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    February 28, 2007

    UK banking sector declines

    Filed under: Companies, Northern Rock, Standard Chartered, Xstrata, Anglo American, Barclay's, HBOS, Royal Bank of Scotland

    In London on Wednesday, the FTSE 100 was 1.8 percent lower to 6,171.6. The decline came after yesterday’s 2.3 percent decline and negated all the gains the index has made since the beginning of the year. Meanwhile, the FTSE 250 dropped 0.88 percent to 11,082.90. The 100 lost 114.6 points on the day, while the 250 was 98 points lower.

    Miners again were among the biggest losers on the day, hurt by indications that Chinese demand for metals will decline. Xstrata (LSE: XTA) dropped 3.4 percent to £23.96, while Anglo American (LSE: AAL) fell 3.6 percent to £24.38.

    Banks also had a hard day of it. HBOS (LSE: HBOS) was 4.5 percent lower to £10.81 after it reported an annual profit that was around where analysts had expected it to be but also issued a warning that margins could fall due to less income from default charges that banks were ordered to reduce by the Office of Fair Trade.

    Elsewhere in the sector, Standard Chartered (LSE: STAN), which focuses on emerging markets, dropped 1.5 percent to £14.28. Northern Rock (LSE: NRK) was 1.8 percent lower to £11.35, while Royal Bank of Scotland (LSE: RBS; NYSE: RBS PRM) fell 2.8 percent to £20.10 and Barclays (LSE: BARC; NYSE: BCS; TYO: 8642) was down 3.6 percent to 740p.





    February 22, 2007

    Miners gain on higher copper prices

    Filed under: Companies, BAT, Xstrata, Kazakhmys, Antofagasta, Emap, Imperial Tobacco

    Equities markets were higher in London on Thursday as the FTSE 100 added 0.4 percent to 6,380.9 and the FTSE 250 also gained 0.4 percent to 11,584.4.

    Miners advanced on the session on higher prices for copper, which were up by around 6 percent on the session. Antofagasta (LSE:ANTO) gained 3.4 percent to 489p, while Kazakhmys (LSE: KAZ) added 3.6 percent to £11.65 and Xstrata (LSE: XTA) was 3.7 percent higher to £25.72.

    The tobacco sector was mixed. Imperial Tobacco (LSE: IMT) was down 0.3 percent to £21.93 when Altadis (IBEX-35: ALT) of Spain denied rumors that it could make a joint bid for the company along with Philip Morris (NYSE: MO). On the other hand, British American Tobacco (LSE: BATS; AMEX: BTI; KLSE: BAT) added 0.5 percent to £15.74 as investors hoped that it would introduce increased share buybacks and cost-cutting measures when it issues its full-year report next week.

    Emap (LSE: EMA) gained 0.8 percent to 737p as rumors circulated that it might offer one of its divisions for sale. Several buyers were suggested as possibly being interested in different units. In addition, Panmure Gordon upgraded the media group to “buy”.





    February 16, 2007

    UK retailers gain on broker upgrades

    Filed under: Companies, Amvescap, Next, GCap Media, Kingfisher, Compass Group

    The London equities markets were lower on Friday, with the FTSE 100 down 0.2 percent to 6,149.5. The FTSE 250 dropped 0.1 percent to 11,556.4. Only 2.6 billion shares traded hands in a day of light trade. Despite the slow day and the declines, the 100 added 0.6 percent over the full week and the 250 was up 0.3 percent over the five sessions.

    The retail sector saw gains. After an upgrade from “sell” to “buy” from Societe Generale, Kingfisher added 3.5 percent to 259½p. The broker also raised Kingfisher’s target share price to 342p. Next gained 1.8 percent to £20.93, also on an upgrade. Goldman Sachs raised its rating on the clothing retailer from “neutral” to “buy”, calling it a consolidation target.

    Caterer Compass gained 0.9 percent to 312p after issuing a positive trading update.

    Amvescap was 1.5 percent higher to 632p after it said it was thinking about changing its primary lisitng to the US. The fund manager, which is in process of changing its name to Invesco, does the vast majority of its business in North America. Citigroup said that if Amvescap does switch its listing, share prices could go up. Currently its share price is around 20 percent lower than US rivals such as T Rowe Price.

    In the media sector, Gcap Media dropped 9.9 percent to 217p after UBS placed 13.6 million shares of the owner of Capital Radio for an institutional client at a price of 225p. That number of shares represents 8.2 percent of the company.





    February 15, 2007

    Wolseley declines on broker downgrade

    Filed under: Companies, BAE Systems, Scottish and Newcastle, SAB Miller, Wolseley, Diageo, Reed Elsevier

    The London equities markets saw advances on Thursday, helped out by the drinks sector and the announcement that Reed Elsevier will sell one of its divisions. The FTSE 100 added 0.19 percent to 6,433.3, while the FTSE 250 gained 0.29 percent to 11,574.60.

    The drinks sector was helped out by Diageo, which posted higher half-year earnings even though there were challenges in some markets and a weakening of the dollar. The maker of Johnnie Walker whisky added 2.35 percent to on the day. Brewers were also boosted by a report that InBev is talking with US company Anheuser-Busch about a merger deal. SABMiller gained 1.9 percent to £11.98, while Scottish & Newcastle was 2.3 percent higher to 579p. S&N also benefited from rumors that it could be talking with Carlsberg about a deal.

    Reed Elsevier added 6.6 percent to 644½p after it said it will sell its education publishing unit. The gain came even though its full-year report on earnings and revenue was below what had been anticipated.

    Defense contractor BAE Systems was 2.5 percent higher to 454p ahead of a report due next week, after Credit Suisse upped its target share price from 465p to 500p.

    Plumber Wolseley was hurt after Merrill Lynch removed it from its “buy” list, dropping 2.3 percent to £13.75.





    February 13, 2007

    UK real estate sector declines on profit-taking

    Filed under: Companies, GlaxoSmithKline, Rio Tinto, British Land, BHP Billiton, British Energy, Slough Estates, Liberty International

    Both the FTSE 100 and the FTSE 250 saw gains on Tuesday. The 100 added 0.4 percent to 6,381.8, while the 200 was 0.2 percent higher to 11,475.7.

    The 100 was helped by gains in the mining sector after metals prices were up and on rumors that both Rio Tinto and BHP Billiton are thinking about bidding for aluminium manufacturer Alcoa. Rio Tinto added 2.5 percent to £27.53, while Billiton was 2.6 percent higher, to £10.67.

    In the pharmaceuticals sector, GlaxoSmithKline gained 2.1 percent to £14.91 on a repeated “buy” rating from Collins Stewart. GSK has 10 new products ready to hit the market this year, with 31 at Phase III trials or better.

    The real estate sector was lower on profit-taking and on less than admirable results from British Land in their fiscal third quarter. British Land dropped 3.6 percent to £16.19, while Liberty International fell 2.7 percent to £12.90 and Slough Estates was 1.5 percent lower to 771p. Liberty is scheduled to release its results on Wednesday.

    British Energy was 3.3 percent lower to 410p after it said that one of its nuclear power plants will be closed until April.





    February 9, 2007

    London markets higher on session, week

    Filed under: Companies, GlaxoSmithKline, British Energy, London Stock Exchange, SR Pharma

    London markets were higher as well on Friday and for the full week, ending with a new six-year high for the FTSE 100 and another all-time high for the FTSE 250. The 100 was 0.5 percent higher on Friday and 1.1 percent higher on the week, closing at 6,382.8, while the 250 closed at 11,522.8, up 0.7 percent on the day and 1.6 percent higher over the week.

    In the energy sector, British Energy dropped 0.1 percent to 418¾p on rumors that the UK government could divest itself of part of the energy company after it reports next Tuesday. Several banks were brought in last year to consult on such a sale, but problems with some of the company’s nuclear power generators put the idea on a back burner. The government has claim on nearly 65 percent of the energy company’s net cash flow that is convertible to an equal-sized equity stake at will.

    In the pharmaceuticals sector, GlaxoSmithKline added 2 percent to £14.50 on an upgraded recommendation from Bear Sterns. Meanwhile, SR Pharma added 12.1 percent over the week to 74p. There were bid rumors, but most analysts attributed the gain to the news that Pfizer and Quark Biotech are beginning clinical development on a new product licensed from SR.

    The London Stock Exchange held steady at £12.82 as the deadline for acceptance of Nasdaq’s offer by LSE shareholders approached.





    February 7, 2007

    British Airways gains on broker upgrade

    Filed under: Companies, BA, Anglo American, BHP Billiton, Lonmin, AstraZeneca, J Sainsbury, Vedanta Resources, Scottish Power

    Equities markets in London were higher on Wednesday, with both the FTSE 250 and the FTSE All-Share hitting all-time highs for the second day in a row. The 250 added 0.2 percent to 11,502, while the All-Share gained 0.2 percent as well, to 3,301.77. The FTSE 100 was also higher, up 0.4 percent to 6,369.5.

    Miners saw advances on the day after BHP Billiton added 5.5 percent to £10.40 on the announcement of a new share buyback. The rest of the sector followed Billiton higher, with Anglo American gaining 2.7 percent to £24.71, Lonmin 2.8 percent higher to £31.89, and Vedanta resources adding 3.5 percent to £12.36.

    J Sainsbury was 0.7 percent higher to 519½p after rumors circulated that an anonymous investor was interested in acquiring 50 million shares of the supermarket chain.

    British Airways gained 4.6 percent to 574p on upgrades from Merrill Lynch, which raised its recommendation on the airline to “buy” and increased its target share price to 700p.

    With 86million shares trading hands on the session, Scottish Power was 1.8 percent higher to 770p on consolidation rumors in Europe. The rumors were denied later.

    In the pharmaceuticals sector, AstraZeneca dropped 1.1 percent to £29.50.





    Selling a problem property fast

    Filed under: Companies

    Sometimes you just can’t help but find yourself with a problem property. It could be that the property is in the wrong area, or it could be a in a state of repair that you simply don;t have the funds to correct.

    In such situations, it can be difficult to find ways to sell your property, let alone in any reasonable time scale. If you find yourself in such a situation, asking how to “sell my house fast“, then consider that various options are actually available to you to not simply make a sale on the problem property, but also do so quickly.

    There are a number of property cash buyers already in the market, usually run by property investment companies. They are usually keen to buy no matter what trouble issues may be involved, such as area or disrepair.

    Even better, they can usually offer cash for houses and flats, which can seriously accelerate the speed of the property sale.

    So if you find yourself asking if anyone would “buy my house“, realise that in the current bouyant property market, there are a lot of companies who will actually engage you in a clean and quick sale.





    February 6, 2007

    UK supermarkets gain on UBS upgrades

    Filed under: Companies, BAE Systems, Cable and Wireless, Tesco, J Sainsbury, Wm Morrison, Imperial Tobacco

    Records were set Tuesday in London as both the FTSE 250 and the FTSE All-Share hit new record highs and the FTSE 100 closed at its highest level in six years. The 100 added 0.4 percent to 6,346.3, while the 250 was 0.6 percent higher to 11,479.4 and the All-Share gained 0.5 percent to 3,290.67.

    Defense contractor BAE Systems added 2.8 percent on the session to 439¼p after US President George W. Bush asked for record defense spending in his 2008 budget, delivered to Congress on Monday.

    Imperial Tobacco added 1.3 percent to £22.14 even though it was the target of a Deutsche Bank downgrade after rumors surfaced that it might receive a bid from Altadis of Spain in cooperation with private equity.

    Supermarkets were higher on raised target share prices from UBS and on a report that a group of investors from Qatar had taken a 1 percent stake in J Sainsbury. Sainsbury was 1.3 percent higher to 516 on the report. Tesco added 1 percent to 438½p as UBS hiked its target share price to 550p, while Wm Morrison added 2.6 percent, to a new record share price of 311p, after its target was raised to 360p.

    In the telecommunications sector Cable & Wireless gained 3 percent to 179½p, its highest share price in four and a half years, on reports that it could be a target of Deutsche Telekom. Analysts were not convinced of the rumors in the German press, saying that DT is in no position to make offers currently.





    February 5, 2007

    Johnson Matthey gains on positive broker comments

    Filed under: Companies, Royal Dutch Shell, BP, BT Group, Cable and Wireless, Johnson Matthey

    Both the FTSE 100 and the FTSE 250 were higher in London on Monday. The 100 added 0.1 percent to 6,317.9 on gains in the oil and telecommunications sectors, while the 250 gained 0.6 percent to 11,406.5.

    In the oil sector, BP was 1.2 percent higher to 541½p on an upgrade to “buy” from Goldman Sachs before the oil company presents its full-year report on Tuesday. It was rumored that BP could announce a big increase in dividends when it presents its report. Elsewhere in the sector, Royal Dutch Shell gained 1 percent to £17.24.

    In the telecommunications sector, Cable & Wireless added 1.6 percent to 174¼p on a target share price of 200p from Credit Suisse. C&W has gained 60 percent since June 2006. BT Group also received positive broker comment in the form of a repeat of a “buy” rating from Citigroup, which also raised the telecom’s target share price from 315p to 335p. The remarks and upgrade sent BT 1.2 percent higher to 315¾p.

    Johnson Matthey, which has interests in both precious metals and pharmaceuticals, added 6.1 percent to £15.83 on an upgrade to buy from UBS, which also set a target share price of £18. In a lengthy report, UBS said that JM will likely see five years of earnings growth in double digits, mostly from growth in its autocatalyst division as the US and Europe set higher emissions standards on diesel vehicles, as well asl from a new prostate cancer drug which is currently in the final stages of clinical trials.





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