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    February 1, 2007

    FTSE 100 adds 1.3 percent on session

    Filed under: Companies, Corus, WPP, AstraZeneca, J Sainsbury, Scottish Power, Barratt Developments, Redrow, Gallaher, Wilson Bowden

    London equities markets were higher on Thursday, with the FTSE 100 1.3 percent higher to 6,282.2 on a session where it saw all of its listed stocks finish in the black. The FTSE 250 was 1.1 percent higher to 11,221.5. Trade was brisk, with 4 billion shares trading hands.

    Homebuilders were higher on mergers and acquisitions rumors. Wilson Bowden gained 0.6 percent to £23, while Redrow was 1.1 percent higher to 626½p and Barratt Developments added 2.3 percent to £12.09, amid talk that Barratt could be interested in Redrow if its bid for Wilson is not successful.

    In the retail sector, supermarket J Sainsbury was up 2.6 percent to 445½p on the news that Lord Sainsbury of Turville reduced his stake to 13.9 percent by selling 40 million shares.

    In the pharmaceuticals sector, AstraZeneca was up 2.2 percent to £29.03 after it outlined steps it would take in order to drive growth.

    While no stocks on the 100 lost ground on the day, four did close even. Three of those, steelmaker Corus, at 601½p, tobacco company Gallaher, at £11.37, and Scottish Power, at 747p, are all in the middle of mergers and acquisitions activity. The fourth company to close steady was advertiser WPP, which also ended the session at 747p.





    December 8, 2006

    Gallaher declines on broker comments

    Filed under: Companies, Corus, Xstrata, Kazakhmys, Rio Tinto, Antofagasta, BHP Billiton, EMI, ICI, Premier Oil, Gallaher

    Both the FTSE 100 and the FTSE 250 ended the session and the week higher in London on Friday. The 100 added 0.3 percent on the session, for its fifth gain in a row, and gained 2.2 percent on the week when it closed at 6,152.4. The 250 was up 0.5 percent on Friday and added 2.3 percent for the week to close at an all-time high of 10,944.

    Premier Oil added 3.3 percent on Friday to €12.45 on an upgrade to “buy” from UBS despite having declined 10.5 percent on Thursday after bids talks were ended. Other gainers included chemicals group ICI, which added 2.4 percent to 426p on continuing rumors that Akzo Nobel is interested. Corus was 0.6 percent higher to 500p on speculation that a bid from CSN of Brazil is imminent. EMI gained 3.2 percent to 295¾p on talk that it could soon receive an offer from a private equity group.

    There were declines on the day, as well. Tobacco company Gallaher, up recently on bids rumors, dropped 1.5 percent to £11.72 after UBS said it thinks that the bid, said to be coming from Japan Tobacco, will be £11.50 per share at the highest.

    The mining sector was down after Merrill Lynch cut the entire sector to “neutral”, using as its pretext questions about the prices of base metals. Rio Tinto dropped 1.8 percent to £27.54, while BHP Billiton fell 2.8 percent to 945p. Kazakhmys was 3 percent lower to £11.60, Xstrata declined 3.2 percent to £23.37, and Antofagasta dropped 4.2 percent to 517½p.





    November 28, 2006

    FTSE 100 lower while 250 gains

    Filed under: Companies, ITV, Corus, EMI, Old Mutual, Gallaher, Wilson Bowden, Yell

    The FTSE 100 dropped 0.4 percent to 6,025.9 in London on Tuesday, ending lower for the sixth straight session and at its lowest level since the beginning of October. It has fallen 2.9 percent since its current decline began. On the other hand, the FTSE 250 was up slightly to 10,497.2.

    Homebuilder Wilson Bowden was 3.7 percent higher on the session to £21.76 and Merrill Lynch raised its target share price to £24.50. Also helping the 250 was EMI; the music company added 10.4 percent to 289½p on the news that it has been approached.

    The 100 was hurt by losses in the financial services sector, as Old Mutual dropped 5.8 percent to 166p on its third quarter earnings report.

    Also seeing declines was ITV, which dropped 1.5 percent to 110¾p on the general opinion that the appointment of a new executive chairman makes any bids unlikely.

    In the steel sector, Corus fell 0.3 percent to 498p on rumors that Tata Steel is thinking of increasing its bid. Meanwhile it put off a vote by shareholders to see if CSN of Brazil will up its offer.

    Gainers on the session included tobacco company Gallaher, which added 1.7 percent to 952p on talk that Japan Tobacco might be interested. Also higher was yellow pages owner Yell, which was 2.3 percent higher to 570p on positive comments from Goldman Sachs.





    November 27, 2006

    Leisure sector, homebuilders help FTSE 250 avoid big losses

    Filed under: Companies, Corus, BAE Systems, Next, MyTravel, Debenhams, First Choice Holidays, Wilson Bowden

    In London on Monday, the FTSE 100 was 1.2 percent lower to 6,050.1, its lowest close since early October and its largest one day percentage decline since the end of September. Meanwhile, the FTSE 250 also declined, dropping 0.9 percent to 10,493.6.

    The retail sector saw declines on slow sales for clothing retailers due to mild weather so far this autumn. Debenhams dropped 1 percent to 194p, while Next fell 2 percent to £17.94. Rumors have underlying sales at Next down by up to 20 percent year-on-year.

    In the steel sector, Corus was 1 percent lower to 499½p on worries that pension fund trustees might hold up merger talks with CSN of Brazil. Elsewhere, concerns that the government of Saudi Arabia might pull out of deal to buy 72 Eurofighter planes sent BAE Systems down 3.1 percent to 391p/

    The 250 was saved from further declines by advances in the homebuilders sector when Wilson Bowden gained 14.6 percent to £20.98 after it said it has received several takeover inquiries. The mid-caps index was also helped by the news that First Choice Holidays is talking about selling its package tour operations to My Travel. My Travel was 7.1 percent higher to 214p, while First Choice gained 12 percent to 257p.





    November 7, 2006

    Marks & Spencer closes at new high

    Filed under: Companies, Standard Chartered, Corus, Xstrata, Marks & Spencer, HBOS, Misys

    In London on Tuesday, the FTSE 100 closed 0.3 percent higher to 6,244.0, its highest ending level in five years. Meanwhile, the FTSE 250 set a record high closing level of 10,559.9, a gain of 0.6 percent on the session.

    Software maker Misys also had a record high close, adding 3.3 percent to 215¼p on the news that US medical software company Per-Se Technology had recommended a cash bid of $1.2 billion (£630 million) from McKesson Corporation. This had implications for Misys in that Per-Se’s largest shareholder is ValueAct Capital; Misys new chief executive, Mike Lawrie, previously worked for ValueAct, which has been building its holdings in Misys since Lawrie’s appointment was announced in mid-October. ValueAct now holds 5.1 percent of Misys.

    In the retail sector, Marks & Spencer was 6.3 percent higher to 696p, also a new record, on higher profits forecasts based on its better than expected interim report.

    Metal-related sectors saw advances on the session. With zinc prices at a record high level, Xstrata added 1.3 percent to £24.20. Meanwhile, rumors of bids competition sent steel maker Corus 0.1 percent higher to 465¾p, as speculation ran that Novolipetsk might beat Tata Steel’s 455p per share offer.

    Banks were lower, with HBOS down 0.4 percent to £10.90 on a downgrade from “outperform” to “in line” from Cazenove. Standard Chartered dropped 0.5 percent to £14.87 on talk that it could be preparing to purchase ABN Amro’s 40 percent share in Saudi Hollandi Bank.





    October 18, 2006

    Corus adds 1.7 percent on bids rumor

    Filed under: Companies, Corus, Daily Mail, Johnston Press, Trinity Mirror, British Energy, Tesco, National Grid, Next, BSkyB

    The London equities markets saw gains on Wednesday, with the FTSE 100 adding 0.7 percent to 6,150.4 and the FTSE 250 gaining 1.2 percent on the session to close at 10,342.

    The media sector saw gains after upgrades for the sector. BSkyB was 0.9 percent higher to 552½p after JP Morgan said that it could top its target for subscribers for 2010. Elsewhere in the sector, Johnston Press added 2.3 percent to 428¾p, while Trinity Mirror gained 3 percent to 502½p and Daily Mail & General Trust was up 3.1 percent to 657p.

    Steelmaker Corus added 1.7 percent to 487p on rumors that CSN, the Brazilian steelmaker was ready to top Tata Steel’s bid, worth 455p per share. The bid rumors were denied after the close of the session.

    In the energy sector, British Energy was up 5.2 percent to 474p on rumors that a European utility could bid for the UK government’s 65 percent of the company. On the other hand, National Grid dropped 1.6 percent to 674½p.

    The retail sector was also mixed, with Tesco up 1.5 percent to 390p, a record high share price, on speculation that it will raise its earnings forecast. However, clothing retailer Next dropped 1 percent to £18.51 on rumors that it is preparing to issue a profits warning.





    October 9, 2006

    Corus adds 2.7 percent on possible offer

    Filed under: Companies, ITV, GlaxoSmithKline, Corus, Marks & Spencer, Shire, EMI, Barratt Developments, Reed Elsevier, Redrow

    The London equities markets were mixed on Monday, with the FTSE 100 adding 0.5 percent to 6,030.9 but the FTSE 250 dropping 0.2 percent to 10, 152.3.

    The pharmaceuticals sector was higher on the session. Glaxo-Smith-Kline gained 0.6 percent to £14.54 on talk that it is engaged in discussions with Novartis concerning a merger. Shire added 14.9 percent for the best performance among blue-chips, to £10.08 when the Food and Drug Administration in the United States approved its NRP104 treatment for attention deficit hyperactivity disorder for use there.

    Media companies didn’t have nearly so good a day. Reed Elsevier dropped 1 percent to 588½p on rumors that a profits warning is forthcoming. EMI fell 1.9 percent to 264¾p in anticipation of a less than encouraging trading update due next week. ITV, meanwhile, was 2.2 percent lower to 100¼p when UBS lowered its advertising growth prediction for the broadcaster, removed it from its “buy” list, and cut its earnings per share forecast for both this year and next.

    Homebuilders were mixed, with Redrow up 1.4 percent to 630p but Barratt Developments 1.6 percent lower to £10.98 as rumors that Barratt is interested in a takeover of Redrow continued to ciruclate.

    In the steel sector, Corus added 2.7 percent to 494p on reports that Tata Steel of India could be close to an offer worth £5 billion.

    Marks and Spencer was 1.3 percent higher to 662½p, near a record high, on positive comments and an increased target share price from Morgan Stanley.





    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.





    September 12, 2006

    Cruise operator Carnival up 3.6 percent

    Filed under: Companies, Carnival, ITV, Corus, Vodafone, UTV, Sage

    Equities markets in London were higher on Tuesday, spurred on by earnings reports and a strong opening in New York. The FTSE 100 added 0.7 percent to 5,895.5, while the FTSE 250 was 0.9 percent higher to 9,605.5.

    With miners lower again on dropping commodities prices, some investors were switching into telecommunications and technology stocks. Sage, which produces accountancy software, added 2.2 percent to 247¼p. Among telecoms, Vodafone was 2.4 percent higher to 117½p. Vodafone was also helped for a second day by Telecom Italia’s move to divest itself of its mobile phone business.

    In the steel sector, Corus was up 2.2 percent to 375¾p on positive comments from UBS.

    Cruise ship operator Carnival added 3.6 percent to £24.33 on rumors that results from the summer quarter will meet analyst predictions. Part of this talk was based the fact that rival Royal Caribbean has upped its predictions for its summer results. In addition, analysts figure that a quiet hurricane season might have increased bookings.

    The media sector was mixed. ITV was down by 2.2 percent to 98¾p as it seemed that advertising revenues for ITV1 could be as much as 20 percent lower in October. In addition, Cazenove repeated its “underperform” rating based on less spending by advertisers. However UTV, which owns Northern Ireland’s ITV franchise, added 1.1 percent to 370¾p.





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