Stock market gloom continues, with Construction Index down 7.5%

There was no let up in the financial woe this morning (Thursday), with Travis Perkins the worst hit on the stock market.

The builders merchants' shares dropped 20% after saying it expected a rapid decline in the market. TP said it would begin £65m-worth of cost-cutting measures, and would probably not pay a final dividend to shareholders.

Other builders materials firms were also hit by the announcment, with Wolseley's shares down 3% and Marshalls down by 10%.

Elsewhere, Balfour Beatty's announcement that it was starting work on a £200m M1 project did little to boost investors' confidence, as its shares fell 5%.

Shares in Costain and Galliford Try both fell by 2.5%.

There was some brighter news for house builders, with Bovis Homes up 6% and Redrow up 4%. Other big hitters Barratt, Taylor Wimpey and Persimmon saw no movement in their prices.

Overall the FTSE Construction Materials Index was down 7.5%.