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    February 7, 2007

    British Airways gains on broker upgrade

    Filed under: Companies, BA, Anglo American, BHP Billiton, Lonmin, AstraZeneca, J Sainsbury, Vedanta Resources, Scottish Power

    Equities markets in London were higher on Wednesday, with both the FTSE 250 and the FTSE All-Share hitting all-time highs for the second day in a row. The 250 added 0.2 percent to 11,502, while the All-Share gained 0.2 percent as well, to 3,301.77. The FTSE 100 was also higher, up 0.4 percent to 6,369.5.

    Miners saw advances on the day after BHP Billiton added 5.5 percent to £10.40 on the announcement of a new share buyback. The rest of the sector followed Billiton higher, with Anglo American gaining 2.7 percent to £24.71, Lonmin 2.8 percent higher to £31.89, and Vedanta resources adding 3.5 percent to £12.36.

    J Sainsbury was 0.7 percent higher to 519½p after rumors circulated that an anonymous investor was interested in acquiring 50 million shares of the supermarket chain.

    British Airways gained 4.6 percent to 574p on upgrades from Merrill Lynch, which raised its recommendation on the airline to “buy” and increased its target share price to 700p.

    With 86million shares trading hands on the session, Scottish Power was 1.8 percent higher to 770p on consolidation rumors in Europe. The rumors were denied later.

    In the pharmaceuticals sector, AstraZeneca dropped 1.1 percent to £29.50.





    January 29, 2007

    London markets mixed in slow trade

    Filed under: Companies, BA, BAT, J Sainsbury, SAB Miller, Mitchells & Butlers, Imperial Tobacco, Yell

    The London equities markets were mixed on Monday as only 2.5 billion shares traded hands on the session. The FTSE 100 added 0.2 percent to 6,239.9, but the FTSE 250 dropped 0.1 percent to 11,104.

    In the airlines sector, British Airways added 2.7 percent to 542p as investors were relieved that a threatened 2-day strike by cabin crew members had been avoided.

    Tobacco did well ahead of results due later in the week from British American Tobacco. Citigroup said that BAT could return an estimated £1.5 billion to shareholders without harm to its credit rating. The figure was much higher than the £500 million it currently returns each year. BAT gained 2.8 percent to a record high share price of £15.60. Imperial Tobacco was 0.8 percent higher, to £21.24.

    Publisher Yell Group gained 1.5 percent to 608p on positive comments from Merrill Lynch.

    Pubs operator Mitchells & Butlers was 1 percent higher to 686½p on reaction to the news that financier Robert Tchenguiz has increased his holding in the company to almost 15 percent.

    Brewer SABMiller dropped 1.1 percent to £11.70 as Goldman Sachs took it off it’s “buy” list on valuation concerns.

    J. Sainsbury also fell 1.1 percent, to 432½p, as one shareholider placed 12 million shares with Morgan Stanley. The shares were priced at 432p each.





    November 22, 2006

    BAE Systems drop on contract concerns

    Filed under: Companies, BA, ITV, BAE Systems, Wolseley, Ladbrokes, BSkyB, ICI

    The London equities markets were lower on Wednesday ahead of the four-day Thanksgiving Day weekend in the United States. The FTSE 100 dropped 0.7 percent to 6,160.3, while the FTSE 250 fell 0.6 percent to 10,687.7.

    Ladbrokes was 1.1 percent higher on the session to 397¼p as rumors circulated that private equity might be interested in making a bid for the bookmaker. Also up was British Airways, which added 2 percent to 491p on the news that Qantas Airways of Australia had received a $7.7 billion offer. Specialty chemicals company ICI was 9.3 percent higher to 423p as investors speculated that the sale of its Quest unit leaves it open to bids.

    Plumbing and constructions materials company Wolseley fell 1.6 percent to £11.68 ahead of its annual meeting next week. Analysts are worried that the plumber might be forced into a restructuring because of the slowdown in the US housing market.

    In the defence sector, BAE Systems dropped 0.4 percent to 414½p amid concerns that Saudi Arabia could cancel the contract for the Al Yamamah 3 fighter plane.

    Among media companies, BSkyB was 0.7 percent lower to 531p, while ITV fell 2.2 percent to 109½p on reaction to its rejection of an offer from NTL. In addition, US fund manager Fidelity sold its 11 percent stake in ITV to BSkyB last week and then bought back 58.3 million ITV shares Monday for a much lower price per share; however it appeared that Fidelity had stopped buying shares.





    September 26, 2006

    Wolseley gains on full-year report

    Filed under: Companies, BA, Corus, Rio Tinto, Emap, Scottish Power, Hanson, Wolseley, BSkyB

    The equities markets were up in London on Tuesday, helped by new data that shows consumer confidence in the United States up more than had been expected in September. The FTSE 100 was 1.3 percent higher to 5,873.6, while the FTSE 250 gained 0.9 percent to 9,844.9. Mergers and acquisitions speculation was another driving force on the session.

    In the steel sector, Corus added 3.6 percent to 377¼p on continuing talk about its pursuit of a low-cost steel slab producer in the BRIC (Brazil, Russia, India and China) region. Morgan Stanley recently said that such a deal could produce a 100p per hike in Corus’ share prices.

    Other bids rumors sent Scottish Power up 3 percent to 634p as rumors spread that Eon could bid for the utility if its effort to buy Endsea doesn’t work out. In the airlines sector, rumors that British Airways is in merger talks with Iberia sent BA 0.6 percent higher to 429p.B

    Plumber and building materials group Wolseley gained 4.1 percent to £11.39 on a better than expected full-year report. Elsewhere in the sector, building materials supplier Hanson added 6.2 percent to 730p as rumors continued that Cemex is preparing a bid.

    Among miners, Rio Tinto gained 3.5 percent to £24.34 on talk that it will propose an off-market buyback of London-traded shares for £25 per share.

    Emap added 2.6 percent to 741p after the publisher received an upgrade to “buy” from Goldman Sachs.

    Among losers on the session, BSkyB was 1.3 percent lower to 542p on talk that one of its brokers had been informed that its forecasts were too high by 10 percent. BSkyB denied the rumors.





    September 20, 2006

    Corus gains on deal rumors

    Filed under: Companies, BA, Corus, PartyGaming, British Energy, Cable and Wireless, Drax Group, RHM

    The London equities markets were higher on Wednesday after Wall Street opened strongly, with the FTSE 100 up 0.6 percent higher to 5,866.2 and the FTSE 250 adding 0.5 percent to 9.791.1. The energy sector, however, didn’t share in the gains.

    British Energy was 1.4 percent lower to 574p, on top of an 8.3 percent decline on Tuesday, as it became clear that the nuclear power generator will not be able to shed any more light on its dividend policy should the government delay its plan to sell its stake in the power company. The government owns 65 percent of BE. Meanwhile, Drax Group, the coal-power generator, dropped 2.4 percent to 835p as Goldman Sachs added it to its sell list.

    Also lower was RHM, which fell 1.6 percent to 284½p after a downgrade from Credit Suisse to “neutral” on concerns that the baker will not be able to pass on higher raw materials costs to consumers.

    Online gamer PartyGaming dropped 1.9 percent to 101p on a downgrade to “reduce” from UBS, which also cut the internet gambler’s target share price from 135p to 75p.

    In the steel sector, Corus Group added 2.8 percent to 369¾p on an upgrade to “overweight” from Morgan Stanley, saying it expects the steel maker to make a deal soon with a low-cost producer of slab steels that could add over 100p to its share price.

    British Airways gained 4 percent to 437¾p, a five-and-a-half year high, as crude oil prices continued to decline.

    In the telecommunications sector, meanwhile, Cable & Wireless was 3 percent higher to 129¾p ahead of a Thursday presentation on its international operations.





    August 29, 2006

    Brewers up on bids rumors

    Filed under: Companies, Carnival, BA, EasyJet, MFI Furniture, SAB Miller, Wolseley, Drax Group, Diageo

    After Monday’s holiday, London markets resumed trade on Tuesday with slightly higher volumes of 2.2 billion shares traded and small gains in both the FTSE 100 and FTSE 250. The 100 added 0.17 percent to 5,888.3 after going as high as 5,921.3 earlier in the session, while the 250 was 0.4 percent higher to 9,531.8

    Airlines and cruise ship operators benefited from declining oil prices, which dropped below $70 dollars per gallon. Cruise ship operator Carnival added 2.6 percent to £21.74. Among airlines, British Airways was up 4 percent to 414¼p and EasyJet gained 4.5 percent to 454½p.

    Brewers were up on the day as well. Diageo added 0.1 percent to 945p ahead of its full-year report, due on Thursday. SABMiller gained 0.6 percent to £10.13. Both were said to be interested in bidding for Australian drinks company Foster’s.

    Another of the day’s gainers was plumber and buildings materials group Wolseley, which added 2.2 percent to £10.89 ahead of an interim report due next month. The gains came after Wolseley lost a quarter of its value recently.

    Among losers on the day was MFI Furniture Group, which dropped 4.2 percent to 85p on reports that the sale of its losing retail business in the UK ahs run into problems. Also lower was coal-fueled power station operator Drax, down 1.8 percent to 902p.





    August 17, 2006

    UK miners up on M&A rumors

    Filed under: Companies, Carnival, BA, BG Group, Royal Dutch Shell, Cairn Energy, Corus, Anglo American, EasyJet, Vedanta Resources, SAB Miller

    In London’s equities markets on Thursday, the FTSE 100 was up, but only by 3.8 points to 5,900.4 and the FTSE 250 added 0.4 percent to 9,486.6 as miners and airlines saw advances but the oil sector was mostly lower.

    Dropping crude oil prices sent shares in air carriers up as British Airways added 2.7 percent to 293p and EasyJet was 3 percent higher to 425½p. Lower costs for oil also helped cruise operators, as Carnival gained 6.4 percent to £21.72.

    The oil sector, on the other hand, saw losses on the day as both Royal Dutch Shell and BG Group fell 1 percent, to £19.17 and 708p respectively. The exception was Cairn Energy, which added 3 percent to £20.80 on Merrill Lynch’s repeated “buy” recommendation, which cited the IPO of Cairn’s India operations as likely to send share prices higher.

    Bids rumors sent the mining sector higher. Anglo American added 2 percent to £24.20 as Morgan Stanley commented that mergers and acquisitions are driving the sector and raised the miner’s recommendation from “underweight” to “overweight”. Meanwhile, Vedanta Resources gained 3.1 percent to £13.83 on positive comments from Goldman Sachs.

    M & A rumors also sent Corus Group up by 3.2 percent to 407½p with the talk that Evraz and Severstal are both looking at offering for the steel maker.

    Among loser on the day was SAB Miller, which dropped 2.9 percent to £10.40 when UBS lowered their recommendation on the brewer from “buy” to “neutral”.





    July 25, 2006

    Boots/Alliance UniChem merger send both companies higher

    Filed under: Companies, BA, Alliance Unichem, Boots, Cadbury Schweppes, Shire, Scottish and Newcastle

    The London equities markets were higher again on Tuesday, with the FTSE 100 gaining 0.3 percent to 5,851.2 and the FTSE 250 also up 0.3 percent to 9,248.5. Volume was up from Monday, with 2.6 billion shares changing hands during the session.

    Boots Group and Alliance UniChem were each 2.1 percent higher, to 766p and £10.18 respectively. The gains came ahead of Monday’s scheduled completion of a merger between the two companies. JP Morgan issued a positive comment.

    Brewer Scottish & Newcastle was up 2.4 percent to 533½p ahead of an expected positive half-year report due next month.

    British Airways added 3 percent to 384¼p, a five-year high, as oil prices fell and in anticipation of positive earnings news next month. Morgan Stanley upped its target share price on BA to 480p and said that revenue growth predictions will have to be increased by at least 7 percent after the air carrier releases its next report on August 4.

    In the pharmaceutical sector, Shire gained 2.9 percent to 852½p on the news that it has gained permission to sell its treatment for Hunter syndrome in the United States.

    Cadbury Schweppes, which issues its half-year report on August 2, dropped 1.4 percent to 515p on rumors that it will issue a profits warning. The talk was based at least partly on ABN Amro’s lowered forecast, in which it cited rising costs and a recent salmonella problem in explaining its position.

    Among small caps, Central African Mining & Exploration Company (Camec) was up 3.5 percent to 59p. Credit Suisse initiated coverage on Camec with an “overweight” rating and a target share price of 100p. Camec is starting to mine copper and cobalt in the Democratic Republic of Congo.





    July 20, 2006

    UK airlines see advances

    Filed under: Companies, BA, 888 Holdings, PartyGaming, EasyJet, Rolls Royce, Colt Telecom, BAE Systems, MFI Furniture, Sportingbet, BSkyB, Ultra Electronics

    Equities markets in London were mixed on Thursday, with the FTSE 100 dropping 0.1 percent to 5,770.9 but the FTSE 250 up by 22.8 points to 9,207.2.

    The aerospace sector managed gains on the day. Ultra Electronics, which supplies targeting systems for fighter aircraft, added 15.1 percent to £11 on bids rumors. BAE Systems was up by 1.8 percent to 347¼p, while Rolls Royce advanced by 1.1 percent to 411¼p.

    Airlines also saw their shares advance. British Airways was up 3 percent to 368¼p on anticipation of broker upgrades after it reports its quarterly figures next month and as oil prices declined. Meanwhile, EasyJet gained 4.7 percent to 436½p.

    BSkyB advanced by 2.5 percent to 544¼p, after its chief executive presented information on its new broadband business to Deutsche Bank.

    The internet gaming sector did not fare as well. SportingBet dropped 3 percent to 174¾p, while PartyGaming was 7.4 percent lower to 87¼p and 888 Holdings fell 9.4 percent to 161p, all on concerns that US shareholders will sell their holdings now that the US Department of Justice is taking measures against gambling on the internet.

    Other big losers included MFI Furniture, which was down 20 percent to 85p, and Colt Telecom, 23.3 percent lower to 436½p.





    July 14, 2006

    FTSE 250 loses 3.8 percent this week

    Filed under: Companies, BA, BP, Rio Tinto, Aviva, Vedanta Resources

    The London equities markets were down for the day on Friday and over the week as a whole, with the FTSE 100 dropping 1 percent during the day to 5,707.6, a decline of 3.1 percent during the week. The FTSE 250 was down even more, falling 1.1 percent to 9,076 during Friday’s session for a total loss of 3.8 percent this week.

    After dropping as low as 690p during the week, Aviva closed 0.7 percent higher on Friday at 695p. The earlier losses came as investors were unhappy with the life assurer’s purchase of AmerUS for £1.6 billion. The worry was that it would be the beginning of a series of US acquisitions, although Aviva’s chief executive said that the present deal satisfied the company’s goals in the United States. Merrill Lynch upgraded Aviva to “buy”, saying that the deal was advantageous for the company.

    The mining sector was lower as Rio Tinto dropped 3 percent to £27.25. Vedanta Resources saw declines as well, falling 0.2 percent to £13.33. JP Morgan raised Vedanta’s target share price from £18.25 to £19.65 based on its exposure to both copper and zinc as well as its growth.

    British Airways was 2.4 percent lower to 346½p as oil prices continued to rise due to increasing political tensions in the Middle East. The same price hikes sent BP 0.3 percent higher to 643p.





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