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    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 18, 2006

    Utilities see gains

    Filed under: Companies, BAT, 888 Holdings, PartyGaming, Scottish & Southern Energy, Severn Trent, Kelda, Pennon Group, Sportingbet, BetOnSports, BSkyB, United Utilities, World Gaming

    Both the FTSE 100 and the FTSE 250 were lower in London on Tuesday as the online gaming sector saw further losses. Also affecting investor sentiment was a report that inflation in the UK was up more than had been expected, which could in turn lead to a hike in interest rates from the Bank of England.

    The 100 was 0.3 percent lower on the session to 5,681.7, bringing its losses to 3 percent in the past four days. Meanwhile, the 250 dropped 0.5 percent to 8,968.8.

    The utilities sector had a good day, however. Kelda Group gained 4.2 percent to 844p on bids rumors. Kelda has added 7.1 percent in three sessions. Severn Trent was up 2.2 percent to £12.21, while Pennon Group advanced by 2.1 percent to £13.99. United Utilities added 1.7 percent to 637p on an upgrade to “buy” from Dresdner Kleinwort. Scottish & Southern was up 1.6 percent to £11.66.

    Also seeing an advance was British American Tobacco, up 1.5 percent to £13.70 on a “buy” recommendation from JP Morgan.

    BSkyB was down 4.3 percent to 517½p as investors worried about the satellite broadcaster’s plan to spend £400 million on its new broadband offering.

    The online gaming sector was hit hard by the news that a grand jury in the United States had field charges against BetOnSports. Traing in BetOnSports shares was suspended at 122½p. 888 Holdings dropped 12.7 percent to 168½p, while PartyGaming fell 17.2 percent to 85¼p, SportingBet declined 35.5 percent to 182p, and World Gaming was down 38 percent to 69½p.





    July 17, 2006

    Online gaming sees losses

    Filed under: Companies, Xstrata, Anglo American, 888 Holdings, PartyGaming, Kazakhmys, Rio Tinto, Antofagasta, BHP Billiton, Sportingbet, BetOnSports, BSkyB

    The London equities markets were lower on Monday, primarily due to declines in the mining sector. The losses were tempered somewhat late in the day, following a rally in the New York markets. The FTSE 100 ended up just 0.12 percent lower at 5,701, while the FTSE 250 was down 0.65 percent to 9,017.1. Volume was again low, with only 2.4 billion shares traded.

    Another sector that saw substantial losses was online gaming. 888 Holdings was down 3.5 percent to 193. PartyGaming dropped 5.5 percent to 103p, while SportingBet fell 13 percent to 282p and BetOnSports declined by 15.6 percent to 122½p. A major reason for the declines in this sector was the detention by US authorities of David Carruthers, chief executive of BetOnSports.

    Among miners, BHP Billiton was down 1 percent to £10.10, while Rio Tinto dropped 1.8 percent to £26.76. Anglo American fell 1.3 percent to £12.07 on a steep drop in the price of gold. A similar decline in the price of copper sent Kazakhmys 2.9 percent lower to £11.56 and Antofagasta was down 3.3 percent to 405p. Copper prices dropped when a six-week strike by mine workers in Mexico was ended. Xstrata was 3.7 percent lower to £19.86 as investors worried that it might submit a higher bid for Falconbridge, the Canadian nickel producer.

    Elsewhere, BSkyB added 1.5 percent to 541p on a reiteration UBS “buy” recommendation as the pay-TV operator readied the launch of internet broadband.





    June 19, 2006

    Marekt volumes light in London due to World Cup

    Filed under: Companies, Prudential, ITV, Friends Provident, Legal & General, Royal & Sun Alliance, EMI, De Vere, BSkyB, Marylebone Warwick Balfour

    In London on Monday, the FTSE 100 added 0.5 percent to 5,626.1, while the FTSE 250 was up 0.2 percent to 9,114.1. Trade was light, with just barely over 2 billion shares changing hands during the day. Light trade is expected to last throughout the week as investors are distracted by the World Cup.

    Among media companies, ITV - down 17 percent since March, when it rejected an offer from a private equity consortium - was up slightly to 105¼p on the possibility that it might announce an increased share buyback and more cost-cutting measures on Wednesday. Elsewhere in the sector, BSkyB gained 2.3 percent to 564p on positive comments from Lehman Brothers. EMI added 2.8 percent to 278¾p when Credit Suisse raised the music group’s target share price from 300p to 310p. In addition, there was talk that EMI might revise its offer for Warner Music.

    Hotel operator De Vere added 3 percent to 824p on weekend reports that said four different bidders have expressed interest. The latest possible bidder named is Richard Balfour-Lynn, the head of Marylebone Warwick Balfour, which gained 3.3 percent to 189½p.

    In the insurance sector, Royal Sun & Alliance was up 2.8 percent to 126½p on the news that it will eliminate 1,550 jobs as a cost-cutting measure. Prudential added 3.2 percent to 566p. In addition, Friends Provident was up to 174¾p, while Legal & General climbed to 125¾p.





    May 16, 2006

    Miners send FTSE 250 lower

    Filed under: Companies, Alliance Unichem, Boots, Marks & Spencer, Wm Morrison, BSkyB

    The equities markets in London were mixed on Tuesday. The FTSE 100 was up for the first time in five days, but the gain was only a slight 0.08 percent to 5,846.2 Meanwhile, the FTSE 250 dropped 0.16 percent to 9,542.2 as mid-cap miners saw losses.

    There were gains on the day in individual stocks. BSkyB added 3.2 percent to 545½p after hedge fund traders closed out their short positions after it became clear that Sky would hold on to most of its rights to broadcast Premier League events. In consequence, Morgan Stanley and Cazenove both abandoned their “underweight” recommendations on the satellite broadcaster’s shares.

    Health and beauty retailer Boots also saw gains on the day ahead of its earnings report, due Thursday, which rumor says will show a record pre-tax profit. In addition, it is being said that Boots has downplayed possible cost savings stemming from its merger with Alliance UniChem. The combination of talk spurred Deutsche Bank to up its rating of Boots to “buy” and to set its target share price at 850p. Boots added 1.6 percent on the day to 734½p. UniChem was also up, gaining 2.7 percent to 933p.

    Elsewhere in the retail sector, Marks & Spencer was flat at 596p. Baugur, which sold out Marks & Spencer last week, is now said to be looking at building a stake in supermarket chain William Morrison, which added 1.7 percent to 194½p on the rumors.





    May 11, 2006

    FTSE down despite gains by miners

    Filed under: Companies, ITV, Xstrata, Kazakhmys, Rio Tinto, Antofagasta, BHP Billiton, Marks & Spencer, BSkyB

    In London on Thursday, the equities markets were down despite gains in the mining sector. The FTSE 100 dropped 0.7 percent to 6,042, while the FTSE 250 was down 0.33 percent to 10,075.4.

    In the retail sector Marks & Spencer, which hit an eight-year high on Wednesday, dropped 3.2 percent to 611p after it was said that Icelandic investment company Baugur had sold 40 million M&S shares.

    The media sector was mixed. ITV dropped 2.4 percent to 111¼p after Citigroup dropped its rating to “sell” on weak advertising growth. On the other hand, BSkyB added 2.2 percent to 528½p on an upgrade from “underweight” to “equal-weight” from Morgan Stanley after an analyst admitted that he had been wrong about the satellite broadcaster’s growth. The upgrade came only a few days after Sky regained control of TV rights for Premier League football.

    Miners were up on the day, with Xstrata adding 3.4 percent to £24.80. Kazakhmys was up 3 percent to £13.70, Antofagasta gained 1.1 percent to £25.53, and BHP Billiton advanced by 0.8 percent to £12.11. Rio Tinto added 1.25 percent to £33.22 on talk that it had appointed advisors ahead of a possible bid for Phelps Dodge.





    April 28, 2006

    London markets see losses

    Filed under: Companies, GlaxoSmithKline, Standard Chartered, British Energy, Alliance & Leicester, Crest Nicholson, Bovis Homes Group, Persimmon, BSkyB

    The London equities markets were down on Friday at the end of a losing week. The FTSE 100 declined by 0.5 percent on the day and lost 1.7 percent this week to close at 6,023.1, while the FTSE 250 was down by 0.5 percent on the day and by 0.7 percent on the week to 9,878.7.

    There were notable gainers on the day, however. In the banking sector, Standard Chartered added 2.9 percent to £14.56 after going as high as £15.17 earlier in the day on talk that Temasek of Singapore might buy more of a stake in the bank on top of the 11.5 percent it bought last month. Alliance & Leicester was also up on the day, by 1 percent to £11.23, on renewed bids rumors.

    British Energy was up 0.7 percent to 662p after Lehman Brothers said that weakness in share prices in the sector due to declines in carbon dioxide prices were overdone.

    Pharmaceuticals company GlaxoSmithKline added 1.6 percent to £15.56 on an upgrade from “equal weight” to “overweight” by Morgan Stanley.

    Homebuilders were mixed on the day. Crest Nicholson gained 3.6 percent to 555p on bids talk, but Bovis Homes and Persimmon were both down, by 1.1 percent to £13.10 and 2.6 percent, also to £13.10.

    Among losers, broadcaster BSkyB was down 0.9 percent on the day to 525½p on worries that it might be required to resubmit its bid for two licenses to carry English Premiership football.





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