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    October 31, 2006

    London markets see slight gains

    Filed under: Companies, Shire, Friends Provident, Severn Trent, Kelda, Imperial Tobacco, BSkyB, Gallaher

    The London equities markets were higher on Tuesday, but barely so, with the FTSE 100 adding a bare 0.04 percent to 6,129.2 and the FTSE 250 ending the session 0.6 percent higher to 10,372.2.

    Friends Provident helped the 100 with its 6.7 percent gain to 207p after its third quarter report did better than had been anticipated. The life assurer also revealed plans to increase it’s market share.

    BSkyB was also higher, adding 1.1 percent to 543½p on positive comments from Cazenove.

    In the pharmaceuticals sector, Shire was 1.7 percent higher to 956½p on the possibility that it could renegotiate a profit-sharing agreement on a new attention deficit hyperactivity disorder treatment, NRP 104. The current agreement, with US company New River Pharmaceuticals, could give as much as 67 percent of the profits to the US firm. Credit Suisse, however, thinks that they agreement will change before the new drug goes on sale in the US early next year.

    In the tobacco sector Imperial Tobacco, which said it is still looking for acquisitions, was 1 percent higher to £18.57. Gallaher, the maker of Benson & Hedges and Silk Cut cigarettes, added 1.5 percent to 890p on the hope that Imperial might bid, although most analysts see an offer for Altadis of Spain as more likely.

    Shares in water companies were lower on the sessioni. Kelda Group was 1 percent lower to 866p, while Severn Trent dropped 1.6 percent to £13.96.





    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 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.





    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.





    August 15, 2006

    Shire gains on lawsuit settlement

    Filed under: Companies, Shire, Amvescap, Carphone Warehouse, Bellway, Bovis Homes Group, Man Group, Barratt Developments

    The London equities markets had another slow day, with only 2.3 billion shares traded. Still, both the FTSE 100 and FTSE 250 saw gains on the day. The 100 added 0.5 percent to 5,897.9, while the 250 was 0.6 percent higher to 9,359.6.

    In the pharmaceuticals sector, Shire was 0.7 percent higher to 888p on the news that it has reached a settlement with Barr Laboratories that will keep Barr from marketing a generic version of Shire’s attention deficit disorder drug Adderrall until 2009. Adderrall accounts for about 50 percent of Shire’s sales.

    Homebuilders were also up on the session as rumors of consolidation within the sector circulated. Bellway gained 1.8 percent to £11.95, while Barratt Developments added 2.3 percent to 951½p and Bovis Homes was 2.4 percent higher to 811p.

    In the telecommunications sector, Carphone Warehouse advanced by 3 percent to 263¾p amid rumors that a private equity company had offered 330p per share for the company.

    Man Group was 2.2 percent higher to 415p, while Amvescap added 2.3 percent to 517½p as fund managers benefited from the notion that weaker than expected data out of the United States would make it more likely that the Federal Reserve will keep interest rates at their current level rather than increasing them at its next meeting.





    July 25, 2006

    Boots/Alliance UniChem merger send both companies higher

    Filed under: Companies, BA, Alliance Unichem, Boots, Cadbury Schweppes, Shire, Scottish and Newcastle

    The London equities markets were higher again on Tuesday, with the FTSE 100 gaining 0.3 percent to 5,851.2 and the FTSE 250 also up 0.3 percent to 9,248.5. Volume was up from Monday, with 2.6 billion shares changing hands during the session.

    Boots Group and Alliance UniChem were each 2.1 percent higher, to 766p and £10.18 respectively. The gains came ahead of Monday’s scheduled completion of a merger between the two companies. JP Morgan issued a positive comment.

    Brewer Scottish & Newcastle was up 2.4 percent to 533½p ahead of an expected positive half-year report due next month.

    British Airways added 3 percent to 384¼p, a five-year high, as oil prices fell and in anticipation of positive earnings news next month. Morgan Stanley upped its target share price on BA to 480p and said that revenue growth predictions will have to be increased by at least 7 percent after the air carrier releases its next report on August 4.

    In the pharmaceutical sector, Shire gained 2.9 percent to 852½p on the news that it has gained permission to sell its treatment for Hunter syndrome in the United States.

    Cadbury Schweppes, which issues its half-year report on August 2, dropped 1.4 percent to 515p on rumors that it will issue a profits warning. The talk was based at least partly on ABN Amro’s lowered forecast, in which it cited rising costs and a recent salmonella problem in explaining its position.

    Among small caps, Central African Mining & Exploration Company (Camec) was up 3.5 percent to 59p. Credit Suisse initiated coverage on Camec with an “overweight” rating and a target share price of 100p. Camec is starting to mine copper and cobalt in the Democratic Republic of Congo.





    July 7, 2006

    Bids news sends Shire, Corus higher

    Filed under: Companies, BA, Corus, PartyGaming, EasyJet, Shire, SAB Miller

    In London on Friday, equities markets saw declines for the day but ended the week slightly higher. The FTSE 100 dropped 0.02 percent to 5,888.9, but its closing level was good for a 1 percent rise over the week. Meanwhile, the FTSE 250 ended the session 0.3 percent lower to 9,431.6 but managed and 0.1 percent gain for the week.

    The airlines sector saw gains over the week. British Airways was up 3 percent to 359p on the strength of an 8.7 percent gain to 425p by low-cost air carrier EasyJet, which adjusted its full-year profit growth forecast upward to between 40 and 50 percent. Earlier, it had said that profits would grow around 15 percent for the year.

    Shire Pharmaceuticals added 1 percent to 811p amid talk that it could be the target of a private equity bid. UBS said that an offer of up to £10.50 per share for Shire could still make a buyer good profit.

    Among steelmakers, Corus gained 4.4 percent to 451p as rumors continued that two Russian millionaires, one the owner of Russian company Severstal, are considering a joint bid.

    SAB Miller dropped 1 percent on Friday to 960½p as investors feared that this weeks Florida Supreme Court ruling vacating a $145 billion (£79 billion) damages award against US tobacco companies would lead to the sale of 28.7 percent of the brewer by Altria. The concerns have arisen because Altria, which also owns US cigarette maker Phillip Morris, is free to break off parts of its holdings now that it no longer has to worry about paying any part of the damage award. Not all analysts, however, are convinced that Altria will sell its stake in SAB.

    PartyGaming dropped 5.9 percent to 108p, also on legal activity in the United States. Investors in the internet gaming company are worried about a debate in the US House of Representatives, scheduled for next week, on legislation that is designed to outlaw online gambling in the US. Analysts expect the new law to pass in the House, but don’t believe that it will make it to the Senate for a vote before elections in November.





    June 26, 2006

    FTSE 250 slightly higher

    Filed under: Companies, Corus, Xstrata, Anglo American, Shire, SAB Miller

    Trade volumes remained low in the London equities markets on Monday, with a mere 2.5 billion shares trading hands. The FTSE 100 closed down 0.2 percent to 5,681.2, while the FTSE 250 added 0.02 percent to 9,197.1.

    The mining sector was mixed. Anglo American was up 1.4 percent to £21.38 and Xstrata added 0.9 percent to £19.55 on talk that the two might merge. The rumors seem to have been spurred by an offer from Phelps Dodge to purchase Canadian miners Falconbridge and Inco. On the other hand, Corus dropped 0.5 percent to 428½p due to profit-taking.

    Retailer Marks & Spencer gained 2.1 percent to 578p ahead of its first quarter trade update, which is upcoming on July 11. Analysts think that the report will be good enough to trigger earnings upgrades.

    SABMiller was down 3.8 percent to 932p on currency weakness in regions where it sells its products. The brewer generates around 25 percent of its earnings in South Africa, where the rand is weak, and also has strong sales in Columbia where the peso has been struggling.

    In the pharmaceuticals sector, Shire Pharmaceuticals added 2.1 percent to 770½p after it was said that Swiss biotech firm Serono could be interested in bidding for the drug maker.





    June 15, 2006

    Miners’ gains help FTSE 100

    Filed under: Companies, GlaxoSmithKline, Xstrata, Anglo American, BHP Billiton, Shire, Wm Morrison, Vedanta Resources

    After three consecutive days of losses, the London equities markets were higher on Thursday. The FTSE 100 gained 2 percent to 5,619.3 on gains in the mining sector. Meanwhile, the FTSE 250 added 3.6 percent to 9,101.8 for its second-largest daily percentage gain so far this year.

    The pharmaceuticals sector was mixed based on sales data. Shire Pharmaceuticals added 6.7 percent to 747p after it was revealed that its attention deficit hyperactivity disorder drug, Adderall XR, is selling well in the United States. However, GlaxoSmithKline dropped 1 percent to £14.58 on data showing that sales of its diabetes drug Avandia had fallen 14 percent in May, while sales of Advair, for the treatment of asthma, was down 4.4 percent during the month.

    Miners Vedanta and Lonmin were up as metal prices were up and as institutional investors sought to purchase shares before both companies move from the FTSE 250 to the FTSE 100 next week. Vedanta added 13.5 percent to £12.56, while Lonmin gained 7.1 percent to £24.45.

    Among miners already included in the 100, Anglo American was up 7.1 percent to £19.89 on an upgrade to “buy” from Merrill Lynch. BHP Billiton gained 7.2 percent to 982p, while Xstrata added 7.9 percent to £19.66.

    Supermarket chain William Morrison dropped 1 percent to 194½p on comments from Sanford Bernstein that called its stock overvalued.





    April 21, 2006

    FTSE 100, 250 gain on day and week

    Filed under: Companies, Lloyds TSB, Royal Dutch Shell, Xstrata, Kazakhmys, Antofagasta, Alliance & Leicester, Shire, GCap Media, Smith & Nephew

    In London on Friday the FTSE 100 added 0.8 percent to 6,132.7, a five-year high. The 100 was up 1.7 percent in the holiday-shortened week. The FTSE 250 was up 0.6 percent for the day and 1.8 percent on the week to close at 9,950.8.

    Miners and oil were both instrumental in the day’s gains. Copper prices on the rise again after Thursday’s declines helped Antofagasta up by 5.1 percent to £24.68, its highest-ever share price. Elsewhere in the sector, Xstrata added 4.6 percent to £20.87 and Kazakhmys gained 4.3 percent to £12.39.

    In the oil sector, Royal Dutch Shell was up 2.2 percent to end the day at £20.43.

    Bid rumors led to gains in several sectors. Among banks, Alliance & Leicester gained 0.7 percent to £11.54 on talk that French bank Crédit Agricole would offer for A&L, possibly as soon as Monday. Elsewhere in the sector, Lloyds TSB added 0.8 percent to 530½p on renewed talk of a possible bid from Citigroup.

    Gcap Media gained 8 percent to 262½p after Oriel Securities said that GCaps collection of radio stations would be an attractive acquisition.

    Homebuilder Wilson Bowden added 1.7 percent to £15.72, also on bid rumors.

    Shire Pharmaceuticals was up 2.3 percent to 878p after it was announced that the US Food and Drug Administration is still looking at a request that generic versions of Shire’s hyperactivity drug Adderall be subjected to rigorous testing.

    Medical devices manufacturer Smith & Nephew gained 3.5 percent to 518½p ahead of its quarterly earnings report, due next Thursday.





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