Kier share price soars after HS2 green lit by PM Boris Johnson
The construction services company’s shares have surged more than 30% this week after the British Prime Minister Boris Johnson opted to move forward with the controversial HS2 rail project.
Kier Group has seen its share price surge by more than 33% this week after the British Prime Minister Boris Johnson announced that he will press forward with the controversial HS2 rail project.
Johnson’s decision came as a shock to investors, with the prime minister under pressure to ditch the project after its estimated cost rose to more than £106 billion.
Kier is trading at 136p as of 11:15 (GMT) on Friday, up from Monday’s opening price of 102p a share.
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Boris Johnson moves forward with HS2
On Tuesday, the prime minister opted to green light the HS2 rail project, telling critics in the House of Commons that ‘this country is being held back by our inadequate infrastructure’.
‘We can try to get by with existing routes from north to south, consign the next generation to overcrowding… or have the guts to take a decision, no matter how controversial,’ he added.
British construction industry boosted by HS2
Other British construction companies that have been contracted to carry out the HS2 project, including Balfour Beatty and Costain have seen their stock climb rise too, with the pair both up 9% to trade at 292p and 208p respectively.
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Balfour Beatty CEO Leo Quinn called the approval of the HS2 rail project a ‘bold’ move that will support the UK economy and help connect the country.
‘As the UK takes its place in global markets, improving our connectivity and competitiveness as a country and revitalising our heartlands has never been more important. Now the UK can clearly demonstrate it has thrown open its doors for business and investment,’ Quinn said.
‘HS2 is a bold regeneration scheme that is ready for implementation and provides a true legacy for the generations to come. We must invest in their future: drive new skills and capabilities; turbo charge small businesses across the country and show that the UK is determined to meet its carbon reduction targets,’ he added.
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