BUSINESS WEEK - Minor setback for stock market index.
The Accountancy Age/ADVFN index’s recent recovery has suffered a small setback as two of its stocks fell back more than 10% in an uneasy economic climate, writes Adriana Zea.
Accountancy-related stocks fell 1.76 points to 69.92 points dropping behind gains made last week and mimicking the FTSE 100, which closed at 94.70 points, down on last week’s 95.61 points. The index’s biggest loser was Misys, which fell 12% as analysts at Lehman Brothers lowered their profit forecast for the computer services company. According to the analysts, the stock looks cheap but significant future earnings are dependent upon the uncertain banking and healthcare markets.
In the same sector, ITNet lost 11% after nearly a month of gains. According to analysts, the company’s stock was over-bought after it announced a promising order book. But investors are now selling the stock as some of them start to feel ITNet’s low earnings and growth do not warrant the high valuation it has been given.
The index’s biggest winner is Robert Walters, which was up 8% this week, gaining for a second week running.
Sage was up slightly again this week after last week’s leap prompted by an announcement by the company which said, although its US revenues would be impacted by the terrorist attacks, its revenues would be in line with market forecasts.
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