breathing new life into share prices
Engineering stocks are back in favour because of an extraordinary level of merger, acquisition and restructuring, according to analysis by Ernst & Young corporate finance
In an analysis of 40 stocks which make up the FTSE engineering and machinery index, E&Y corporate finance partner Nicholas Legh found that 14 of them had managed to beat the All Share index despite tough competition from internet shares.
‘In spite of some engineering shares being knocked back recently in the wake of the much-publicised Transtec collapse and a generally weaker UK market, there is no doubt that investors are finally getting the message about the fundamental changes that have been sweeping through what many regard as Britain’s traditional ‘metal-bashers’,’ he said.
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