Wolseley was the top riser on the Footsie today, amid talk that the plumbing supplies firm has put three of its UK businesses - Build Center, Electric Center and Encon - up for sale. Markets are also expecting a positive trading update from the company tomorrow.
Analysts at Panmure Gordon said:
Ahead of its third-quarter update there is some speculation that further disposals are likely from Wolseley. If these... occur then it would be good for sentiment. A positive update is likely tomorrow as the comparative period was soft and recent trends have been good. With a lot of good news in its share price we stay neutral.
Anthony Grech, head of research at IG Index, noted:
Top of the table so far is plumbing supplies business Wolseley, with some early buying ahead of the company's interim management statement on Wednesday. It has been a flat year for the shares and as a significant portion of their business is affected by the health of the UK housing market it is difficult to expect anything too positive tomorrow – but after slipping back towards the lows for the year investors are clearly seeing value here today.
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