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    August 16, 2007

    FTSE 100 closes below 6,000 level

    Filed under: Companies, Northern Rock, Royal Dutch Shell, BP, Standard Chartered, Anglo American, Kazakhmys, Antofagasta, Lonmin, International Power, British Energy, Vedanta Resources, Man Group, Drax Group, Premier Oil, Daejan Holdings, Greggs, Invesco

    London’s equities markets saw significant losses on Thursday.

    The FTSE 100 fell 4.1 percent to 5,858.9, the first time it had closed below the 6,000 level since March, while the FTSE 250 closed at 10,462.6 for a drop of 3.92 percent.

    There were no winners on the 100 on the session, and miners were the five worst performers there after metals prices declined.

    Kazakhmys (LSE: KAZ) dropped 8.38 percent to £10.71, while Vedanta Resources (LSE: VED) fell 8.44 percent to £14.98.

    Anglo American (LSE: AAL) was 9.36 percent lower to £24.70, Lonmin (LSE: LMI) was down 9.41 percent to £27.92 and Antofagasta fell 10.98 percent to 608p for the worst performance of the day on the 100.

    The oil sector declined as well, as the price of crude oil dropped.

    BP (LSE: BP; NYSE: BP; TYO: 5051) was down 4.06 percent to 520p, while Royal Dutch Shell’s (LSE: RDSA, RDSB; NYSE: RDS.A, RDS.B) A shares dropped 4.43 percent to £17.69.

    On the 250, Premier Oil (LSE: PMO) was down 9.19 percent to 914.5p for the worst performance of the day on that index. The financial services sector was much lower.

    Northern Rock (LSE: NRK) was 4.2 percent lower to 659p after Merrill Lynch (NYSE: MER; TYO: 8675) dropped its target share price from £11.30 to 913p and JP Morgan (NYSE: JPM; TYO: 8634) reduced it from 830p to 690p.

    Standard Chartered (LSE: STAN; SEHK: 2888), with substantial exposure in Asia, fell 7.55 percent to £14.44.

    Investment manager Invesco (LSE: AVZ; NYSE: IVZ) was 6.53 percent lower to 551.5p, while hedge fund Man Group (LSE: EMG) dropped 8.31 percent to 446.75p.

    Electricity generators also had substantial losses.

    Drax Group (LSE: DRX) fell 4.04 percent to 605p, while International Power was 6.23 percent lower to 383p and British Energy dropped 7.98 percent to 417.75p after it said that core profit was down 12 percent in its fiscal first quarter after trouble shut down two facilities.

    There were some gainers on the 250, where property group Daejan Holdings (LSE: DJAN) gained 6.57 percent to £35.22.

    Publisher Euromoney Institutional Investor (LSE: ERM), which is 70 percent owned by Daily Mail and General Trust (LSE: DMGT), added 1.93 percent to 580p, while retail baker Greggs (LSE: GRG) gained 0.41 percent to €48.50.





    July 16, 2007

    Oil sector falls in London

    Filed under: Companies, BG Group, Royal Dutch Shell, GlaxoSmithKline, Burren Energy, Xstrata, Lonmin, Alliance & Leicester, Premier Oil, Reed Elsevier, SEGRO

    The FTSE 100 dropped 0.28 percent to 6,697.7 in London on Monday, while the FTSE 250 was 0.05 percent lower to 11,917.3.

    The mining and oil sectors were lower in London.

    Platinum miner Lonmin (LSE: LMI) dropped 6.85 percent to £39.85 for the worst performance of the session on the FTSE 100 after it issued a disappointing trading statement, saying that sales will be lower for the next year.

    The announcement prompted a downgrade from Citigroup (NYSE: C).

    Xstrata (LSE: XTA) was also lower, falling 1.78 percent to £33.61.

    In the oil sector, Royal Dutch Shell’s (LSE: RDSA, RDSB; NYSE: RDS.A, RDS.B) A shares were 1.59 percent lower to £20.40.

    BG Group (LSE: BG; NSYE: BG) was also lower, dropping 2.34 percent to 857p.

    On the FTSE 250, Premier Oil (LSE: PMO) fell 2.57 percent to £11.75, while Burren Energy (LSE: BUR) was down 2.79 percent to 853.5p.

    Back on the 100, SEGRO (LSE: SLOU), the rebrand of property development group Slough Estates, fell 2.04 percent to 599p.

    Top gainers on the 100 covered several sectors, with bank Alliance & Leicester (LSE: AL) doing the best as it added 2.49 percent to £11.52.

    Publisher Reed Elsevier (LSE: REL; Euronext: REN; NSYE: ENL; NYSE: RUK) was 1.66 percent higher to 675p, while in the pharmaceuticals sector, GlaxoSmithKline gained 1.63 percent to £13.10 on an upgrade from “underweight” to “neutral” from JP Morgan (NYSE: JPM; TYO: 8634).





    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.





    October 10, 2006

    UK assets managers see new gains

    Filed under: Companies, Tullow Oil, Schroders, Vodafone, Shire, Amvescap, Dana Petroleum, JKX Oil & Gas, Wolseley, Man Group, Premier Oil

    London equities markets were higher on Tuesday due to advances in a wide variety of sectors. The FTSE 100 added 0.7 percent to 6,072.7, while the FTSE 250 gained 0.9 percent to a new high of 10,244.5.

    Asset managers had a good day as Schroders added 4.2 percent to £10.04, Amvescap gained 5.3 percent to 629p, and Man Group was 8.2 percent higher to 478p. Amvescap benefited from the news that the funds under its management have gone up from $428.9 billion in August to $440 billion in September. The September figure was a full $2 billion higher than some estimates.

    In the telecommunications sector, Vodafone added 2.6 percent to 120¼p on an upgrade to “outperform” by Bernstein Research, which also set a target share price of 155p for the telecom company.

    The oil sector was higher on gains in exploration companies despite another drop in crude oil prices. Premier Oil advanced by 4.5 percent to £11.70, a record high. Dana Petroleum, rumored to be interested in Premier, added 6.4 percent to £12.62. Tullow Oil and JKX Oil & Gas were both 6.1 percent higher, to 391p and 290p respectively.

    Plumber and building materials company Wolseley added 3.9 percent to £12.11 on positive comments from JP Morgan concerning US homebuilders. Wolseley gains around 60 percent of its revenues from the US market every year.

    Among losers on the session, Shire dropped 4.6 percent to 961p as investors decided that its 15 percent advance on Monday was out of proportion to the news that the drug maker had gained approval for its hyperactivity drug, NRP 104, for use in the United States.





    September 5, 2006

    Centrica up, other UK utilities decline

    Filed under: Companies, BG Group, Royal Dutch Shell, DSG international, Kazakhmys, Centrica, Scottish & Southern Energy, Next, Scottish Power, United Utilities, Premier Oil

    London equities markets were up on Tuesday, but just barely, with the FTSE 100 adding 0.08 percent to 5,918.7 and the FTSE 250 gaining 0.01 percent to 9,761 in a late rally that brought both indices up from earlier declines. Volume was a bit higher at 2.8 billion shares trading hands during the session.

    The oil sector was helped higher on the day by bid rumors. Royal Dutch Shell was said to be interested in bidding for both BG Group, which added 0.9 percent to 690½p, and for Premier Oil, which ended the session 2.1 percent higher to £10.65. Royal Dutch Shell itself gained 0.1 percent to £18.96.

    Utilities ended the session lower, with the exception of Centrica, which owns British Gas. Centrica added 1.9 percent to 308¼p even though Gazprom denied rumors that it was interested in making a bid. Vattenfall has also been said to be interested. Elsewhere in the sector, Scottish & Southern dropped 0.4 percent to £12.21, while Scottish Power was 0.5 percent lower to 625½p and United Utilities fell 0.7 percent to 685½p.

    In the retail sector, Next was 0.6 percent higher to £16.67 after Man Securities recommended that its clients buy on the strength of a prediction that margins will increase even if sales decline. Meanwhile, DSG International gained 0.9 percent to 209¾p on positive comments from Merrill Lynch.

    Among miners, Kazakhmys added 3.4 percent to £13.31 on a repot that its half-year report will show operating profits up by 121 percent.





    September 1, 2006

    Retailers mixed in London

    Filed under: Companies, Royal Dutch Shell, ITV, Corus, Xstrata, Marks & Spencer, Barclay's, Next, Premier Oil

    In a week shortened by a Monday holiday, the London equities markets ended up for both the day and the week. The FTSE 100 added 0.7 percent on Friday and 1.2 percent for the week to close at 5,949.1, while the FTSE 250 gained 1.1 percent for the day and 2.2 percent over the week to 9,702.1.

    The oil sector was mixed. Premier Oil was 2.8 percent higher to £10.59 as rumors continued that Royal Dutch Shell would bid £13 per share. The talk, however, sent shares in Royal Dutch Shell 0.2 percent lower to £18.77.

    Steelmaker Corus added 1.8 percent to 399½p on talk from Cazenove that it was a bids target. Meanwhile, in the mining sector, Xstrata gained 2.9 percent to £24.27 on a reiteration of Deutsche Bank’s “buy” recommendation.

    Among banks, Barclays was 2.4 percent higher to 673½p on the news that its new chairman-designate bought £100,000 worth of the bank’s shares on his first day on the job.

    Retailers were mixed. Next dropped 0.6 percent to £16.57 on rumors that interim results, due later in the month, could fall short of expectations. On the other hand, Marks & Spencer added 2.1 percent to 605p.

    ITV was up, but only by 0.2 percent to 106p, as investors worried about declines in advertising and after a number of programs did not deliver much in the way of viewership. Comments from Bear Stearns did not inspire confidence that advertising would rebound anytime soon.





    August 31, 2006

    London markets mixed on session

    Filed under: Companies, Carnival, Cairn Energy, Tullow Oil, Antofagasta, EMI, Premier Oil, Hunting

    The FTSE 100 closed down by 0.4 percent to 5,906.1 in London on Thursday, but the FTSE 250 added 0.2 percent to 9,601.2.

    The oil sector saw gains on the day despite crude oil prices that were lower again after initial gains on the session. Premier Oil added 1.8 percent to £10.30 on talk that it could receive a bid from Pemex of Mexico. Cairn Energy was 3.1 percent higher to £21.32 ahead of the release of its half-year results next week. Tullow Oil gained 3.7 percent to 392¼p on reconfirmation of Deutsche Bank’s “buy” recommendation. In addition, oil services group Hunting was up 9.3 percent to 448p.

    Among miners, Antofagasta managed a gain of 4 percent to 465½p on a gain in the price of copper.

    Cruise ship operator Carnival added 2.9 percent on the session to £22.53 after a reiteration of Morgan Stanley’s “overweight” rating and on the news that Royal Caribbean’s earnings were up in its third quarter. This is somewhat of a comeback for Carnival, which was down 30 percent on the year so far.

    Also staging a comeback was EMI, which has been in the doldrums since talks with Warner Music toward a merger were derailed in July. EMI added 2.4 percent to 267¾p on an upgrade to “outperform” from Cazenove, which cited the value of EMI’s back catalogue in light of the auction of BMG’s music publishing unit.





    August 30, 2006

    Wolseley up on US interest rate expectations

    Filed under: Companies, Royal Dutch Shell, Enterprise Inns, Rank Group, Wolseley, Premier Oil, JD Wetherspoon

    London equities markets were up on Wednesday after the minutes from the latest meeting of the US Federal Reserve seemed to indicate that interest rates in the United States are likely to remain on hold for the time being. The FTSE 100 added 0.7 percent to 5,929.3, while the FTSE 250 was 0.5 percent higher to 9,581.5.

    Pubs operators were up on the day. JD Wetherspoon gained 2.5 percent to 452p, taking its gains in the past year to 60 percent. Enterprise Inns was up 3.1 percent to £10.25 after Deutsche Bank upped its target share price to £12.

    Still in leisure sectors, gaming and restaurant operator Rank was 2 percent higher to 219p ahead of its half-year results, due out on Friday. Analysts look for Rank to sell Hard Rock Café and concentrate on its gaming interests.

    Wolseley added 4.2 percent to £11.35 on talk that a private equity company might be preparing a bid, as well as on the idea that interest rates in the US will stay where they are at least until the end of the year. Wolseley makes 60 percent of its profits in the United States.

    The oil sector was mixed. Premier Oil was up by 2.3 percent to £10.12 as bids talk continued. One of those thought to be interested was Royal Dutch Shell, which dropped 0.3 percent to £18.98.





    July 13, 2006

    FTSE 100 lower on miners

    Filed under: Companies, BP, Standard Chartered, BHP Billiton, Lonmin, Emap, Tesco, National Grid, Dana Petroleum, Vedanta Resources, EMI, Premier Oil

    The equities markets in London took significant losses on Thursday as 2.9 billion shares changed hands during the day. The FTSE 100 fell 1.6 percent to 5,765 as miners fell substantially, while the media sector took the FTSE 250 2 percent lower to 9,176.2.

    In the mining sector, BHP Billiton was down 3.9 percent to £10.51, Lonmin dropped 4.4 percent to £27.77, and Vedanta Resources fell 5.2 percent to £13.36. The losses reflected investor reluctance to take any risks at the present time.

    On the other hand, oil exploration stocks rose with crude oil prices. Premier Oil added 0.8 percent to 957p, while Dana Petroleum gained 1.6 percent to £10.97.

    In the media sector, EMI dropped 9.2 percent to 277¾p on the news that a European court had overruled the European Union’s approval of a merger between Sony Music and BMG as investors worried that the ruling might affect the proposed EMI/Warner deal, Meanwhile, Emap fell 14.9 percent to 712p after issuing a negative trading statement.

    In the banking sector, Standard Chartered was down by 2.9 percent to £12.49 on concerns that it will need to raise $5 billion (£2.7 billion) if it wins the bidding for LG Card, the largest credit card issuer in South Korea. Analysts also pointed out that, with Standard Chartered’s purchase of Korea First Bank last year, the acquisition of LG Card would leave SC too heavily exposed to South Korea.

    Gains on the FTSE 100 were few and limited. Rising oil prices took BP up just 0.1 percent to 641p. National grid gained 0.3 percent to 590p, while Tesco added 0.9 percent to 335p.





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