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    January 10, 2007

    Telecoms lower in London

    Filed under: Companies, Enterprise Inns, BAT, Vodafone, BT Group, Cable and Wireless, Wm Morrison, Imperial Tobacco, BSkyB, Reed Elsevier, Yell, Punch Taverns

    In London on Wednesday equities markets were lower, with the FTSE 100 down 0.6 percent to 6,160.7 and the FTSE 250 also 0.6 percent lower, to 11,086.

    Publishers, however, did well on the session. Reed Elsevier added 1.2 percent to 582p on comments from Credit Suisse that indicated the Anglo-Dutch publisher could be the target of a leveraged buyout. Yell Group, Yellow Pages publisher, was 2.1 percent higher to 578p on mixed remarks from brokers.

    In the media sector, BSkyB also benefited from broker comments, adding 1.9 percent to 582p after Tuesday’s upgrade from Morgan Stanley.

    Foods retailer Wm Morrison was also higher on the session, adding 6 percent to 286¼p on better sales than expected during the holiday period.

    The tobacco sector was mixed. Imperial Tobacco dropped 0.1 percent to £20.80, but British American Tobacco gained 2.2 percent to £14.91 on positive comments from Dresdner Kleinwort.

    Telecommunications companies saw declines. BT was 1.2 percent lower to 316½p on a downgrade from Investec, while Vodafone dropped 2.5 percent to 145¾p and Cable & Wireless fell 2.9 percent to 156¾p.

    Pubs operators were lower after the chief executive of Enterprise Inns said that the introduction of real estate investment trusts would not likely provide any benefit to shareholders in the short term. Enterprise dropped 2.1 percent to £12.99, while Punch Taverns fell 3 percent to £12.14.





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