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    August 15, 2007

    RBS down on news it won’t reduce ABN bid

    Filed under: Companies, Northern Rock, Standard Chartered, Anglo American, BHP Billiton, Hammerson, Bovis Homes Group, Persimmon, HSBC, Barratt Developments, Royal Bank of Scotland, Berkeley Group, Quintain Estates & Development

    Equities markets in London declined Wednesday as the FTSE 100 was 0.56 percent lower to 6,109.3 and the FTSE 250 dropped 0.99 percent to 10,889.3.

    UK banks followed European banks lower.

    HSBC (LSE: HSBA; NYSE: HBC; Euronext: HSBC; SEHK: 005) was down 2 percent to 883.5p, while Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) fell 2.2 percent to 561p after it said it won’t reduce its bid, in consortium with other banks, for ABN Amro (Euronext: AAB; NYSE: ABN) to reflect ABN’s lower value after a dividend payout.

    Standard Chartered (LSE: STAN; SEHK: 2888) was 2.25 percent lower to £15.62, while Northern Rock (LSE: NRK) had the worst day on the 100 as it dropped 5.3 percent to 687.5p after it said it could miss its profits forecast.

    Miners were lower as well after copper prices fell 1.2 percent in London to $7,329 per tonne.

    BHP Billiton (LSE: BLT; NYSE: BHP; ASX: BHP) was down 1.7 percent to £12.76, while Anglo American (LSE: AAL) was 1.9 percent lower to £27.25.

    Housebuilders and property investors had a better day.

    Persimmon (LSE: PSN) was the best performer on the 100 with a gain of 3.88 percent to £12.58, while Berkeley Group Holdings (LSE: BKG) topped the 250 as it added 4.67 percent to £16.14.

    Bovis Homes (LSE: BVS) was up 4.07 percent to 805p, while Barratt Developments (LSE: BDEV) was 2.77 percent higher to 945p and Hammerson gained 2.14 percent to £12.40.

    On the other hand, property investors Quintain Estates & Development (LSE: QED) had the worst day on the 250 as it dropped 9.62 percent to 817p.





    August 6, 2007

    House builders see gains

    Filed under: Companies, BAT, Anglo American, Kazakhmys, Rio Tinto, BHP Billiton, Lonmin, Aquarius Platinum, HMV Group, Wm Morrison, Persimmon, Standard Life, Punch Taverns, Ashmore, Taylor Wimpey, Alfred McAlpine, Invesco

    In London on Monday, the FTSE 100 was 0.57 percent lower to 6,189.1 and the FTSE 250 fell 1.67 percent to 10,998.8.

    Standard Life (LSE: SLET) was the biggest gainer on the 100, adding 3.03 percent to 315p on consolidation hopes within the sector.

    Builder Alfred McAlpine (LSE: MCA) did the best on the 250 with a gain of 4.7 percent to 484.5p.

    Other gainers on the session included the house building sector, where Persimmon (LSE: PSN) was up 1.93 percent to £11.64 and Taylor Wimpey (LSE: TW) added 2.18 percent to 339.75p.

    British American Tobacco (LSE: BATS; AMEX: BTI; KLSE: BAT) was 2.4 percent higher to £16.12, while music retailer HMV Group (LSE: HMV) gained 4.7 percent to 118.25p.

    The biggest loser on the day on the 100 was platinum miner Lonmin (LSE: LMI), which fell 4.81 percent to £30.85.

    Aquarius Platinum (LSE: LSE: AQP; ASX:AQP; JSE:AQP) did even worse on the 250, dropping 5.56 percent to £12.90.

    Elsewhere in the mining sector BHP Billiton (LSE: BLT; NYSE: BHP; ASX: BHP) dropped 2.98 percent to £13.33, while Kazakhmys (LSE: KAZ) fell 2.93 percent to £11.94, Anglo American (LSE: AAL) was 2.68 percent lower to £26.85 and Rio Tinto (LSE: RIO) was down 1.33 percent to £32.19.

    Investment trust Ashmore (LSE: ASHM) did the worst on the 250, falling 8 percent to 204p.

    Other decliners on the session included supermarket chain Wm Morrison (LSE: MRW), which dropped 3.6 percent to 274.25p.

    Pubs operator Punch Taverns (LSE: PUB) fell 3.36 percent to £10.36 and investment management group INVESCO (LSE: AVZ; NYSE: IVZ) was 3.15 percent lower to 585p on its exposure to the US housing sector.





    July 23, 2007

    Friends Provident adds 7.83 percent on merger talks

    Filed under: Companies, British Land, Barclay's, Friends Provident, Legal & General, Persimmon, Liberty International, Shaftesbury, FKI, GAME Group, SEGRO, Beazley Group, Workspace Group

    The markets were mixed in London on Monday, with the FTSE 100 adding 0.6 percent to 6,624.4 but the FTSE 250 falling 0.38 percent to 11,775.

    Insurer Friends Provident (LSE: FP) was the best performer on the 100 as it added 7.83 percent to 201p after it announced that it is in merger talks with Resolution (LSE: RSL).

    Elsewhere in the insurance sector, Legal and General (LSE: LGEN) was 2.71 percent higher to 155.3p.

    Barclay’s Bank (LSE: BARC; NYSE: BCS; TYO: 8642) gained 3.01 percent to 735p on the news that China will by a stake in the bank so that it can increase its bid for ABN Amro (Euronext: AAB; NYSE: ABN).

    The insurance sector grabbed the top spot on the 250 on the session as well, with special risk insurer Beazley Group (LSE: BEZ) up 5.95 percent to 169.25p.

    Retailer GAME Group (LSE: EBQ) also saw gains, adding 3.4 percent to 205.25p.

    The property investment sector had a rough day.

    Liberty International (LSE: LII) fell 1.7 percent to £11, while SEGRO (LSE: SLOU) - formerly Slough Estates - also dropped 1.7 percent, to 578p.

    British Land (LSE: BLND) was the worst performer on the 100, falling 3.1 percent to £13.14.

    Meanwhile, house builder Persimmon (LSE: PSN) was 1.69 percent lower to £11.64.

    Lifting equipment manufacturer FKI (LSE: FKI) had the worst day on the 250 as it dropped 8.27 percent to 113.75p.

    Property investment groups did no better on the 250 than they did on the 100, as Shaftesbury (LSE: SHB) was 3.99 percent lower to 577p and Workspace Group (LSE: WKP) fell 5.23 percent to 362.5p.





    January 11, 2007

    FTSE ends session 1.1 percent higher

    Filed under: Companies, Lloyds TSB, ITV, Enterprise Inns, Kazakhmys, BHP Billiton, Reuters, Pearson, Persimmon, Reed Elsevier, Redrow, Yell, Punch Taverns

    The FTSE 100 in London had a roller-coaster day in which it was up early, dropped after the Bank of England’s decision to raise interest rates by 25 basis points, then rallied late in the day to end up 1.1 percent higher, to 6,230.1. The FTSE 250 also ended the day higher, adding 0.3 percent to 11,123.4

    Publishers and other media stocks were up on the day. Reed Elsevier and Yell Group each added 3.5 percent on the session, to 602½p and 598p respectively. Yell was helped by positive comments from Goldman Sachs, while Reed Elsevier gained on talk that private equity might be preparing a bid. Reuters gained 3.6 percent to 451¾p. Meanwhile Pearson, which owns the Financial Times, was 3.7 percent higher to 805p. Elsewhere in media, ITV was up 2.1 percent to 109¼p on a upgrade to “buy” from Deutsche Bank.

    Banks saw gains as well, with Lloyds TSB adding 0.9 percent to 583p on rumors that either Banco Santander or BBVA could be interested.

    In the mining sector, Kazakhmys gained 3.9 percent to £10.53, while BHP Billiton was 4.9 percent higher to 930p as metals prices began to recover.

    Pubs operators declined on negative comment from Deutsche Bank. Enterprise Inns dropped 1.7 percent to £12.77 and Punch Taverns fell 3.7 percent to £11.69.

    The homebuilding sector saw losses after interest rates were hiked. Persimmon was 1 percent lower to £14.57, while Redrow fell 3.2 percent to 668½p.





    August 3, 2006

    Homebuilders decline

    Filed under: Companies, Northern Rock, ITV, PartyGaming, British Land, Alliance & Leicester, Wm Morrison, Hammerson, HBOS, Bellway, Persimmon, Barratt Developments, Liberty International, Rightmove, Countrywide

    London equities markets were sharply lower on Thursday after the Bank of England announced that it had raised interest rates in the UK by a quarter of a percent to 4.75 percent. Most analysts had not expected the rate hike to come at this time. With 3.2 billion shares changing hands, the FTSE 100 dropped 1.6 percent to close at 5,838.4 and the FTSE 250 was 1.4 percent lower, ending the session at 9,264.3.

    Sectors most seriously affected by the rate hike included mortgage banks, homebuilders, and those companies that market homes and land. Among homebuilders, Persimmon was 4 percent lower to £12.42, while Bellway fell 4.3 percent to £11.65 and Barratt Developments dropped 5.1 percent to 945p.

    Among those engaged in selling property, Hammerson declined by 3 percent to £12.36, British Land was 3.9 percent lower to £13.24, and Liberty International fell by 4.3 percent to £11.04. Estate agents were also lower. Rightmove dropped 5.8 percent to 270p, while Countrywide fell 8.1 percent to 387p.

    In the banking sector, mortgage banks declined on the theory that higher interest rates would mean higher house payments and the possibility that more people would not be able to meet their debts. Northern Rock was down by 1.6 percent to £10.88, while HBOS fell 3 percent to 959p and Alliance & Leicester dropped 3.5 percent to 955p.

    There were advances on the day, but they were few and far between. PartyGaming added 0.5 percent to 110p on the news that it has bought internet sports betting company Gamebookers. Broadcaster ITV gained 2.7 percent to 104¼p after adding nearly 5 percent on Wednesday. Wm Morrison was 3.5 percent higher to 213p on higher sales. Citigroup raised the supermarket chain’s target share price from 215p to 240p and reconfirmed it’s “buy” recommendation.





    June 23, 2006

    UK energy sector gains after US deals

    Filed under: Companies, BG Group, Royal Dutch Shell, BP, Cairn Energy, SAB Miller, Hanson, Wolseley, Persimmon

    In London on Friday, trade in equities was slow again with only 2.1 billion shares changing hands during the session. The activity left the markets higher for the day, but only just, with the FTSE 100 adding 0.1 percent to 5,692.1 and the FTSE 250 up 0.03 percent, just 2.4 points, to close at 9,195.3. Both the 100 and the 250 were up for the week, by 1.7 percent and 1.1 percent respectively.

    The oil sector was largely responsible for the 100’s gains on the day. Royal Dutch Shell gained 1.4 percent to £18.21, while BP was up 2 percent to 617p. Deutsche Bank put its target share price for BP at 800p, and issued an upgrade for Shell to “buy” and set its target share price to £21.

    Energy companies saw advances as well, spurred on by news that in the US Anadarko Petroleum has purchased both Kerr-McGee and Western Gas Resources in separate cash deals. BG Group gained 2.7 percent to 695p, while Cairn Energy added 4.8 percent to £20.71.

    SABMiller dropped 1.5 percent to 960p after comments from Merrill Lynch said that the brewer might have to cut its earnings forecasts due to continuing weakness in the South African rand, which was at a two and a half year low of 7.53 rand to the dollar on Friday. SABMiller has lost almost 18 percent since May 11.

    In the construction materials sector, Wolseley added 0.5 percent to £11.55 and Hanson was up 2 percent to 651½p as the US dollar gained value in relation to sterling. Because both companies get a large portion of their profits in dollars but report earnings in sterling, those earnings show a boos when the dollar strengthens.

    Persimmon gained 1.3 percent to £12.09 after UBS reaffirmed its “buy” recommendation and set a target share price of £16.35 in anticipation of the homebuilder’s half-year results, due next week.





    June 22, 2006

    FTSE 100 gains 0.3 percent on day

    Filed under: Companies, BA, PartyGaming, EasyJet, Persimmon, Compass Group, WS Atkins, Rentokil Initial

    In London on Thursday equities markets were up as the FTSE 100 closed at 5,684.1, a gain of 0.3 percent, while the FTSE 250 added 1.1 percent to 9,192.8. Trade volumes are still lower than average, with 2.85 billion shares traded during the day. So far this week, the 100 has risen 1.5 percent and the 250 is up 1 percent.

    Among homebuilders, Persimmon added 4.1 percent to £11.93 amid rumors that it is looking for a new purchase.

    PartyGaming was up 3.1 percent to 123p, also on rumors that it is looking to buy. The talk is that the online gaming company wants to purchase a “bricks and mortar” gaming business.

    Compass Group gained 3.6 percent to 258p, bringing its rise since last week Wednesday to 12.6 percent on the news that US investors have been buying shares in the contract caterer.

    Construction company WS Atkins added 8.7 percent to 840p on full-year earnings that beat expectations, making it the biggest gainer on the 250 for the day.

    The best-performing stock on the 100 was pest control group Rentokil Initial, which gained 4.5 percent to 149¾p on an upgrade from “underperform” to “outperform” and a new target share price of 171p from Morgan Stanley.

    In the airlines sector, EasyJet added 2.8 percent to 392¾p on comments from Citigroup. British Airways, however, dropped 5.9 percent to 346p after it became known that its offices had been raided by the Office of Fair Trading in the course of a US/UK investigation into price-fixing.





    May 19, 2006

    Homebuilders up after recent losses

    Filed under: Companies, BA, Xstrata, Kazakhmys, Antofagasta, Wm Morrison, Persimmon, McCarthy & Stone, Barratt Developments

    In London on Friday the FTSE 100 was lower again, while the FTSE 250 gained on the day, but both indexes were lower on the week. The 100 lost 0.2 percent on the day, 4.3 percent on the week, and is down 4.3 percent in the past two weeks, ending the day at 5,657.4. The 250 added 0.6 percent on the day but was down by 6.3 percent for the week to close at 9,192.6.

    Homebuilders were up on the day after yesterday’s declines due to concerns that interest rates in the UK are about to go up. Retirement home builder McCarthy & Stone added 8.2 percent to 759½p, while Persimmon was up 4.5 percent to £12.00 and Barratt Developments gained 5 percent to 887p.

    The biggest gains on the 100 came for British Airways, after it said that profits were up for the full year, helped by the first profit from its shorter routes in ten years. BA added 9.1 percent to 349½p.

    The largest losses of the day came in the mining sector. With the price of metals down again, Antofagasta dropped 2.5 percent to £20.39, Xstrata was down 3.7 percent to £19.32, and Kazakhmys declined by 4.4 percent to £10.46.

    Supermarket chain William Morrison added 0.9 percent to 191½p on an upgrade to “buy” from Citigroup.





    May 18, 2006

    FTSE 250 down 141.1 points on day

    Filed under: Companies, Cairn Energy, Kazakhmys, BT Group, Crest Nicholson, Dana Petroleum, SAB Miller, Taylor Woodrow, Bovis Homes Group, Persimmon, George Wimpey

    The London equities markets were lower on Thursday, with the FTSE 100 down 0.07 percent to 5,671.6 and the FTSE 250 dropping by a substantial 1.5 percent to 9,134.8. Trade was heavy at nearly 4 billion shares on the day. Homebuilders and the oil sector were both instrumental in the declines on both indexes.

    In the oil sector, Cairn Energy dropped 4.2 percent to £20.69. Among mid-caps, Dana Petroleum dropped 6 percent to 917½p. Also in stocks related to commodities, miner Kazakhmys was down 3 percent to £10.94.

    Among homebuilders, Persimmon dropped 4.4 percent to £11.48, while Taylor Woodrow lost 5.6 percent to 320½p and George Wimpey was down 4.3 percent to 436½p. Crest Nicholson dropped 3.2 percent to 320¼p and Bovis Homes was down 4.5 percent to 755p. A major factor in the sector’s declines was said to be reaction to the news that a member of the Bank of England’s monetary policy committee had voted to raise interest rates at the committee’s meeting this month.

    Telecom BT Group added 8 percent on the day to 226¼p on a positive quarterly earnings report and predications that there is more growth to come.

    Among losers, brewer SABMiller lost 3 percent £10.61 despite a strong full-year earnings report, when it warned of higher input costs and price declines in the US beer market.





    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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