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    August 20, 2007

    Power generators see gains in London

    Filed under: Companies, Prudential, Kazakhmys, Rio Tinto, British Land, BHP Billiton, Scottish & Southern Energy, British Energy, BAE Systems, Old Mutual, Drax Group, Reed Elsevier, SEGRO, Daejan Holdings, Meggitt, Southern Cross Healthcare

    In London on Monday the FTSE 100 added 0.24 percent to 6,078.7 while the FTSE 250 was 0.16 percent higher to 10,703.8.

    Power generators had a good day in London.

    Drax Group (LSE: DRX) gained 1.9 percent to 634.5p, while electricity generator British Energy (LSE: BGY) was up 4.58 percent to 451.25p for the best performance on the 100.

    Electricity transmitter Scottish & Southern Energy (LSE: SSE) was 1.7 percent higher to £14.44.

    Miners also did well after metals prices advanced.

    Rio Tinto (LSE: RIO) gained 3.22 percent to £30.78, while Kazakhmys (LSE: KAZ) added 4 percent to £11.70 and BHP Billiton (LSE: BLT; NYSE: BHP; ASX: BHP) was 4.17 percent higher to £12.75.

    The aerospace sector was up with BAE Systems (LSE: BA; OTCBB; BAESY) 3.48 percent higher to 431p and Meggitt (LSE: MGGT) adding 4.73 percent to 298.75p.

    The best performer on the 250 was care homes operator Southern Cross Healthcare (LSE: SCHE), which gained 6.93 percent to 470.5p.

    Insurers were mixed.

    Prudential (LSE: PRU; NYSE: PUK) was up 1.1 percent to 657.5p, but Old Mutual (LSE: OML; JSE: OLOML) dropped 2.16 percent to 149.4p.

    Property developers and investors were lower on the session.

    British Land (LSE: BLND) had the worst day on the 100 as it fell 3.46 percent to £11.98. SEGRO (LSE: SGRO) fell 2.66 percent to 513p, while Daejan Holdings dropped 4.86 percent on the 250 to £33.30.

    Publisher Reed Elsevier (LSE: REL; Euronext: REN; NYSE: ENL; NYSE: RUK) dropped 2.61 to 578p.





    July 30, 2007

    ICI gains over 7 percent on session

    Filed under: Companies, Prudential, Rio Tinto, Antofagasta, BHP Billiton, National Grid, Vedanta Resources, JKX Oil & Gas, Imperial Tobacco, Man Group, ICI, FKI, Capital & Regional

    Equities markets in London were mixed on Monday.

    The FTSE 100 was 0.15 percent lower to 6,206.1, while the FTSE 250 gained 0.79 percent to 11,071.7.

    Miners saw significant gains on the day.

    BHP Billiton (LSE: BLT; ASX: BHP; NYSE: BHP) gained 3.09 percent to £14.03, while Rio Tinto (LSE: RIO) added 3.68 percent to £34.51, Antofagasta (LSE: ANTO) was 4.15 percent higher to 702p, and Vedanta Resources (LSE: VED) was up 5.5 percent to £17.07.

    The best performer on the 100 came in the chemicals sector, where Imperial Chemical Industries (LSE: ICI; NYSE: ICI) added 7.19 percent to 618.5p.

    The biggest loser on the 100 was in the financial services sector, where Man Group (LSE: EMG) fell 2.75 percent to 547.5p.

    Other decliners included Imperial Tobacco Group (LSE: IMT), which dropped 2.02 percent to £21.37.

    Prudential (LSE: PRU; NYSE: PUK) dropped 2.11 percent to 650p, while electric power transmitter National Grid (LSE: NG) was 2.14 percent lower to 686p.

    Manufacturer FKI (LSE: FKI) had the best day on the 250, adding 9.16 percent to 110.25p, while JKX Oil & Gas (LSE: JKX) gained 8.61 percent to 346p.

    The worst performer on the 250 was property investment group Capital & Regional (LSE: CPP), which fell 4.12 percent to 907p.





    December 15, 2006

    Cairn Energy drops 1.6 percent

    Filed under: Companies, Prudential, Cairn Energy, Reckitt Benckiser, British Land, BAE Systems, BT Group

    The FTSE 100 closed at its highest level in nearly six years on Friday, ending at 6,260, a gain of 0.5 percent on the day and 1.7 percent higher than it began the week. The FTSE 250 added 0.3 percent on the day to close at a record high of 11,086, a gain of 1.1 percent on the week.

    Defense aerospace company BAE Systems saw a gain of 6.9 percent to 424½p after the Serious Fraud Office ended an investigation into Al Yamamah arms deals with Saudi Arabia. The probe, which lasted for two years, was responsible for a delay in the signing of a Saudi order for Eurofighters.

    Prudential was 2.1 percent higher to 710½p after rumors that it will free up nearly £10 billion in its orphan estate that is no longer needed to meet obligations and return some of that money to shareholders.

    In the telecommunications sector BT Group added 3.3 percent to 315p, its highest share price since September 2001.

    British Land gained 2 percent, to £16.62 on talk that an overseas billionaire is looking to buy.

    Reckitt Benckiser was 1.6 percent higher to £24.11 after UBS upgraded the household goods group to “buy”, citing growth potential in 2007.

    Among losers on the day, Cairn Energy dropped 1.6 percent to £19.14 on rumors that the IPO of Cairn India was not as successful as had been hoped and that shares would be priced at the low end of the stated range.





    November 29, 2006

    FTSE 250 adds 1.5 percent

    Filed under: Companies, Prudential, GlaxoSmithKline, Xstrata, BHP Billiton, AstraZeneca, Shire, Legal & General, Sage

    The London equities markets were higher on Wednesday in reaction to overnight gains in New York and Tokyo, while the pharmaceuticals sector was higher and financial services gained on bids rumors. The FTSE 100 added 0.6 percent to 6,065.3, while the FTSE 250 gained 1.5 percent to 10,659.1.

    Miners were up on higher prices for several metals. BHP Billiton added 1.8 percent to 954p, while Xstrata was 2.1 percent higher to £22.49.

    In the pharmaceuticals sector, AstraZeneca was up 2.5 percent to £30.03. Shire added 2.7 percent to £10.34 on an upgrade from “neutral” to “overweight” from HSBC, while GlaxoSmithKline gained 3 percent to £13.71. Gains in the sector were helped by news that Swiss pharma group Novartis is thinking of selling its baby food unit, Gerber Products, to Nestle.

    Among financial services groups, Prudential was 2.1 percent higher to 660p on rumors that HSBC could be interested, while Legal & General added 3 percent to 154p on talk that Dutch insurer Aegon was thinking of bidding.

    In the software sector, Sage added 6.2 percent to 256p on its report that its pre-tax profits were up 14 percent in the quarter. Meanwhile plumber Wolseley gained 3.8 percent to £11.78 even though its fiscal first quarter profits were up only slightly.





    November 13, 2006

    FTSE 250 adds 0.5 percent on session

    Filed under: Companies, Lloyds TSB, Prudential, Xstrata, Kazakhmys, Rio Tinto, Antofagasta, Friends Provident, Crest Nicholson, Berkeley Group, Resolution

    London equities markets were mixed on Monday. The FTSE 100 was 0.2 percent lower to 6,194.2 as dropping metals prices sent the UK mining sector lower. Meanwhile, the FTSE 250 was 0.5 percent higher, closing at 10,712.8. It was the fifth session in a row that the 250 has done better than the 100.

    Homebuilders were mixed on the session. Berkeley Group added 6.8 percent to reach a new high of £17.02 on rumors that a consortium had bid for peer Crest Nicholson. The gain brought Berkeley’s advance over six sessions to 19 percent. Crest Nicholson, on the other hand, was 0.1 percent lower to 615p even though it was believed that its institutional shareholders will wait for a higher offer.

    The insurance sector was higher, mainly on Resolution’s announcement that it is discussing deals with several other insurers. The life assurer added 5.1 percent to 667½p. Different analysts suggested different deals, including one with Scottish Widows the life assurance division of Lloyds TSB, with the UK life division of Prudential, or with Friends Provident. The talk sent Lloyds TSB up 1 percent to 561p, while Friends Provident added 1.3 percent to 214½p and Prudential gained 2.1 percent to 651½p.

    In the mining sector Rio Tinto was 4 percent lower to £27.65, while Xstrata dropped 4.5 percent to £21.92, Kazakhmys fell 5 percent to £11.40 on lower copper prices, and Antofagasta was 5.3 percent lower to 468¼p.





    October 30, 2006

    Shire drops 2.8 percent on profit-taking

    Filed under: Companies, Prudential, Aviva, Shire, Wolfson Microelectronics, Hanson, ARM Holdings, Standard Life

    The London equities markets were lower on Monday, with the FTSE 100 dropping 0.5 percent to 6,126.8 and the FTSE 250 falling 0.4 percent to 10,308.6.

    In the pharmaceuticals sector, Shire dropped 2.8 percent on the session to 940p on profit-taking. Shire is up 45 percent on the year so far.

    Wolfson Microelectronics dropped 3.9 percent to 292¼p after McCall, Aitken, McKenzie, a new broker, advised its clients to sell after Wolfson’s rally last week. Elsewhere in the semiconductors sector, ARM Holdings fell 3.5 percent to 109p in anticipation of its third quarter report, due later in the day.

    Insurers were higher. Aviva added 0.2 percent to 771p and Prudential, which rebuffed an Aviva bid earlier in the year, gained 1.7 percent to 641p on analyst sentiment that it remains vulnerable to a bid after recent weak data. Many believe that Aviva is still interested. Elsewhere, Standard Life gained 1.6 percent to 287½p on media reports that Axa of France could be interested in bidding for the life assurer, even though analysts were not convinced.

    Hanson added 2.3 percent to 727½p on ABN Amro’s repeat of its “buy” rating and £10.60 target share price. The building materials group had dropped 4.4 percent on Friday.





    October 19, 2006

    Pharma up in London

    Filed under: Companies, Northern Rock, Prudential, Royal Dutch Shell, BP, GlaxoSmithKline, Bradford & Bingley, Alliance & Leicester, Vodafone, AstraZeneca, Imperial Tobacco, HSBC

    London equities markets were lower on Thursday, mainly on declines in financial sectors. The FTSE 100 dropped 0.2 percent to 6,136.5. Meanwhile, the FTSE 250 was 18.6 points lower to 10,323.1.

    Losers among financial institutions included HSBC, down 0.8 percent to £10.05. Also lower were Northern Rock, which fell 0.9 percent to £11.91 and Bradford & Bingley, 1.5 percent lower to 466p. Alliance & Leicester dropped 1.8 percent to £11.09. Ironically, life assurer Prudential, which sent the sector lower when it blamed its predicted losses in the second half on a loss in its internet bank, Egg, itself added 0.9 percent on the day to 635p.

    In the tobacco sector, Imperial Tobacco was 0.4 percent lower to £18.24 on a downgrade from “buy” to “neutral” from Goldman Sachs.

    The oil sector was lower even in the face of expected cuts in production from the Organization of Petroleum Exporting Companies. Royal Dutch Shell dropped 0.6 percent to £18.14, while BP fell 1 percent to 595p.

    Vodafone declined 0.6 percent to 128p on news from the European telecommunications sector. Nokia was down on the session, and there were worries that an offer from Telefonica to not charge for incoming calls to customers traveling in Europe could set off a tariff war.

    The pharmaceuticals sector saw advances as GlaxoSmithKline added 1 percent to £14.90 and AstraZeneca was 1.5 percent higher to £34.74, its highest share price in nearly five years.





    July 28, 2006

    Xstrata gains 7.4 percent

    Filed under: Companies, Prudential, Alliance Unichem, Xstrata, Boots, Biofuels Corporation, D1 Oils

    In London this week, the FTSE 100 was up 4.5 percent for the largest weekly percentage gain since March 2003. Friday’s gain was 0.8 percent, and the 100 closed out the week at 5,974.9.

    Not all companies posted gains on the week, however. In the insurance sector, Prudential lost 3 percent over the week to 577½p on an unimpressive interim report. Prudential has now lost 22 percent since March, when it turned down an offer from Aviva. Also down was Intercontinental Hotels Group, which lost 4.6 percent to 858½p after Starwood Hotels in the US warned of coming weakness in the second half of the year.

    Companies that deal in biofuels were up on the week. Morgan Stanley commenced coverage on two of the companies, Biofuels Corporation and D1 Oils, on Friday, with both companies receiving “equal weight” ratings. Biofuels Corporation was up 7.7 percent to 118½p, while D1 gained 2.6 percent to 251¼p. D1 was also helped by talk of a takeover bid from BP.;

    Boots and Alliance UniChem were both up on the eve of their merger as Alliance Boots. On their last day of trade as separate entities, Alliance UniChem was 4.1 percent higher to £10.68 and Boots gained 4.4 percent to 806½p.

    Xstrata was the biggest gainer in the blue chips, adding 7.4 percent to £23.01 on the news that Inco has pulled out of the bidding for Falconbridge of Canada, leaving Xstrata an open field for a takeover.





    June 27, 2006

    FTSE 100 closes at 5,652.3

    Filed under: Companies, Prudential, Xstrata, Aviva, Centrica, SAB Miller

    London equities markets were mixed again on Tuesday, with the FTSE 100 0.5 percent lower to 5,652.3. The FTSE 250 was just slightly higher, up 0.02 percent. Trade volumes were low once again, with 2.5 billion shares changing hands as investors delayed moves until after the US Federal Reserve meets later in the week.

    SAB Miller, which has been declining largely due to weakness in the South African rand, managed to gain 1.2 percent to 934p on a “buy” recommendation from Deutsche Bank, which said that despite currency issues the brewer is showing strong performance.

    In the utilities sector, Centrica added 0.7 percent to 271p after ABN Amro repeated its “buy” recommendation on the stock and maintained its 321p target share price for the owner of British Gas.

    The insurance sector was mixed, with Prudential up 0.5 percent to 567p as investors saw it as vulnerable to an approach after its 23.6 percent decline since it declined an offer from Aviva in March. Aviva declined by 0.2 percent to 737½p.

    Miner Xstrata was down by 2.6 percent to £19.04 on concerns that it could increase its offer for Falconbridge. Phelps Dodge said Monday that it will buy the Canadian nickel miner.





    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.





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