Interest rate threat hits sector stocks

The threat of a rise in interest rates sent share prices tumbling across the pub and hotel sectors.

Among restaurant chains the hardest hit included Pizza-Express, whose price fell by 7.66%, and Oriental Restaurants, where shares dropped by 8.47% to 286.5p - a dramatic U-turn on the previous week's rise of 16.3%.

Bass, poised to sell BLMS, its amusement machine service business, also saw its shares fall, by 7.14%, while Granada Group ended the week on a sour note with its prices down 8.96%.

Stakis, despite just announcing strong trading figures for its third successive quarter, with occupancy improved by 3% and room rates up by 8%, was the poorest performer of the week with its shares down by 9.72%.

City analyst Ian Berry said: "Shares have fallen due to fears of a slow-down in the economy and higher interest rates."

Meanwhile, with the investigation into former accounting procedures at Queens Moat Houses continuing, its shares fell slightly by 0.77%.