Carillion's woes drag on as shares fall on rollercoaster day

 
Courtney Goldsmith
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The construction and support services company has had a bad week (Source: Getty)

Carillion booked its fourth consecutive day of losses after a rollercoaster day for its shares.

The construction giant's stock closed down 3.06 per cent at 55.45p after rising more than 10 per cent earlier in the day.

Since Monday, around 70 per cent has been slashed off of the company's market value.

Following the announcement of an £845m provision due to problems with a string of contracts and the exit of the company's chief executive Richard Howson, Carillion's shares have been in free fall.

The company's stock fell 27 per cent yesterday following a 37 per cent drop on Monday and 31 per cent fall on Tuesday.

Today, analysts at JP Morgan downgraded Carillion's stock from "buy" to "neutral" and said the company could face a further provision against receivables and difficulties recovering money owed to it by its customers.

Carillion remains the most shorted stock in the FTSE 350. Of the 18 hedge funds shorting the stock at the start of the week, only two – New York fund Engineers Gate and Hong Kong-based Kontiki Capital – have closed positions according to data lodged with the Financial Conduct Authority (FCA).

City A.M. analysis of the FCA figures indicates the hedge funds will have booked £140m in this week alone.

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