The FTSE closed down 81.4 points at 5,884.3, which was a disappointing end to the week. The close was actually down about 100 points from the session's peak, with a good trade turn down, but still, we would like to see some confidence come back. The FTSE 250 closed down 162.9 points at 10,067.9 - at least the 2nd tier is still above 10k. For now.
Over the pond we saw more disappointing news from PC group Dell and also the American International Group, with both blaming the current climate for lower than hoped earnings. By the time London closed the DJI was down about 190 points at 12,390, whilst the S&P 500 was down about 20 points 1348, and the Nasdaq off around 35 points at 2,296.
Back here in London it was the banks taking more pressure, with HBOS down 31.5p on the day to close at 603.5, barclays down over 23p at 477.25p, RBS down 17p at 385 and HSBC closed down 14p at 766.25p.
After its US peer had given a negative update yesterday, Yellow Pages publisher Yell took another hit today, anoher 23p to close at 219.25p.
Capita closed down 26.5p at 656p after its full year results failed to impress, despite a 19% profit increase and continued strong demand for outsourcing. A double broker upgrade to 'buy' didn't help.
Advertising & marketing group WPP closed down 15p at 597p aftre some even results news. There was a 5% growth for 2007 and they were optimistic about 2008, but general negativity prevailed, despite a double-boker upgrade and an avearge of 750p target area.
Pharma giant GlaxoSmithKline closed down 26p at 1,103.5p after it said it is ceasing its development program of the Dacart malaria drug and is also recalling its Lapdap malaria drug after side effects showed possible anaemia.
Guinness brewer Diageo closed down 25p at 1,034.5p on a broker downgrade to neutral.
Rentokil bounced back from yesterday's reactionary fall after the profit warning to close nearly 3p higher at 83.4p.
Resolution closed up 20.5p at 690 aftre the comopany said that the propsed takeover by Pearl was nearly there.
Schroders closed up 18p at 958.5p after a Morgan Stanley upgrade to equalweight.
Friday, 29 February 2008
Morning Market, Friday 29th February 2008
The FTSE started the last day of the week by being up 12 points at about 5,977 in its first hour, but it doesn't look strong. The FTSE 250 was up about 20 points at 10,250.
Last night over the pond the DJI closed down 112.1 points at 12,582.18, whilst the S&P500 closed down 12.34 points at 1,367.68 and the Nasdaq down 12.21 at 2,331.57.
In the Far East this morning the Nikeei 225 closoed down 322.49 points at 13,603.02, which was 2.3% down on the day. In Hong Kong the Hang Seng was down about 385 points at 24,205 by its lunchtime lull.
Brent oil broke the US$100 bbl, which helped the oil heavyweights here. In London this morning BP was up 6p at 554p, Cairn Energy up 37p 2,718, and BG Group up 27p at 1,221.
WPP, the marketing and advertising outfit, was up 4p at 616p this morning after saying it was going to be stronger this year after a 5% revenue rise last year.
Yell didn't have a good start, carrying on from yesterday it was down 5p at 237 after its US peer gave a poor outlook yesterday. Much of Yell's business is in the US.
Diagio was down this morning, off 16p at 1,043 after a broker downgrade to neautral.
Outsourcing specialist capita was down 10p at 672 despite a 19% increase in profits reported and an upbeat statement.
Bingo boys Rank Group was up nearly 5p at 96p as it said its earnings last year were up despite its Mecca Bingo and Grosvenor casino losing business.
Last night over the pond the DJI closed down 112.1 points at 12,582.18, whilst the S&P500 closed down 12.34 points at 1,367.68 and the Nasdaq down 12.21 at 2,331.57.
In the Far East this morning the Nikeei 225 closoed down 322.49 points at 13,603.02, which was 2.3% down on the day. In Hong Kong the Hang Seng was down about 385 points at 24,205 by its lunchtime lull.
Brent oil broke the US$100 bbl, which helped the oil heavyweights here. In London this morning BP was up 6p at 554p, Cairn Energy up 37p 2,718, and BG Group up 27p at 1,221.
WPP, the marketing and advertising outfit, was up 4p at 616p this morning after saying it was going to be stronger this year after a 5% revenue rise last year.
Yell didn't have a good start, carrying on from yesterday it was down 5p at 237 after its US peer gave a poor outlook yesterday. Much of Yell's business is in the US.
Diagio was down this morning, off 16p at 1,043 after a broker downgrade to neautral.
Outsourcing specialist capita was down 10p at 672 despite a 19% increase in profits reported and an upbeat statement.
Bingo boys Rank Group was up nearly 5p at 96p as it said its earnings last year were up despite its Mecca Bingo and Grosvenor casino losing business.
Thursday, 28 February 2008
Market Wrap, Thursday 28th February 2008
The FTSE had a disappointing afternoon, really, clsoing down 110.8 points at 5,965.7, which was lamost at its low of the day of 5,960.3. The index had been as high as 6,090.8 during the session, giving hope of staying above the 6k level, but alas, no.
By the time London closed the US was also down a fair amount, off about 155 points at 12,538, whilst the S&P500 was down 16 points at 1,364 and the Nasdaq down 28 points at 2,325.
Back here in London we saw Rentokil carry on from this morning by closing down 23% on the day at 80.5p, down 24.5p, after another profit warning, with its courier parcel delivery subsidiary CityLink being blamed for most of it.
To the banks, where RBS closed down 8p at 402p aftre the bank announced last year's pre-tax profit at £10.3 bln, up 9% on 2006, which was in-line with expectations, but news of further write-downs on sub-prime exposure did worry the institutions as the bank's capital strength could be a concern. Peer HBOS was down too, off 22p at 635p after its own weak figures yesterday sank in. Citigroup downgraded it to a 'sell' from 'hold'. Alliance & Leicester also fell yet again, down 29p at 565p, and barclays was down 19.5p at 500.5p.
Yell Group, the Yellow Pages publisher, fell another 30.5p to 242.5p after its US peer, RH Donnelly, gave a bleak outlook statement for 2008.
Anglo-Swiss mioning giant Xstrata closed down 168p at 3,969 on the day as the FT said that the Brazilain miner Vale US$85 bln takeover was all but off as a majore Xstrata shareholder rejected the offer.
The London Stock Exchange (LSE:LSE) closoed down 81p at 1,384 after broker Morgan Stanley downgraded our beloved exchange as it feel too many sellers are around. We do hope that Gordon Brown's - sorry, Alistair Darling's non-dom tax is to blame for all this anti-London feeling that's around. More and more are talking of leaving the financial capital of the world because of this thin end of the wedge on personal investmnets on those who are domiciled in the UK. paying tax on UK earnings is fine for those working hree, but darling wants to see what else they earn overseas and have some of that. well, a round £30k figure for the husband, and wife, meaning US$120k extra tax to pay for working here in the UK.
Insurer Royal & Sun Alliance closed down 6.3p at 136.0 on another broker downgrade after its results yesterday were seen as not up to expectations. Peer Aviva, however, was up 6p on the day at 616p after its 1% rise in full year figures and a decent outlook for this year. Broker Merrill Lynch were happy, keeping their 'neutral' rating for the insurance giant.
Man Group closed down 13.5p at 579p on the day on investors moving out.
Whitbread did best today, though, up 86p to 1,312 after 3 big brokers upgraded the group to a 'buy' rating. Whitbread had announced continuing like-for-like sales across its portfolio up 5.7% and sales up 11.3% on last time out.
Enterprise Inns was also up, closing at 428.25, up 3.5p on the day as hopes that the company will successfully convert into a Real Estate Investment Trust (REIT).
National Express shares took on 33p to close at 1,156 after the bus and train operator said strong passenger growth in all its divisions, particularly UK rail, helped it notch up a 13% rise in pre-tax profits to £177 mln stg for last year.
CSR closed down nearly 102p at 324p (down 25%) after the group warned that 6-month revenues for this year will be flat. It did say that 4th quarter profits had risen, but this didn't help, nor did news that the chip maker finance director was stepping down.
By the time London closed the US was also down a fair amount, off about 155 points at 12,538, whilst the S&P500 was down 16 points at 1,364 and the Nasdaq down 28 points at 2,325.
Back here in London we saw Rentokil carry on from this morning by closing down 23% on the day at 80.5p, down 24.5p, after another profit warning, with its courier parcel delivery subsidiary CityLink being blamed for most of it.
To the banks, where RBS closed down 8p at 402p aftre the bank announced last year's pre-tax profit at £10.3 bln, up 9% on 2006, which was in-line with expectations, but news of further write-downs on sub-prime exposure did worry the institutions as the bank's capital strength could be a concern. Peer HBOS was down too, off 22p at 635p after its own weak figures yesterday sank in. Citigroup downgraded it to a 'sell' from 'hold'. Alliance & Leicester also fell yet again, down 29p at 565p, and barclays was down 19.5p at 500.5p.
Yell Group, the Yellow Pages publisher, fell another 30.5p to 242.5p after its US peer, RH Donnelly, gave a bleak outlook statement for 2008.
Anglo-Swiss mioning giant Xstrata closed down 168p at 3,969 on the day as the FT said that the Brazilain miner Vale US$85 bln takeover was all but off as a majore Xstrata shareholder rejected the offer.
The London Stock Exchange (LSE:LSE) closoed down 81p at 1,384 after broker Morgan Stanley downgraded our beloved exchange as it feel too many sellers are around. We do hope that Gordon Brown's - sorry, Alistair Darling's non-dom tax is to blame for all this anti-London feeling that's around. More and more are talking of leaving the financial capital of the world because of this thin end of the wedge on personal investmnets on those who are domiciled in the UK. paying tax on UK earnings is fine for those working hree, but darling wants to see what else they earn overseas and have some of that. well, a round £30k figure for the husband, and wife, meaning US$120k extra tax to pay for working here in the UK.
Insurer Royal & Sun Alliance closed down 6.3p at 136.0 on another broker downgrade after its results yesterday were seen as not up to expectations. Peer Aviva, however, was up 6p on the day at 616p after its 1% rise in full year figures and a decent outlook for this year. Broker Merrill Lynch were happy, keeping their 'neutral' rating for the insurance giant.
Man Group closed down 13.5p at 579p on the day on investors moving out.
Whitbread did best today, though, up 86p to 1,312 after 3 big brokers upgraded the group to a 'buy' rating. Whitbread had announced continuing like-for-like sales across its portfolio up 5.7% and sales up 11.3% on last time out.
Enterprise Inns was also up, closing at 428.25, up 3.5p on the day as hopes that the company will successfully convert into a Real Estate Investment Trust (REIT).
National Express shares took on 33p to close at 1,156 after the bus and train operator said strong passenger growth in all its divisions, particularly UK rail, helped it notch up a 13% rise in pre-tax profits to £177 mln stg for last year.
CSR closed down nearly 102p at 324p (down 25%) after the group warned that 6-month revenues for this year will be flat. It did say that 4th quarter profits had risen, but this didn't help, nor did news that the chip maker finance director was stepping down.
Morning Market, Thursday 28th February 2008
The FTSE was down about 20 points in its first hour to 6,056 level, whilst the FTSE 250 was down 15 points at 10,406.
Last night over the pond the DJI closed up 9.36 points to close at 12,694.28 after an up-n-down day. The S&P500 closed down 1.27 points at 1,380.02 and the Nasdaq was up 8.79 points at 2,353.78. The news we mentioned in the wrap last night gave some comfort to investors, but there is obviously still some concern around.
In the Far East this morning the Nikkei 225 closed down 105.79 points at 13,925.51, whilst in Hong Kong the Hang Seng was up about 315 points at 24,800 by its lunmchtime chow.
Back here in London this monring it was Rentokil that was down 25%, or 27p at 77p afetr it issued another profit warning this morning. It said this year's profit will be significantly lower than last year, 2007. It blamed a 14% fall in the full-year profit by its City Link parcels business, which hasd seen a downturn.
Xstrata were down 175p to 3,962 after press reports that Brazilian mining giant Vale was cloe to failing as a major Xstrata shareholder had refused the terms of the deal.
The banks did better this monring, with RBS up 8.5p at 418p after it reported £10 bln profits and a EPS of 78.7p, which was ahead of expectations. Not allk peers did well, though, and HBOS was down 12p at 645 after a Citigroup downgrade to 'sell' from 'hold'.
Aviva was up 18p at 628 after it reported a 1% rise in full-year pre-tax profit and added that this year looks good too.
BAT was up 60p at 1,999 after it announced the acquisition of Scandinavian cigarette maker Skandinavisk Tobakskompagni as well as its results, which were in-line with expectations. Peer Imperial Tobacco was up 30p to 2,406.
Whitbread added 44p at 1,270 after an upbeat trading statement. The company said it will combine its hotel and pub restaurant divisional management and outsource logistic operations as part of a £25m annual saving. Peer Enterprise Inns was up 25p at 450p on a broker upgrade.
Housebuilder Redrow was down 2.5p at 3-quid a pop after its reported 1st half pre-tax profit was down and that they were finsing markets challenging. This spread to the bigger firms, and Persimmons was down 17p at 753 and Taylor Wimpey off 3.3p at 178.6.
National Express was up 39p at 1,162 as investors liked the transport firm's progress.
Ladbrokes was up 11p at 337.5p on a broker upgrade and recent press reports on the sector in general, as well a the gambling machines in outlets being very lucrative for the betting shops.
Last night over the pond the DJI closed up 9.36 points to close at 12,694.28 after an up-n-down day. The S&P500 closed down 1.27 points at 1,380.02 and the Nasdaq was up 8.79 points at 2,353.78. The news we mentioned in the wrap last night gave some comfort to investors, but there is obviously still some concern around.
In the Far East this morning the Nikkei 225 closed down 105.79 points at 13,925.51, whilst in Hong Kong the Hang Seng was up about 315 points at 24,800 by its lunmchtime chow.
Back here in London this monring it was Rentokil that was down 25%, or 27p at 77p afetr it issued another profit warning this morning. It said this year's profit will be significantly lower than last year, 2007. It blamed a 14% fall in the full-year profit by its City Link parcels business, which hasd seen a downturn.
Xstrata were down 175p to 3,962 after press reports that Brazilian mining giant Vale was cloe to failing as a major Xstrata shareholder had refused the terms of the deal.
The banks did better this monring, with RBS up 8.5p at 418p after it reported £10 bln profits and a EPS of 78.7p, which was ahead of expectations. Not allk peers did well, though, and HBOS was down 12p at 645 after a Citigroup downgrade to 'sell' from 'hold'.
Aviva was up 18p at 628 after it reported a 1% rise in full-year pre-tax profit and added that this year looks good too.
BAT was up 60p at 1,999 after it announced the acquisition of Scandinavian cigarette maker Skandinavisk Tobakskompagni as well as its results, which were in-line with expectations. Peer Imperial Tobacco was up 30p to 2,406.
Whitbread added 44p at 1,270 after an upbeat trading statement. The company said it will combine its hotel and pub restaurant divisional management and outsource logistic operations as part of a £25m annual saving. Peer Enterprise Inns was up 25p at 450p on a broker upgrade.
Housebuilder Redrow was down 2.5p at 3-quid a pop after its reported 1st half pre-tax profit was down and that they were finsing markets challenging. This spread to the bigger firms, and Persimmons was down 17p at 753 and Taylor Wimpey off 3.3p at 178.6.
National Express was up 39p at 1,162 as investors liked the transport firm's progress.
Ladbrokes was up 11p at 337.5p on a broker upgrade and recent press reports on the sector in general, as well a the gambling machines in outlets being very lucrative for the betting shops.
Wednesday, 27 February 2008
Market Wrap, Wednesday 27th February 2008
The FTSE closed at 6,076.5, down 10.9, but had broken under the 6k level during the session when it turned back up from 5,989. It seems the banks weren't overly impressed with the HBOS results.
Over the pond, by the time London closed the DJI was up nearly 50 points at 12,734, whilst the S&P500 was up 4 points at 1,385 and the Nasdaq up 9 points at 2,354. Federal Reserve Chairman Ben Bernanke calmed many with his statement saying that the central bank will remain vigilant should inflation rise due to rising commodity prices, and that the Fed will cut interest rates again to help the sluggish economy if required.
Back here in London, HBOS was the main topic as it closed 48p down at 657 after its results. They didn't seem so poor at first, but soon investors felt they were. As we mentioned this morning, 2007 pre-tax profit was £5.708 bln, less than the £5.761 bln expected. Other banks fell back after their recent rally, with Alliance & Leicester closing down 6p at 594, Bradford & Bingley down 4p at 202.5, RBS down 3.5p to just shy of 410p, and Lloyds TSB down 6p at 476.25p. RBS announce tomorrow. They gave news that 50m shares had been placed at 4-quid a pop. Lloyds TSB placed 30m shares at 467p a pop. Rasining some cash.
Old Mutual was off 4.8p at 132.2 on prfit taking , it seems, even after the better than expected results.
Pharma Astrazeneca closed down 27p at 1,980 after it reported abandoning trials on a non-small cell lung cancer for its cediranib-based Recentin product. Some hopes dashed.
Meanwhile, gold and oil were up near record highs again. This helped the miners, with Vedanta up 127p at 2,199 on rumours the Chinese were mopping up loose stock and stake building, Xstrata up 47p at 4,135 as further rumours of an Anglo 50-quid a pop bid was coming soon. Anglo closed up 50p at 3,330, Kazakhmys up 39p at 1,589, and Anto up 12.5p at 833.5.
Schroders closed up 28p at 977p on rumours of a bid for the group.
Broker upgrade saw water group United Utilities close up 14.5p at 715.5 with a Credit Suisse rise in rating to 'outperform' from 'neutral'. Peer Severn Trent followed the good feeling with a 25p rise to 1,450.
Housebuilders were back in favour as Barratts closed up 12.25p at 436.25p after its 6 month figures showed a ruise in profits.
Staying with building, Kier Group closed up 87p at 1,493 after it also said its first-half pre-tax profit was up over 23% to £44.6m.
Over the pond, by the time London closed the DJI was up nearly 50 points at 12,734, whilst the S&P500 was up 4 points at 1,385 and the Nasdaq up 9 points at 2,354. Federal Reserve Chairman Ben Bernanke calmed many with his statement saying that the central bank will remain vigilant should inflation rise due to rising commodity prices, and that the Fed will cut interest rates again to help the sluggish economy if required.
Back here in London, HBOS was the main topic as it closed 48p down at 657 after its results. They didn't seem so poor at first, but soon investors felt they were. As we mentioned this morning, 2007 pre-tax profit was £5.708 bln, less than the £5.761 bln expected. Other banks fell back after their recent rally, with Alliance & Leicester closing down 6p at 594, Bradford & Bingley down 4p at 202.5, RBS down 3.5p to just shy of 410p, and Lloyds TSB down 6p at 476.25p. RBS announce tomorrow. They gave news that 50m shares had been placed at 4-quid a pop. Lloyds TSB placed 30m shares at 467p a pop. Rasining some cash.
Old Mutual was off 4.8p at 132.2 on prfit taking , it seems, even after the better than expected results.
Pharma Astrazeneca closed down 27p at 1,980 after it reported abandoning trials on a non-small cell lung cancer for its cediranib-based Recentin product. Some hopes dashed.
Meanwhile, gold and oil were up near record highs again. This helped the miners, with Vedanta up 127p at 2,199 on rumours the Chinese were mopping up loose stock and stake building, Xstrata up 47p at 4,135 as further rumours of an Anglo 50-quid a pop bid was coming soon. Anglo closed up 50p at 3,330, Kazakhmys up 39p at 1,589, and Anto up 12.5p at 833.5.
Schroders closed up 28p at 977p on rumours of a bid for the group.
Broker upgrade saw water group United Utilities close up 14.5p at 715.5 with a Credit Suisse rise in rating to 'outperform' from 'neutral'. Peer Severn Trent followed the good feeling with a 25p rise to 1,450.
Housebuilders were back in favour as Barratts closed up 12.25p at 436.25p after its 6 month figures showed a ruise in profits.
Staying with building, Kier Group closed up 87p at 1,493 after it also said its first-half pre-tax profit was up over 23% to £44.6m.
Morning Market, Thursday 27th February 2008
The FTSE fell back this morning, and was down around 45 points after an hour of trading at 6,035 level. Nothing standing out as a single reason for the fall back, but rumours that another bank may be talking to the Bank of England was being banted around.
Last night over the pond the DJI closed up 114.7 points at 12,684.92, whilst the S&P 500 closed up 9.49 points at 1,381.29, and the Nasdaq up 17.51 points firmer at 2,344.99.
In the Far East this morning, the Nikkei 225 closed up 206.58 points at 14,031.30, which followed on from the good performance in the US yesterday. In Hong Kong this morning the Hang Seng was up a very healthy 770 points at 24,484 by its lunchtime lull and chow. The bulls returned after the Hong Kong government announced cuts in both corporate and personal income tax, plus a one-off waiver of property taxes.
Back here in London it was the banks who were falling back. HBOS was down 40p at 665p after its figures were announced. A year end pre-tax profit of £5.708 bln was reported, which was down a little from the expected £5.761 bln. Peers fell too, with Barclays down 12p at 506p, Alliance & Leicester down 25p at 575p, RBS down 11p at 402, and Lloyds TSB down 12p at 470p. The rumours that another bankj may be talking to the Bank of England was around the floors, with speculation of an emergency meeting for the BoE tomorrow.
Miners were doing ok too, with Rio Tinto up 71p at 5,827, whilst peer Anglo was up 30p at 3,310, and Kazakhmys up 2p at 1,552.
Oil heavyweights were up too, with BP up 1.5p at 568p, RD Shell up 4p at 1,822, and Tullow Oil up 8.5p at 636.5.
Royal & Sun Alliance announced some decent figures, and was up a penny at 142.8p.
The housebuilders are still in favour this week, with Barratts up 10p at 434 after posting its results, which were taken positively. Peers liked the news, with Persimmons up 7.5p at 768p, Taylor Wimpey up nealy a penny at 178.8p and Bellway up 10p at 813p.
Last night over the pond the DJI closed up 114.7 points at 12,684.92, whilst the S&P 500 closed up 9.49 points at 1,381.29, and the Nasdaq up 17.51 points firmer at 2,344.99.
In the Far East this morning, the Nikkei 225 closed up 206.58 points at 14,031.30, which followed on from the good performance in the US yesterday. In Hong Kong this morning the Hang Seng was up a very healthy 770 points at 24,484 by its lunchtime lull and chow. The bulls returned after the Hong Kong government announced cuts in both corporate and personal income tax, plus a one-off waiver of property taxes.
Back here in London it was the banks who were falling back. HBOS was down 40p at 665p after its figures were announced. A year end pre-tax profit of £5.708 bln was reported, which was down a little from the expected £5.761 bln. Peers fell too, with Barclays down 12p at 506p, Alliance & Leicester down 25p at 575p, RBS down 11p at 402, and Lloyds TSB down 12p at 470p. The rumours that another bankj may be talking to the Bank of England was around the floors, with speculation of an emergency meeting for the BoE tomorrow.
Miners were doing ok too, with Rio Tinto up 71p at 5,827, whilst peer Anglo was up 30p at 3,310, and Kazakhmys up 2p at 1,552.
Oil heavyweights were up too, with BP up 1.5p at 568p, RD Shell up 4p at 1,822, and Tullow Oil up 8.5p at 636.5.
Royal & Sun Alliance announced some decent figures, and was up a penny at 142.8p.
The housebuilders are still in favour this week, with Barratts up 10p at 434 after posting its results, which were taken positively. Peers liked the news, with Persimmons up 7.5p at 768p, Taylor Wimpey up nealy a penny at 178.8p and Bellway up 10p at 813p.
Tuesday, 26 February 2008
Market Wrap, 26th February 2008
The FTSE closed up 87.9 points at 6,087.4, which was down just 4 or 5 points from its high, and up from the sub 6k low of the day at 5,991.6. The FTSE 250 closed up 108.6 at 10,383.9.
By the time London closed the DJI was up about 65 points at 12,634, whiclst the S&P500 was up 4 at 1,376 and the nasdaq up 10 points at 2,337. News that inflation was a little worse than expected didn't upset too many in its first couple of hours trading, it seems.
Back heer in London, it was the banks who were having a good day. Standard Chartered closed up 124p at 1,704 after some decene figures, whilst peers also smiled. Alliance & Leicester closed up 45p at 6-quid, RBS up 16.5p at 413.5, and HBOS were up 27p at 705p.
Marks & Spencer is out of favour, it seems, with a 2.25p fall to 407.5p on the day after a broker downgrade to sell. Peers also felt some pressure, with Next closing down 14p at 1,339, and Kingfisher 0.3p lower at 134.3p.
Broker downgrade gave Centrica investors to move, with a resulting fall of 5.5p to 323p on the day.
Stagecoach Group climbed nearly 18p to close at just shy of 261p after a Deutsche Bank reiteration of its 'buy' rating and upped its target to 301p, up from 288p.
St. James's Place gave some decent results and closed up 12.5p to 287.5 after the wealth management group reported a 39% increase in profit and its dividend was lifted by 18%.
Genus, the bull and pig development firm (what else can we call them?) closed up 37p at 715p after some decent results, as we mentioned this morning. Broker Panmure Gordon also liked them and added a 'buy' rating.
Game Group fell 32p to 192 on news that Lisa Morgan, the Chief Executive, sold 1.38m shares and deputy CEO/FD David Thomas offloaded 1.04m shares. This was all done at an average price of 224.63p each. Not bad. well, for these two, we mean. Investors don't like this sort of thing, especially when the FD starts bailing. Broker Shore Capital recommended its clients dio the same and gave a 'sell' rating.
Premier Foods aslo received a downgrade and closed down 4.5p at 92.5p as Panmure Gordon gave a 'hold' rating and 100p target, doen from 275p. With results due next week ther seems to be some concern.
By the time London closed the DJI was up about 65 points at 12,634, whiclst the S&P500 was up 4 at 1,376 and the nasdaq up 10 points at 2,337. News that inflation was a little worse than expected didn't upset too many in its first couple of hours trading, it seems.
Back heer in London, it was the banks who were having a good day. Standard Chartered closed up 124p at 1,704 after some decene figures, whilst peers also smiled. Alliance & Leicester closed up 45p at 6-quid, RBS up 16.5p at 413.5, and HBOS were up 27p at 705p.
Marks & Spencer is out of favour, it seems, with a 2.25p fall to 407.5p on the day after a broker downgrade to sell. Peers also felt some pressure, with Next closing down 14p at 1,339, and Kingfisher 0.3p lower at 134.3p.
Broker downgrade gave Centrica investors to move, with a resulting fall of 5.5p to 323p on the day.
Stagecoach Group climbed nearly 18p to close at just shy of 261p after a Deutsche Bank reiteration of its 'buy' rating and upped its target to 301p, up from 288p.
St. James's Place gave some decent results and closed up 12.5p to 287.5 after the wealth management group reported a 39% increase in profit and its dividend was lifted by 18%.
Genus, the bull and pig development firm (what else can we call them?) closed up 37p at 715p after some decent results, as we mentioned this morning. Broker Panmure Gordon also liked them and added a 'buy' rating.
Game Group fell 32p to 192 on news that Lisa Morgan, the Chief Executive, sold 1.38m shares and deputy CEO/FD David Thomas offloaded 1.04m shares. This was all done at an average price of 224.63p each. Not bad. well, for these two, we mean. Investors don't like this sort of thing, especially when the FD starts bailing. Broker Shore Capital recommended its clients dio the same and gave a 'sell' rating.
Premier Foods aslo received a downgrade and closed down 4.5p at 92.5p as Panmure Gordon gave a 'hold' rating and 100p target, doen from 275p. With results due next week ther seems to be some concern.
Morning Market, Tuesday 26th February 2008
The FTSE was happier this morning, after the US did well last night and the bank guarantee news also helping some confidence return. In the first hour the FTSE was up about 30 points at 6,030, and the FTSE 250 was about 43 up at 10,319.
Over the pond the news that S&P kept its AAA ratings for Ambac Financial and MBIA, which raised hopes that bond insurers currently under pressure will still remain with strgnth after thge current downturn and credit problems clear. The DJI closed up 189.20 to 12,570.22, the S&P500 closed up 18.69 to 1,371.80, and the Nasdaq closed up 24.13 to 2,327.48. Later today we get the US producer price index, which is a decent guideline inflationary pressures. A 0.3% rise is expected.
In the Far East this morning the Nikkei 225 was down at just above 13,900, whilst in Hong Kong ther Hang Seng was up about 260 points at 23,530 by lunchtime chow.
Oil was still just above US$99 bbl in Far East trade. Light sweet (Apr del) was up another 4c at US£99.27 bbl, whilst Brent North Sea crude (Apr del) was actuially down 4c at US$97.65 bbl after its recent spurt upwards.
Back here in London the banks were having a good start to the day, Standard Chartered up 35p at 1,615 on the back of their US£11.07 bln income, which was up 28%, and the 79.35 cent dividend, up nearly 12%. Peers liked this, with RBS up 6p at 403p, Alliance & Leicester up 7p at 562, HSBC up 7p at 778p, and HBOS up 5p at 683p.
The housebuilders were also strong after Persimmons announced a pre-tax profit of £585.1m after saying the year had been quite challenging. Whilst revenues were down 4% to £3.05 bln, and completions down 4.8% to 15,905 units, this was as expected. The shsres were up 10p at 774p in early trading, and peers also gained, with Taylor Wimpey up 3.6p at 176.7, Barratts up nearly 10p at 422.5p, Bellway up 17p at 809p and Bovis up 10p at 597p.
The miners weren't having such a good day, though, as commodity prices fell a little. Kazakhmys was down 30p at 1,510, Vedanta down 37p at 2,068, Anto down 8p at 792, Rio down 52p at 5,704 and BHP down 18p at 1,608.
FirstGroup was down 14p at 584 as the UK DoT issued the group a plan for its First Great Western rail franchise, which has been heavily criticised, after it exceeded the maximum number on cancellations in H2 of 2007.
Inchcape was up 10p at 406 after it reported a 10% rise in pre-tax profits of £235.1 mln year end Dec2007. Thi was gained after it had focused its existing business on premium brands and also expanded into emerging markets.
Old favourite of ours, Genus, gained 15p to go to 693p after a H1 pre-tax figure of nearly £14m, up 28%. Last time out the figure was £10.9m. Sales were up 4% to £120.4 mln, up from £116.1m last time.
Over the pond the news that S&P kept its AAA ratings for Ambac Financial and MBIA, which raised hopes that bond insurers currently under pressure will still remain with strgnth after thge current downturn and credit problems clear. The DJI closed up 189.20 to 12,570.22, the S&P500 closed up 18.69 to 1,371.80, and the Nasdaq closed up 24.13 to 2,327.48. Later today we get the US producer price index, which is a decent guideline inflationary pressures. A 0.3% rise is expected.
In the Far East this morning the Nikkei 225 was down at just above 13,900, whilst in Hong Kong ther Hang Seng was up about 260 points at 23,530 by lunchtime chow.
Oil was still just above US$99 bbl in Far East trade. Light sweet (Apr del) was up another 4c at US£99.27 bbl, whilst Brent North Sea crude (Apr del) was actuially down 4c at US$97.65 bbl after its recent spurt upwards.
Back here in London the banks were having a good start to the day, Standard Chartered up 35p at 1,615 on the back of their US£11.07 bln income, which was up 28%, and the 79.35 cent dividend, up nearly 12%. Peers liked this, with RBS up 6p at 403p, Alliance & Leicester up 7p at 562, HSBC up 7p at 778p, and HBOS up 5p at 683p.
The housebuilders were also strong after Persimmons announced a pre-tax profit of £585.1m after saying the year had been quite challenging. Whilst revenues were down 4% to £3.05 bln, and completions down 4.8% to 15,905 units, this was as expected. The shsres were up 10p at 774p in early trading, and peers also gained, with Taylor Wimpey up 3.6p at 176.7, Barratts up nearly 10p at 422.5p, Bellway up 17p at 809p and Bovis up 10p at 597p.
The miners weren't having such a good day, though, as commodity prices fell a little. Kazakhmys was down 30p at 1,510, Vedanta down 37p at 2,068, Anto down 8p at 792, Rio down 52p at 5,704 and BHP down 18p at 1,608.
FirstGroup was down 14p at 584 as the UK DoT issued the group a plan for its First Great Western rail franchise, which has been heavily criticised, after it exceeded the maximum number on cancellations in H2 of 2007.
Inchcape was up 10p at 406 after it reported a 10% rise in pre-tax profits of £235.1 mln year end Dec2007. Thi was gained after it had focused its existing business on premium brands and also expanded into emerging markets.
Old favourite of ours, Genus, gained 15p to go to 693p after a H1 pre-tax figure of nearly £14m, up 28%. Last time out the figure was £10.9m. Sales were up 4% to £120.4 mln, up from £116.1m last time.
Monday, 25 February 2008
Market Wrap, Monday 25th February 2008
The FTSE 100 closed up 111 points at 5,999.5, which was down about 12 points off the high, wjhich was through 6k at 6,011.7. The FTSE 250 closed up 224.3 points at 10,275.3. 6,000 seems to be a target for most, with sellers moving in at that level each time we hit it.
By the time London closed, over the pond the DJI was up over 70 points at about 12,452, whilst the S&P 500 was up nearly 6 points at 1,358, whilst the Nasdaq was up nearly 10 points at 2,313. News that Visa said it will still go ahead with a US$19 bln IPO this year was taken well, as was the balout out troubled bond insurer Ambac Financial Group Inc, that would receive a capital injection to help preserve its coveted "AAA" rating.
Back here in London, as mentioned this morning, Lloyds TSB could be making a move for Alliance & Leicester and Bradford & Bingley as acquisitions. Lloyds TSB, which announced decent full-year profits of £3.9 bln on Friday, said that it was 'early days' on any possible action, and that the bank's board had not discussed anything at meeting as yet. Added to the Lloyds TSB news was the rumour that the Qatari government could be contemplating a fair-siized investment in RBS said the same newspaper. The QIA has not bought RBS shares as yet, and no contact has been made as yet, but sources confirmed a stake may be bought. Peer RBS closed up 19p at 397, Alliance & Leicester ended up 45.5p at 555, HBOS was up 32p at 678 and Lloyds TSB closed up 9p at 466.5p, and Bradford & Bingley was up nearly 12p at 200.25p. Broker Lehman upgraded Lloyds TSB to 'overweight' from 'equal-weight'.
Friends Provident closed up nearly 3p at 135p on the press news that US Private equity Group JC Flowers was talking with a group of leading banks about providing financing for a bid for the insurer. Peers were also up, with the Pru up 18p at 628 and Aviva up 19.5p at 588p.
Commercial proprty group Hammerson closed up 63p at 1,122 after its said it was confident it would still continue to do well, and received a Deutsche Bank repeate of its 'buy' stance and 14-quid target. Hammerson said it saw a 3% increase in NAV to £15.45 per share. Peer Land Securities closed up 88p at 1,626 and British Land closed up 33p 996.5.
Housebuilders were also up, with Persimmons up 47.5p at 763.5 as the group is expected to report a full-year profit of about £590 mln stg tomorrow. Peer Barratts was up over 14p at 413, whilst Redrow closed up nearly 21p at 299.5 ahead of its half-year results on Thursday.
Oil was up again, but not through US$100 bbl as yet. Brent (Apr del) was up about 60c at 97.60 giving the oil giants some weight. BP ended up 14.5p at 562.5 and RD Shell was up 34p at 1,815.
Associated British Foods was down 26p at 850.5p despite a decetn update confirming all was well since its last update 6 weeks ago. profit taking there, it seems.
Perth-based bus and train group Stagecoach closed up 18.5p at 243p after the group said it was trading at the top end of forecasts. Peer Arriva was 39.5p up at 714p on the back of a Deutsche Bank upgrade to 'buy' from 'hold'. Peer National Express closed up 64p at 1,125.
Waste management group Biffa closed down 22.25p at just shy of 346p after it said the previous bid interest it had received had now fallen cold.
But industrial group Charter was the top midcap riser, up 85 at 868-1/2, continuing its rally from last week after Credit Suisse initiated the group with an 'outperform' stance and 1,050 pence target. Traders also highlighted a positive read-across from Q4 results Friday from US peer Lincoln Electric Holdings Inc.
Recruitment group Hays was up 9-3/4 at 116 ahead of interim results tomorrow and following solid figures from small cap rival Robert Walters today. Michael Page rose 21-3/4 to 298-3/4. On the downside, Premier Foods headed the midcap loser board, down 9 at 97 after ABN Amro placed 15 mln of the company's shares at 96 pence each, and with Credit Suisse slashing its target to 100 pence from 250.
By the time London closed, over the pond the DJI was up over 70 points at about 12,452, whilst the S&P 500 was up nearly 6 points at 1,358, whilst the Nasdaq was up nearly 10 points at 2,313. News that Visa said it will still go ahead with a US$19 bln IPO this year was taken well, as was the balout out troubled bond insurer Ambac Financial Group Inc, that would receive a capital injection to help preserve its coveted "AAA" rating.
Back here in London, as mentioned this morning, Lloyds TSB could be making a move for Alliance & Leicester and Bradford & Bingley as acquisitions. Lloyds TSB, which announced decent full-year profits of £3.9 bln on Friday, said that it was 'early days' on any possible action, and that the bank's board had not discussed anything at meeting as yet. Added to the Lloyds TSB news was the rumour that the Qatari government could be contemplating a fair-siized investment in RBS said the same newspaper. The QIA has not bought RBS shares as yet, and no contact has been made as yet, but sources confirmed a stake may be bought. Peer RBS closed up 19p at 397, Alliance & Leicester ended up 45.5p at 555, HBOS was up 32p at 678 and Lloyds TSB closed up 9p at 466.5p, and Bradford & Bingley was up nearly 12p at 200.25p. Broker Lehman upgraded Lloyds TSB to 'overweight' from 'equal-weight'.
Friends Provident closed up nearly 3p at 135p on the press news that US Private equity Group JC Flowers was talking with a group of leading banks about providing financing for a bid for the insurer. Peers were also up, with the Pru up 18p at 628 and Aviva up 19.5p at 588p.
Commercial proprty group Hammerson closed up 63p at 1,122 after its said it was confident it would still continue to do well, and received a Deutsche Bank repeate of its 'buy' stance and 14-quid target. Hammerson said it saw a 3% increase in NAV to £15.45 per share. Peer Land Securities closed up 88p at 1,626 and British Land closed up 33p 996.5.
Housebuilders were also up, with Persimmons up 47.5p at 763.5 as the group is expected to report a full-year profit of about £590 mln stg tomorrow. Peer Barratts was up over 14p at 413, whilst Redrow closed up nearly 21p at 299.5 ahead of its half-year results on Thursday.
Oil was up again, but not through US$100 bbl as yet. Brent (Apr del) was up about 60c at 97.60 giving the oil giants some weight. BP ended up 14.5p at 562.5 and RD Shell was up 34p at 1,815.
Associated British Foods was down 26p at 850.5p despite a decetn update confirming all was well since its last update 6 weeks ago. profit taking there, it seems.
Perth-based bus and train group Stagecoach closed up 18.5p at 243p after the group said it was trading at the top end of forecasts. Peer Arriva was 39.5p up at 714p on the back of a Deutsche Bank upgrade to 'buy' from 'hold'. Peer National Express closed up 64p at 1,125.
Waste management group Biffa closed down 22.25p at just shy of 346p after it said the previous bid interest it had received had now fallen cold.
But industrial group Charter was the top midcap riser, up 85 at 868-1/2, continuing its rally from last week after Credit Suisse initiated the group with an 'outperform' stance and 1,050 pence target. Traders also highlighted a positive read-across from Q4 results Friday from US peer Lincoln Electric Holdings Inc.
Recruitment group Hays was up 9-3/4 at 116 ahead of interim results tomorrow and following solid figures from small cap rival Robert Walters today. Michael Page rose 21-3/4 to 298-3/4. On the downside, Premier Foods headed the midcap loser board, down 9 at 97 after ABN Amro placed 15 mln of the company's shares at 96 pence each, and with Credit Suisse slashing its target to 100 pence from 250.
Morning Market, Monday 25th February 2008
The FTSE was up about 102 points at 5,991 by 9am, which was an acceptable start to the week. The FTSE 250 was up about 107 points at 10,158.0.
Over the pond on Friday there was a late rally due to news that a bailout plan for troubled bond insurer Ambac Financial would be confirmed this week. The DJI closed up 96.72 at 12,381.02, despite being some 225 points lower than that during the day. The S&P500 closed up 10.58 points at 1,353.11 and the Nasdaq up 3.57 points at 2,303.35.
In the Far East this morning the Japan Nikkei 225 closed uo 414.11 points at 13,914.57, whilst in Hong Kong the Hang Seng actually closed down 35.90 points at 23,269.14.
Back here in the UK we saw the banks strengthening the FTSE, and some positive mergert news over the weelkend in the paperes also giving some positive feeling. It appears that Lloyds TSB is on the acquisition trail, and Alliance and Leicester and 2nd tier player Bradford & Bingley look like possible targets. Lloyds TSB, which announced decent full-year profits of £3.9 bln on Friday, said that it was 'early days' on any possible action, and that the bank's board had not discussed anything at meeting as yet. Added to the Lloyds TSB news was the rumour that the Qatari government could be contemplating a fair-siized investment in RBS said the same newspaper. The QIA has not bought RBS shares as yet, and no contact has been made as yet, but sources confirmed a stake may be bought.
With all this we saw RBS up 21p at 399, Alliance & Leicester up 25p to 535, HBOS up 22p at 668, Lloyds TSB up 12p at 470p and Bradford & Bingley up 10p at 199.
Insurer Friends Provident was up 3p at 135p as other media reported that US private equity firm JC Flowers is in talks with a number of banks about financing a bid.
The housebuilders gained from recent pressure, with Persimmons up 21p at 737 ahead of its expected £590m profit announcement this week. Peer Barratts was up 5.5p at 405p, whilst Redrow was up 4p at 282.5p ahead of its results, due on Thursday. On Friday RightMove will give us the latest on the hosuing market for the UK.
Commercial property group Hammerson was up 55p this morning, at 1,114 after it announced some good figures, with a 3% increase in full-year NAV to £15.45 per share.
Resolution wasn't having such a good morning, down 18p at 645 after weekend press said the company's sale to Pearl Group has been put back again for the 3rd time in 5 weeks, sparking uncertainties the £5 bln cash deal will go through.
Associated British Foods fell 12p early doors to 864.5 after a trading update this morning, despite it being quite reassuring. Looks like profit taking. Broker Credit Suisse raised its target to 850p, up from 800p.
Over the pond on Friday there was a late rally due to news that a bailout plan for troubled bond insurer Ambac Financial would be confirmed this week. The DJI closed up 96.72 at 12,381.02, despite being some 225 points lower than that during the day. The S&P500 closed up 10.58 points at 1,353.11 and the Nasdaq up 3.57 points at 2,303.35.
In the Far East this morning the Japan Nikkei 225 closed uo 414.11 points at 13,914.57, whilst in Hong Kong the Hang Seng actually closed down 35.90 points at 23,269.14.
Back here in the UK we saw the banks strengthening the FTSE, and some positive mergert news over the weelkend in the paperes also giving some positive feeling. It appears that Lloyds TSB is on the acquisition trail, and Alliance and Leicester and 2nd tier player Bradford & Bingley look like possible targets. Lloyds TSB, which announced decent full-year profits of £3.9 bln on Friday, said that it was 'early days' on any possible action, and that the bank's board had not discussed anything at meeting as yet. Added to the Lloyds TSB news was the rumour that the Qatari government could be contemplating a fair-siized investment in RBS said the same newspaper. The QIA has not bought RBS shares as yet, and no contact has been made as yet, but sources confirmed a stake may be bought.
With all this we saw RBS up 21p at 399, Alliance & Leicester up 25p to 535, HBOS up 22p at 668, Lloyds TSB up 12p at 470p and Bradford & Bingley up 10p at 199.
Insurer Friends Provident was up 3p at 135p as other media reported that US private equity firm JC Flowers is in talks with a number of banks about financing a bid.
The housebuilders gained from recent pressure, with Persimmons up 21p at 737 ahead of its expected £590m profit announcement this week. Peer Barratts was up 5.5p at 405p, whilst Redrow was up 4p at 282.5p ahead of its results, due on Thursday. On Friday RightMove will give us the latest on the hosuing market for the UK.
Commercial property group Hammerson was up 55p this morning, at 1,114 after it announced some good figures, with a 3% increase in full-year NAV to £15.45 per share.
Resolution wasn't having such a good morning, down 18p at 645 after weekend press said the company's sale to Pearl Group has been put back again for the 3rd time in 5 weeks, sparking uncertainties the £5 bln cash deal will go through.
Associated British Foods fell 12p early doors to 864.5 after a trading update this morning, despite it being quite reassuring. Looks like profit taking. Broker Credit Suisse raised its target to 850p, up from 800p.
Friday, 22 February 2008
Market Wrap, Friday 22nd February 2008
At the close, the FTSE 100 closed down 43.7 points at 5,888.5, which was down about 78 points from its high of the day. The FTSE 250 closed down 130.7 points at 10,051.0.
By the time London closed, the DJI was down over 50 points at 12,229, whilst the S&P500 was down about 7 points at 1335 and the Nasdaq down about 18 points at 2,281.
Back here in London, it wasd the miners that reduced today, giving up some of the recent positive movement in some sort of end of the week correction. Vedanta closed down 124p at 2,137, Anglo down 75p 3,181.5, Rio down 137p to 5,686, and Anto down 25p at 819.5.
The retailers also suffered, with Marks & Sparks closing down 19p at 398.5 and Next down 66p at 1,291. Kingfisher aslo took some pressure, giving back some of yesterday's hype after its upbeat trading news, with the B&Q owner closing down 5.7p at 129.8p and seeing broker Citigroup cut its price target to 145p, down from 170p, and reiterating its 'hold' rating. Waitrose owner John Lewis Partnership said last week that trade was as hard as it has been, and it didn't mean its food division -John Lewis homeware stores offering some hefty discounts to get the punters in.
Sage Group didn't have a good day, eitehr, closing down 9.25p at 208 for no other reason than a US-based peer gave some poor update & figures over night.
Enterprise Inns closed down 16.5p at 413.25 on broker Goldman Sachs giving it a downgrade to 'sell' from 'neutral'. Peer JD Wetherspoon lost 20p to close at just over 307p as the sector took some stick. sachs also gave Wetherspoon a reduction in target from 7-0quid to, wait for it, 275p.
Airline British Airways was down 10.5p at 261.5 as this pilots' dispute wouldn't go away. Cheap pilots may come in to fly the cheap aeroplanes, and the expensive pilots flying the mainline planes don't like it. (welcome to the real world).
Lloyds we spoke about this morning, but basically a £3.919 bln profit wasn't all that bad, especially with a 5% divvy. This was up on the £3.713 bln last year, and was better than the £3.890 bln expected by those who are supposed to know. A divvy of24.7p per share, on top of the interim, gives a total annual divvy of 35.9p, 5% up on last year. Not bad. Peer Alliance & Leicester, who have taken a hammering of late, closed up 28.5p at 508p (6% on the day), in some sort of two-fingered salute to the rest of the market. Paranoid and smug, all in one afternoon. ;-)
Shire Pharma also had a good day, closing up 15.5p at 990p, up 1.6% on the day.
By the time London closed, the DJI was down over 50 points at 12,229, whilst the S&P500 was down about 7 points at 1335 and the Nasdaq down about 18 points at 2,281.
Back here in London, it wasd the miners that reduced today, giving up some of the recent positive movement in some sort of end of the week correction. Vedanta closed down 124p at 2,137, Anglo down 75p 3,181.5, Rio down 137p to 5,686, and Anto down 25p at 819.5.
The retailers also suffered, with Marks & Sparks closing down 19p at 398.5 and Next down 66p at 1,291. Kingfisher aslo took some pressure, giving back some of yesterday's hype after its upbeat trading news, with the B&Q owner closing down 5.7p at 129.8p and seeing broker Citigroup cut its price target to 145p, down from 170p, and reiterating its 'hold' rating. Waitrose owner John Lewis Partnership said last week that trade was as hard as it has been, and it didn't mean its food division -John Lewis homeware stores offering some hefty discounts to get the punters in.
Sage Group didn't have a good day, eitehr, closing down 9.25p at 208 for no other reason than a US-based peer gave some poor update & figures over night.
Enterprise Inns closed down 16.5p at 413.25 on broker Goldman Sachs giving it a downgrade to 'sell' from 'neutral'. Peer JD Wetherspoon lost 20p to close at just over 307p as the sector took some stick. sachs also gave Wetherspoon a reduction in target from 7-0quid to, wait for it, 275p.
Airline British Airways was down 10.5p at 261.5 as this pilots' dispute wouldn't go away. Cheap pilots may come in to fly the cheap aeroplanes, and the expensive pilots flying the mainline planes don't like it. (welcome to the real world).
Lloyds we spoke about this morning, but basically a £3.919 bln profit wasn't all that bad, especially with a 5% divvy. This was up on the £3.713 bln last year, and was better than the £3.890 bln expected by those who are supposed to know. A divvy of24.7p per share, on top of the interim, gives a total annual divvy of 35.9p, 5% up on last year. Not bad. Peer Alliance & Leicester, who have taken a hammering of late, closed up 28.5p at 508p (6% on the day), in some sort of two-fingered salute to the rest of the market. Paranoid and smug, all in one afternoon. ;-)
Shire Pharma also had a good day, closing up 15.5p at 990p, up 1.6% on the day.
Morning Market, Friday 22nd February 2008
The FTSE was down about 25 points by 9am at 5,907.3, but had been below 5,900 after opening. Also at 9am the FTSE 250 was down about 55 points at 10,124.30, and the FTSE 350 was at 3,085.70.
Lloyds TSB results are better than we expected, and we had thought we'd see some strength return to the market, or at least the sector, when they announced a 5% dividend. The bank liquidity crisis cost Lloyds TSB £280 million and hit the profits of its wholesale and international division. Even so the bank reported a 6% increase in profit for 2007, its strong UK retail banking business offsetting the downturn triggered by the credit crunch. Lloyds TSB's underlying profit before tax was £3.91 bln against £3.71 bln in 2006, slightly ahead of the analysts forecasts of £3.89 bl. Group chief executive Eric Daniels prefers to use underlying profits for comparison purpose as they exclude the one off items. Although statutory profit was 6% lower at £4 billion, if the £280 million impact is omitted, profit before tax would be 13% higher at £4.2 billion, he says. The retail bank added a million new account holders which give it a 21% share of the market and helped boost profits by 17% to £1.8 billion. This figure excludes a charge of £76 million arising from the settlement of claims from customers claiming the repayment of overdraft fees. Wholesale and international profits fell 12% to £1.44 billion largely because of the £280 million asset write-down. This is £80 million above the previously-disclosed £200 million for the first ten months of the year. Lloyds TSB is not as strong in investment banking as its rivals Barclays and Royal Bank of Scotland who have so far reported write-downs of £1.6 billion and £1.2 billion respectively.
On to the Lloyds TSB's Scottish Widows, where PBIT increased by £183 million, or 26 per cent, to £884 million. The figure would have been higher but for a 47% reduction in general insurance profits arising from weather-related claims of £113 million.
The dividend rises 5% to 24.7p taking the total for the year to 35.9p. Lloyds TSB shares were marked down 7.5p in early trading, but bounced back to 453.375p, up 16.625p valuing the group at over £25.6 bl. Analysts have suggested that Lloyds TSB is more vulnerable to a UK recession than its competitors which have a wider geographical spread. Dresdner Kleinwort is a buyer of the shares saying that the group is signalling faster loan growth than anticipated. Citigroup is another buyer saying that the highlight in the results is UK retail banking where profits were up 17%.
It seems that Barclays & Lloyds TSB have managed some decent figures this year, yet Alliance & Leicester and Bradford & Bingley have made a bit of a pig's ear out of the last 12 months.
Lloyds TSB results are better than we expected, and we had thought we'd see some strength return to the market, or at least the sector, when they announced a 5% dividend. The bank liquidity crisis cost Lloyds TSB £280 million and hit the profits of its wholesale and international division. Even so the bank reported a 6% increase in profit for 2007, its strong UK retail banking business offsetting the downturn triggered by the credit crunch. Lloyds TSB's underlying profit before tax was £3.91 bln against £3.71 bln in 2006, slightly ahead of the analysts forecasts of £3.89 bl. Group chief executive Eric Daniels prefers to use underlying profits for comparison purpose as they exclude the one off items. Although statutory profit was 6% lower at £4 billion, if the £280 million impact is omitted, profit before tax would be 13% higher at £4.2 billion, he says. The retail bank added a million new account holders which give it a 21% share of the market and helped boost profits by 17% to £1.8 billion. This figure excludes a charge of £76 million arising from the settlement of claims from customers claiming the repayment of overdraft fees. Wholesale and international profits fell 12% to £1.44 billion largely because of the £280 million asset write-down. This is £80 million above the previously-disclosed £200 million for the first ten months of the year. Lloyds TSB is not as strong in investment banking as its rivals Barclays and Royal Bank of Scotland who have so far reported write-downs of £1.6 billion and £1.2 billion respectively.
On to the Lloyds TSB's Scottish Widows, where PBIT increased by £183 million, or 26 per cent, to £884 million. The figure would have been higher but for a 47% reduction in general insurance profits arising from weather-related claims of £113 million.
The dividend rises 5% to 24.7p taking the total for the year to 35.9p. Lloyds TSB shares were marked down 7.5p in early trading, but bounced back to 453.375p, up 16.625p valuing the group at over £25.6 bl. Analysts have suggested that Lloyds TSB is more vulnerable to a UK recession than its competitors which have a wider geographical spread. Dresdner Kleinwort is a buyer of the shares saying that the group is signalling faster loan growth than anticipated. Citigroup is another buyer saying that the highlight in the results is UK retail banking where profits were up 17%.
It seems that Barclays & Lloyds TSB have managed some decent figures this year, yet Alliance & Leicester and Bradford & Bingley have made a bit of a pig's ear out of the last 12 months.
Thursday, 21 February 2008
Market Wrap, 21st February 2008
The FTSE closed up 38.6 points at 5,932.2, which was about 70 points down from the 'just through 6k level' just after lunch. Hitting 6k was a target for many, it would seem. No gap close today, for those watching. The FTSE 250 closed up 57.3 points at 10,181.2.
By the time London closed, over the pond the DJI was about 18 points down at 12,409, whilst the S&P500 was only just down about 2.5 points at 1,357, and the Nasdaq was even at 2,328. The DJI and S&P both closed gaps.
Back here in London, Phramaceutical Shire closed up 23p at 974 after the drugs group reported stronger sales to US$2.4 bln against US$1.79 bln last time out. Shire said sales of its recently acquired ADHD drug Vyvanse had risen to US$76 mln for the year, whcih was better than the expected US$49m.
Reed Elsevier was top of the board, though, closing up 43.5p at 627.5 after the Anglo-Dutch publisher announced a US$4.1 bln acquisition of insurance data specialist Choicepoint. Reed Elsevier also reported some decent figures for last year, with a pre-tax profit of £998m, up from forecats of £954m. Revenue was up 2% at £4.58 bln.
DIY retailer Kingfisher closed up 3.5p at 135.5 after a trading update on its 4th quarter which showed sales were slowing but did see a forecastfor full year profit in line with expectations.
Heavyweight miners did well as gold and copper got stronger. Xstrata closed up 113p at 4,060 after Brazilian media got stuck in to the Vale saga stying there's a bigger bid coming, maybe at 47-quid a share.
Sainsburys was up nearly 8p at 373p on news that the Sainsbury family trust has sold some of its shareholding to 71.3m shares, which is over 4% lower than last reports.
Centrica didn't have a good day, down nearly 13p at 314p after mediocre annual results. Scottish & Southern Energy closed down 31p at 1,504, International Power down 10p at 408.25 and British Energy closed down 14p at 531p as the whole sector took a hit.
British Airways was also down, 10p less at 272 as oil prices rise and news that the pilots have voted for strike action because of allegations that the airline will be farming in some lesser qualified (cheaper, we expect) pilots for its new 'OpenSkies' subsidiary airline.
Bank Alliance & Leicester was down yet another 12.5p at 479.5 after its news yesterday sank in further. Broker Morgan Stanley gave the bank an 'underweight' from 'equal-weight' rating, together with a 370p target, down from 730p. HSBC also joined in with a downgrade to 'underweight' from 'neutral'.
Scottish & Newcastle closed down 20.5p at 787 after it was just about confimed that South African brewer SABMiller wouldn't be counter-bidding against the heineken/Carlsberg offer for S&N.
By the time London closed, over the pond the DJI was about 18 points down at 12,409, whilst the S&P500 was only just down about 2.5 points at 1,357, and the Nasdaq was even at 2,328. The DJI and S&P both closed gaps.
Back here in London, Phramaceutical Shire closed up 23p at 974 after the drugs group reported stronger sales to US$2.4 bln against US$1.79 bln last time out. Shire said sales of its recently acquired ADHD drug Vyvanse had risen to US$76 mln for the year, whcih was better than the expected US$49m.
Reed Elsevier was top of the board, though, closing up 43.5p at 627.5 after the Anglo-Dutch publisher announced a US$4.1 bln acquisition of insurance data specialist Choicepoint. Reed Elsevier also reported some decent figures for last year, with a pre-tax profit of £998m, up from forecats of £954m. Revenue was up 2% at £4.58 bln.
DIY retailer Kingfisher closed up 3.5p at 135.5 after a trading update on its 4th quarter which showed sales were slowing but did see a forecastfor full year profit in line with expectations.
Heavyweight miners did well as gold and copper got stronger. Xstrata closed up 113p at 4,060 after Brazilian media got stuck in to the Vale saga stying there's a bigger bid coming, maybe at 47-quid a share.
Sainsburys was up nearly 8p at 373p on news that the Sainsbury family trust has sold some of its shareholding to 71.3m shares, which is over 4% lower than last reports.
Centrica didn't have a good day, down nearly 13p at 314p after mediocre annual results. Scottish & Southern Energy closed down 31p at 1,504, International Power down 10p at 408.25 and British Energy closed down 14p at 531p as the whole sector took a hit.
British Airways was also down, 10p less at 272 as oil prices rise and news that the pilots have voted for strike action because of allegations that the airline will be farming in some lesser qualified (cheaper, we expect) pilots for its new 'OpenSkies' subsidiary airline.
Bank Alliance & Leicester was down yet another 12.5p at 479.5 after its news yesterday sank in further. Broker Morgan Stanley gave the bank an 'underweight' from 'equal-weight' rating, together with a 370p target, down from 730p. HSBC also joined in with a downgrade to 'underweight' from 'neutral'.
Scottish & Newcastle closed down 20.5p at 787 after it was just about confimed that South African brewer SABMiller wouldn't be counter-bidding against the heineken/Carlsberg offer for S&N.
Morning Market, Thursday 21st February 2008
The FTSE was up about 45 points at 5,938 in its first hour, whilst the FTSE 250 was up about 60 points at 10,185. The FTSE has rebounded about 2/3rds of its fall yesterday.
Last night over the pond the markets closed up, after initially falling, with the DJI closing up 90.04 at 12,427.26, which was about a 200-point turn from its low of the day. The S&P500 closed up 11.25 at 1,360.03 and the Nasdaq up 20.90 at 2,327.10. The reassurance by the Fed Reserve that it will put growth before inflation gave investors some comfort, as it looks like interest rates could even be cut again.
In the Far East this morning the Nikkei 225 closd up 377.91 points at 13,688.28, and in Hong Kong the Hang Seng closed up 32.42 at 23,623.0, although was up higher during the session and tailed back.
Oil prices are up yet again, with Light Sweet crude up about 75c at US$100.75 bbl on NYMEX last night, whilst Brent (Apr del) was nearly 40c at US$98.8 bbl this morning.
Here in London the oil price helped BP, who were up 1.5p at 559p, and Cairn Energy up 53p at 2,707. BP received a downgrade from Citigroup as well.
With gold now up at US$945 oz and copper also up, the miners were also mostly higher. Vedanta was up 70p at 2,288, Anto up 18p at 847 and Lonmin was up 65p at 3,529.
BAE Systems was up 13p at 485p after its reported 22% rise in earnings and a 14% rise in sales, together with a bullish fiorecast for the defence and aerospace group this year. Figures were an EBITA of £1.48 bln, up from £1.20 bln last time out. sales were up to £15.7 bln, up £2 bln from last year, and the order book was up nearly £7 bln to £38.6 bln.
Reed Elsevier was up 34 at 618 after the Anglo-Dutch publisher said it plans to divest its trade magazine subsidiary and announced a US$4.1 bln acquisition of Choicepoint, the insuranec data specialist, as part of a major restructuring aimed at enhancing profit growth. Profits were up to £1.13 bln, up from £1.08 bln last year.
Centrica was up 2p at 329p on the back of its £1.95 bln profit for 2007, which was 40% up on 2006. It added that it had 200,000 customers return to British Gas in the second half of the year.
Scottish & Newcastle didn't fair as well early door, falling 20p 787p after it was clear that South African brewer SABMiller would not be launching a counterbid to the already agreed offer from Heineken and Carlsberg for S&N.
Mortgage bank Alliance & Leicester, which had another bad day yesterday after its reported massive write downs, had another fallback this morning, down 20p at 472p with a Morgan Stanley broker downgrade as well. New target is 370p, down from 730p. Goldman Sachs joined in, reiterating its 'sell' rating and added its target was down to 455p from 627.
Last night over the pond the markets closed up, after initially falling, with the DJI closing up 90.04 at 12,427.26, which was about a 200-point turn from its low of the day. The S&P500 closed up 11.25 at 1,360.03 and the Nasdaq up 20.90 at 2,327.10. The reassurance by the Fed Reserve that it will put growth before inflation gave investors some comfort, as it looks like interest rates could even be cut again.
In the Far East this morning the Nikkei 225 closd up 377.91 points at 13,688.28, and in Hong Kong the Hang Seng closed up 32.42 at 23,623.0, although was up higher during the session and tailed back.
Oil prices are up yet again, with Light Sweet crude up about 75c at US$100.75 bbl on NYMEX last night, whilst Brent (Apr del) was nearly 40c at US$98.8 bbl this morning.
Here in London the oil price helped BP, who were up 1.5p at 559p, and Cairn Energy up 53p at 2,707. BP received a downgrade from Citigroup as well.
With gold now up at US$945 oz and copper also up, the miners were also mostly higher. Vedanta was up 70p at 2,288, Anto up 18p at 847 and Lonmin was up 65p at 3,529.
BAE Systems was up 13p at 485p after its reported 22% rise in earnings and a 14% rise in sales, together with a bullish fiorecast for the defence and aerospace group this year. Figures were an EBITA of £1.48 bln, up from £1.20 bln last time out. sales were up to £15.7 bln, up £2 bln from last year, and the order book was up nearly £7 bln to £38.6 bln.
Reed Elsevier was up 34 at 618 after the Anglo-Dutch publisher said it plans to divest its trade magazine subsidiary and announced a US$4.1 bln acquisition of Choicepoint, the insuranec data specialist, as part of a major restructuring aimed at enhancing profit growth. Profits were up to £1.13 bln, up from £1.08 bln last year.
Centrica was up 2p at 329p on the back of its £1.95 bln profit for 2007, which was 40% up on 2006. It added that it had 200,000 customers return to British Gas in the second half of the year.
Scottish & Newcastle didn't fair as well early door, falling 20p 787p after it was clear that South African brewer SABMiller would not be launching a counterbid to the already agreed offer from Heineken and Carlsberg for S&N.
Mortgage bank Alliance & Leicester, which had another bad day yesterday after its reported massive write downs, had another fallback this morning, down 20p at 472p with a Morgan Stanley broker downgrade as well. New target is 370p, down from 730p. Goldman Sachs joined in, reiterating its 'sell' rating and added its target was down to 455p from 627.
Wednesday, 20 February 2008
Market Wrap, Wednesday 20th February 2008
The FTSE closed down 73.3 points today at 5,893.6, up about 45 points from its low of the day, and down about 70 points from its high, whilst the FTSE 250 closed down 84.2 points at 10,124.4. It was a good day in the office with 3 decent trades on the FTSe itself.
The amrket suffered due to Alliance & Leicester, according to the various guys we've been talking to. We reckon the A&L figures have been 'in the air' for some time now - just read the recent blogs. Anyway, we can always blame the Ya... sorry, Americans, as their inflation figures were worse than anticipated today.
Which brings us to the other side of the pond, where we saw some negative feelings due to the inflation figures as a sharp rise in food costs for January, causing the Feds to admit that it was the highest annual increase in food prices in almost twenty years. Yes, 20 years - meaning annual inlation was at its highest for over two years. The US housing data added to the woe, with disappointing figures there giving a really negative atmosphere across the US markets. By the time London closed the DJI was down about 70 points at 12,268, whilst the S&P500 was down about 8 points at 1,341 and the Nasdaq off about 9 points at 2,297.
back here in London, and as we mentioned this morning and in the header, it was mortgage bank Alliance & Leicester that set trh tone for the day, and ended up closing down 36p at 492p after it reported an expected 29% fall in 2007 operating profit, with large write-downs on its debt-backed investments. Broker 'sell' shouts rang round with a 6-quid target, down from 655p. The larger peers took pressure too, with HBOS closing down 12.5p at 646.5p, Lloyds TSB down 4p at 428 and Bradford & Bingley slipping down over a penny at 181p.
Housebuilders followed as a broker downgrade on the sector to 'sell' saw Taylor Wimpey close down 13.9p at 166.2p, Persimmons close down 4.5p at 705.5p, Bovis close down 37p at 556.5p, Barratts off nearly 18p at 389p and Bellway off 31p at 769p.
Kingfishers alos closed down 4.7p at 132p after JP Morgan downgraded the retailer to 'underweight' from 'neutral' and lowered the target to 135p, down from 144p. A trading statement is due tomorrow.
Wolseley closed down 25p at 653.5 on another broker's downgrade with a 540p target, down from 610p.
Johnson Matthey closed down 71p at 1,930 on a Bear Stearns equal rating.
Miners faired better, with bid-rumoured Xstrata closing up 57p at 3,946 giving strength to peer Anglo, who rebounded from earlier losses, closing up 14p at 3,161 after it announced it will receive new order mining rights for all of its operations in South Africa. This was on top of it posting record full-year underlying earnings, which were in-line with market expectations, and another binus of US$380m cost savings for last year too. Peers liked all this, with Kazakhmys closing up 40p at 1,488 and Vedanta up 45p at 2,218. Lesser traded Rexam had a good day too, closing up over 20p at 442.25p on the back of its annual figures that were ahead of expectations. Broker Seymour Pierce upped its rating to 'buy' from 'outperform'.
Scottish & Newcastle closed up just shy of 20p on the day at 807.5 due to some more M&A rumours that SABMiller is sniffing with intent of a 8-and-a-half-quid bid.
The amrket suffered due to Alliance & Leicester, according to the various guys we've been talking to. We reckon the A&L figures have been 'in the air' for some time now - just read the recent blogs. Anyway, we can always blame the Ya... sorry, Americans, as their inflation figures were worse than anticipated today.
Which brings us to the other side of the pond, where we saw some negative feelings due to the inflation figures as a sharp rise in food costs for January, causing the Feds to admit that it was the highest annual increase in food prices in almost twenty years. Yes, 20 years - meaning annual inlation was at its highest for over two years. The US housing data added to the woe, with disappointing figures there giving a really negative atmosphere across the US markets. By the time London closed the DJI was down about 70 points at 12,268, whilst the S&P500 was down about 8 points at 1,341 and the Nasdaq off about 9 points at 2,297.
back here in London, and as we mentioned this morning and in the header, it was mortgage bank Alliance & Leicester that set trh tone for the day, and ended up closing down 36p at 492p after it reported an expected 29% fall in 2007 operating profit, with large write-downs on its debt-backed investments. Broker 'sell' shouts rang round with a 6-quid target, down from 655p. The larger peers took pressure too, with HBOS closing down 12.5p at 646.5p, Lloyds TSB down 4p at 428 and Bradford & Bingley slipping down over a penny at 181p.
Housebuilders followed as a broker downgrade on the sector to 'sell' saw Taylor Wimpey close down 13.9p at 166.2p, Persimmons close down 4.5p at 705.5p, Bovis close down 37p at 556.5p, Barratts off nearly 18p at 389p and Bellway off 31p at 769p.
Kingfishers alos closed down 4.7p at 132p after JP Morgan downgraded the retailer to 'underweight' from 'neutral' and lowered the target to 135p, down from 144p. A trading statement is due tomorrow.
Wolseley closed down 25p at 653.5 on another broker's downgrade with a 540p target, down from 610p.
Johnson Matthey closed down 71p at 1,930 on a Bear Stearns equal rating.
Miners faired better, with bid-rumoured Xstrata closing up 57p at 3,946 giving strength to peer Anglo, who rebounded from earlier losses, closing up 14p at 3,161 after it announced it will receive new order mining rights for all of its operations in South Africa. This was on top of it posting record full-year underlying earnings, which were in-line with market expectations, and another binus of US$380m cost savings for last year too. Peers liked all this, with Kazakhmys closing up 40p at 1,488 and Vedanta up 45p at 2,218. Lesser traded Rexam had a good day too, closing up over 20p at 442.25p on the back of its annual figures that were ahead of expectations. Broker Seymour Pierce upped its rating to 'buy' from 'outperform'.
Scottish & Newcastle closed up just shy of 20p on the day at 807.5 due to some more M&A rumours that SABMiller is sniffing with intent of a 8-and-a-half-quid bid.
Morning Market, Wednesday 20th February 2008
The FTSE was down about 60 points this morning at 5,906, whilst the FTSE 250 was down a similar amount at 10,150. The talk was to blame Alliance & Leicester's results, which have wiped out yetserday's decent day in ther banking sector.
Ovwer the pond last night the US was down, although not that much. The fact that oil went above US$100 bbl didn't help feelings over there. The DJI closed down about 11 points at 12,337.22, whilst the S&P500 closed down 1.21 points at 1,348.78 and the Nasdaq closed down 15.5 points at 2,306.2.
In the Far East this morning the Nikkei 225 closed down 447.54 points at 13,310.37, which was over 3% drop, whilst in Hond Kong the Hang Seng closed down 532.59 points at 23,590.58.
Back here in London it was mortgage bank Alliance & Leicester that caused the bad feeling after it announced its figures of £417m profit, down from £585m last year, plus a £185m write-down on its debt-backed investments. The share price fell nearly 80p to 450p on the news. It's bigger peers were also down, with HBOS off 28p at 631p, RBS down 10p at 357p and 2nd tier player Bradford & Bingley down 5p at 177.
The miners also had a poor start today, with Anglo down about 80p at 3,068, Rio down 120p at 5,730, and Lonmin down 70p at 3,393p.
Kingfisher was 4.5p lower at 132.2 after broker downgrade. JP Morgan gave it the retailer a target of 135p, down from 144p, ahead of a trading statement tomorrow.
Ovwer the pond last night the US was down, although not that much. The fact that oil went above US$100 bbl didn't help feelings over there. The DJI closed down about 11 points at 12,337.22, whilst the S&P500 closed down 1.21 points at 1,348.78 and the Nasdaq closed down 15.5 points at 2,306.2.
In the Far East this morning the Nikkei 225 closed down 447.54 points at 13,310.37, which was over 3% drop, whilst in Hond Kong the Hang Seng closed down 532.59 points at 23,590.58.
Back here in London it was mortgage bank Alliance & Leicester that caused the bad feeling after it announced its figures of £417m profit, down from £585m last year, plus a £185m write-down on its debt-backed investments. The share price fell nearly 80p to 450p on the news. It's bigger peers were also down, with HBOS off 28p at 631p, RBS down 10p at 357p and 2nd tier player Bradford & Bingley down 5p at 177.
The miners also had a poor start today, with Anglo down about 80p at 3,068, Rio down 120p at 5,730, and Lonmin down 70p at 3,393p.
Kingfisher was 4.5p lower at 132.2 after broker downgrade. JP Morgan gave it the retailer a target of 135p, down from 144p, ahead of a trading statement tomorrow.
Tuesday, 19 February 2008
Market Wrap, Tuesday 19th February 2008
The FTSE closed 20.3 points higher today at 6,033.7. Nice to finish above the 6k level. The FTSE 250 closed up 124.6 points at 10,208.6.
Over the pond the US was higher, this after a day off yesterday. By the time London closed the DJI was up about 55 points at 12,403, whilst the S&P500 was up about 5 points at 1,355 and the Nasdaq up 6 points at 2,328.
Back here in London we saw Barclays end the day up 17p at 477 despite falling in the morning after its annual results were announced. That's over 11.5% rise for the bank share price in 2 days. The bank had reported a 1% fall in profit to £7,076 bln, which included a rather worrying £1.635 bln write down on sub-prime losses. Peer Lloyds TSB closed up 7.5p at 432 and HBOS was up 20p 659. In contrasts, concerns on write downs for Alliance & Leicester saw a 17.5p fall to 528. A&L reports tomorrow. The barclays figures helped the sector in general, despite news that Credit Suisse has written down US$2.85 bln, and added it wasn't aware of the write downs when it reported its full year results last week.
Top of the leader board was Intercontinental Hotels, who closed up 56.5p at 828 after posting results this morning. It had fallen early doors, but turned on comment from Deutsche Bank, who said it felt the figures were actually in-line with expectations and the business looks strong.
As mentioned this morning, the miners were up. News of japanese and Korean steel makers having to pay 65% more to Brazilian firm Vale for thie iron ore helped the sector. Platinum prices have also reached another record, with copper and gold also higher. Anglo closed up 43p at 3,147, BHP up 38p ahead at 1,656, Anto up 41p at 826p, and Kazakhmys closed up 51p at 1,448.
Oil was up again, with Brent (Apr del) up at US$97 bbl, which was up US$2 on the day. Heavyweight BP closed up 3.5p at 572, RD Shell closed up 15p at 1,789, and Cairn Energy closed up 68p at 2,584.
Cadbury Schweppes closed down 33p at 579.5 after it announced there would be no cash payment to investors after it splits its drinks and confectionary buisinesses later this year. Shame, really, as the reslts announced were ahead of expectations.
The London Stock Exchange closed down 107p at 1,564, down 6.4% on the day after it was said that a Middle Eastern takeover looks unlikely as 20% owner Borse Dubai looks like it will offload at least some of its holding.
Over the pond the US was higher, this after a day off yesterday. By the time London closed the DJI was up about 55 points at 12,403, whilst the S&P500 was up about 5 points at 1,355 and the Nasdaq up 6 points at 2,328.
Back here in London we saw Barclays end the day up 17p at 477 despite falling in the morning after its annual results were announced. That's over 11.5% rise for the bank share price in 2 days. The bank had reported a 1% fall in profit to £7,076 bln, which included a rather worrying £1.635 bln write down on sub-prime losses. Peer Lloyds TSB closed up 7.5p at 432 and HBOS was up 20p 659. In contrasts, concerns on write downs for Alliance & Leicester saw a 17.5p fall to 528. A&L reports tomorrow. The barclays figures helped the sector in general, despite news that Credit Suisse has written down US$2.85 bln, and added it wasn't aware of the write downs when it reported its full year results last week.
Top of the leader board was Intercontinental Hotels, who closed up 56.5p at 828 after posting results this morning. It had fallen early doors, but turned on comment from Deutsche Bank, who said it felt the figures were actually in-line with expectations and the business looks strong.
As mentioned this morning, the miners were up. News of japanese and Korean steel makers having to pay 65% more to Brazilian firm Vale for thie iron ore helped the sector. Platinum prices have also reached another record, with copper and gold also higher. Anglo closed up 43p at 3,147, BHP up 38p ahead at 1,656, Anto up 41p at 826p, and Kazakhmys closed up 51p at 1,448.
Oil was up again, with Brent (Apr del) up at US$97 bbl, which was up US$2 on the day. Heavyweight BP closed up 3.5p at 572, RD Shell closed up 15p at 1,789, and Cairn Energy closed up 68p at 2,584.
Cadbury Schweppes closed down 33p at 579.5 after it announced there would be no cash payment to investors after it splits its drinks and confectionary buisinesses later this year. Shame, really, as the reslts announced were ahead of expectations.
The London Stock Exchange closed down 107p at 1,564, down 6.4% on the day after it was said that a Middle Eastern takeover looks unlikely as 20% owner Borse Dubai looks like it will offload at least some of its holding.
Morning Market, Tueday 19th February 2008
The FTSE was down about 45 points this morning at around the 5,900 mark, whilst the FTSE 250 was down about 65 points at 10,1019.
The US markets were closed yesterday for the Presidents' birthday holiday.
In the Far east this morning the Nikkei 225 closed up 122.51 points at 13,757.61, whilst in Hong Kong the Hang Seng closed was up nearly 520 points at around 24,280 by its lunchtime.
Staying with Far East trading, oil was up again, with Light Sweet (Mar del) up 65c at US$96.15 bbl, and Brent (Apr del) up just 2cents at US$94.93 bbl, still not breaking above the US$95 bbl level.
Back here in London, the banks fell back after their decent day yesterday with concenrs still around. Despite better than expected 12-month figures and a divvy uplift, Barclays was down 5p at 455, whilst peers also fell, with Lloyds TSB down 6p at 418.5p, HBOS down a penny at 637.5p, and RBS down 4p at 357p.
On to the miners, where it was reported that vale will be charging the Koreans and Chinese 65% more for their iron ore. This helped the majors, with Anglo up 58 at 3,162, BHP up 27p at 1,645, Vedanta up 35p at 2,215, Kazakhmys up 12p to 1,409 and Xstrata up 30p at 3,930.
Cadbury Schweppes didn't have a good start, down 30p at 582p after the news that there will be no return of cash to investors after the demerger of the drinks and confectionary businesses later this year. This news took some positives away from the full year results were ahead of expectations. Preptax profit was at £915m, down just 2% from the £931m profit last year, but if foreign exchange changes taken into account they were up 5%, due to the weaker dollar this last term.
Intercontinental Hotels wasn't having a good morning, either, down 10p at 672p after it posted its annual figures this morning, which said of a 20.6p divvy - up 12% on last year, on profits of £237m.
British American Tobacco shares fell 5p to 1,839 on press reports that BAT is one of four bids submitted for the Turkish stete-owned cigarette group, Tekel Cigarette. broker upgrade to 'buy' followed, but there was some negative response on the news.
The US markets were closed yesterday for the Presidents' birthday holiday.
In the Far east this morning the Nikkei 225 closed up 122.51 points at 13,757.61, whilst in Hong Kong the Hang Seng closed was up nearly 520 points at around 24,280 by its lunchtime.
Staying with Far East trading, oil was up again, with Light Sweet (Mar del) up 65c at US$96.15 bbl, and Brent (Apr del) up just 2cents at US$94.93 bbl, still not breaking above the US$95 bbl level.
Back here in London, the banks fell back after their decent day yesterday with concenrs still around. Despite better than expected 12-month figures and a divvy uplift, Barclays was down 5p at 455, whilst peers also fell, with Lloyds TSB down 6p at 418.5p, HBOS down a penny at 637.5p, and RBS down 4p at 357p.
On to the miners, where it was reported that vale will be charging the Koreans and Chinese 65% more for their iron ore. This helped the majors, with Anglo up 58 at 3,162, BHP up 27p at 1,645, Vedanta up 35p at 2,215, Kazakhmys up 12p to 1,409 and Xstrata up 30p at 3,930.
Cadbury Schweppes didn't have a good start, down 30p at 582p after the news that there will be no return of cash to investors after the demerger of the drinks and confectionary businesses later this year. This news took some positives away from the full year results were ahead of expectations. Preptax profit was at £915m, down just 2% from the £931m profit last year, but if foreign exchange changes taken into account they were up 5%, due to the weaker dollar this last term.
Intercontinental Hotels wasn't having a good morning, either, down 10p at 672p after it posted its annual figures this morning, which said of a 20.6p divvy - up 12% on last year, on profits of £237m.
British American Tobacco shares fell 5p to 1,839 on press reports that BAT is one of four bids submitted for the Turkish stete-owned cigarette group, Tekel Cigarette. broker upgrade to 'buy' followed, but there was some negative response on the news.
Monday, 18 February 2008
Market Wrap, Monday 18th February 2008
The FTSE 100 closed up 159.0 points at 5,946.6 today, which was near the high of the day, whilst the FTSE 250 closed up 186.1 at 10,084.0.
It was the banks that bounced back from recent pressure as the news of a higher divvy was accepted with a smile from investors. Press said that Barclays and Lloyds TSB will increase their dividend payments, with Barclays being the top of the leader board today, closing up 32.5p at 460, with them reporting thier results tomorrow. Peer HBOS closed 30.5p higher at 639, with Lloyds TSB up almost 29p at 424.5p.
The insurers also had a good day, with Friends Provident up 4.3p at 135.8 on news that US private equity group JC Flowers was sniffing with an intent to bid, whilst peers liked the news and followed north, with the Pru closing up 29p at 622 and Aviva up 25p at 578.
Oil and mining sectors were up with a barrel of the black stuff costing more and comodity prices rising too. BP was 15p up at 568.5 and BG Group was up 37p at 1,159. Likewise, the Miners were also up with the price of platinum breakling the US$21 ounce price, which is another record.Copper and gold prices were also up. Miners liked that, with BHP closing up 67p at 1,618, Anto up 27p at 785 and Vedanta up 108p at 2,180.
A few negatives of the day saw BT Group down half a penny at 234.25p on a broker target downgrade to 325p from 335p.
Moneysupermarket.com jumped over 14p to 126p, a 13% jump, after a UBS upgrade to 'buy' on hopes of some decent results soon.
Speedy Hire, the tool hire firm, closed up nearly 30p at 811p on its reported 43% rise in 3rd quarter revenue and some in-line 12 month reults when they're released. Broker WH Ireland reiterated its 'outperform' stance.
Bus firm Go-Ahead closed up 77p at 1,917, despite its weak results on Friday, with a broker upgarde to 'buy'.
Builder Balfour Beatty was up 11p at 453 on news of a large Network Rail contract worth £74m for the never-ending job of paiting the Forth Bridge.
It was the banks that bounced back from recent pressure as the news of a higher divvy was accepted with a smile from investors. Press said that Barclays and Lloyds TSB will increase their dividend payments, with Barclays being the top of the leader board today, closing up 32.5p at 460, with them reporting thier results tomorrow. Peer HBOS closed 30.5p higher at 639, with Lloyds TSB up almost 29p at 424.5p.
The insurers also had a good day, with Friends Provident up 4.3p at 135.8 on news that US private equity group JC Flowers was sniffing with an intent to bid, whilst peers liked the news and followed north, with the Pru closing up 29p at 622 and Aviva up 25p at 578.
Oil and mining sectors were up with a barrel of the black stuff costing more and comodity prices rising too. BP was 15p up at 568.5 and BG Group was up 37p at 1,159. Likewise, the Miners were also up with the price of platinum breakling the US$21 ounce price, which is another record.Copper and gold prices were also up. Miners liked that, with BHP closing up 67p at 1,618, Anto up 27p at 785 and Vedanta up 108p at 2,180.
A few negatives of the day saw BT Group down half a penny at 234.25p on a broker target downgrade to 325p from 335p.
Moneysupermarket.com jumped over 14p to 126p, a 13% jump, after a UBS upgrade to 'buy' on hopes of some decent results soon.
Speedy Hire, the tool hire firm, closed up nearly 30p at 811p on its reported 43% rise in 3rd quarter revenue and some in-line 12 month reults when they're released. Broker WH Ireland reiterated its 'outperform' stance.
Bus firm Go-Ahead closed up 77p at 1,917, despite its weak results on Friday, with a broker upgarde to 'buy'.
Builder Balfour Beatty was up 11p at 453 on news of a large Network Rail contract worth £74m for the never-ending job of paiting the Forth Bridge.
Morning Market, Monday 18th February 2008
The FTSE opened the week in a better mood, up about 70 points at 5,888 in its first hour. The FTSE 250 was up about 85 points at 9,983.
The Northern Rock nationalisation news was almost expected, but not liked, although with news that banks Barclays and Lloyds TSB will be raising dividends helped a great deal. Further speculation of another 0.25% cut in interest rates was also beiung banted around. The BoE releases its last meeting's minutes on Wednesday, which will give a good idea of any changes to the base rate.
On Friday over the pond the DJI closed down 28.8 points at 12,348.2, whilst the S&P500 closed up slighlty, just 1.13 points, at 1,350, and the Nasdaq closed down 10.74 points at 2,321.8. We won't see any action over there today as it's Presidents Day and the markets are closed.
In the Far East this morning it was a positive day, but nothijn to be excited about. Japan's Nikkei 225 closed up 12.84 points at 13,635.40, whilst in Hong Kong the Hang Seng was down about 220 points at 23,930 by its lunchtime chow.
Oil was up in Far east trading, with light sweet (Mar del) up about 9c at US$95.6 bbl, and Brent crude oil (April del) up 7c at US$94.7 bbl.
Back here in London this morning, the banks were doing ok after the news that Barclays & Lloyds TSB will be raising dividends to try and help some investor sentiment. Barclays was up 15p at 442.5, Lloyds TSB was up 9p at 405p, RBS was up 14p at 365, HBOS was up 29p at 636, but 2nd tier bank Bradford & Bingley was not in favour, still getting hit after last qweek's figures and outlook, and was down 2p at 174p this morning. Broket target was also lowered to 170p on the bank, down from 230p.
Friends Provident was up 3.5p at 135p on press news that JC Flowers, the US private equity investor, was still sniffing with intent to bid for the insurer. Peers liked that, with the Pru up 20p at 613p, Aviva up 14p at 567 and Royal & Sun Alliance up 2p at 129p.
Moneysupermarket.com was up 6p at 118p after it was upgraded to 'buy' by UBS as hopes of some better than expected figures results are due.
The Northern Rock nationalisation news was almost expected, but not liked, although with news that banks Barclays and Lloyds TSB will be raising dividends helped a great deal. Further speculation of another 0.25% cut in interest rates was also beiung banted around. The BoE releases its last meeting's minutes on Wednesday, which will give a good idea of any changes to the base rate.
On Friday over the pond the DJI closed down 28.8 points at 12,348.2, whilst the S&P500 closed up slighlty, just 1.13 points, at 1,350, and the Nasdaq closed down 10.74 points at 2,321.8. We won't see any action over there today as it's Presidents Day and the markets are closed.
In the Far East this morning it was a positive day, but nothijn to be excited about. Japan's Nikkei 225 closed up 12.84 points at 13,635.40, whilst in Hong Kong the Hang Seng was down about 220 points at 23,930 by its lunchtime chow.
Oil was up in Far east trading, with light sweet (Mar del) up about 9c at US$95.6 bbl, and Brent crude oil (April del) up 7c at US$94.7 bbl.
Back here in London this morning, the banks were doing ok after the news that Barclays & Lloyds TSB will be raising dividends to try and help some investor sentiment. Barclays was up 15p at 442.5, Lloyds TSB was up 9p at 405p, RBS was up 14p at 365, HBOS was up 29p at 636, but 2nd tier bank Bradford & Bingley was not in favour, still getting hit after last qweek's figures and outlook, and was down 2p at 174p this morning. Broket target was also lowered to 170p on the bank, down from 230p.
Friends Provident was up 3.5p at 135p on press news that JC Flowers, the US private equity investor, was still sniffing with intent to bid for the insurer. Peers liked that, with the Pru up 20p at 613p, Aviva up 14p at 567 and Royal & Sun Alliance up 2p at 129p.
Moneysupermarket.com was up 6p at 118p after it was upgraded to 'buy' by UBS as hopes of some better than expected figures results are due.
Friday, 15 February 2008
Market Wrap, Friday 15th February 2008
The FTSE closed down 91.7 points at 5,787.6 after the US produced some poor economic data. The high of the day was some 128 points higher, so it was quite a fall back late on. The FTSE 250 closed down 191.3 points at 9,897.9.
By the time London closed, in the US we saw the DJI down some 70-odd points in its first couple of hours trading at 12,300, whilst the S&P500 was down around 10 points at 1,339 and the Nadaq down 21 points at 2,311 - all this after some weak manufacturing and consumer sentiment data, thus telling that US economic conditions are deteriorating. Reports that Citibank has now stopped investors pulling cash from one of its hedge funds, as about US$150m had been withdrawn recently, added to investors' worries.
Back here in London the banks took some stick, as expected, with Alliance & Leicester closing down 18.5p at 525, HBOS down 22.5 to 608.5, Lloyds TSB down almost 15p at just shy of 396p, Barclays closed down 15.5p at 427.5 and Bradford & Bingley continued its slide closing down just over 10p at 176p. Two country neighbours also suffered, we heard, with French bank Natixis announcing a €1.2 bln write down and over the other channel we heard that the Bank of Ireland said volatility is hitting its full-year performance.
British Land closed down 37p at 932 as UBS downgraded the proerty firm to 'neutral' from 'buy' and gave a 1,050 target.
Miner Vedanta did the best today, closing up 68p at 2,072 ith a UBS upgrade, who said it was a decetn growth bet. M&A rumours and speculation in the sector also helped.
Pharmaceuticals looked attractive as news that the billionaire Warren Buffett has been buying into GlaxoSmithKline and peer Sanofi-Aventis. Glaxo shares closd up 11p at 1,112 and AstraZeneca closed up 9p at 1,954.
Johnson Matthey closed up 29p at 1,979 on nes that BlackRock now holds 5.11% in the UK speciality chemicals and precious metals group.
Cadbury Schweppes alos finihed higher, up 11p at 597 ahead of its full year results early next week, which look like showing a 5% growth target and hopes.
As we mentioned this morning, the insurance sector had been given a decent rating giving shares a kick up. Admiral Group closed up 12.5p at 948, the Pru closed up a penny at 215.5 and Friends Provident closed up 0.6p at 131.5.
Go-Ahead Group didn't have a good day, closing down nearly 18%, or nearly 4-quid down at 1,840 after a cautious outlook statement and reporting below forecast 6monthly figures. Peers followed, with FirstGroup closing down 40.5p at 605.5, Stagecoach down nearly 24p at 222.5, National Express down 64p at 1,063 and Arriva down 32.5p at 664.
Tate & Lyle only closed up a penny at nearly 510p but its 3rd quarter update was good.
Ladbrokes closoed up nearly 8p at 329 on bid rumours.
By the time London closed, in the US we saw the DJI down some 70-odd points in its first couple of hours trading at 12,300, whilst the S&P500 was down around 10 points at 1,339 and the Nadaq down 21 points at 2,311 - all this after some weak manufacturing and consumer sentiment data, thus telling that US economic conditions are deteriorating. Reports that Citibank has now stopped investors pulling cash from one of its hedge funds, as about US$150m had been withdrawn recently, added to investors' worries.
Back here in London the banks took some stick, as expected, with Alliance & Leicester closing down 18.5p at 525, HBOS down 22.5 to 608.5, Lloyds TSB down almost 15p at just shy of 396p, Barclays closed down 15.5p at 427.5 and Bradford & Bingley continued its slide closing down just over 10p at 176p. Two country neighbours also suffered, we heard, with French bank Natixis announcing a €1.2 bln write down and over the other channel we heard that the Bank of Ireland said volatility is hitting its full-year performance.
British Land closed down 37p at 932 as UBS downgraded the proerty firm to 'neutral' from 'buy' and gave a 1,050 target.
Miner Vedanta did the best today, closing up 68p at 2,072 ith a UBS upgrade, who said it was a decetn growth bet. M&A rumours and speculation in the sector also helped.
Pharmaceuticals looked attractive as news that the billionaire Warren Buffett has been buying into GlaxoSmithKline and peer Sanofi-Aventis. Glaxo shares closd up 11p at 1,112 and AstraZeneca closed up 9p at 1,954.
Johnson Matthey closed up 29p at 1,979 on nes that BlackRock now holds 5.11% in the UK speciality chemicals and precious metals group.
Cadbury Schweppes alos finihed higher, up 11p at 597 ahead of its full year results early next week, which look like showing a 5% growth target and hopes.
As we mentioned this morning, the insurance sector had been given a decent rating giving shares a kick up. Admiral Group closed up 12.5p at 948, the Pru closed up a penny at 215.5 and Friends Provident closed up 0.6p at 131.5.
Go-Ahead Group didn't have a good day, closing down nearly 18%, or nearly 4-quid down at 1,840 after a cautious outlook statement and reporting below forecast 6monthly figures. Peers followed, with FirstGroup closing down 40.5p at 605.5, Stagecoach down nearly 24p at 222.5, National Express down 64p at 1,063 and Arriva down 32.5p at 664.
Tate & Lyle only closed up a penny at nearly 510p but its 3rd quarter update was good.
Ladbrokes closoed up nearly 8p at 329 on bid rumours.
Morning Market, Friday 15th February 2008
The FTSE was about 18-20 points up this morning - just shy of 5,900, but feeling uncertain after the fall in New York last night.
Last night over the pond the DJI closed 175.26 points lower at 12,376.98, whilst the S&P500 closed down 18.35 points at 1,348.86 and the Nasdaq closed down 41.39 points at 2,332.54. The Federal Reserve had said that a 'sluggish' economy will be the near to medium term with more mortgage-related losses at banks.
In the Far East today the Nikkei 225 closed down 3.89 points at 13,622.56, but this was up from early falls, whilst in Hong Kong the Hang Seng closed up 126.75 points at 24,148.43, also after rising from earlier falls.
Back here in London the miners were doing well early doors, with Vedanta up 55p at 2,059 on a UBS upgrade. Peer Lonmin was up 50p at 3,409, Kazakhmys up 15p at 1,349, Rio up 75p at 5,630, and BHP up 15p at 1,581 as some hopes of M&A returned to the sector. In contrast, though, Xstrata was down 16p at 3,836 after recent M&A rumours sank in.
Goldman Sachs gave the insurance sector an upgrade, with Friends Provident up 2.2p at 133,1, Aviva up 5p at 564, and Admiral Group up 23p at 958p.
Banks didn't fair as well, though, with Alliance & Leicester down 30p at 513p, Barclays down 3p at 440p, HBOS down 2p at 629 and Bradford & Bingley was down another 6p at 180p.
British Land fell 13p to 956 after a UBS downgrade to 'neutral' from 'buy' and a target of 1,050p, down from 1,135p.
Tate & Lyle was sweet this morning, up 9p at 517 after a decent 3rd quarter upgrade. The sugar refiner and food ingredients maker reiterated its profit guidance for its second half to March 2008 and said PBIT for the four months to Jan 31 2008 was slightly ahead of internal expectations.
Transport firm Go-Ahead Group was down nearly 250p at 1,986 after a below forecast 1st half results and a cautious outlook. Go-Ahead reported pre-tax profits of £58.3 mln for the 6 months to Dec 29, which was below the broker forecast for £62.2 mln. The news caused peers to fall too, with FirstGroup losing 20p to 625p, Stagecoach down nealry 10p at 236.5, National Express down 25p at 1,102, and Arriva down 10p at 686.
Last night over the pond the DJI closed 175.26 points lower at 12,376.98, whilst the S&P500 closed down 18.35 points at 1,348.86 and the Nasdaq closed down 41.39 points at 2,332.54. The Federal Reserve had said that a 'sluggish' economy will be the near to medium term with more mortgage-related losses at banks.
In the Far East today the Nikkei 225 closed down 3.89 points at 13,622.56, but this was up from early falls, whilst in Hong Kong the Hang Seng closed up 126.75 points at 24,148.43, also after rising from earlier falls.
Back here in London the miners were doing well early doors, with Vedanta up 55p at 2,059 on a UBS upgrade. Peer Lonmin was up 50p at 3,409, Kazakhmys up 15p at 1,349, Rio up 75p at 5,630, and BHP up 15p at 1,581 as some hopes of M&A returned to the sector. In contrast, though, Xstrata was down 16p at 3,836 after recent M&A rumours sank in.
Goldman Sachs gave the insurance sector an upgrade, with Friends Provident up 2.2p at 133,1, Aviva up 5p at 564, and Admiral Group up 23p at 958p.
Banks didn't fair as well, though, with Alliance & Leicester down 30p at 513p, Barclays down 3p at 440p, HBOS down 2p at 629 and Bradford & Bingley was down another 6p at 180p.
British Land fell 13p to 956 after a UBS downgrade to 'neutral' from 'buy' and a target of 1,050p, down from 1,135p.
Tate & Lyle was sweet this morning, up 9p at 517 after a decent 3rd quarter upgrade. The sugar refiner and food ingredients maker reiterated its profit guidance for its second half to March 2008 and said PBIT for the four months to Jan 31 2008 was slightly ahead of internal expectations.
Transport firm Go-Ahead Group was down nearly 250p at 1,986 after a below forecast 1st half results and a cautious outlook. Go-Ahead reported pre-tax profits of £58.3 mln for the 6 months to Dec 29, which was below the broker forecast for £62.2 mln. The news caused peers to fall too, with FirstGroup losing 20p to 625p, Stagecoach down nealry 10p at 236.5, National Express down 25p at 1,102, and Arriva down 10p at 686.
Thursday, 14 February 2008
Market Wrap, Thursday 14th February 2008
The FTSE ended the day about even, down 0.8 points at 5,879.3, whilst the FTSE 250 closed up 93.1 points at 10,089.
Ove the pond the Feds managed to upset everyone with comments of a 'sluggish' economy and more problems for the banks, which was all taken as a red light for investors. By the time London closed the DJI was about 100 points lower at 12,450, whilst the S&P500 was about 10 points down at 1,358 abd the Nasdaq down about 20 points at 2,353.
Here in London, it was Guinness brewer Diageo that had the best day, closing up 47p at 1,081 after reporting a 1st half operating profit of £1.414 bln, which was 9% higher than last year, and the drinks maker added that it's looking for the full 9% for the whole year. Broker Merrills reiterated its 'buy' stance and 11-quid target.
The miners also did well today, with Anglo closing up 69p to 3,094, Lonmin up 79p at 3,359, Vedanta up 50p to 2,004, and Xstrata closing up 72p at 3,852. Xstrata is expected to remain strong, as with the recent bid activity it has now been reports that 35% owner of the Anglo-Swiss miner, Glencore, has been offred 48-quid a share for the wghole 35%. This wasn't confirmed.
J Sainsbury closed up nearly 10p at 380 on further rumours that the Qataris have upped their holding in the supermarket chain by taking out property tycoon Robert Tchenguiz.
British Energy closed up 9p at 542 on the news we mentioned this morning that there is a £5.5 bln break up plan for the group, with a new company focused on building the next generation of nuclear power plants. This was denied.
Pearsons closed up 11p at 674 after it said it was selling its data management business for US$225 mln in a cash deal.
Reckitt Benckiser was up 78p at 2,801 on broker upgrade to 'buy' and a 34-quid target after some decent results yesterday.
Land and property firm Hammerson closed down 33p at 1,052, Land Securities was down 44p at 1,553 and British Land closd 39p down at 969 on a Goldman Sachs downgrade to the three.
Bank HBOS had a poor day, down 34p at 631 after its full year results. Peers followed, with RBS down over 8p at 361 and Barclays down 10.5p at 443.
Pharma giant AstraZeneca was 51p lower at 1,945 aftre its announcement regarding the swiss gastrointestinal unit being sold to a consortium of venture capitalists. Peer Shire Pharma closed down 21.5p at 903 and GlaxoSmithKline down 3p lower at 1,101.
WPP lost 11.5p to close at 604 after it said it has acquired a 75% stake in website design and development agency HeathWallace, which was in-line with its strategy to develop networks in fast growing sectors and markets.
Housebuilder Barratts closed down 15p at 383p on rumours tht the housebuilder was thinking about a rights issue to refinance its debt. This was denied by the company.
Ove the pond the Feds managed to upset everyone with comments of a 'sluggish' economy and more problems for the banks, which was all taken as a red light for investors. By the time London closed the DJI was about 100 points lower at 12,450, whilst the S&P500 was about 10 points down at 1,358 abd the Nasdaq down about 20 points at 2,353.
Here in London, it was Guinness brewer Diageo that had the best day, closing up 47p at 1,081 after reporting a 1st half operating profit of £1.414 bln, which was 9% higher than last year, and the drinks maker added that it's looking for the full 9% for the whole year. Broker Merrills reiterated its 'buy' stance and 11-quid target.
The miners also did well today, with Anglo closing up 69p to 3,094, Lonmin up 79p at 3,359, Vedanta up 50p to 2,004, and Xstrata closing up 72p at 3,852. Xstrata is expected to remain strong, as with the recent bid activity it has now been reports that 35% owner of the Anglo-Swiss miner, Glencore, has been offred 48-quid a share for the wghole 35%. This wasn't confirmed.
J Sainsbury closed up nearly 10p at 380 on further rumours that the Qataris have upped their holding in the supermarket chain by taking out property tycoon Robert Tchenguiz.
British Energy closed up 9p at 542 on the news we mentioned this morning that there is a £5.5 bln break up plan for the group, with a new company focused on building the next generation of nuclear power plants. This was denied.
Pearsons closed up 11p at 674 after it said it was selling its data management business for US$225 mln in a cash deal.
Reckitt Benckiser was up 78p at 2,801 on broker upgrade to 'buy' and a 34-quid target after some decent results yesterday.
Land and property firm Hammerson closed down 33p at 1,052, Land Securities was down 44p at 1,553 and British Land closd 39p down at 969 on a Goldman Sachs downgrade to the three.
Bank HBOS had a poor day, down 34p at 631 after its full year results. Peers followed, with RBS down over 8p at 361 and Barclays down 10.5p at 443.
Pharma giant AstraZeneca was 51p lower at 1,945 aftre its announcement regarding the swiss gastrointestinal unit being sold to a consortium of venture capitalists. Peer Shire Pharma closed down 21.5p at 903 and GlaxoSmithKline down 3p lower at 1,101.
WPP lost 11.5p to close at 604 after it said it has acquired a 75% stake in website design and development agency HeathWallace, which was in-line with its strategy to develop networks in fast growing sectors and markets.
Housebuilder Barratts closed down 15p at 383p on rumours tht the housebuilder was thinking about a rights issue to refinance its debt. This was denied by the company.
Morning Market, Thursday 14th February 2008
The FTSE was up about 30 points at 5,910 in its first hour of trading, whilst the FTSE 250 was up 100 points at 10,095.
Last night over the pond the DJI closed up 178.83 points at 12,552.24, up 1.5%, whilst the S&P500 closed up 18.35at 1,367.21 and the Nasdaq was up 53.89 at 2,373.93 (2.3% rise).
It was similar in the Far East this morning, with Japan's Nikkei 225 closing up 558.15 points 13,626.45 (4.3% rise), and in Hong Kong the Hang Seng was up nearly 800 points, or 3.4%, at just shy of 23,970 by its lunchtime chow session.
Back here in London this morning, we saw Diageo rise over 30p at 1,065 early on after the drinks producer re-iterated its target of 9% growth on profits.
Miners were doing ok this morning, with Anglo up a quid at 3,125, Lonmin was up 110p at 3,390 and Kazakhmys up 50p to 1,373.
Standard Life was up 9p at 216p after it said it is set for a £100m profit rise this year as a result of an agreement to transfer £6.7 bln of annuities to Canada Life. Peers liked the news as well, with Old Mutual climbing 3.1p to 125.8 and Royal & Sun Alliance up 3.5p at 133.2.
British Energy continued its rise, up anotehr 10p at 543p on press reports that the company is planning a break up of the company to produce a new company focusing on nuclear plants, in a £5.5 bln split.
Hammerson's, the land and property giant, was off 7p at 1,078 on a Goldman Sachs downgrade this morning.
The Pharmas were down with AstraZeneca losing some of recent gains after it confirmed that it will spin out its Swedish-based gastrointestinal (GI) unit to a consortium of VC investors led by the Nomura Phase4 Ventures. Peers Shire Pharma was down 12p at 913 and GlaxoSmithKline was down just 2p at 1,102.
The cash and Internet payments group Paypoint rose 18.5p to 637.5 recent earnings in-line with expectations.
Finally, Bradford & Bingley continued its decline after its poor full-year results yesterday, hindered further by a number of broker downgrades, including a double downgrade from Morgan Stanley to 'underweight' from 'overweight'.
Last night over the pond the DJI closed up 178.83 points at 12,552.24, up 1.5%, whilst the S&P500 closed up 18.35at 1,367.21 and the Nasdaq was up 53.89 at 2,373.93 (2.3% rise).
It was similar in the Far East this morning, with Japan's Nikkei 225 closing up 558.15 points 13,626.45 (4.3% rise), and in Hong Kong the Hang Seng was up nearly 800 points, or 3.4%, at just shy of 23,970 by its lunchtime chow session.
Back here in London this morning, we saw Diageo rise over 30p at 1,065 early on after the drinks producer re-iterated its target of 9% growth on profits.
Miners were doing ok this morning, with Anglo up a quid at 3,125, Lonmin was up 110p at 3,390 and Kazakhmys up 50p to 1,373.
Standard Life was up 9p at 216p after it said it is set for a £100m profit rise this year as a result of an agreement to transfer £6.7 bln of annuities to Canada Life. Peers liked the news as well, with Old Mutual climbing 3.1p to 125.8 and Royal & Sun Alliance up 3.5p at 133.2.
British Energy continued its rise, up anotehr 10p at 543p on press reports that the company is planning a break up of the company to produce a new company focusing on nuclear plants, in a £5.5 bln split.
Hammerson's, the land and property giant, was off 7p at 1,078 on a Goldman Sachs downgrade this morning.
The Pharmas were down with AstraZeneca losing some of recent gains after it confirmed that it will spin out its Swedish-based gastrointestinal (GI) unit to a consortium of VC investors led by the Nomura Phase4 Ventures. Peers Shire Pharma was down 12p at 913 and GlaxoSmithKline was down just 2p at 1,102.
The cash and Internet payments group Paypoint rose 18.5p to 637.5 recent earnings in-line with expectations.
Finally, Bradford & Bingley continued its decline after its poor full-year results yesterday, hindered further by a number of broker downgrades, including a double downgrade from Morgan Stanley to 'underweight' from 'overweight'.
Wednesday, 13 February 2008
Market Wrap, Wednesday 13th February 2008
The FTSE closed down 29.9 points today at 5,880.1, which was about 65 points up from the early low of the day, but down from a slightly positive day, which was reached after the US opened up well. The FTSE 250 closed down 44.1 points at 9,996.1. Bradaford & Bingley's results, which included that write down, set the mood for the day. Especially for the banks. What with the 200-point rise yesterday, some retracement was likely, anyway.
by the time London closed, the DJI was actually up nearly 90 points at 12,464, and the S&P500 up nearly 10 points at 1,358, and the Nasdaq up 30 points at 2,350. Decent results from techie Appied Materials helping over the pond. The retail sales were up for January as well, which was unexpected, so the mood lightened in New York.
Back here in the UK, the BoE gave the last quarterly inflation figures, which certainly impied we could see another 1/4% cut in interest rates soon, but there was a footnote that above target inflation could limit the number of rate cuts.
Housebuilders didn't like the footnote, so investors moved away, with Persimmons closing down 19.5p at 726 and Taylor Wimpey falling 4.8p to close at 173.1. Then news from the Royal Institution of Chartered Surveyors rubbed some salt in to their wounds with news that lower house prices in January had reached their worst level in more than 15 years. Ouch.
The miners were also weak, but have done well reecntly, but fell none-the-less. Vedanta fell 68p to close at 1,954, Xstrata closed down 39p at 3,780, Rio closed 23p down at 5,500 (despite reporting that its 2007 net profit fell 2% to US$7.312 bln, which we reported this morning, but was up from the US$7.1 bln whcih was expected).
BG Group closed 50p lower at 1,137, falling back from near a record high.
The banks didn't fair too good, with their reporting season now under way. Bradford & Bingley reported pre-tax profit of £351.6 mln for last year, which was up from £335.9 mln in 2006, but the bank also said it had been hit by a further £94.4 mln charge relating to the value of its investments in collateralised debt obligations and structured investment vehicles, which has fallen. Broker Cazenove reiterated its 'underperform' rating. The shares fell over 56p to 187, down 23%, which is the bank's lowest shareprice in the 7 or 8 years since it listed. Peer Alliance & Leicester fell 42p to 559 in sympathy, and also down at its lowest level since 2000. Other peers HBOS closed down 8p to 665 and troubled mortgage bank Northern Rock fell 9.5p to 95.5p after Virgin's gang was told to up its offer by the Treasury or nationalisation of the bank looks more likely.
British Energy had a good day, up 44p at 533p on results of EBITDA of £745 mln, down from £775 mln last year, but better than expected by analysts. Broker Cazenove was pleased and reiterated its 'outperform' stance.
by the time London closed, the DJI was actually up nearly 90 points at 12,464, and the S&P500 up nearly 10 points at 1,358, and the Nasdaq up 30 points at 2,350. Decent results from techie Appied Materials helping over the pond. The retail sales were up for January as well, which was unexpected, so the mood lightened in New York.
Back here in the UK, the BoE gave the last quarterly inflation figures, which certainly impied we could see another 1/4% cut in interest rates soon, but there was a footnote that above target inflation could limit the number of rate cuts.
Housebuilders didn't like the footnote, so investors moved away, with Persimmons closing down 19.5p at 726 and Taylor Wimpey falling 4.8p to close at 173.1. Then news from the Royal Institution of Chartered Surveyors rubbed some salt in to their wounds with news that lower house prices in January had reached their worst level in more than 15 years. Ouch.
The miners were also weak, but have done well reecntly, but fell none-the-less. Vedanta fell 68p to close at 1,954, Xstrata closed down 39p at 3,780, Rio closed 23p down at 5,500 (despite reporting that its 2007 net profit fell 2% to US$7.312 bln, which we reported this morning, but was up from the US$7.1 bln whcih was expected).
BG Group closed 50p lower at 1,137, falling back from near a record high.
The banks didn't fair too good, with their reporting season now under way. Bradford & Bingley reported pre-tax profit of £351.6 mln for last year, which was up from £335.9 mln in 2006, but the bank also said it had been hit by a further £94.4 mln charge relating to the value of its investments in collateralised debt obligations and structured investment vehicles, which has fallen. Broker Cazenove reiterated its 'underperform' rating. The shares fell over 56p to 187, down 23%, which is the bank's lowest shareprice in the 7 or 8 years since it listed. Peer Alliance & Leicester fell 42p to 559 in sympathy, and also down at its lowest level since 2000. Other peers HBOS closed down 8p to 665 and troubled mortgage bank Northern Rock fell 9.5p to 95.5p after Virgin's gang was told to up its offer by the Treasury or nationalisation of the bank looks more likely.
British Energy had a good day, up 44p at 533p on results of EBITDA of £745 mln, down from £775 mln last year, but better than expected by analysts. Broker Cazenove was pleased and reiterated its 'outperform' stance.
Morning Market, Wednesday 13th February 2008
The FTSE was down about 90 points in its first hour of tradiung at at 5,820, while the FTSE 250 index was down about 135 points at 9,905. There was some blame put on the rather disappointing results from bank Bradford & Bingley, which has affected the whole banking sector.
Last night over the pond, the US markets finished quite well on the strength of Warren Buffet's ststament yesterday. This hasn't helped in the UK this morning as when analysing the statement he will only really be covering the safer boinds markets, not the smaller end of the market, including the risskier stuff. The DJI closed up 133.4 points at 12,373.41, whilst the S&P500 closed up 9.73 points at 1,348.86, while the Nasdaq actually closed very slightly down, with a 0.02 point drop to 2,320.04. It's the US retail sales figures for January that are given today, so we'll see how they fair. In the UK today we get the quarterly inflation report from the Bank of England.
In the Far East this morning the Nikkei 225 closed up 46.34 points at 13,068.30, while in Hong Kong the Hang Seng was up about 433 points at 23,354 by its lunchtime chow time.
Oil was up again too, with the Venezuela's state petroleum company PDVSA suspending oil supplies to oil giant ExxonMobil causing some concern. Light Sweet crude (Mar Delivery) was up about 25 cents at US$93 bbl, which was up over a dollar from its low of the day in New York NYMEX trading. Brent North Sea crude (Mar del) was up about 30 cents at US$93.10 bbl after closing down some 67 cents at US$92.86 on Tuesday in London.
Back here in London, it was the banking stocks that were down due to poor results from Bradford & Bingley which was down 12% on the results news that said the bank had been hit by an extra £94.4m charge, causing the share price to be 28p down at 215p. Broker downgrade to underperform followed. Peers were also down, with HBOS down 18p at 655, Lloyds TSB down 10p at 411, RBS down 9p lower at 365, Barclays was down 13p at 442p, and Alliance & Leicester down 20p at 580p. Northern Rock was down 8p at 97p as news said that the Virgin-led consortium has been told by the Treasury to up its bid terms or it looks like the troubled mortgage bank will be nationalised.
Miners were also down even after Rio reported figures in-line with what was expected this morning. Rio said its 2007 net profit fell 2% to US$7.312 bln from the previous year's record US$7.438 bln, blaming rising costs. Rio's share price was down 95p at 5,427 early on, with peers following the slide - Vedanta was down 60p at 1,962, Anto down 18p at 742p, Anglo down 870p at 2,989 and Xstrata was 90p down at 3,729.
British Energy was also down 16p at 473p as the group reported EBITDA of £745 mln, which was £109m lower that last time out.
Wolseley was 22p down at 674p on a Morgan Stanley downgrade to 'underweight' from 'equal-weight'.
House builders were also down, probably due to the inflation report by the BoE later on, with Persimmons down 25p at 752p, Taylor Wimpey 6p lower at 172p, Barratts off 13p at 389 ,and Bellway down 21p at 755p.
One positive was BskyB, who were up 3p at 571p.
Last night over the pond, the US markets finished quite well on the strength of Warren Buffet's ststament yesterday. This hasn't helped in the UK this morning as when analysing the statement he will only really be covering the safer boinds markets, not the smaller end of the market, including the risskier stuff. The DJI closed up 133.4 points at 12,373.41, whilst the S&P500 closed up 9.73 points at 1,348.86, while the Nasdaq actually closed very slightly down, with a 0.02 point drop to 2,320.04. It's the US retail sales figures for January that are given today, so we'll see how they fair. In the UK today we get the quarterly inflation report from the Bank of England.
In the Far East this morning the Nikkei 225 closed up 46.34 points at 13,068.30, while in Hong Kong the Hang Seng was up about 433 points at 23,354 by its lunchtime chow time.
Oil was up again too, with the Venezuela's state petroleum company PDVSA suspending oil supplies to oil giant ExxonMobil causing some concern. Light Sweet crude (Mar Delivery) was up about 25 cents at US$93 bbl, which was up over a dollar from its low of the day in New York NYMEX trading. Brent North Sea crude (Mar del) was up about 30 cents at US$93.10 bbl after closing down some 67 cents at US$92.86 on Tuesday in London.
Back here in London, it was the banking stocks that were down due to poor results from Bradford & Bingley which was down 12% on the results news that said the bank had been hit by an extra £94.4m charge, causing the share price to be 28p down at 215p. Broker downgrade to underperform followed. Peers were also down, with HBOS down 18p at 655, Lloyds TSB down 10p at 411, RBS down 9p lower at 365, Barclays was down 13p at 442p, and Alliance & Leicester down 20p at 580p. Northern Rock was down 8p at 97p as news said that the Virgin-led consortium has been told by the Treasury to up its bid terms or it looks like the troubled mortgage bank will be nationalised.
Miners were also down even after Rio reported figures in-line with what was expected this morning. Rio said its 2007 net profit fell 2% to US$7.312 bln from the previous year's record US$7.438 bln, blaming rising costs. Rio's share price was down 95p at 5,427 early on, with peers following the slide - Vedanta was down 60p at 1,962, Anto down 18p at 742p, Anglo down 870p at 2,989 and Xstrata was 90p down at 3,729.
British Energy was also down 16p at 473p as the group reported EBITDA of £745 mln, which was £109m lower that last time out.
Wolseley was 22p down at 674p on a Morgan Stanley downgrade to 'underweight' from 'equal-weight'.
House builders were also down, probably due to the inflation report by the BoE later on, with Persimmons down 25p at 752p, Taylor Wimpey 6p lower at 172p, Barratts off 13p at 389 ,and Bellway down 21p at 755p.
One positive was BskyB, who were up 3p at 571p.
Tuesday, 12 February 2008
Market Wrap, Tuesday 12th February 2008
The FTSE closed up a decent 202.3 points today at 5,910 as the USA opened positive. The FTSE 250 closed up 304.8 points at 10,040.2.
Over the pond, by the time London closed the DJI was about 215 points up at 12,455, whilst the S&P500 was about 20 points up at 1,359, and the Nasdaq up about 25 points at 2,345. The Master Investor Warren Buffett had something to say today, and commented in an interview on US TV that he will he will offer a 2nd level of insurance on up to US$800 bln in municipal bonds, which certainly eased some of the Wall Street's concerns about further deterioration in the credit markets.
This news was also taken well here in London, where the market picked up sharply, having a nice rally. It was the insurers that were pleased, especially after yesterday's perforamnce after the US AIG statement, with Royal & Sun Alliance closing up 5.5p at 130.1p, Legal & General closed up 7p at 127.1p, and The Pru up 32p at 615p.
The banks also liked the news, with some positives returning ahead of all the results that are due from the sector over the next week. Barclayshad a nice day, closing up 26.5p at 455.75p, with a a broker reiterating its 'outperform' stance on the sector in general. peer HBOS closed up 37p at 673p, RBS closed up 14.75p at 374p and HSBC was up 32.5p at 745p.
The Heavyweight miners were also in demand as raw commodity prices rose, with the price of platinum hitting yet another all-time high as investors bought into the white metal amid fears over falling supply from South Africa, which is the major area. Vedanta closed up 128p at 2,022p, while Lonmin closed up 194p at 3,300p, and Kazakhmys closed up 67p at 1,324p. Xstrata closed up 14p at 3,819p after press speculation the group had apparently rejected a takeover bid from Brazilian mining group Vale, pitched at about £40 per share, which valued the miner at just under £39 bln. And further M&A speculation, which looks like progress, helped both Rio and BHP, who closed up 283p at 5,523p and 72p at 1,555p respectively.
AstraZeneca shares closed up 26p at 1,955p with a decent finish, although ING downgraded the pharma giant to a 'sell' rating and 1,760p price target.
Aero engine maker Rolls-Royce closed up 9p at 417p despite a target cut to 413p from 447p by broker Goldman Sachs. The broker commented that it thought Rolls-Royce's results highlighted possible falling earnings.
Some of the builders did ok, as recent inflation figures look like a further interest rate could be on its way. Bellway homes closed up 57.5p at 776p, Barratts closed up just over 23p at 402p and Bovis Homes closed up 36p at 589.5p.
Over the pond, by the time London closed the DJI was about 215 points up at 12,455, whilst the S&P500 was about 20 points up at 1,359, and the Nasdaq up about 25 points at 2,345. The Master Investor Warren Buffett had something to say today, and commented in an interview on US TV that he will he will offer a 2nd level of insurance on up to US$800 bln in municipal bonds, which certainly eased some of the Wall Street's concerns about further deterioration in the credit markets.
This news was also taken well here in London, where the market picked up sharply, having a nice rally. It was the insurers that were pleased, especially after yesterday's perforamnce after the US AIG statement, with Royal & Sun Alliance closing up 5.5p at 130.1p, Legal & General closed up 7p at 127.1p, and The Pru up 32p at 615p.
The banks also liked the news, with some positives returning ahead of all the results that are due from the sector over the next week. Barclayshad a nice day, closing up 26.5p at 455.75p, with a a broker reiterating its 'outperform' stance on the sector in general. peer HBOS closed up 37p at 673p, RBS closed up 14.75p at 374p and HSBC was up 32.5p at 745p.
The Heavyweight miners were also in demand as raw commodity prices rose, with the price of platinum hitting yet another all-time high as investors bought into the white metal amid fears over falling supply from South Africa, which is the major area. Vedanta closed up 128p at 2,022p, while Lonmin closed up 194p at 3,300p, and Kazakhmys closed up 67p at 1,324p. Xstrata closed up 14p at 3,819p after press speculation the group had apparently rejected a takeover bid from Brazilian mining group Vale, pitched at about £40 per share, which valued the miner at just under £39 bln. And further M&A speculation, which looks like progress, helped both Rio and BHP, who closed up 283p at 5,523p and 72p at 1,555p respectively.
AstraZeneca shares closed up 26p at 1,955p with a decent finish, although ING downgraded the pharma giant to a 'sell' rating and 1,760p price target.
Aero engine maker Rolls-Royce closed up 9p at 417p despite a target cut to 413p from 447p by broker Goldman Sachs. The broker commented that it thought Rolls-Royce's results highlighted possible falling earnings.
Some of the builders did ok, as recent inflation figures look like a further interest rate could be on its way. Bellway homes closed up 57.5p at 776p, Barratts closed up just over 23p at 402p and Bovis Homes closed up 36p at 589.5p.
Morning Market, Tuesday 12th February 2008
FTSE 100 was about 10 points higher at 5,718 this morning after an hour's trading, whilst the FTSE 250 was only up 5 points at 9,740.
Last night over the pond the DJI closed up 57.9 points at 12,240, whilst the S&P500 closed up 7,.85 points at 1,339.15 and the nasdaq up 15.21 at 2,320.06. The AIG announcement hadn't helped earlier on, which said that it hasn't able to put accurate valuation son some of its derivatives.
In the Far East today the Nikkei 225 index closed up 4.72 points at 13,021.96 whilst in Hong Kong the Hang Seng closed up 305.56 points at 22,921.67.
Oil was up again, with Light Sweet up US$1.8 at US$93.60 - this after potential supply problems from Venezuela were mentioned.
Back here in London this morning it was the oil stocks that helped the FTSE get some strength, with RD Shell up 25p at 1,711, BP up 2p at 550p and Cairn Energy up 25p at 2,404p.
The miners were also doing ok after it was revealed that Xstrata recently rejected a takeover bid, although Xstrata itself was wasn't up this nmorning. Apparently Xstrata has rejected an informal cash and share takeover approach from Brazilian mining group Vale, which was said to be around the £40 a share, ot valuing the company at about £38.9 bln. Xstrata shares fell 25p to 3,780, while peer Anglo was up 63p at 2,986, Lonmin was 65p higher at 3,171 and Vedanta Resources was up 38p at 1,932. Meanwhile, Rio and BHP were up 125p to 5,365 and 32p to 1,515 respectively.
Housebuilders were also popular this morning with Wolseley up 18p at 681, Persimmons up 16p at 731p and Taylor Wimpey added up 2.1p at 174.1.
AB Foods was doing well, up 24p at 834 on broker upgrade and 850p target. On the other hand, Unilever was down 6p at 1,589 after a Citigroup downgrade to 'hold'.
AstraZeneca also suffered tjhis morning, down 25p at 1,904 and a broker downgrade to 'sell' and 1,760p target.
Insurance firms were also down with Aviva down a penny at 549p, Standard Life down 4p at 194p, The Pru down 10p to 573 and Admiral Group off 18p at 916.
Despite opening up this morning, the banks were seeing further pressure and turned the other way with Barclays down over 2p at 427, Lloyds TSB down 4p at 4-quid, and RBS down 2p at 357p.
888 Holdings gave some decent results, this morning, which gave the on-line gambling group rise 3p to 134.5p after a 36% rise in net gaming revenue for last year was announced. This was its first full year of trading since it abandoned its US-facing operations. Broker upgrade to 'buy' immediately followed with a 155p target. Peer PartyGaming didn't do as well, down nearly a penny at just ahy of 27p, probably due to investors moving thier cash into 888 after the results announcement.
Last night over the pond the DJI closed up 57.9 points at 12,240, whilst the S&P500 closed up 7,.85 points at 1,339.15 and the nasdaq up 15.21 at 2,320.06. The AIG announcement hadn't helped earlier on, which said that it hasn't able to put accurate valuation son some of its derivatives.
In the Far East today the Nikkei 225 index closed up 4.72 points at 13,021.96 whilst in Hong Kong the Hang Seng closed up 305.56 points at 22,921.67.
Oil was up again, with Light Sweet up US$1.8 at US$93.60 - this after potential supply problems from Venezuela were mentioned.
Back here in London this morning it was the oil stocks that helped the FTSE get some strength, with RD Shell up 25p at 1,711, BP up 2p at 550p and Cairn Energy up 25p at 2,404p.
The miners were also doing ok after it was revealed that Xstrata recently rejected a takeover bid, although Xstrata itself was wasn't up this nmorning. Apparently Xstrata has rejected an informal cash and share takeover approach from Brazilian mining group Vale, which was said to be around the £40 a share, ot valuing the company at about £38.9 bln. Xstrata shares fell 25p to 3,780, while peer Anglo was up 63p at 2,986, Lonmin was 65p higher at 3,171 and Vedanta Resources was up 38p at 1,932. Meanwhile, Rio and BHP were up 125p to 5,365 and 32p to 1,515 respectively.
Housebuilders were also popular this morning with Wolseley up 18p at 681, Persimmons up 16p at 731p and Taylor Wimpey added up 2.1p at 174.1.
AB Foods was doing well, up 24p at 834 on broker upgrade and 850p target. On the other hand, Unilever was down 6p at 1,589 after a Citigroup downgrade to 'hold'.
AstraZeneca also suffered tjhis morning, down 25p at 1,904 and a broker downgrade to 'sell' and 1,760p target.
Insurance firms were also down with Aviva down a penny at 549p, Standard Life down 4p at 194p, The Pru down 10p to 573 and Admiral Group off 18p at 916.
Despite opening up this morning, the banks were seeing further pressure and turned the other way with Barclays down over 2p at 427, Lloyds TSB down 4p at 4-quid, and RBS down 2p at 357p.
888 Holdings gave some decent results, this morning, which gave the on-line gambling group rise 3p to 134.5p after a 36% rise in net gaming revenue for last year was announced. This was its first full year of trading since it abandoned its US-facing operations. Broker upgrade to 'buy' immediately followed with a 155p target. Peer PartyGaming didn't do as well, down nearly a penny at just ahy of 27p, probably due to investors moving thier cash into 888 after the results announcement.
Monday, 11 February 2008
Market Wrap, Monday 11th February 2008
The FTSE closed down 76.3 points at 5,707.7, which was 82 points off the high of the day, but up 26 points from its low of the day. The FTSE 250 closed down 72.1 points at 9,735.4. This is a bear market, for sure.
Over the pond, by the time London closed the DJI was down about 45 points at 12,137, whilst the S&P500 was just a point under even at 1,330, and the Nasdaq was even around 2,305.
Back here in London it was the insurers that were under pressure as US giant AIG gave a downbeat announcement on revalusing and handling of some areas of its business. Aviva closed down 28.5p at 551p, Standard Life down 7.5p at 198p, the Prud down 23p 583p, Resolution down 44p at 672 and Old Mutual was off 6.9 at 116.5. Friends Provident did close up 0.7p at 131.9 as JC Flowers was still sniffing, it seems, but Friends Provident rejected it.
On to the banks, Alliance & Leicester closed down 27p at 580, Lloyds TSB was nearly 13p down at 429.25 and HSBC was 24.5p down 712.5.
Pharma giant Glaxo closed up 14p at 1,084p after a bad week last week, as UBS upgraded it to a buy with a target of 1,350p.
On to the miners, Kazakhmys was up 10p at 1,257, Anto was up 4.5p at 727 and Lonmin was up 6p at 3,106.
Oil heavyweight BP gained was up 0.5p at 547.5p as oil rose, as we mentioned this morning.
Over the pond, by the time London closed the DJI was down about 45 points at 12,137, whilst the S&P500 was just a point under even at 1,330, and the Nasdaq was even around 2,305.
Back here in London it was the insurers that were under pressure as US giant AIG gave a downbeat announcement on revalusing and handling of some areas of its business. Aviva closed down 28.5p at 551p, Standard Life down 7.5p at 198p, the Prud down 23p 583p, Resolution down 44p at 672 and Old Mutual was off 6.9 at 116.5. Friends Provident did close up 0.7p at 131.9 as JC Flowers was still sniffing, it seems, but Friends Provident rejected it.
On to the banks, Alliance & Leicester closed down 27p at 580, Lloyds TSB was nearly 13p down at 429.25 and HSBC was 24.5p down 712.5.
Pharma giant Glaxo closed up 14p at 1,084p after a bad week last week, as UBS upgraded it to a buy with a target of 1,350p.
On to the miners, Kazakhmys was up 10p at 1,257, Anto was up 4.5p at 727 and Lonmin was up 6p at 3,106.
Oil heavyweight BP gained was up 0.5p at 547.5p as oil rose, as we mentioned this morning.
Morning Market, Monday 11th February 2008
The FTSE was just about even in its first hour of trading - around the 5,785 level, but up about 50 points from the initial drop in response to the Friday fallback before close in the US and today in the Far East, which didn't have a good day today. The FTSE 250 was up about 5 points at 9,808.
Over the pond on Friday the DJI closed down 64.87 points at 12,182.13, whilst the S&P500 closed down 5.82 points at 1,331.19 and the Nadaq managed a slight rise to close up a few at 2,304.85. Not a good week for the US - all indiscies down 4.4% to 4.6%, which is the worst weekly fallback for nearly 5 years.
In the Far East today the Nikkei 225 was closed closed for a national holiday, and just as well, and in Hong Kong the Hang Seng closed down 853.35 at 22,616.11 - down 3.6% on the day. The G7 officials met in Tokyo over the weekend and came to conclusion that the world's banks sub-prime write-downs would total US$400 bln, way higher than the estimated US$150 that had previously been estimated by the US Fed Reserve.
The price of the black stuff was on the up again on Asian trade, with light sweet (Mar delivery) up about 33 cents at US$92.10 bbl. Supply concerns helping the price, especially after RD Shell had given news it would struggle to meet supplies from Nigeria due to sabotage.
Back here in London this morning it didn't look very bright early doors, but was recivering after an hour of trading.
Smiths Group had a poor start, down 23p at 923.5p after a trading update informing its sales margins would be lower in its detection division, but it hoped that overall sales and profit growth for the 1st 6 months would be about as expected. The firm blamed start up costs and reduced quotes for new business as the cause. the first half in line with management expectations, with a strong performance in detection and speciality engineering offsetting a flat performance from medical. Broker reported they remained neutral.
Banks were mostly off after HSBC said it was cutting its price targets, trading down about 15 points at 722p. With some banks report 6-1/2 lower at 435-1/2. With some banks reporting final figures this week and next week, the mood was cautious. Barclays was down 6p at 436p, whilst Lloyds TSB was down 5p at 411.5p. HSBC itself was 14-1/2 lower at 722-1/2. On the other hand, troubled mortgage bank Northern Rock was 3p up at 101p after it was reported in weekend press that RBS, Barclays and Citigroup offered to securitise half the Bank of England's STG25 bln emergency loan that is outstanding.
Housebuilders were also down with Taylor Wimpey down nearly 6p at 169.2 and Persimmon down 18.p at 690.
The pharmas were doing better, with GlaxoSmithKline up 25p at 1,095 after UBS thought last week's fall back was too much and upgraded to buy from neutral.
With commodities still strong, the miners were doing well. Kazakhmys was up 35p at 1,282p and Lonmin was up 50p at 3,150.
And on from the rise in crude oil prices, RD Shell was up about 20p at 1,710, BP was up 6p at 553p and Cairn Energy was up 19p at 2,420.
Over the pond on Friday the DJI closed down 64.87 points at 12,182.13, whilst the S&P500 closed down 5.82 points at 1,331.19 and the Nadaq managed a slight rise to close up a few at 2,304.85. Not a good week for the US - all indiscies down 4.4% to 4.6%, which is the worst weekly fallback for nearly 5 years.
In the Far East today the Nikkei 225 was closed closed for a national holiday, and just as well, and in Hong Kong the Hang Seng closed down 853.35 at 22,616.11 - down 3.6% on the day. The G7 officials met in Tokyo over the weekend and came to conclusion that the world's banks sub-prime write-downs would total US$400 bln, way higher than the estimated US$150 that had previously been estimated by the US Fed Reserve.
The price of the black stuff was on the up again on Asian trade, with light sweet (Mar delivery) up about 33 cents at US$92.10 bbl. Supply concerns helping the price, especially after RD Shell had given news it would struggle to meet supplies from Nigeria due to sabotage.
Back here in London this morning it didn't look very bright early doors, but was recivering after an hour of trading.
Smiths Group had a poor start, down 23p at 923.5p after a trading update informing its sales margins would be lower in its detection division, but it hoped that overall sales and profit growth for the 1st 6 months would be about as expected. The firm blamed start up costs and reduced quotes for new business as the cause. the first half in line with management expectations, with a strong performance in detection and speciality engineering offsetting a flat performance from medical. Broker reported they remained neutral.
Banks were mostly off after HSBC said it was cutting its price targets, trading down about 15 points at 722p. With some banks report 6-1/2 lower at 435-1/2. With some banks reporting final figures this week and next week, the mood was cautious. Barclays was down 6p at 436p, whilst Lloyds TSB was down 5p at 411.5p. HSBC itself was 14-1/2 lower at 722-1/2. On the other hand, troubled mortgage bank Northern Rock was 3p up at 101p after it was reported in weekend press that RBS, Barclays and Citigroup offered to securitise half the Bank of England's STG25 bln emergency loan that is outstanding.
Housebuilders were also down with Taylor Wimpey down nearly 6p at 169.2 and Persimmon down 18.p at 690.
The pharmas were doing better, with GlaxoSmithKline up 25p at 1,095 after UBS thought last week's fall back was too much and upgraded to buy from neutral.
With commodities still strong, the miners were doing well. Kazakhmys was up 35p at 1,282p and Lonmin was up 50p at 3,150.
And on from the rise in crude oil prices, RD Shell was up about 20p at 1,710, BP was up 6p at 553p and Cairn Energy was up 19p at 2,420.
Friday, 8 February 2008
Market Wrap, Friday 8th February 2008
The FTSE closed up 59.9 poinst today at 5,784, which wasn't far off the high of 5,805.3. The FTSE 250 closed up 43.3 points at 9,807.5.
Over the pond, by the time London closed the DJI was about even, maybe 2 or 3 points lower, at 12,245. the S&P500 was also even at 1,337, whilst the Nasdaq was up about 20 points at 2,313.
Back here in the UK it was the miners doing well as the commodity prices got stronger. Antofagasta closed up 42.5p at 722.5, which was top of the board. Peers also did well, with Lonmin up 147p at 3,100, Vedanta up 74p at 1,896, Kazakhmys up 59p at 1,247 and Anglo American up an even quid at 2,980 after its update was very good, with the DeBeers we mentioned this morning news very well received. Anglo said De Beers produced 51.1 mln carats in 2007, in-line with 2006. The company is confident on market fundamentals beyond 2008, despite world economy.
BG Group receied an updare to buy and target of 1,340p, up from 1,240p after the gas explorer's 4th quarter results yetserday. The shares closed up 52p, near an all time high, at 1,170.
Compass Group also did well, closing up nearly 13p at just shy of 327p on reports it is doing very well with global revenue growth. Broker 'buy' rating was reiterated.
London Stock Exchange (LSE:LSE) closed up 45p at 727 on upgrade to hold from reduce, again as we mentioned this morning. The German exchange, Deutche Boerse also received an upgrade by West LB.
Yellow Pages publisher Yell didn't do as well, closing down nearly 18p at 262p as investors were still concerned about yetserday's revenue warning.
GlaxoSmithKline closd down 8p at 1,070 after it too issued a downbeat statement yesterday. Broker downgrade follwoed. Peer AstraZeneca fell back in sympathy, closing down 32p at 1,947, whilst Shire closed off 18.5p at 937.5 on downgrade and 865p target.
BskyB closed down 6p at 552p after it said it will be carrying out a private placing to raise US$750 mln (£384 mln) to refinance existing debt.
Over the pond, by the time London closed the DJI was about even, maybe 2 or 3 points lower, at 12,245. the S&P500 was also even at 1,337, whilst the Nasdaq was up about 20 points at 2,313.
Back here in the UK it was the miners doing well as the commodity prices got stronger. Antofagasta closed up 42.5p at 722.5, which was top of the board. Peers also did well, with Lonmin up 147p at 3,100, Vedanta up 74p at 1,896, Kazakhmys up 59p at 1,247 and Anglo American up an even quid at 2,980 after its update was very good, with the DeBeers we mentioned this morning news very well received. Anglo said De Beers produced 51.1 mln carats in 2007, in-line with 2006. The company is confident on market fundamentals beyond 2008, despite world economy.
BG Group receied an updare to buy and target of 1,340p, up from 1,240p after the gas explorer's 4th quarter results yetserday. The shares closed up 52p, near an all time high, at 1,170.
Compass Group also did well, closing up nearly 13p at just shy of 327p on reports it is doing very well with global revenue growth. Broker 'buy' rating was reiterated.
London Stock Exchange (LSE:LSE) closed up 45p at 727 on upgrade to hold from reduce, again as we mentioned this morning. The German exchange, Deutche Boerse also received an upgrade by West LB.
Yellow Pages publisher Yell didn't do as well, closing down nearly 18p at 262p as investors were still concerned about yetserday's revenue warning.
GlaxoSmithKline closd down 8p at 1,070 after it too issued a downbeat statement yesterday. Broker downgrade follwoed. Peer AstraZeneca fell back in sympathy, closing down 32p at 1,947, whilst Shire closed off 18.5p at 937.5 on downgrade and 865p target.
BskyB closed down 6p at 552p after it said it will be carrying out a private placing to raise US$750 mln (£384 mln) to refinance existing debt.
Morning Market, Friday 8th February 2008
The FTSE was up about 65 points at 5,790 in its first hour, whilst the FTSE 250 was 100 points up at 9,865.
Last night over the pond the DJI closed 46.90 points higher at 12,247.00, while the S&P 500 closed up 10.45 points at 1,336.90 and the Nasdaq up 14.28 points to close at 2,293.03. We're not sure why the US closed up as there is still much doom and gloom over there. January retails sales were down and December home sales also down, which didn't help sentiment. the poor Cisco update was also taken as a sign of harder times to follow.
In the Far East this morning the Nikkei 225 closed down 189.91 points at 13,017.24, whilst in Hong Kong the Hang send was still closed for the Chinese New Year celebrations.
Back here in London this morning, it was Compass Group that was doing well, up 15p at 328.5 on news that it was doing very well and had strong sales, with global revenue increasing. The group said that opearting profit was well ahead of last year for the same period. Merrills immediately reiterated its 'buy' stance.
On to mining, where Anglo was up 3.4% - a quid gain to 2,980 on a decent update, which included upbeat news on deBeers, which it own 45% of. Anglo said De Beers produced 51.1 mln carats in 2007, in line with 2006, and although uncertainty over world markets could continue to impact consumer diamond jewellery sales through the first half of 2008, the company is confident on market fundamentals beyond 2008. Peers liked that news, with Vedanta up 55p at 1,877, Lonmin up 62p to 3,015, Kazakhmys up 54p to 1,242 and Rio up over a quid at 5,323.
BG Group benefited from a UBS upgrade to 'buy' from 'neutral' with an increased price target of 1,340 pence versus 1,240 previously, following the energy company's 4th quarter results yesterday.
London Stock Exchange (LSE:LSE) did very well this morning, up 90p at 1,772 on broker upgarde to hold from reduce.
British Airways was up after its recent weak passenger data update, sending the shares 13p higher to just over 304p this morning.
the pharmas were off this morning, with GlaxoSmithKline 13p lower at 1,065 after its negative outlook for the year, prompting broker target cut to 1,265 pence from 1,345 and a repeat of its 'hold' stance. Peer AstraZeneca fell back in sympathy, down 17 at 1,962. And Shire lost 11 to 945 as Lehman Brothers downgraded the drugs firm to 'underweight' from 'equal-weight' and cut its price target to 865 pence.
Biffa was up over 11% or 38p to 365p after the waste firm agreed to a takeover offer by WasteAcquisitionco, which is a consortium within the Montagu Funds, the Global Infrastructure Partners (GIP) Funds and UCIL. The consortium will pay 350p in cash for each Biffa share, valuing the company's fully diluted share capital at about 1.231 bln stg. Peer waste firm Shanks Group was up 12p to 235 on the Biffa news.
Rank Group did well on bid rumours, up 5p at 100.75 on news that Genting was now at over 11% of the group, up from 10%. Genting owns Stanley Casinos.
Last night over the pond the DJI closed 46.90 points higher at 12,247.00, while the S&P 500 closed up 10.45 points at 1,336.90 and the Nasdaq up 14.28 points to close at 2,293.03. We're not sure why the US closed up as there is still much doom and gloom over there. January retails sales were down and December home sales also down, which didn't help sentiment. the poor Cisco update was also taken as a sign of harder times to follow.
In the Far East this morning the Nikkei 225 closed down 189.91 points at 13,017.24, whilst in Hong Kong the Hang send was still closed for the Chinese New Year celebrations.
Back here in London this morning, it was Compass Group that was doing well, up 15p at 328.5 on news that it was doing very well and had strong sales, with global revenue increasing. The group said that opearting profit was well ahead of last year for the same period. Merrills immediately reiterated its 'buy' stance.
On to mining, where Anglo was up 3.4% - a quid gain to 2,980 on a decent update, which included upbeat news on deBeers, which it own 45% of. Anglo said De Beers produced 51.1 mln carats in 2007, in line with 2006, and although uncertainty over world markets could continue to impact consumer diamond jewellery sales through the first half of 2008, the company is confident on market fundamentals beyond 2008. Peers liked that news, with Vedanta up 55p at 1,877, Lonmin up 62p to 3,015, Kazakhmys up 54p to 1,242 and Rio up over a quid at 5,323.
BG Group benefited from a UBS upgrade to 'buy' from 'neutral' with an increased price target of 1,340 pence versus 1,240 previously, following the energy company's 4th quarter results yesterday.
London Stock Exchange (LSE:LSE) did very well this morning, up 90p at 1,772 on broker upgarde to hold from reduce.
British Airways was up after its recent weak passenger data update, sending the shares 13p higher to just over 304p this morning.
the pharmas were off this morning, with GlaxoSmithKline 13p lower at 1,065 after its negative outlook for the year, prompting broker target cut to 1,265 pence from 1,345 and a repeat of its 'hold' stance. Peer AstraZeneca fell back in sympathy, down 17 at 1,962. And Shire lost 11 to 945 as Lehman Brothers downgraded the drugs firm to 'underweight' from 'equal-weight' and cut its price target to 865 pence.
Biffa was up over 11% or 38p to 365p after the waste firm agreed to a takeover offer by WasteAcquisitionco, which is a consortium within the Montagu Funds, the Global Infrastructure Partners (GIP) Funds and UCIL. The consortium will pay 350p in cash for each Biffa share, valuing the company's fully diluted share capital at about 1.231 bln stg. Peer waste firm Shanks Group was up 12p to 235 on the Biffa news.
Rank Group did well on bid rumours, up 5p at 100.75 on news that Genting was now at over 11% of the group, up from 10%. Genting owns Stanley Casinos.
Thursday, 7 February 2008
Market Wrap, Friday 7th February 2008
The FTSE ended the day down 151.3 points at 5,724.1, whilst the FTSE 250 closd down 140.3 points at 9,764.2. The expected 0.25% cut in interest rates to 5.25% base rate doing nothing for the under pressure market. All analysts expected the 0.25% cut, but there were some unofficial hopes of a 0.5% cut.
Over the pond the DJI had a negative start as well, down 25-30 points over the first couple of hours. Monster techie Cisco gave a cautious update, which just helped the bears gain strength in their negative stance and more weight to 'the recession has already kicked in' theory. 3 days in a row down, some hoped a better finish to the week. We'll have to wait for tomorrow to see if any positivbes return, and we don't mean the shorts getting closed. In the US yesterday the Federal Reserve official actually suggested that the current rising inflation could prevent the central bank from making further interest rate cuts.
Back here in London today, and continuing on from this morning, Yellow Pages publisher Yell remained a major casualty, closing down 50.25p at 279.75p as it warned its revenues will be loweer than expectations. Immediate reaction was broker downgrade to neautral.
Phrama GlaxoSmithKline was 89p down at 1,078p after its 4th quarter results were nothing special and the accompanying statement gave a negative outlook.
BT Group closed down nearly 28p at 237p after its reported 3rd quarter revenue was below expectations.
Rolls-Royce Group, the aero engine maker, fell 49p to 431p after it said it was increasing its payments to shareholders in 2007 by 35% as it reported a 13% rise in full-year underlying pretax profit to £800m. Analysts including Cazenove said the rebased dividend was at the low end of expectations.
Unilever was down 57p at 1,598p after initial excitement over its results gave way to disappointment on its €1.5bn share buyback programme, which some investors had hoped would be bigger.
In M&A news, Rio Tinto was down 195p at 5,222p and BHP down 51p at 1,469p as investors decided that BHP's attempt to take over its smaller rival will be a protracted affair.
BG Group was the top riser, up 41p at 1,118p, after it delivered increased earnings in the 4th quarter, which were ahead of analysts' expectations, prompting Merrill Lynch to reiterate its 'buy' stance. Clean net profit for the three months to December rose to £558m from £410m a year earlier, ahead of the expected estimate of £519m.
Medical devices maker Smith & Nephew was 9p higher at 634p after it reported a pre-tax profit of US$469m, down from US$550m.
Thomas Cook was down 1.25p at 268, despite a broker upgrade to 'buy' from 'hold' and target to 326p from 316p. It said the company's balance sheet looks strong and with a £375m cash return this should support the shares.
A broker downgrade left shares in Arriva off 46p at 690.5p as Morgan Stanley lowered its stance on the group to 'equal-weight' from 'overweight' with a price target cut to 805p from 905p.
Alliance Trust marked its debut in the FTSE100 by falling 8.75p to 340.75p.
Invensys remained the top riser, up 23.25p at 246.5p, after the company reported what Merrills called a 'solid' 3rd quarter results and gave a positive outlook, which prompted the broker to repeat its 'buy' stance. The company reported a pretax profit of £33m compared with £38m a year ago.
Troubled bank Northern Rock was 4p higher at 102p on the ongoing bid talk. Press reports said the group's plans to cut its £113 bln mortgage book in half under its in-house rescue plan to see off a rival proposal from Sir Richard Branson's Virgin Group.
Halfords fell 9p to 270.25p after it announced the departure of Ian McLeod, the CEO, with a trading update saying the 2nd half was slow but broker Merrills reiterated its 'buy'.
Over the pond the DJI had a negative start as well, down 25-30 points over the first couple of hours. Monster techie Cisco gave a cautious update, which just helped the bears gain strength in their negative stance and more weight to 'the recession has already kicked in' theory. 3 days in a row down, some hoped a better finish to the week. We'll have to wait for tomorrow to see if any positivbes return, and we don't mean the shorts getting closed. In the US yesterday the Federal Reserve official actually suggested that the current rising inflation could prevent the central bank from making further interest rate cuts.
Back here in London today, and continuing on from this morning, Yellow Pages publisher Yell remained a major casualty, closing down 50.25p at 279.75p as it warned its revenues will be loweer than expectations. Immediate reaction was broker downgrade to neautral.
Phrama GlaxoSmithKline was 89p down at 1,078p after its 4th quarter results were nothing special and the accompanying statement gave a negative outlook.
BT Group closed down nearly 28p at 237p after its reported 3rd quarter revenue was below expectations.
Rolls-Royce Group, the aero engine maker, fell 49p to 431p after it said it was increasing its payments to shareholders in 2007 by 35% as it reported a 13% rise in full-year underlying pretax profit to £800m. Analysts including Cazenove said the rebased dividend was at the low end of expectations.
Unilever was down 57p at 1,598p after initial excitement over its results gave way to disappointment on its €1.5bn share buyback programme, which some investors had hoped would be bigger.
In M&A news, Rio Tinto was down 195p at 5,222p and BHP down 51p at 1,469p as investors decided that BHP's attempt to take over its smaller rival will be a protracted affair.
BG Group was the top riser, up 41p at 1,118p, after it delivered increased earnings in the 4th quarter, which were ahead of analysts' expectations, prompting Merrill Lynch to reiterate its 'buy' stance. Clean net profit for the three months to December rose to £558m from £410m a year earlier, ahead of the expected estimate of £519m.
Medical devices maker Smith & Nephew was 9p higher at 634p after it reported a pre-tax profit of US$469m, down from US$550m.
Thomas Cook was down 1.25p at 268, despite a broker upgrade to 'buy' from 'hold' and target to 326p from 316p. It said the company's balance sheet looks strong and with a £375m cash return this should support the shares.
A broker downgrade left shares in Arriva off 46p at 690.5p as Morgan Stanley lowered its stance on the group to 'equal-weight' from 'overweight' with a price target cut to 805p from 905p.
Alliance Trust marked its debut in the FTSE100 by falling 8.75p to 340.75p.
Invensys remained the top riser, up 23.25p at 246.5p, after the company reported what Merrills called a 'solid' 3rd quarter results and gave a positive outlook, which prompted the broker to repeat its 'buy' stance. The company reported a pretax profit of £33m compared with £38m a year ago.
Troubled bank Northern Rock was 4p higher at 102p on the ongoing bid talk. Press reports said the group's plans to cut its £113 bln mortgage book in half under its in-house rescue plan to see off a rival proposal from Sir Richard Branson's Virgin Group.
Halfords fell 9p to 270.25p after it announced the departure of Ian McLeod, the CEO, with a trading update saying the 2nd half was slow but broker Merrills reiterated its 'buy'.
Bank of England Reduces Interest Rates 0.25%
The Bank of England has responded to a month of extreme market volatility by cutting the base rate by 0.25% to 5.25%.
The move follows more radical action by the US Federal Reserve over the last month which saw a total of 1.25% slashed off US rates.
The stance sees the Bank of England's monetary policy committee focus on the shorter-term problems being experienced in the property and equity markets rather than what some argue are mounting inflationary fears in the long-term.
Confirming its decision the Bank of England said: "The prospects for output growth abroad have deteriorated and the disruption to global financial markets has continued.
"In the United Kingdom, credit conditions for households and businesses are tightening. Consumer spending growth appears to have eased. Although the substantial fall in the sterling exchange rate is likely to promote re-balancing of total demand, output growth has moderated to around its historical average rate and business surveys suggest that further slowing is in prospect. These developments pose downside risks to the outlook for inflation.
"CPI inflation, at 2.1% in December, was close to the 2% target, but higher energy and food prices are expected to raise inflation, possibly quite sharply, in the coming months. And the lower level of sterling will boost import costs. The impact on inflation should begin to fade later in the year, but measures of inflation expectations are currently elevated. These developments pose upside risks to the outlook for inflation further ahead.
"Given this outlook for inflation, some slowing of demand growth, by reducing the pressure on capacity, is likely to be necessary to return inflation to target in the medium term. The committee needs to balance the risk that a sharp slowing in activity pulls inflation below the target in the medium term against the risk that elevated inflation expectations keep inflation above target.
"Against that background, the committee judged that a reduction in Bank Rate of 0.25 percentage points to 5.25% was necessary to meet the 2% target for CPI inflation in the medium term."
MDS Comment:
Whilst the 25 point reduction to 5.25% is nowhere near the 1.25% reduction to 3% that the Feds managed over the pond last month, albeit in two tranches, at least we're moing in the right direction. The markt already had the 0.25% reduction built in as the FTSE stayed flat at about minus 50 points aftre the 12 o'clock lunchtime announcement.
The move follows more radical action by the US Federal Reserve over the last month which saw a total of 1.25% slashed off US rates.
The stance sees the Bank of England's monetary policy committee focus on the shorter-term problems being experienced in the property and equity markets rather than what some argue are mounting inflationary fears in the long-term.
Confirming its decision the Bank of England said: "The prospects for output growth abroad have deteriorated and the disruption to global financial markets has continued.
"In the United Kingdom, credit conditions for households and businesses are tightening. Consumer spending growth appears to have eased. Although the substantial fall in the sterling exchange rate is likely to promote re-balancing of total demand, output growth has moderated to around its historical average rate and business surveys suggest that further slowing is in prospect. These developments pose downside risks to the outlook for inflation.
"CPI inflation, at 2.1% in December, was close to the 2% target, but higher energy and food prices are expected to raise inflation, possibly quite sharply, in the coming months. And the lower level of sterling will boost import costs. The impact on inflation should begin to fade later in the year, but measures of inflation expectations are currently elevated. These developments pose upside risks to the outlook for inflation further ahead.
"Given this outlook for inflation, some slowing of demand growth, by reducing the pressure on capacity, is likely to be necessary to return inflation to target in the medium term. The committee needs to balance the risk that a sharp slowing in activity pulls inflation below the target in the medium term against the risk that elevated inflation expectations keep inflation above target.
"Against that background, the committee judged that a reduction in Bank Rate of 0.25 percentage points to 5.25% was necessary to meet the 2% target for CPI inflation in the medium term."
MDS Comment:
Whilst the 25 point reduction to 5.25% is nowhere near the 1.25% reduction to 3% that the Feds managed over the pond last month, albeit in two tranches, at least we're moing in the right direction. The markt already had the 0.25% reduction built in as the FTSE stayed flat at about minus 50 points aftre the 12 o'clock lunchtime announcement.
Morning Market, Thursday 7th February 2008
The FTSE was down about 45 points at 5,829.6 in its first hour of trading, whilst the FTSE 250 was down about 5 points at 9,899.
Everyone expects the Band of England to reduce interest rates by 0.25% to 5.,25% today at lunchtime, which we doubt will stimulate the amrket very much.
Over the pond in the US yesterday evening the DJI closed down 65.03 points at 12,200.1, whilst the S&P500 closed down 10.19 points at 1,326.45 and the Nasdaq down 30.82 points at 2,278.75. This was the 3rd day in a row for falling, with investors still concerned about the US economy despite the recent interest rate cuts. Inflation seems to be a problem now, and furtther interest rates don't look possible.
In the Far East today, the Nikkei 225 actually closed up 107.91 points at 13,207.15, whilst in Hong Kong the Hang Seng was having a nice rest as it's the Chinese New Year.
The oil price was down in Far East trading too, with Light Sweet (Mar del) down about 22cents at US$87 bbl, whilst Brent Crude (March del) was down 13 cents at US$87.65 bbl.
Back to stocks here, and it was Yell, the Yellow Pages publisher that was under pressure, down 28p at 302p after it said that revenues will be slightly lower than expected. The nigh-on 8.5% drop in the share price this morning shows what sort of reaction to negative comments is seen at the moment.
BT Group was down 11p at 251.75 after informing us that its 3rd quarter revenue was down.
Rolls-Royce Group was down 19p at 461p on news that it was increasing its payments to shareholders in 2007 by 35% as it reported a 13% rise in full-year underlying pretax profit to £800m. Broker Cazenove said this wasn't very exciting, and below what was expected.
Rio was down 109p at 5,308 and BHP down 30p at 1,490 as investors think the merger isn't likely to go ahead, or is going to drag on alot longer, at the least. Peer Vedanta was down 23p at 1,859.
BG Group, on the other hand, was up 45p at 1,122 after the gas provider gave an increased earnings update for the 4th quaretr, which was better than analysts expected. Net profit for the 3 months to Dec07 rose to £558m, up from £410m lst year for the same period. The £558m was up from an expected £519m.
British Land was up 13p at 975 after the group posted a higher 3rd quarter profit, but added that its portfolio valuation mark-down declined 8.9% for the period, or 8.4% for the nine months. Its real estate investment trust peers were also up this morning, with Land Securities up 3p at 1,552, Brixton up a penny at 338p and Great Portland Estates 4p up at 464.25.
Unilever was up 14p at 1,669 after full year results, which were in line with market expectations, benefiting from a 3rd successive year of accelerating sales growth alongside an underlying improvement in margin. Pretax profit totaled €5.18 bln, up 11% if using constant currency rates.
Arriva was dowjn 20p at 717p on broker downgrade to 'equal-weight' from 'overweight' with a price target cut to 805p from 905p. Its peer Stagecoach was down 7p at 245p.
Everyone expects the Band of England to reduce interest rates by 0.25% to 5.,25% today at lunchtime, which we doubt will stimulate the amrket very much.
Over the pond in the US yesterday evening the DJI closed down 65.03 points at 12,200.1, whilst the S&P500 closed down 10.19 points at 1,326.45 and the Nasdaq down 30.82 points at 2,278.75. This was the 3rd day in a row for falling, with investors still concerned about the US economy despite the recent interest rate cuts. Inflation seems to be a problem now, and furtther interest rates don't look possible.
In the Far East today, the Nikkei 225 actually closed up 107.91 points at 13,207.15, whilst in Hong Kong the Hang Seng was having a nice rest as it's the Chinese New Year.
The oil price was down in Far East trading too, with Light Sweet (Mar del) down about 22cents at US$87 bbl, whilst Brent Crude (March del) was down 13 cents at US$87.65 bbl.
Back to stocks here, and it was Yell, the Yellow Pages publisher that was under pressure, down 28p at 302p after it said that revenues will be slightly lower than expected. The nigh-on 8.5% drop in the share price this morning shows what sort of reaction to negative comments is seen at the moment.
BT Group was down 11p at 251.75 after informing us that its 3rd quarter revenue was down.
Rolls-Royce Group was down 19p at 461p on news that it was increasing its payments to shareholders in 2007 by 35% as it reported a 13% rise in full-year underlying pretax profit to £800m. Broker Cazenove said this wasn't very exciting, and below what was expected.
Rio was down 109p at 5,308 and BHP down 30p at 1,490 as investors think the merger isn't likely to go ahead, or is going to drag on alot longer, at the least. Peer Vedanta was down 23p at 1,859.
BG Group, on the other hand, was up 45p at 1,122 after the gas provider gave an increased earnings update for the 4th quaretr, which was better than analysts expected. Net profit for the 3 months to Dec07 rose to £558m, up from £410m lst year for the same period. The £558m was up from an expected £519m.
British Land was up 13p at 975 after the group posted a higher 3rd quarter profit, but added that its portfolio valuation mark-down declined 8.9% for the period, or 8.4% for the nine months. Its real estate investment trust peers were also up this morning, with Land Securities up 3p at 1,552, Brixton up a penny at 338p and Great Portland Estates 4p up at 464.25.
Unilever was up 14p at 1,669 after full year results, which were in line with market expectations, benefiting from a 3rd successive year of accelerating sales growth alongside an underlying improvement in margin. Pretax profit totaled €5.18 bln, up 11% if using constant currency rates.
Arriva was dowjn 20p at 717p on broker downgrade to 'equal-weight' from 'overweight' with a price target cut to 805p from 905p. Its peer Stagecoach was down 7p at 245p.
Wednesday, 6 February 2008
Market Wrap, Wednesday 6th February 2008
The FTSE closed up 7.4 points at 5,875.4, down from the high of 5,892.6 and about 60 points up from the session low of 5,816.4. The FTSE 250 closed down 50.8 points at 9,904.5.
By the time London closed the DJI was up about 105 points at 12,370, whilst the S&P500 was up abou 12 points at 1,349 and the Nasdaq was up about 23 points at 2,332. This was all much better, after the rather worrying previous day.
Back here it was BskyB in the news, up 38p at 577p as profits were higher than analysts expected. As mentioned this morning, the satellite TV-come broadband supplier reported lower 1st half profits and high broadband costs, and it also stuck in a charge for its 17.9% stake in ITV, which needs lowering. Peer ITV was up 2.2p at 76.6p on bid speculation.
Morrisons the supermarket gets stronger, up 11p to 304p on upgrade and 330p target, up from 310p.
British Energy was up 20.5p at 513p with upgrade and target of 709p, up from 693p.
BT was up 5.5p to just shy of 263p on hopes of some decent results when they post tomorrow.
Heavyweight miner Xstrata was up 45p to 3,835 on rumours that the bid from Vale Brazil may come in at the 45-quid mark. Other miners didn't fair as well, with BHP down 77p at 1,520 after Rio rejected the increased bid from BHP saying it was still worth alot more than that. BHP Biliton had upped its offer from 3-for-1 to 3.4-for-1. Chinalco and Alcoa have 12% between them, and talks are starting there regarindg a potential M&A deal, the miner said. BHP also announced figures, which weren't as good as expected, with profit down 2.4% - despite being USD6.017 bln, down from US$6.168 bln. The weaker dollar affecting profits. The rejection of BHP's bid saw Rio also drop, down 17p at 5,417. Peers also suffreed, with Vedanta down 49p at 1,882, Kazakhmys down 9p at 1,215, and Anto down a smidge - 1.5p off at 674p.
Tomorrow's Bank of England interest rate decision was the cause of some banks to fall back a little, with RBS down 5p at 378p, Lloyds TSB off 7.5p at 425p and HBOS down 8.5p at 679p. Northern Rock was up 8p to 98p on hopes that a takeover of the stricken mortgage lender will soon arrive. News that Hedge fund SRM Global Master had upped its stake in Northern Rock to 10.77% helped the rise.
Insurer Aviva was down 7p at 602.5 despite some fairly decent figures. Peer Legal & General was also down 2.9p and Friends Provident down 2.6p at 135.2p.
Homeserve was in demand, up 75p at 1,750 after a decent trading update and broker upgrade to buy.
By the time London closed the DJI was up about 105 points at 12,370, whilst the S&P500 was up abou 12 points at 1,349 and the Nasdaq was up about 23 points at 2,332. This was all much better, after the rather worrying previous day.
Back here it was BskyB in the news, up 38p at 577p as profits were higher than analysts expected. As mentioned this morning, the satellite TV-come broadband supplier reported lower 1st half profits and high broadband costs, and it also stuck in a charge for its 17.9% stake in ITV, which needs lowering. Peer ITV was up 2.2p at 76.6p on bid speculation.
Morrisons the supermarket gets stronger, up 11p to 304p on upgrade and 330p target, up from 310p.
British Energy was up 20.5p at 513p with upgrade and target of 709p, up from 693p.
BT was up 5.5p to just shy of 263p on hopes of some decent results when they post tomorrow.
Heavyweight miner Xstrata was up 45p to 3,835 on rumours that the bid from Vale Brazil may come in at the 45-quid mark. Other miners didn't fair as well, with BHP down 77p at 1,520 after Rio rejected the increased bid from BHP saying it was still worth alot more than that. BHP Biliton had upped its offer from 3-for-1 to 3.4-for-1. Chinalco and Alcoa have 12% between them, and talks are starting there regarindg a potential M&A deal, the miner said. BHP also announced figures, which weren't as good as expected, with profit down 2.4% - despite being USD6.017 bln, down from US$6.168 bln. The weaker dollar affecting profits. The rejection of BHP's bid saw Rio also drop, down 17p at 5,417. Peers also suffreed, with Vedanta down 49p at 1,882, Kazakhmys down 9p at 1,215, and Anto down a smidge - 1.5p off at 674p.
Tomorrow's Bank of England interest rate decision was the cause of some banks to fall back a little, with RBS down 5p at 378p, Lloyds TSB off 7.5p at 425p and HBOS down 8.5p at 679p. Northern Rock was up 8p to 98p on hopes that a takeover of the stricken mortgage lender will soon arrive. News that Hedge fund SRM Global Master had upped its stake in Northern Rock to 10.77% helped the rise.
Insurer Aviva was down 7p at 602.5 despite some fairly decent figures. Peer Legal & General was also down 2.9p and Friends Provident down 2.6p at 135.2p.
Homeserve was in demand, up 75p at 1,750 after a decent trading update and broker upgrade to buy.
Market Bytes 'Live'
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After great success and demand with Market Bytes we have decided to add to this and offer you the 'LIVE' version where you can learn and trade whilst watching our Traders at work...
You will never have to Trade alone again!!! The 'LIVE' version will concentrate on the London opening in the FX and Gold market and you will have full support from 6am till 10am daily. Not only will you be able to trade whilst you watch, you will also be able to ask questions in 'LIVE' market conditions...
You will learn how to analyse the market before the London move and how to really capitalise on all those movements.
This service is only available to Market Bytes users. Details will follow next week...
Please email me at dan@mdsmarkets.com when you reach your 400 point target for February!!!
Morning Market, Wednesday 6th February 2008
The FTSE fell onm opening this morning in response to the over 370 point drop over the pond last night. But it had recoved to even after an hour, staying around the 5,870 mark. The FTSE 250 was down nearly 50 points at 9,906. It's probably the hopes of an interest rate cut tomorrow that's helped the FTSE stabilse, we think.
Over the pond last night the DJI fell 370.03 to 12,265.13, whilst the S&P500 was down 44.18 at 1,336.64 and the Nasdaq closed down 73.28 points to 2,309.57.
In the Far East this morning the Nikkei 225 closed down 646.26 at 13,099.24 and in Hong Kong the Hang Seng closed down 1,339.24 points at 23,469.46.
Back here in London it was satellite broadcaster (come broadband and telephone provider - Oh, and credit cards) BskyB that was doing well, although only up 5p at 544p, after the figures were better than analysts expected. Whilst 1st half profit was lower, the broadband service was still costing money and there was a provision made for the 17.9% ITV stake that has to be sorted out.
Morrisons was top of the baord this morning, though, with a 7p rise to 3-quid with its overweight rating and 330p target as the supermarket chain moves upmarket and attracts new customers, which headed the FTSE 100 leaderboard, 7p ahead at 300, with Morgan Stanley upping its stance on the supermarket chain to 'overweight' from 'equal-weight', while upping its target to 330p from 310p.
Telecoms provider BT was also up 5p at 262p on reports it was developing a new mobile strategy to target its customers as well as attract new ones, and said it was stopping its not so popular mobile phone service Fusion.
Diageo was up 3p at 1,020 on news of an exclsuive JV with a Vodka maker. 11-quid broker target was reitereated.
Those who were down inmcluded mining giant BHP, who were down a massive 5% early doors, or 80p at 1,517, on news that it seems to have got close to the Rio deal but is giving away far more than it liked. Rio, on the other hand, looking the winner as it was up over 30p at 2,562p. The deal looks to be 3.4 BHP shares for each Rio share, which is up significantly from the 3-for-1 that was hoped for.
Over the pond last night the DJI fell 370.03 to 12,265.13, whilst the S&P500 was down 44.18 at 1,336.64 and the Nasdaq closed down 73.28 points to 2,309.57.
In the Far East this morning the Nikkei 225 closed down 646.26 at 13,099.24 and in Hong Kong the Hang Seng closed down 1,339.24 points at 23,469.46.
Back here in London it was satellite broadcaster (come broadband and telephone provider - Oh, and credit cards) BskyB that was doing well, although only up 5p at 544p, after the figures were better than analysts expected. Whilst 1st half profit was lower, the broadband service was still costing money and there was a provision made for the 17.9% ITV stake that has to be sorted out.
Morrisons was top of the baord this morning, though, with a 7p rise to 3-quid with its overweight rating and 330p target as the supermarket chain moves upmarket and attracts new customers, which headed the FTSE 100 leaderboard, 7p ahead at 300, with Morgan Stanley upping its stance on the supermarket chain to 'overweight' from 'equal-weight', while upping its target to 330p from 310p.
Telecoms provider BT was also up 5p at 262p on reports it was developing a new mobile strategy to target its customers as well as attract new ones, and said it was stopping its not so popular mobile phone service Fusion.
Diageo was up 3p at 1,020 on news of an exclsuive JV with a Vodka maker. 11-quid broker target was reitereated.
Those who were down inmcluded mining giant BHP, who were down a massive 5% early doors, or 80p at 1,517, on news that it seems to have got close to the Rio deal but is giving away far more than it liked. Rio, on the other hand, looking the winner as it was up over 30p at 2,562p. The deal looks to be 3.4 BHP shares for each Rio share, which is up significantly from the 3-for-1 that was hoped for.
Tuesday, 5 February 2008
Market Wrap, Tuesday 5th February 2008
The FTSE closed down 158.2 points at 5,868 today, whilst the FTSE 250 closed down 306.8 points at 9,955.3.
Over in the US we had the DJI down about 250 points by the time London closed, with the S&P500 down about 30 points at 1,350 and the Nasdaq down about 40 points at 2,342. It seems a recession is now rolling in the US, and looks like we'll follow. The best gauge on this is the non-manufacturing activity, which fell more than 12 points to 41.9 for January, down from 54.4 in December. This is the worst figure since late 2001, which is very worrying. Top economists and analysts had been expecting the index to fall to 53.0.
Here in London it was the builders and retailers that had a poor day. Builder Taylor Wimpey closed down 16.5p at just shy of 185p, whilst peer Persimmons closed down 58p at 732.
On to the High Street, where Next closd down 109p at 1,413 on broker downgrade to sell from buy - a double whammy, jumping neutral. Carpetright has concerned investors in this sector with a poor trading update. Carpetright fel;l nearly 40p to 782p on its full year trading update. Kingfisher was down 12p at 141.6 as well.
Supermarkets group Morrisons was down 12p to 293p on downgrade to 'equal-weight' from 'overweight' with a target of 334p, down from 360p.
British Airways closed down 19p at 293 after it admitted fewer passengers travelled last month than in January 2007, and its aircraft were also less full on percentage terms. The airline said it carried 2.33 mln people in January, down 0.8% on the 2.35 mln who travelled on its services a year previously. The load factor declined by 0.7% to 69.2%.
Schroders was hit by some broker changes and closed 78p down at 1,025 downgrade to 'underweight' from 'equal-weight' as part of a sector review.
Real estate investment trusts took a pounding after a general downgrade, with Hammersons down 78p to 1,067, British Land down 47p to 951, Land Securities down 67p to 1,547, Brixton down 15.25 to 333p and Segro off 24p at 501.
Cadbury Schweppes closed down 3p at 564p, but had been up most of the day after upgrade to 'overweight' from 'neutral'.
ARM Holdings, the chip maker, fell over 20% (24p) to 94p after reporting lower-than-expected full-year numbers
Northern Foods ended nearly 7p down at 91.25p after it was spread around that Marks & Spencer has asked for some better discounts.
Northern Rock closed 2p up at 90p on reports that Olivant, who backed out yesterday, may return to the auction for the stricken mortgage bank.
Over in the US we had the DJI down about 250 points by the time London closed, with the S&P500 down about 30 points at 1,350 and the Nasdaq down about 40 points at 2,342. It seems a recession is now rolling in the US, and looks like we'll follow. The best gauge on this is the non-manufacturing activity, which fell more than 12 points to 41.9 for January, down from 54.4 in December. This is the worst figure since late 2001, which is very worrying. Top economists and analysts had been expecting the index to fall to 53.0.
Here in London it was the builders and retailers that had a poor day. Builder Taylor Wimpey closed down 16.5p at just shy of 185p, whilst peer Persimmons closed down 58p at 732.
On to the High Street, where Next closd down 109p at 1,413 on broker downgrade to sell from buy - a double whammy, jumping neutral. Carpetright has concerned investors in this sector with a poor trading update. Carpetright fel;l nearly 40p to 782p on its full year trading update. Kingfisher was down 12p at 141.6 as well.
Supermarkets group Morrisons was down 12p to 293p on downgrade to 'equal-weight' from 'overweight' with a target of 334p, down from 360p.
British Airways closed down 19p at 293 after it admitted fewer passengers travelled last month than in January 2007, and its aircraft were also less full on percentage terms. The airline said it carried 2.33 mln people in January, down 0.8% on the 2.35 mln who travelled on its services a year previously. The load factor declined by 0.7% to 69.2%.
Schroders was hit by some broker changes and closed 78p down at 1,025 downgrade to 'underweight' from 'equal-weight' as part of a sector review.
Real estate investment trusts took a pounding after a general downgrade, with Hammersons down 78p to 1,067, British Land down 47p to 951, Land Securities down 67p to 1,547, Brixton down 15.25 to 333p and Segro off 24p at 501.
Cadbury Schweppes closed down 3p at 564p, but had been up most of the day after upgrade to 'overweight' from 'neutral'.
ARM Holdings, the chip maker, fell over 20% (24p) to 94p after reporting lower-than-expected full-year numbers
Northern Foods ended nearly 7p down at 91.25p after it was spread around that Marks & Spencer has asked for some better discounts.
Northern Rock closed 2p up at 90p on reports that Olivant, who backed out yesterday, may return to the auction for the stricken mortgage bank.
Currency Report - Tuesday 05th February
Good morning
I trust you are all having a good day. The markets have now calmed down since non farm on friday and are now moving back on high probability breakouts.
Here are just 2 examples of trades i have taken today. Eur Usd had been over bought over the last few days and the red daily conductor was key 2 days a go. I mentioned on Bytes today to look for the break of 1.4800 and we are now 100 points lower and a lot closer to our 400 points for the month.
GBPCHF is forming a double bottom on the daily and the risk was always a pull back up again. The green market conductors started to build and as we broke above the 2.1500 our trigger was hit and we are now 150 points up on the trade and ready to bank part of the trade.
Keep up the good work and i look forward to giving you more predictions tomorrow.
I trust you are all having a good day. The markets have now calmed down since non farm on friday and are now moving back on high probability breakouts.
Here are just 2 examples of trades i have taken today. Eur Usd had been over bought over the last few days and the red daily conductor was key 2 days a go. I mentioned on Bytes today to look for the break of 1.4800 and we are now 100 points lower and a lot closer to our 400 points for the month.
GBPCHF is forming a double bottom on the daily and the risk was always a pull back up again. The green market conductors started to build and as we broke above the 2.1500 our trigger was hit and we are now 150 points up on the trade and ready to bank part of the trade.
Keep up the good work and i look forward to giving you more predictions tomorrow.
Morning Market, Tuesday 5th February 2008
The FTSE was down about 27 points at 5,989 in its first hour of trading, whilst the FTSE 250 was down 78 points at 10,183.
Over the pond the last night the DJI closed down 108 points at 12,635, whilst the S&P500 was down nealry 15 points at 1,380.82 and the Nasdaq was down 30.51 at 2,382.85.
In the Far East today the Nikkei 225 closed down 114.2 points at 13,745.5 and in Hong Kong the Hang Seng was down about 360 points at 24,670 by its lunchtime lull.
Back here in London there was some negative action on the property sector as HSBC downgraded some of the bigger players, citing a 'correction' in the commercial property arena of something like 25-30%. Hammerson was down nearly 40p at 1,106, British Land down 20p at 979 and Land Securities down 17p at 1,597.
Supermarkets group Morrisons was down 8p at 297p on broker downgrade and a reduction in target from 360p to 334p. Associated British Foods was down 12p at 868p also on a broker downgrade.
BP helped the FTSE, though, by rising 11p to 553p despite 3rd quarter profits not being as high as expected, but the dividend was up to 13.525cents. Peer RD Shell was up 29p at 1,835.
Cadbury Schweppes received a broker upgrade and was up 8p at 575p.
ARM Holdings, the PC chip designer, was 16p lower at 102p after results weren't as good as hoped, which were the same as last year but lower than analysts expectations. Broker target became 115p, down from 140p.
Carpetright was down 44p at 777p as results were only at what everyone expected.
Stricken mortgage lender Northern Rock was nearly 2p down at 86p after Olivant pulled out of the running last night.
Over the pond the last night the DJI closed down 108 points at 12,635, whilst the S&P500 was down nealry 15 points at 1,380.82 and the Nasdaq was down 30.51 at 2,382.85.
In the Far East today the Nikkei 225 closed down 114.2 points at 13,745.5 and in Hong Kong the Hang Seng was down about 360 points at 24,670 by its lunchtime lull.
Back here in London there was some negative action on the property sector as HSBC downgraded some of the bigger players, citing a 'correction' in the commercial property arena of something like 25-30%. Hammerson was down nearly 40p at 1,106, British Land down 20p at 979 and Land Securities down 17p at 1,597.
Supermarkets group Morrisons was down 8p at 297p on broker downgrade and a reduction in target from 360p to 334p. Associated British Foods was down 12p at 868p also on a broker downgrade.
BP helped the FTSE, though, by rising 11p to 553p despite 3rd quarter profits not being as high as expected, but the dividend was up to 13.525cents. Peer RD Shell was up 29p at 1,835.
Cadbury Schweppes received a broker upgrade and was up 8p at 575p.
ARM Holdings, the PC chip designer, was 16p lower at 102p after results weren't as good as hoped, which were the same as last year but lower than analysts expectations. Broker target became 115p, down from 140p.
Carpetright was down 44p at 777p as results were only at what everyone expected.
Stricken mortgage lender Northern Rock was nearly 2p down at 86p after Olivant pulled out of the running last night.
Monday, 4 February 2008
Northern Rock - An Update...
Today was the deadline for bids for the stricken mortgage bank, Northern Rock.
Northern Rock's second biggest shareholder, RAB Capital, has thrown its weight behind the bank's standalone rescue plan after private investment firm Olivant pulled out of the running.
RAB, which owns 8% of Northern Rock, had been backing Olivant's bid but chairman Luqman Arnold confirmed it had pulled out at 4.15pm, before Virgin submitted its own proposals half an hour later.
A statement from RAB Capital founder and chief executive Philip Richards said: "We've always said that we wanted to see a strong and independent solution for Northern Rock. In the current circumstances, there is only one strong and independent solution available, in the shape of the proposal from the Northern Rock team led by Paul Thompson."
RAB's statement came minutes after Northern Rock confirmed it had submitted an in-house rescue proposal, which will compete with Virgin's proposal confirmed just over an hour earlier.
Under the plans, the Northern Rock restructuring proposal would combine a new equity raising of not less than £500 million (which would be conditional upon EU state aid approval), a reduction in the assets held on the company's balance sheet and a reorganisation of its operations.
In a statement Northern Rock said it believes the restructuring proposal, once implemented in full, will result in an 'independent, well-capitalised, low cost and significantly lower risk mortgage and savings bank, with two distinct phases of development'.
The first phase would involve business stabilisation, controlled reduction of current loan book and preservation of capital within the balance sheet, the pay down of the bond funding proposed by HM Treasury to refinance in full the current Bank of England facility and removal of Government support
In the second phase the group would redirect its focus to prime quality lending in line with the company's ability to raise retail and wholesale funds along with scope for dividends and capital returns.
Former Resolution boss Thompson would become the new head of the group if the bank's proposals are successful while Andy Kuipers would take on the role of deputy chief.
The announcement came hot on the heels of the submission of a proposal from Virgin Group for Northern Rock (NRK.L) although it remained tight lipped on the details of the bid.
Virgin's executive chairman Sir Brian Pittman said the proposal met all of the Tripartite Authorities' objectives and said the proposal 'seeks to stabilise the company and rebuild it as a trusted and thriving institution under the Virgin brand with a long-term future.'
Virgin's proposal is intends an injection of £1.25 billion of new equity capital into the lender.
The statement said it would constitute £500 million cash, a £500 million rights issue at 25p per share and the contribution of the complimentary Virgin Money business for £250 million.
Northern Rock shares slid sharply on the news of Olivant's exit, ending the day down 8p or 8.33% at 88p, after earlier rallying to a lunchtime high of 107.25p.
In a 4.15pm statement to the stock exchange, Olivant chairman Luqman Arnold set the ball rolling when he said: "Despite working intensively, we have been unable to formulate a value creation proposal which meets our investment criteria whilst also respecting HM Government’s proposed financing terms and the interests of other stakeholders in the company."
RAB, along with biggest Northern Rock shareholder SRM Global, had been backing the Olivant bid.
Northern Rock's second biggest shareholder, RAB Capital, has thrown its weight behind the bank's standalone rescue plan after private investment firm Olivant pulled out of the running.
RAB, which owns 8% of Northern Rock, had been backing Olivant's bid but chairman Luqman Arnold confirmed it had pulled out at 4.15pm, before Virgin submitted its own proposals half an hour later.
A statement from RAB Capital founder and chief executive Philip Richards said: "We've always said that we wanted to see a strong and independent solution for Northern Rock. In the current circumstances, there is only one strong and independent solution available, in the shape of the proposal from the Northern Rock team led by Paul Thompson."
RAB's statement came minutes after Northern Rock confirmed it had submitted an in-house rescue proposal, which will compete with Virgin's proposal confirmed just over an hour earlier.
Under the plans, the Northern Rock restructuring proposal would combine a new equity raising of not less than £500 million (which would be conditional upon EU state aid approval), a reduction in the assets held on the company's balance sheet and a reorganisation of its operations.
In a statement Northern Rock said it believes the restructuring proposal, once implemented in full, will result in an 'independent, well-capitalised, low cost and significantly lower risk mortgage and savings bank, with two distinct phases of development'.
The first phase would involve business stabilisation, controlled reduction of current loan book and preservation of capital within the balance sheet, the pay down of the bond funding proposed by HM Treasury to refinance in full the current Bank of England facility and removal of Government support
In the second phase the group would redirect its focus to prime quality lending in line with the company's ability to raise retail and wholesale funds along with scope for dividends and capital returns.
Former Resolution boss Thompson would become the new head of the group if the bank's proposals are successful while Andy Kuipers would take on the role of deputy chief.
The announcement came hot on the heels of the submission of a proposal from Virgin Group for Northern Rock (NRK.L) although it remained tight lipped on the details of the bid.
Virgin's executive chairman Sir Brian Pittman said the proposal met all of the Tripartite Authorities' objectives and said the proposal 'seeks to stabilise the company and rebuild it as a trusted and thriving institution under the Virgin brand with a long-term future.'
Virgin's proposal is intends an injection of £1.25 billion of new equity capital into the lender.
The statement said it would constitute £500 million cash, a £500 million rights issue at 25p per share and the contribution of the complimentary Virgin Money business for £250 million.
Northern Rock shares slid sharply on the news of Olivant's exit, ending the day down 8p or 8.33% at 88p, after earlier rallying to a lunchtime high of 107.25p.
In a 4.15pm statement to the stock exchange, Olivant chairman Luqman Arnold set the ball rolling when he said: "Despite working intensively, we have been unable to formulate a value creation proposal which meets our investment criteria whilst also respecting HM Government’s proposed financing terms and the interests of other stakeholders in the company."
RAB, along with biggest Northern Rock shareholder SRM Global, had been backing the Olivant bid.
Market Wrap, Monday 4th February 2008
The FTSE closed alomost even, down just 3 points at 6,026.2. During the session it bounced off the all important 6k line, which is a good sign. For now. It's high was about 45 points higher than the close at 6,071. The FTSE 250 closed up 75.5 points at 10,262.1.
By the time London closed the DJI was down about 65 points at 12,679, whilst the S&P500 was down 8 points at 1,387 and the Nasdaq was down 15 points at 2,398.3. This was expected, really, as Thursday and Friday had shown some decent gains of about 300 points.
Back here in London we heard bid rumours about Friends Provident, the insuance giant, which ended the day up 4.7p at 140.7 on news that US-based JC Flowers was sniffing with intenet to make a bid.
Carrying on from this morning, ITV was also in the M&A news with runmours of three different private equity groups eyeing up the TV broadcaster with a view to offer around £3 bln. An upgare to line its performance to its peers in the sector was swift, but £3 bln does seem a bit 'toppy'.
The miners did well, on the whole, but a couple didn't fair so good. Rio was down 73p at 5,527.5 and Xstrata was down 108p at 3,894.5. Those that did do well included Anglo, who closed up 35p at 2,944 after saying today it has entered a memorandum of understanding (MOU) with the China Development Bank - a bid or buyout could follow. It's no secret the Chinese need raw materials at an alarmingly high growth rate. Peer BHP closed up 27p at 1,648.5 and Vedanta was up 27p to close at 2,020.5. Anto also did well, closing up 10p at 710.5. Aquarius Platinum was one to mention as well, up 74p at 741. Cairn Energy closed up 10p at 2,557.5 on a Morgan Stanley upgrade, prompted by news that the company loks like delivery as forecasted oil from Mangala in Rajasthan by the Q3 of 2009.
Banks - RBS closed up nearly 17p at 405.5 after weekend press news that the bank would possibly satrt selling some assets, inclusing its stake in the Bank of China.
Rolls-Royce gained 4p to close at 490.25 on news of another order for its aero engines to the tune of US$1.5 bln.
Sage Group rose 6.5p to to 229.5 after adecent trading update and continued 'buy' rating and 305p target by Deutsche Bank.
Carphone Warehouse disn't have such a good day, down nearly 25p at just shy of 315p on profit taking aftre the recetn run up on bid rumours.
Unilever closed down 41p at 1,676 on weekend press regarding the CEO's negative views on returning funds to shareholders. Results are out on Thursday.
Sainsburys fell 9.5p to 386p but peer Tesco was up 8p at just shy of 409p.
Smith & Nephew closed down 16.5p at 639 on negative broker comment.
Northern Rock was the biggest midcap faller, down 8p at 88 on news that Olivant has pulled out the running.
Budget airline easyjet was down almost 14p at 453 on news that peer Ryanair gave some bad figures and negative update.
Mitchells & Butlers cosed up 16.25p at 466.5 after news that Punch Taverns had submitted outline terms of a possible merger. Broker upgrade followed, with Evo giving a target of 6-quid, up from 5-quid. However, Punch shares fell back 46p to 667.5p on the news.
By the time London closed the DJI was down about 65 points at 12,679, whilst the S&P500 was down 8 points at 1,387 and the Nasdaq was down 15 points at 2,398.3. This was expected, really, as Thursday and Friday had shown some decent gains of about 300 points.
Back here in London we heard bid rumours about Friends Provident, the insuance giant, which ended the day up 4.7p at 140.7 on news that US-based JC Flowers was sniffing with intenet to make a bid.
Carrying on from this morning, ITV was also in the M&A news with runmours of three different private equity groups eyeing up the TV broadcaster with a view to offer around £3 bln. An upgare to line its performance to its peers in the sector was swift, but £3 bln does seem a bit 'toppy'.
The miners did well, on the whole, but a couple didn't fair so good. Rio was down 73p at 5,527.5 and Xstrata was down 108p at 3,894.5. Those that did do well included Anglo, who closed up 35p at 2,944 after saying today it has entered a memorandum of understanding (MOU) with the China Development Bank - a bid or buyout could follow. It's no secret the Chinese need raw materials at an alarmingly high growth rate. Peer BHP closed up 27p at 1,648.5 and Vedanta was up 27p to close at 2,020.5. Anto also did well, closing up 10p at 710.5. Aquarius Platinum was one to mention as well, up 74p at 741. Cairn Energy closed up 10p at 2,557.5 on a Morgan Stanley upgrade, prompted by news that the company loks like delivery as forecasted oil from Mangala in Rajasthan by the Q3 of 2009.
Banks - RBS closed up nearly 17p at 405.5 after weekend press news that the bank would possibly satrt selling some assets, inclusing its stake in the Bank of China.
Rolls-Royce gained 4p to close at 490.25 on news of another order for its aero engines to the tune of US$1.5 bln.
Sage Group rose 6.5p to to 229.5 after adecent trading update and continued 'buy' rating and 305p target by Deutsche Bank.
Carphone Warehouse disn't have such a good day, down nearly 25p at just shy of 315p on profit taking aftre the recetn run up on bid rumours.
Unilever closed down 41p at 1,676 on weekend press regarding the CEO's negative views on returning funds to shareholders. Results are out on Thursday.
Sainsburys fell 9.5p to 386p but peer Tesco was up 8p at just shy of 409p.
Smith & Nephew closed down 16.5p at 639 on negative broker comment.
Northern Rock was the biggest midcap faller, down 8p at 88 on news that Olivant has pulled out the running.
Budget airline easyjet was down almost 14p at 453 on news that peer Ryanair gave some bad figures and negative update.
Mitchells & Butlers cosed up 16.25p at 466.5 after news that Punch Taverns had submitted outline terms of a possible merger. Broker upgrade followed, with Evo giving a target of 6-quid, up from 5-quid. However, Punch shares fell back 46p to 667.5p on the news.
Currency Report - Monday 04th February
Good afternoon,
I trust you all had a good weekend. Shame about the rugby and losing to Wales but i guess it has to happen once in a century!!!
Its been a reasonably quiet day with limited news out to affect the currency market.
GBPUSD found small support at 1.9650 and we are now tarding 100 points higher at 1.9750. It's been hard to enter this currency as i've been on the fence but the 60 minute chart could be gearing up for tomorrow...
GBPCHF was the trade of the day and the only one taken for 80 point profit. The market conductors started to gear up at 7.30 this morning and with the support off the 50MA and the break of the 200MA on the 15 minute chart a long position was taken. The order was kicked in at 2.1460 and closed position at 2.1540 as the rally decided to fall away.
Tomorrow potentially could bring us many more opportunites... Market Bytes subscribers now face the '400 Point Challenge in February' and i am looking forward to seeing how many make it.
Keep up the good work and only enter when the market is showing clear signals.
I trust you all had a good weekend. Shame about the rugby and losing to Wales but i guess it has to happen once in a century!!!
Its been a reasonably quiet day with limited news out to affect the currency market.
GBPUSD found small support at 1.9650 and we are now tarding 100 points higher at 1.9750. It's been hard to enter this currency as i've been on the fence but the 60 minute chart could be gearing up for tomorrow...
GBPCHF was the trade of the day and the only one taken for 80 point profit. The market conductors started to gear up at 7.30 this morning and with the support off the 50MA and the break of the 200MA on the 15 minute chart a long position was taken. The order was kicked in at 2.1460 and closed position at 2.1540 as the rally decided to fall away.
Tomorrow potentially could bring us many more opportunites... Market Bytes subscribers now face the '400 Point Challenge in February' and i am looking forward to seeing how many make it.
Keep up the good work and only enter when the market is showing clear signals.
Morning Market, Monday 4th February 2008
The FTSE started the week even, and was still at around the Friday's closing price of 6,029 in its first hour. The FTSE 250 was up about 40 points at 10,226.
On Friday evening over the pond the DJI closed up a fairly respectable 92.83 points at 12,743.19, which was carrying on from the 200 point rise on Thursday. Not a bad end to the week. The S&P500 closed up 16.87 points at 1,395.42 ansd the Nasdaq up 23.5 points at 2,413.36. Microsoft's bid for Yahoo helping the positive feeling there.
In the Far East today, the Nikkei 225 closed up 362.54 points at 13,859.70, while in Hong Kong the Hang Seng was up about 750 points at 24,875 by its lunchtime chow time.
Oil stayed failry even there, with Light Sweet (Mar delivery) just shy of US$99 bbl, and Brent (March delivery) around 50 cents cheaper at US$89.45 bbl.
Back here in the UK this morning we saw some bid rumour activity around ITV, which was up 3p at 79.5p on news that some private equity groups were sniffing.
Friends Provident was also up 3p at 139p on further speculation that US-based JC Flowers was thinking of a bid there. u
The miners were receiving interest from investors, both positive and negative. Rio was up 47p at 5,553 and BHP down 7p at 1,615 ahead of the Wednesday's deadline for a formal bid. Peer Anglo was up nearly 5% (135p) at 3,045 on news of an MOU with China Development Bank. Vedanta was up 60p at 2,020 and Anto up 18p at 718p. Cairn Energy was up nearly 50p at 2,592 on broker upgrade to overweight.
Sage Group was up 3p at 226p with a decent trading update that said it was confident on hitting targets for the year.
Carphone Warehouse was down on no real reason that profit taking after recent gains - 12p lower at 327p.
Northern Rock was up 3.5p at 99.5p as we are almost at the bid deadline hour. There are still 3 players known, one of which is the management buyout. Not sure we'll (taxpayers) see our £50 bln again...
Mitchells & Butlers was also up well, rising over 5% (24p) at 474p on news that Punch Taverns was looking to merge.
The Bank of England will give us all the long awaited interest rate decision on Thursday. Let's hope it is a decent one...
On Friday evening over the pond the DJI closed up a fairly respectable 92.83 points at 12,743.19, which was carrying on from the 200 point rise on Thursday. Not a bad end to the week. The S&P500 closed up 16.87 points at 1,395.42 ansd the Nasdaq up 23.5 points at 2,413.36. Microsoft's bid for Yahoo helping the positive feeling there.
In the Far East today, the Nikkei 225 closed up 362.54 points at 13,859.70, while in Hong Kong the Hang Seng was up about 750 points at 24,875 by its lunchtime chow time.
Oil stayed failry even there, with Light Sweet (Mar delivery) just shy of US$99 bbl, and Brent (March delivery) around 50 cents cheaper at US$89.45 bbl.
Back here in the UK this morning we saw some bid rumour activity around ITV, which was up 3p at 79.5p on news that some private equity groups were sniffing.
Friends Provident was also up 3p at 139p on further speculation that US-based JC Flowers was thinking of a bid there. u
The miners were receiving interest from investors, both positive and negative. Rio was up 47p at 5,553 and BHP down 7p at 1,615 ahead of the Wednesday's deadline for a formal bid. Peer Anglo was up nearly 5% (135p) at 3,045 on news of an MOU with China Development Bank. Vedanta was up 60p at 2,020 and Anto up 18p at 718p. Cairn Energy was up nearly 50p at 2,592 on broker upgrade to overweight.
Sage Group was up 3p at 226p with a decent trading update that said it was confident on hitting targets for the year.
Carphone Warehouse was down on no real reason that profit taking after recent gains - 12p lower at 327p.
Northern Rock was up 3.5p at 99.5p as we are almost at the bid deadline hour. There are still 3 players known, one of which is the management buyout. Not sure we'll (taxpayers) see our £50 bln again...
Mitchells & Butlers was also up well, rising over 5% (24p) at 474p on news that Punch Taverns was looking to merge.
The Bank of England will give us all the long awaited interest rate decision on Thursday. Let's hope it is a decent one...
Friday, 1 February 2008
Market Wrap, Friday 1st February 2008
The FTSE closed up nearly 150 points today, which was a nice end to the week as we broke the 6k barrier and closed above it. Whilst we don't feel we're on for too much of a run, we do want some confidence returning to the market and a decent interest rate cut by the Bank of England confirmed. The Yahoo story in the States has helped today as well. So, the FTSE ended the day up 149.1 points at 6,029.2, just 16 points of its high of the session. The FTSE 250 closed up 304.8 points at 10,186.6.
By the time London closed the DJI was up about 12 points at 12,662.2, the S&P500 up about 5 points at 1,383 and the Nasdaq was slightly down by 2 points at 2,387. Microsoft bid for the Internet company Yahoo has given some positive feel over there.
Back here in London it was the miners that were having the best day, with Rio up a massive 644p (13%) at 56-quid as Chinalco and Alcoa Inc bought a 12% stake in the company, with rumoyurs saying it was at about £60 a pop. This news helped boost the sector in general, with BHP up 145p at 1,622, Anglo up 160p to 2,910, Vedanta up 160p at 1,960 and Xstrata gained 176p at 4,003.
Builders did well, with supplier Wolseley up 35p at 721 and builder Taylor Wimpey up nearly 14p at 193p.
Broker upgrade to neautral from underweight helped Standard Life jump 10.5p to 226p.
British Airways didn't fair as well, and was down 14p at 318p on announcing its 3rd quarter results which said profits for the nine months to December were up 35% at £788m, but added that its annual fuel bill would top £2 bln for the first time. Reaction was downbeat, and left the airline with a 'neutral' position. We at MDS like trading BAY, and swing this one. We also think there is more upside in it, but will use the MA's for part entry and part exit etc.
British Land closed down 21.5p at 988.5 on downgrade to neautral by Credit Suisse, who also gave it a 1,172 from 1,603. The market expects a write down on NAV from its property portfolio when it announces its 3rd quarter results on Tuesday. Peer Land Securities was 4p down at 1,589.
Pharma giant AstraZeneca clsoed down 9p at 2,085 on broker downgrade on some concerns on 2 drugs. A 2-quid target was given by Dresdner Kleinwort a while ago and stands by that.
Smith & Nephew, the medical devices maker, reports results next Thursday but these aren't exepcted to be as good as the run up yesterday implied, so it closed down 26.5p at 655.5.
Pub operator and brewer Greene King was up 9.5p at just shy of 755p aftr a bullish trding update.
Mortgage bank Northern Rock closed down 11p at 96p as news has been quiet the last few days. last week there was a run up on hopes of new bids and the bond issue, but obviously things aren't as easy as originally thought.
By the time London closed the DJI was up about 12 points at 12,662.2, the S&P500 up about 5 points at 1,383 and the Nasdaq was slightly down by 2 points at 2,387. Microsoft bid for the Internet company Yahoo has given some positive feel over there.
Back here in London it was the miners that were having the best day, with Rio up a massive 644p (13%) at 56-quid as Chinalco and Alcoa Inc bought a 12% stake in the company, with rumoyurs saying it was at about £60 a pop. This news helped boost the sector in general, with BHP up 145p at 1,622, Anglo up 160p to 2,910, Vedanta up 160p at 1,960 and Xstrata gained 176p at 4,003.
Builders did well, with supplier Wolseley up 35p at 721 and builder Taylor Wimpey up nearly 14p at 193p.
Broker upgrade to neautral from underweight helped Standard Life jump 10.5p to 226p.
British Airways didn't fair as well, and was down 14p at 318p on announcing its 3rd quarter results which said profits for the nine months to December were up 35% at £788m, but added that its annual fuel bill would top £2 bln for the first time. Reaction was downbeat, and left the airline with a 'neutral' position. We at MDS like trading BAY, and swing this one. We also think there is more upside in it, but will use the MA's for part entry and part exit etc.
British Land closed down 21.5p at 988.5 on downgrade to neautral by Credit Suisse, who also gave it a 1,172 from 1,603. The market expects a write down on NAV from its property portfolio when it announces its 3rd quarter results on Tuesday. Peer Land Securities was 4p down at 1,589.
Pharma giant AstraZeneca clsoed down 9p at 2,085 on broker downgrade on some concerns on 2 drugs. A 2-quid target was given by Dresdner Kleinwort a while ago and stands by that.
Smith & Nephew, the medical devices maker, reports results next Thursday but these aren't exepcted to be as good as the run up yesterday implied, so it closed down 26.5p at 655.5.
Pub operator and brewer Greene King was up 9.5p at just shy of 755p aftr a bullish trding update.
Mortgage bank Northern Rock closed down 11p at 96p as news has been quiet the last few days. last week there was a run up on hopes of new bids and the bond issue, but obviously things aren't as easy as originally thought.
Currency Report - Friday 01st February
Good afternoon. I hope all are well...
I thought i would wait for non-farm to get out the way. The figure was weak at -17k which will be interesting to see the knock on effect with the Dow this afternoon.
FTSE - The FTSE has had a solid run for the last day or so and broke out well above the 50MA . There will be natural resistance at 6,000 so be aware of this. You might find the FTSE being pulled by the Dow this afternoon.
GBPJPY - After a retracement for the last 5 days is this the start of the fall again. GBP has fallen off and USDJPY is weakening which will bring this currency down. Definitely one to watch.
GBPUSD - Look at the breakout on the 15min chart. Good solid support line and is now 250 points lower since the break...It should be a very interesting start to FEB next week once the market settles...
USDCHF - CHF has always been a safe haven so with poor USD figures this a great currency to trade. We have broken the 1.0900 and the daily trend has continued.
AUDUSD - Since the green conductors came into play 7 or 8 days ago the Aud and Gold has powered on. What an alert and what a long trade.
I thought i would wait for non-farm to get out the way. The figure was weak at -17k which will be interesting to see the knock on effect with the Dow this afternoon.
FTSE - The FTSE has had a solid run for the last day or so and broke out well above the 50MA . There will be natural resistance at 6,000 so be aware of this. You might find the FTSE being pulled by the Dow this afternoon.
GBPJPY - After a retracement for the last 5 days is this the start of the fall again. GBP has fallen off and USDJPY is weakening which will bring this currency down. Definitely one to watch.
GBPUSD - Look at the breakout on the 15min chart. Good solid support line and is now 250 points lower since the break...It should be a very interesting start to FEB next week once the market settles...
USDCHF - CHF has always been a safe haven so with poor USD figures this a great currency to trade. We have broken the 1.0900 and the daily trend has continued.
AUDUSD - Since the green conductors came into play 7 or 8 days ago the Aud and Gold has powered on. What an alert and what a long trade.
Morning Market, Friday 1st February 2008
In the first hour of trading, the FTSE was about 95 points higher at 5,973, whilst the FTSE 250 was up over 200 points at 10,086. The 207 point rise over the pond last night helpingt the FTSE get off to a half decent start.
Last night he DJI closed up 207.53 at 12,650.36 whilst the S&P500 was up 22.74 and the nasdaq up 40.86 at 2,389.86.
In the Far East today the Nikkei 225 actually closed down 95.31 points at 13,497.16 and in Hong Kong the Hang Seng was up nearly 200 points at 23,653 by its lunchtime chow.
Back here in London this morning the miners were rallying early doors, with Rio up a massive 450p at 5,409 on news of further interest in a bid and that a Singapore firm has been accumulating stock and now owns 12%. Peers liked the interest, with BHP up 110p at 1,587, Anglo up 150p at 2,900 and Kazakhmys up 36p at 1,251.
Builders did well this morning too, with Wolseley was up 25p at 711p and Taylor Wimpey was up 7.5p 186.8p.
British Airways didn't have such a good start, though, and was down nearly 10p at 322.5 after it posted results for its 3rd quarter that were only in-line with expectations. An operating profit of £178m was up 44%, but brokers remain sceptical and said 'neutral' was their stance.
Pharmas were down, with Astra down over 20p at 2,071 on broker downgrade to neautral as well.
Last night he DJI closed up 207.53 at 12,650.36 whilst the S&P500 was up 22.74 and the nasdaq up 40.86 at 2,389.86.
In the Far East today the Nikkei 225 actually closed down 95.31 points at 13,497.16 and in Hong Kong the Hang Seng was up nearly 200 points at 23,653 by its lunchtime chow.
Back here in London this morning the miners were rallying early doors, with Rio up a massive 450p at 5,409 on news of further interest in a bid and that a Singapore firm has been accumulating stock and now owns 12%. Peers liked the interest, with BHP up 110p at 1,587, Anglo up 150p at 2,900 and Kazakhmys up 36p at 1,251.
Builders did well this morning too, with Wolseley was up 25p at 711p and Taylor Wimpey was up 7.5p 186.8p.
British Airways didn't have such a good start, though, and was down nearly 10p at 322.5 after it posted results for its 3rd quarter that were only in-line with expectations. An operating profit of £178m was up 44%, but brokers remain sceptical and said 'neutral' was their stance.
Pharmas were down, with Astra down over 20p at 2,071 on broker downgrade to neautral as well.
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