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    February 9, 2007

    London markets higher on session, week

    Filed under: Companies, GlaxoSmithKline, British Energy, London Stock Exchange, SR Pharma

    London markets were higher as well on Friday and for the full week, ending with a new six-year high for the FTSE 100 and another all-time high for the FTSE 250. The 100 was 0.5 percent higher on Friday and 1.1 percent higher on the week, closing at 6,382.8, while the 250 closed at 11,522.8, up 0.7 percent on the day and 1.6 percent higher over the week.

    In the energy sector, British Energy dropped 0.1 percent to 418¾p on rumors that the UK government could divest itself of part of the energy company after it reports next Tuesday. Several banks were brought in last year to consult on such a sale, but problems with some of the company’s nuclear power generators put the idea on a back burner. The government has claim on nearly 65 percent of the energy company’s net cash flow that is convertible to an equal-sized equity stake at will.

    In the pharmaceuticals sector, GlaxoSmithKline added 2 percent to £14.50 on an upgraded recommendation from Bear Sterns. Meanwhile, SR Pharma added 12.1 percent over the week to 74p. There were bid rumors, but most analysts attributed the gain to the news that Pfizer and Quark Biotech are beginning clinical development on a new product licensed from SR.

    The London Stock Exchange held steady at £12.82 as the deadline for acceptance of Nasdaq’s offer by LSE shareholders approached.





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