Terex and Manitowoc surge on stimulus plan
9 December 2008Shares in US crane builders Terex and Manitowoc rose by around 18%, after US president-elect Barack Obama gave firmer details of his plans for an economic stimulus package that would focus, in part, on infrastructure development.
In an address broadcast on US radio and YouTube, Obama promised a four-point plan, with investment going to public sector energy efficiency schemes, infrastructure, school building, and the internet. The construction industry and investors have been anticipating a 'New Deal' style stimulus package since Obama's election. Allies of the president-elect have raised expectations that the amount of spending could reach hundreds of millions of dollars.
When the New York Stage Exchange closed trading on Monday (the first trading day after the president-elect's 'fireside chat'), Terex was up 17.98% to $16.01, and Manitowoc 18.12% higher, to $8.80. Other construction, energy and materials handling firms were among those benefitting from the proposals.
