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    June 27, 2006

    FTSE 100 closes at 5,652.3

    Filed under: Companies, Prudential, Xstrata, Aviva, Centrica, SAB Miller

    London equities markets were mixed again on Tuesday, with the FTSE 100 0.5 percent lower to 5,652.3. The FTSE 250 was just slightly higher, up 0.02 percent. Trade volumes were low once again, with 2.5 billion shares changing hands as investors delayed moves until after the US Federal Reserve meets later in the week.

    SAB Miller, which has been declining largely due to weakness in the South African rand, managed to gain 1.2 percent to 934p on a “buy” recommendation from Deutsche Bank, which said that despite currency issues the brewer is showing strong performance.

    In the utilities sector, Centrica added 0.7 percent to 271p after ABN Amro repeated its “buy” recommendation on the stock and maintained its 321p target share price for the owner of British Gas.

    The insurance sector was mixed, with Prudential up 0.5 percent to 567p as investors saw it as vulnerable to an approach after its 23.6 percent decline since it declined an offer from Aviva in March. Aviva declined by 0.2 percent to 737½p.

    Miner Xstrata was down by 2.6 percent to £19.04 on concerns that it could increase its offer for Falconbridge. Phelps Dodge said Monday that it will buy the Canadian nickel miner.





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