The FTSE 100 had a good day today, finishing at a 2 month high, which was well received. It closed 73.1 points on the day, or 1.3%, at 5,601.2, whilst the FTSE 250 closed up 134.6 points at 9,271.7.
Over the pond, better-than-expected data showing that the economy over there is growing better than expected soon helped the UK market too. This data helped the financial and retail sectors. The US economy grew at 3.3% annual rate for the 2nd quarter, which is far better than expected. Consumer spending and net exports were both firmer than estimated, with inventories falling slower.
Back here in London, the banks had a really good day. RBS, Barclays, HSBC, Lloyds TSB, Standard Chartered and HBOS were all up well.
Staying in the financials, RSA Insurance closed up nearly 6% on further rumours of a bid from Zurich Financial Services, with neither company wishing to comment.
On to the black stuff, which fell back nearly 3 bucks to just over US$115 bbl. This caused the major oilers to pull back from recent gains, with BP, RD Shell, BG Group, and Cairn Energy all down today.
On to the miners, where there was a mixed day. Kazakhmys was top of the loser board, off 2.5% on the day, after posting over 20% drop in H1 earnings, blaming poor weather. Some peers were also down, with ENRC, Xstrata and Vedanta Resources all down on the day too. However, in favour Rio Tinto and BHP Billiton were up, as were Anto, Anglo American and Ferrexpo.
In to retail, namely supermarkets, where bid rumours saw J Sainsbury close at 344p, up 8% on the day, with the chain declining to comment on the rumours. On to the High Street, where Marks & Sparks had a decent day too, closing up nearly 4%, whilst clothing peer Next rose the same amount, and B&Q owner Kingfisher closed up over 5%.
On to water, where Severn Trent closed down at 1,375p (over 2% fall) after a Goldman Sachs downgrade from 'neutral' to 'sell', with a target down from 1,585p to 1,396p.
On to telecoms, where BT Group had a nice day after a Goldman Sachs uopgrade to 'buy' from 'neutral'. BT closed up nearly 4.5%.
On to property, where media reports that Australia's Westfield had nearly completed its filling of the retail space ouitlets at the new White City shopping mall at Shepherds Bush was received well. Other commercial property stocks also did well, with Hammerson, British Land and Land Securities all doing well.
Building materials distributor Wolseley also had a decent day, up nearly 6% after the US upbeat news. Wolsely is heavily exposed in the US, hence its recent hammering.
Savills estate agents jumped on the property climbing band wagon, closing up nearly 20% after some good H1 figures. News from Nationwide, the building society, was not so positive, with news that UK house prices were down 2% in August.
On a closing note, Bank of England policymaker David Blanchflower said that a possible 2 million Britons may be out of work by Christmas, adding that some decenmt cuts to UK interest rates are more than needed as soon as possible so to try and prevent the UK economy heading into recession; a 'deep and prolonged slump'.
Thursday, 28 August 2008
Wednesday, 27 August 2008
Market Wrap, Wednesday 27th August 2008
The FTSE 100 closed up 57.4 points today at 5,528.1, whcih was up about 93 points from the session's low. The FTSE 250 closed up 3.5 points at 9,137.1.
Over the pond, news in the US that new orders for long lasting manufactured goods was up 1.3% for July helped the US markets early doors over there. Also higher commercial aircraft orders was taken as very positive.
On to the black stuff, where US$118 bbl was passed today during session trading. This helped the sector, as did news from Tullow Oil that its H1 profit was up 250% on last time. Tullow closed up 3% on the day. All the heavyweights did well too, with BP, RD Shell, BG Group and Cairn Energy also doing well. Petrofac also announced H1 profit haighrer than expected, up 57% on last year for the same period, helping the oil and gas services firm to close up over 6% on the day.
On the the miners, where Antofagasta announced nearly a 9% rise in H1 earnings, citing copper price increases, helping a nigh-on 4% rise in the share price today. Peers also enjoyed a good day, with commodity prices all rising. BHP Billiton, Rio Tinto, ENRC and Xstrata all did well today.
On to the banks, where some possible bottom feeding came in to play. RBS, Barclays, HSBC, and HBOS all having apositive day.
On to the housebuilders, where Taylor Wimpey lost alot of its ground made yesterday, closing down over 7% after announcing a drop in H1 profit and adding that it won't be paying an interim divvy, either. Peers fell in sympathy, with Persimmons, Batrratts and Bovis Homes all closing down.
On to the pharmas, where some profit taking was in play after such a good run with the majors. GlaxoSmithKline, AstraZeneca and Shire Pharma were all down.
Enterprise Inns fell heavily, down nearly 5% after a cazenove downgrade to 'underperform' from 'in-line'.
News from Group 4 - G4S, the security firm, said a 26% rise in H1 operating profit, adding that this year still looks good, helped the shares rise some 6% today.
Some of the FTSE 100 went ex-div, including: commercial property giant Liberty International, Capita Group, insurance group Admiral Group and InterContinental Hotels.
Over the pond, news in the US that new orders for long lasting manufactured goods was up 1.3% for July helped the US markets early doors over there. Also higher commercial aircraft orders was taken as very positive.
On to the black stuff, where US$118 bbl was passed today during session trading. This helped the sector, as did news from Tullow Oil that its H1 profit was up 250% on last time. Tullow closed up 3% on the day. All the heavyweights did well too, with BP, RD Shell, BG Group and Cairn Energy also doing well. Petrofac also announced H1 profit haighrer than expected, up 57% on last year for the same period, helping the oil and gas services firm to close up over 6% on the day.
On the the miners, where Antofagasta announced nearly a 9% rise in H1 earnings, citing copper price increases, helping a nigh-on 4% rise in the share price today. Peers also enjoyed a good day, with commodity prices all rising. BHP Billiton, Rio Tinto, ENRC and Xstrata all did well today.
On to the banks, where some possible bottom feeding came in to play. RBS, Barclays, HSBC, and HBOS all having apositive day.
On to the housebuilders, where Taylor Wimpey lost alot of its ground made yesterday, closing down over 7% after announcing a drop in H1 profit and adding that it won't be paying an interim divvy, either. Peers fell in sympathy, with Persimmons, Batrratts and Bovis Homes all closing down.
On to the pharmas, where some profit taking was in play after such a good run with the majors. GlaxoSmithKline, AstraZeneca and Shire Pharma were all down.
Enterprise Inns fell heavily, down nearly 5% after a cazenove downgrade to 'underperform' from 'in-line'.
News from Group 4 - G4S, the security firm, said a 26% rise in H1 operating profit, adding that this year still looks good, helped the shares rise some 6% today.
Some of the FTSE 100 went ex-div, including: commercial property giant Liberty International, Capita Group, insurance group Admiral Group and InterContinental Hotels.
Morning Market, Wednesday 27th August 2008
The FTSE had a slow start this morning, staying flat in its first hour around the 5,471 level. The commodities were still in fashion, though, with the metals and oil on the up.
Over the pond, the US durable goods data for July is out later on. This will give a guide on how things are going over there. News that nearly 120 US banks were reported as 'in trouble' at the end of the 2nd quarter was concenring. This figure is up from 90 for the 1st quarter.
Back with oil, which was up near US$117 bbl due to the Hurricane in the Gulf of Mexico threatening supplies. The heavyweights gained, with BP, RD Shell, BG Group, Tullow Oil all up this morning, with Tullows saying profit was up to £126m for the first half of the year. Oil and gas services firm Petrofac also announced some good figures, with profit up nearly 60% on last year for the same first half, also helping its share price jump 1.5% already today.
On to the miners, where the commodity prices helped the majors. BHP Billiton, Rio Tinto, Vedanta Resources, Ferrexpo and Anglo American were all up, and Antofagasta up even more, with announcing an 8.8% rise in 1st half earnings helping the Chilean focused group. Gold was up to $830 ounce as the diollar retreated from a 6 month high.
On to the banks, where a positive start was seen by RBS, Barclays, HSBC, Standard Chartered, and HBOS ll up early doors. RBS was one of the higher performaers, as the bank appointed 3 new directors.
Another positive was BSkyB, which received a Goldman Sachs approval nod, adding the broadcaster to its 'conviction to buy list'.
On to the housebuilders, where Taylor Wimpey had a poor start today after announcing a heavy fall in H1 profit and added that it won't be paying its interm divvy, either. Peers also fell, with Persimmon down over 2.5% early doors, barratts down 2% and Bovis down nearly 4% this morning.
The pharma heavyweights also took a hit this monring, with GlaxoSmithKline and Astrazeneca both down this morning. Even Taylor Nelson Sofres was down after news that Germany's GfK was no longer trying to takeover the mid-cap pharma company.
Some stocks went ex-div, causing a fall back. These included: Liberty International, Intercontinental Hotels, Insurance giant Admiral Group, and Capita Group.
Enterprise Inns fell nearly 4% after a Cazenove downgrade to 'underperform' from 'in-line'.
Over the pond, the US durable goods data for July is out later on. This will give a guide on how things are going over there. News that nearly 120 US banks were reported as 'in trouble' at the end of the 2nd quarter was concenring. This figure is up from 90 for the 1st quarter.
Back with oil, which was up near US$117 bbl due to the Hurricane in the Gulf of Mexico threatening supplies. The heavyweights gained, with BP, RD Shell, BG Group, Tullow Oil all up this morning, with Tullows saying profit was up to £126m for the first half of the year. Oil and gas services firm Petrofac also announced some good figures, with profit up nearly 60% on last year for the same first half, also helping its share price jump 1.5% already today.
On to the miners, where the commodity prices helped the majors. BHP Billiton, Rio Tinto, Vedanta Resources, Ferrexpo and Anglo American were all up, and Antofagasta up even more, with announcing an 8.8% rise in 1st half earnings helping the Chilean focused group. Gold was up to $830 ounce as the diollar retreated from a 6 month high.
On to the banks, where a positive start was seen by RBS, Barclays, HSBC, Standard Chartered, and HBOS ll up early doors. RBS was one of the higher performaers, as the bank appointed 3 new directors.
Another positive was BSkyB, which received a Goldman Sachs approval nod, adding the broadcaster to its 'conviction to buy list'.
On to the housebuilders, where Taylor Wimpey had a poor start today after announcing a heavy fall in H1 profit and added that it won't be paying its interm divvy, either. Peers also fell, with Persimmon down over 2.5% early doors, barratts down 2% and Bovis down nearly 4% this morning.
The pharma heavyweights also took a hit this monring, with GlaxoSmithKline and Astrazeneca both down this morning. Even Taylor Nelson Sofres was down after news that Germany's GfK was no longer trying to takeover the mid-cap pharma company.
Some stocks went ex-div, causing a fall back. These included: Liberty International, Intercontinental Hotels, Insurance giant Admiral Group, and Capita Group.
Enterprise Inns fell nearly 4% after a Cazenove downgrade to 'underperform' from 'in-line'.
Tuesday, 26 August 2008
Market Wrap, Tuesday 26th August 2008
After returning the Bank Holiday weekend, the FTSE 100 closed down 34.9 points today at 5,470.7, although this was up about 101 points from its low of the day, whilst the FTSE 250 closed down 49.1 points at 2,795.1. The rally came after the US opend, where US consumer sentiment data was better than expected.
Despite oil at US$117 bbl, the oil stocks fell today. BP, RD Shell, BG Group, Tullow Oil and cairn energy were all down, with the worst off 3% on the day.
On to the miners, where the heavyweights also had a poor day, with Xstrata, Anglo American, Vedanta Resources and Antofagasta all down today up to 2.5% each, whilst Kazakhmys & ENRC were both off over 3% on the day. Rio Tinto tried to boost things by announcing a 55% rise in H1 earnings, but the shares still fell one half of a percent. Rio profits were boosted by the takeover of Alcan last year as well as the increased demand coming from China. Ukrainian iron ore producer Ferrexpo had the worst day, though, closing down nearly 9% on the day.
On to financials, and our very own London Stock Exchange (LSE:LSE), which didn't have a good day, closing nearly 3% down after concerns about the new pan-European trading platform was considered, plus the genral negative sentiment around the sector not helping, either.
On to the banks, where a bad day all round was the par for the course, but with one exeption, being HSBC, which closed up 1% on the day. Not so good for the other banks, where RBS, Barclays, Lloyds TSB, Standard Chartered and HBOS were all down from about half of one percent to 2.5% on the day.
Liberty International had a good day, closing up over 5% after news that US property investor Simon Property Group had upped its holding to 4.22%. Rumours of a full bid did the ropunds, expectedly. Australia's Westfield Group also announced it was now holding nearly 3% in the firm too.
On to the housebuilders, where Taylor Wimpey had a very good day, closing up over 14% on the day after rumors that a deal had been done on its debt with the banks. Taylor Wimpey will announce its interims tomorrow. Peers liked the rumours, with Bovis Homes up 3% on the day despite announcing a slump in H1 profit.
Despite oil at US$117 bbl, the oil stocks fell today. BP, RD Shell, BG Group, Tullow Oil and cairn energy were all down, with the worst off 3% on the day.
On to the miners, where the heavyweights also had a poor day, with Xstrata, Anglo American, Vedanta Resources and Antofagasta all down today up to 2.5% each, whilst Kazakhmys & ENRC were both off over 3% on the day. Rio Tinto tried to boost things by announcing a 55% rise in H1 earnings, but the shares still fell one half of a percent. Rio profits were boosted by the takeover of Alcan last year as well as the increased demand coming from China. Ukrainian iron ore producer Ferrexpo had the worst day, though, closing down nearly 9% on the day.
On to financials, and our very own London Stock Exchange (LSE:LSE), which didn't have a good day, closing nearly 3% down after concerns about the new pan-European trading platform was considered, plus the genral negative sentiment around the sector not helping, either.
On to the banks, where a bad day all round was the par for the course, but with one exeption, being HSBC, which closed up 1% on the day. Not so good for the other banks, where RBS, Barclays, Lloyds TSB, Standard Chartered and HBOS were all down from about half of one percent to 2.5% on the day.
Liberty International had a good day, closing up over 5% after news that US property investor Simon Property Group had upped its holding to 4.22%. Rumours of a full bid did the ropunds, expectedly. Australia's Westfield Group also announced it was now holding nearly 3% in the firm too.
On to the housebuilders, where Taylor Wimpey had a very good day, closing up over 14% on the day after rumors that a deal had been done on its debt with the banks. Taylor Wimpey will announce its interims tomorrow. Peers liked the rumours, with Bovis Homes up 3% on the day despite announcing a slump in H1 profit.
Friday, 22 August 2008
Market Wrap, Friday 22nd August 2008
The FTSE closed up 135.4 points at 5,506.6 today, finishing the day up 2.5%, and 0.6%on the week, but off 15% on the year. The FTSE 250, meanwhile, closed up a healthy 243.6 ponts at 9,182.7.
The banks were back in demand today, with sentiment actually changing positive, with some belief that the floor was now behind. RBS, Barclays, HSBC, Standard Chartered, Lloyds TSB, and HBOS were all up well today. Bradford & Bingley had the best day in the sector, though, after informing the market that the underwriters and the banks that had taken up the new 427m shares in the rights issue had agreed to a lock-in period of at least 20 days.
Regarding the major banks' rises, the cynic in us says that the rise was actually all the traders closing their short positions before the bank Holiday weekend. But that's just us. Although fundamentals will always come through in the end. Just because we all technical trade, longer term positions should obviously be with the facts and figures, especially with share prices that are volotile.
Over the pond, by the time London closed, the DJI was up 155 points at 11,585.56, whilst the S&P500 was up over 9 points at 1,287, and the Nasdaq up nearly 21 points at 2,401. The US Federal Reserve Chairman, Ben Bernanke, said the now the dollar was stabilising and that commodity prrices seem to have peaked and are falling back, this can be seen as encouraging. News that investment bank Lehman Brothers could end up in a deal with the State-run Korea Development Bank, with the Koreans confirming Lehamns as one option for acquisition.
Back here in the UK, figures showed that the UK economy had actually stalled in the 2nd quarter, meaning trade-weighted £ sterling was now at its lowest in nearly 12 years.
On to the miners, where the price of the shiny stuff, namely gold, was falling back again. The miners have had such a good year, it seems expected that they will tail off for a period of correction, returning to some sort off reality. Although, let's not forget that the commodities will always be in demand. ENRC closed down over 2.5% today, with peers also faalling. Xstrata also had a bad day, and Anglo closed down too. Two that ignored the rest were the duo who will end up as one - BHP and Rio, who both turned round their negative start to the day by closing up after dismissing news that their planned merger deal, worth some £128 bln, could face problems with the regulators.
It seemed that despite the price of the black stuff falling back from its spike this week, the oil heavyweights were in demand. Bp, RD Shell, and BG Group had a good day, whilst smaller but still heeavy Tullow Oil & Cairn Energy closed down a little.
Imperial Energy, the Russia targeted oil explorer, closd up nearly 3% after press news that India's Oil and Natural Gas Corp will be taking over with a deal worth some £2.8 bln.
Carrying on from this morning, advertising group WPP closed up some 3.5% after announcing H1 like-for-like sales growth and that it will up its divvy by 20%, all unexpected.
Rentokil Initial didn't have such a good day, though, after announcing a 55% drop in H1 pre-tax profit, adding that it sees this trend continuing, at least for the rest of the year. Rentokil closed down 4.5p at 69.3, off 6%.
Back to financials, where UK insurance broker Benfield announced news that US insurance broking giant AON Corporation had made a recommended cash offer for Benfield, who share price promptly jumped 74.5p to 345.5p, up 27.5%.
The banks were back in demand today, with sentiment actually changing positive, with some belief that the floor was now behind. RBS, Barclays, HSBC, Standard Chartered, Lloyds TSB, and HBOS were all up well today. Bradford & Bingley had the best day in the sector, though, after informing the market that the underwriters and the banks that had taken up the new 427m shares in the rights issue had agreed to a lock-in period of at least 20 days.
Regarding the major banks' rises, the cynic in us says that the rise was actually all the traders closing their short positions before the bank Holiday weekend. But that's just us. Although fundamentals will always come through in the end. Just because we all technical trade, longer term positions should obviously be with the facts and figures, especially with share prices that are volotile.
Over the pond, by the time London closed, the DJI was up 155 points at 11,585.56, whilst the S&P500 was up over 9 points at 1,287, and the Nasdaq up nearly 21 points at 2,401. The US Federal Reserve Chairman, Ben Bernanke, said the now the dollar was stabilising and that commodity prrices seem to have peaked and are falling back, this can be seen as encouraging. News that investment bank Lehman Brothers could end up in a deal with the State-run Korea Development Bank, with the Koreans confirming Lehamns as one option for acquisition.
Back here in the UK, figures showed that the UK economy had actually stalled in the 2nd quarter, meaning trade-weighted £ sterling was now at its lowest in nearly 12 years.
On to the miners, where the price of the shiny stuff, namely gold, was falling back again. The miners have had such a good year, it seems expected that they will tail off for a period of correction, returning to some sort off reality. Although, let's not forget that the commodities will always be in demand. ENRC closed down over 2.5% today, with peers also faalling. Xstrata also had a bad day, and Anglo closed down too. Two that ignored the rest were the duo who will end up as one - BHP and Rio, who both turned round their negative start to the day by closing up after dismissing news that their planned merger deal, worth some £128 bln, could face problems with the regulators.
It seemed that despite the price of the black stuff falling back from its spike this week, the oil heavyweights were in demand. Bp, RD Shell, and BG Group had a good day, whilst smaller but still heeavy Tullow Oil & Cairn Energy closed down a little.
Imperial Energy, the Russia targeted oil explorer, closd up nearly 3% after press news that India's Oil and Natural Gas Corp will be taking over with a deal worth some £2.8 bln.
Carrying on from this morning, advertising group WPP closed up some 3.5% after announcing H1 like-for-like sales growth and that it will up its divvy by 20%, all unexpected.
Rentokil Initial didn't have such a good day, though, after announcing a 55% drop in H1 pre-tax profit, adding that it sees this trend continuing, at least for the rest of the year. Rentokil closed down 4.5p at 69.3, off 6%.
Back to financials, where UK insurance broker Benfield announced news that US insurance broking giant AON Corporation had made a recommended cash offer for Benfield, who share price promptly jumped 74.5p to 345.5p, up 27.5%.
Morning Market, Friday 22nd August 2008
The FTSE 100 was up 22 points this morning at 5,392, with the energy stocks helping the index, as have the banks, which seem to look on or near the floor again.
The banks were up on some bottom feeding, with RBS, Barclays, HSBC, Lloyds TSB, HBOS, and Standard Chartered all up this morning. Peer Bradford & Bingley was up 2% after informing the market that other banks had entered a lock-in agreement saying they will not dispose of the 426.7m new shares issued for 20 days.
On to oil, where it rose above US$$121 bbl in Far East trading, mainly due to the tension between USA & Russia, although this helped the related stocks. Oil is up about 6% this week, just as we all thought it was returning to some sort of support level.
Gold was also up this morning, sitting at about US$832.75 ounce.
In the Far East today the Nikkei 225 closed down to its lowest level in 5 months.
On to the miners, where BHP Billiton and Rio Tinto didn't have a positive start,m but peers did look in favour. ENRC was up, as was Xstrata, Anglo American, Antofagasta, and Lonmin.
Oil was up at US$121 bbl, helping the heavyweights this morning. BP, RD Shell, BG Group, Tullow Oil and Cairn Energy all up early doors, with investors seeing commodities and energy as safe.
Imperial Energy was up nearly 2% this morning after newspaper reports that it looks like something permanent could come with India's Oil and Natural Gas Corp. The deal would value the Russian focused Imperial Energy at US$2.68 bln.
On to advertising, which has been under pressure of late. WPP group was down this morning even though H1 sales growth was up and said they'd be upping the divvy by 20%.
Rentokil Initial had a poor start, down 6% this morning after announcing a 55% drop in H1 pre-tax profit, adding that this looks like to continue for at least this year.
Travel by bus - Arriva, on the other hand, jumped over 5% after reporting a 40% rise in pre-tax profit. This included the new revenue from its CrossCountry rail franchise.
The banks were up on some bottom feeding, with RBS, Barclays, HSBC, Lloyds TSB, HBOS, and Standard Chartered all up this morning. Peer Bradford & Bingley was up 2% after informing the market that other banks had entered a lock-in agreement saying they will not dispose of the 426.7m new shares issued for 20 days.
On to oil, where it rose above US$$121 bbl in Far East trading, mainly due to the tension between USA & Russia, although this helped the related stocks. Oil is up about 6% this week, just as we all thought it was returning to some sort of support level.
Gold was also up this morning, sitting at about US$832.75 ounce.
In the Far East today the Nikkei 225 closed down to its lowest level in 5 months.
On to the miners, where BHP Billiton and Rio Tinto didn't have a positive start,m but peers did look in favour. ENRC was up, as was Xstrata, Anglo American, Antofagasta, and Lonmin.
Oil was up at US$121 bbl, helping the heavyweights this morning. BP, RD Shell, BG Group, Tullow Oil and Cairn Energy all up early doors, with investors seeing commodities and energy as safe.
Imperial Energy was up nearly 2% this morning after newspaper reports that it looks like something permanent could come with India's Oil and Natural Gas Corp. The deal would value the Russian focused Imperial Energy at US$2.68 bln.
On to advertising, which has been under pressure of late. WPP group was down this morning even though H1 sales growth was up and said they'd be upping the divvy by 20%.
Rentokil Initial had a poor start, down 6% this morning after announcing a 55% drop in H1 pre-tax profit, adding that this looks like to continue for at least this year.
Travel by bus - Arriva, on the other hand, jumped over 5% after reporting a 40% rise in pre-tax profit. This included the new revenue from its CrossCountry rail franchise.
Thursday, 21 August 2008
Market Wrap, Thursday 21st August 2008
The FTSE was about even today. Well, it closed down 1.6 points at 5,370.2, mainly due to the miners, who had a good day on the strength of the metal prices, and the oil stocks, which also had a good day, with the price of the black stuff having another flurry, up at US$121 bbl.
The price of gold also did well.
Tullow Oil was at the top of the board, though, up almost 8% on speculation of possible bid criteria, and that next week's figures would be better than originally expected. Peer Cairn Energy also had a very good day.
As mentioned above, the miners did very well today. ENRC announced a 160% rise in H1 earnings, helping the shares leap some 3.4%, saying higher metal prices and better production assisting the rise. Peers also did well, with Kazakhmys and Anglo American both standing out.
The banks didn't have such a good day, though, with RBS, Barclays, HSBC, Staandard Chartered, HBOS, and Lloyds TSB all falling today, with the worries over the two mortgage giant problems in the US being the talk.
On to the High Street, where news that July's retail sales were actually up being aa surprise, but many blaming poor weather meaning people just had to get out! And this despite prices rising so fast. None of this helped the bigger store chains, with Marks & Sparks carrying on from this morning, closing down over 2% on the dy, with othyers such as Next and supermarket chain J Sainsburys also having a bad day. Sainsburys still reeling over the broker downgrade yesterday.
Associated British Foods was hindered by a Citigroup reminder of its 'sell' stance, with the share price closing down over 2% on the day.
On to the housebuilders, where Persimmons closed up nearly 10% on the day as investors saw the results as better than originally feared and considered this one oversold, despite the company announcing a 64% drop in H1 pre-tax profit. The company also cut the divvy from 18.5p to 5p, which was expected. Peer Barratts also had a good day, as did Taylor Wimpey.
The price of gold also did well.
Tullow Oil was at the top of the board, though, up almost 8% on speculation of possible bid criteria, and that next week's figures would be better than originally expected. Peer Cairn Energy also had a very good day.
As mentioned above, the miners did very well today. ENRC announced a 160% rise in H1 earnings, helping the shares leap some 3.4%, saying higher metal prices and better production assisting the rise. Peers also did well, with Kazakhmys and Anglo American both standing out.
The banks didn't have such a good day, though, with RBS, Barclays, HSBC, Staandard Chartered, HBOS, and Lloyds TSB all falling today, with the worries over the two mortgage giant problems in the US being the talk.
On to the High Street, where news that July's retail sales were actually up being aa surprise, but many blaming poor weather meaning people just had to get out! And this despite prices rising so fast. None of this helped the bigger store chains, with Marks & Sparks carrying on from this morning, closing down over 2% on the dy, with othyers such as Next and supermarket chain J Sainsburys also having a bad day. Sainsburys still reeling over the broker downgrade yesterday.
Associated British Foods was hindered by a Citigroup reminder of its 'sell' stance, with the share price closing down over 2% on the day.
On to the housebuilders, where Persimmons closed up nearly 10% on the day as investors saw the results as better than originally feared and considered this one oversold, despite the company announcing a 64% drop in H1 pre-tax profit. The company also cut the divvy from 18.5p to 5p, which was expected. Peer Barratts also had a good day, as did Taylor Wimpey.
Morning Market, Thursday 21st August 2008
The FTSE was down 50 points this morning at 5,321, with the US wwoes being blamed for the negative sentiment in London.
Over the pond it was the mortgage giants' problems that were on everyone's minds. With the more and more distinct possibility that the US government will have to move in to bail the duo out, concerns mounted. UK press reports that the [up 'til now] well respected Lehman Brothers investment bank had been in talks with a Chinese investment & securities giant togteher with a large Korean finance house also helped the sentiment fall further down, especially when it was said that both Asian parties had turned their noses up to any deal and the fundaments were nowheer near the value placed on any possible deal. Goodwill can only go so far on a balance sheet.
Back here in London, it was the banks under pressure again, with all the majors, including RBS, Barclays, HSBC, Standard Chartered and HBOS all down heavily this morning.
On to the miners, where the FTSE can thank them for preventing another too sour day, as higher commodity prices lifted the heavyweights. ENRC announced a 160% rise in H1 EPS, citing the higher metal prices and better output as the assistants, helping a nigh-on 4% rise this morning. Its bigger peers also had a good start, with BHP, Rio, Anto, Xstrata and Anglo American all up early doors.
On to oil, where Russian explorer Imperial Energy had a better monring, up healthily after news that India's government has approved India's state-run Oil and Natural Gas Corp's US$3 bln offer to buy Imperial.
On to the High Street, where Marks & Sparks was down again, with investors concerned on sales performances. peers were also down, with Next and B&Q owner Kingfisher both down heavily early doors. Supermarket chain J Sainsbury also continued its fall after the broker downgrade yesterday, off another 2% on yesterday's close price.
Insurance group Old Mutual fell heavily after news that Fortis will offload the 49% owned by ABN AMRO in the Chinese Asset Management JV, Teda Fund Management, for €165m to Old Mutual. Investors didn't think this was in best interests.
On to the housebuilders, where recently demoted Persimmon announced some fairly respectable H1 figures that were better than expected, with a 64% drop in H1 pre-tax profit, but will pay a 5p per share divvy, down from 18.5p last year.
Over the pond it was the mortgage giants' problems that were on everyone's minds. With the more and more distinct possibility that the US government will have to move in to bail the duo out, concerns mounted. UK press reports that the [up 'til now] well respected Lehman Brothers investment bank had been in talks with a Chinese investment & securities giant togteher with a large Korean finance house also helped the sentiment fall further down, especially when it was said that both Asian parties had turned their noses up to any deal and the fundaments were nowheer near the value placed on any possible deal. Goodwill can only go so far on a balance sheet.
Back here in London, it was the banks under pressure again, with all the majors, including RBS, Barclays, HSBC, Standard Chartered and HBOS all down heavily this morning.
On to the miners, where the FTSE can thank them for preventing another too sour day, as higher commodity prices lifted the heavyweights. ENRC announced a 160% rise in H1 EPS, citing the higher metal prices and better output as the assistants, helping a nigh-on 4% rise this morning. Its bigger peers also had a good start, with BHP, Rio, Anto, Xstrata and Anglo American all up early doors.
On to oil, where Russian explorer Imperial Energy had a better monring, up healthily after news that India's government has approved India's state-run Oil and Natural Gas Corp's US$3 bln offer to buy Imperial.
On to the High Street, where Marks & Sparks was down again, with investors concerned on sales performances. peers were also down, with Next and B&Q owner Kingfisher both down heavily early doors. Supermarket chain J Sainsbury also continued its fall after the broker downgrade yesterday, off another 2% on yesterday's close price.
Insurance group Old Mutual fell heavily after news that Fortis will offload the 49% owned by ABN AMRO in the Chinese Asset Management JV, Teda Fund Management, for €165m to Old Mutual. Investors didn't think this was in best interests.
On to the housebuilders, where recently demoted Persimmon announced some fairly respectable H1 figures that were better than expected, with a 64% drop in H1 pre-tax profit, but will pay a 5p per share divvy, down from 18.5p last year.
Wednesday, 20 August 2008
Market Wrap, Wednesday 20th August 2008
The FTSE 100 closed up 51.4 points today at 5,371.8, which made a change from the last 3 days. The miners and oil majors helped today, although any joy was not with confidence, as recession and inflation worries are always present. This can also be seen with the thin volumes. Many are still on holiday of course, as well. The FTSE 250 closed up 29.7 points at 8,897.3.
Over the pond, by the time London closed the DJI was up about 48 points at 11,396, whilst the S&P 500 was up 5 points at 1,271, and the Nasdaq up 10 points at 2,395.
Back here in London, it was the miners that boosted the FTSE today as commodities were on the up, with Chinese growth appearing to be immune to the rest of the world's plight. China needs metals, and with recent deals done by a couple of the majors with China on pricing, it was the miners that benefited today. One almost think any excuse for a loittle bit of positive news is what everyone is grabbing. BHP and Rio had good days, as did ENSR, Xstrata, and Anglo American.
On to oil, where the price of a barrel fell back a little, but the oid stocks were still stronger. BG Group having the best day, with RD Shell and BP also doing well, as did tullow Oil, where a UBS upgrade to 'buy' from 'neutral' saw the explorer up nearly 7% on the day.
On to interest rates here in the UK, where 7 from 9 of the Bank of England committee voted to keep at 5%. No surprise there, then.
On to the banks, where it was a mixed day. Barclays and RBS had a poor day, both closing down on the session, although Barclays did go ex-div, whilst HSBC, Standard Chartered, Lloyds TSB and HBOS had a much better day, closing to the good.
There were a few unrelated stocks who went ex-div too, today, with Thomson Reuters closing down, as did FT owner Pearson, cruise ship operator Carnival, finance house Schroders, and Scottish & Southern Energy all roughly seeing the yield taken out of the price.
On to the High Street, well supermarket, where J Sainsbury received a JP Morgan downgrade to 'neutral' from 'overweight', closing down nearly 4% on the day as Morgan do slipped 3.7 percent after JPMorgan said it was the weakest of the 4 major chains.
Michael Page was in the news again, closing up over 30p at just shy of 361p after the Chief Executive saidd that Adecco, the Swiss peer, could be making a bit aat at least 6-quid a share for the recruitment group.
Carrying on from this morning, BAE Systems had a poor day after newspaper reports said that the defence ministry had agreed a £2 bln contract to secure the future of BAE Systems owned Royal Ordnance.
Over the pond, by the time London closed the DJI was up about 48 points at 11,396, whilst the S&P 500 was up 5 points at 1,271, and the Nasdaq up 10 points at 2,395.
Back here in London, it was the miners that boosted the FTSE today as commodities were on the up, with Chinese growth appearing to be immune to the rest of the world's plight. China needs metals, and with recent deals done by a couple of the majors with China on pricing, it was the miners that benefited today. One almost think any excuse for a loittle bit of positive news is what everyone is grabbing. BHP and Rio had good days, as did ENSR, Xstrata, and Anglo American.
On to oil, where the price of a barrel fell back a little, but the oid stocks were still stronger. BG Group having the best day, with RD Shell and BP also doing well, as did tullow Oil, where a UBS upgrade to 'buy' from 'neutral' saw the explorer up nearly 7% on the day.
On to interest rates here in the UK, where 7 from 9 of the Bank of England committee voted to keep at 5%. No surprise there, then.
On to the banks, where it was a mixed day. Barclays and RBS had a poor day, both closing down on the session, although Barclays did go ex-div, whilst HSBC, Standard Chartered, Lloyds TSB and HBOS had a much better day, closing to the good.
There were a few unrelated stocks who went ex-div too, today, with Thomson Reuters closing down, as did FT owner Pearson, cruise ship operator Carnival, finance house Schroders, and Scottish & Southern Energy all roughly seeing the yield taken out of the price.
On to the High Street, well supermarket, where J Sainsbury received a JP Morgan downgrade to 'neutral' from 'overweight', closing down nearly 4% on the day as Morgan do slipped 3.7 percent after JPMorgan said it was the weakest of the 4 major chains.
Michael Page was in the news again, closing up over 30p at just shy of 361p after the Chief Executive saidd that Adecco, the Swiss peer, could be making a bit aat at least 6-quid a share for the recruitment group.
Carrying on from this morning, BAE Systems had a poor day after newspaper reports said that the defence ministry had agreed a £2 bln contract to secure the future of BAE Systems owned Royal Ordnance.
Morning Market, Wednesday 20th August 2008
The FTSE was up about 25 points this morning at 5,346, with with the miners and oil majors helping. News that China was still growing fast helped investors’ moods. The FTSE 250 was up about 20 points at 8,888.
Last night over the pond, the DJI closed at 11,347, whilst the S&P500 clsoed at 1.265, and the Nasdaq at 2,384.
Oil was back up at almost US$115 bbl, which helped the oil majors all have positive starts to the day. Tullow Oil received an upgrade to ‘buy’ from ‘neutral’ from UBS, which helped both Tullow and assisted the scetor too. BP and RD Shell were both up healthily this morning too.
On to the miners, where BHP and Rio were both doing well, all on the back of the Chinese growth forecasts and expectations. The whole sector was bouyant, with peers Xstrata, Kazakhmys and Anglo American all up over 1% each.
On to the banks, where all slipped down a little. RBS was down 2p, whilst HBOS had a poor start and Llods TSB also fell 5p. Two were poitive, with Standard Chartered up 1% and HSBC 0.5%. Barclays, on the other hand, had a poor morning so far, falling 4% after going ex-div and also press reports saying it will possibly buy a US wealth management company but would be very unliklley to consider buying an investment bank.
On to the High Street, where J Sainsbury recieved a JP Morgan downgrade to ‘neutral’ from ‘overweight’, saying the supermarket chain was the weakest of the ‘big 4′. JP Morgan’s target remained at 350p, though.
News on the UK airports, where BAA (British Airport Authority) was told to sell 3 of its 7 airports due to lack of competition. Customers are suffering as a result, the regulator said. Airline British Airways was down 9p, but the price of oil was vblamed. Peer easyJet was also down.
BAE Systems was down a few pence after newspaper reports that the UK defence ministry had agreed a £2 bln contract to secure the future of BAE Systems owned Royal Ordnance.
Michael Page International was up again after Adecco, the Swiss peer interested in bidding, was rumourued to be considering at least 6-quid a share.
Last night over the pond, the DJI closed at 11,347, whilst the S&P500 clsoed at 1.265, and the Nasdaq at 2,384.
Oil was back up at almost US$115 bbl, which helped the oil majors all have positive starts to the day. Tullow Oil received an upgrade to ‘buy’ from ‘neutral’ from UBS, which helped both Tullow and assisted the scetor too. BP and RD Shell were both up healthily this morning too.
On to the miners, where BHP and Rio were both doing well, all on the back of the Chinese growth forecasts and expectations. The whole sector was bouyant, with peers Xstrata, Kazakhmys and Anglo American all up over 1% each.
On to the banks, where all slipped down a little. RBS was down 2p, whilst HBOS had a poor start and Llods TSB also fell 5p. Two were poitive, with Standard Chartered up 1% and HSBC 0.5%. Barclays, on the other hand, had a poor morning so far, falling 4% after going ex-div and also press reports saying it will possibly buy a US wealth management company but would be very unliklley to consider buying an investment bank.
On to the High Street, where J Sainsbury recieved a JP Morgan downgrade to ‘neutral’ from ‘overweight’, saying the supermarket chain was the weakest of the ‘big 4′. JP Morgan’s target remained at 350p, though.
News on the UK airports, where BAA (British Airport Authority) was told to sell 3 of its 7 airports due to lack of competition. Customers are suffering as a result, the regulator said. Airline British Airways was down 9p, but the price of oil was vblamed. Peer easyJet was also down.
BAE Systems was down a few pence after newspaper reports that the UK defence ministry had agreed a £2 bln contract to secure the future of BAE Systems owned Royal Ordnance.
Michael Page International was up again after Adecco, the Swiss peer interested in bidding, was rumourued to be considering at least 6-quid a share.
Tuesday, 19 August 2008
Market Wrap, Tuesday 19th August 2008
The FTSE 100 closed down 129.8 points at 5,320.4 today, which looked on the cards once yesterday’s Wall Street news was digested, with the financial sector taking a hit. The FTSE 250 closed down a heavy 256.4 points at 8,967.6, with the poor old housebuilders taking the hits there.
Over the pond, by the time London closed the DJI was down about 125 points at 11,354, whilst the S&P500 was down 12 points at 1,267, and the Nasdaq down over 22 points at 2,394. News from the US government that wholesale level inflation has risen at the fastest speed in 30 years was received with open mouths. Core inflation, which does not take in to account food and energy costs, was up 1.2% last month, on top of the 1.8% in June. Then the Commerce Department said that housebuilding was at its lowest level for 17 years in July, just incase any more doom and gloom was needed. An annual rate of 965k units were being started, compared to 1.08m in June. What with the possible US government bail out of mortgage giants Fannie Mae and Freddie Mac still ringing in investors’ ears from yesterday, it was inevitable that Wall Street would take a hit and that London would follow some more. Don’t forget, as we mentioned this morning, rumours that Lehman Brothers would be posting some rather concerning 3rd quarter numbers also had the banks reeling. Then we had the Kenneth Rogoff comments. He is the ex-IMF chief economist that people take notice of, especially when he says that one of the largest US major banks will be going to the wall in the next 3 months. This implies that he knows more, and has informers where it matters.
Back here in London, it was the financial sector that was blooded. Obviously. HBOS closed down 22p at 277.5p, also hindered by a WestLB downgrade to ‘add’ from ‘buy’, whilst RBS closed down 13.5p at 215p, Barclays down 18.5p at just over 324p, Standard Chartered down 87p at 1,326, and Lloyds TSB closing down almost 18p at just over 288p.
The insurance guys also carried on from this morning, downwards, with Aviva closing down nearly 29p at jusrt shy of 496p, the Pru off 30.5p at 519.5p, and Legal & General down 6.4p to close at 96.7p.
Finding something postive was difficult, but medical supplier Smith & Nephew had a fairly good day, closing up 13.5p at 632p as investors moved in seeing a safe stock, but also helped by rumours of a US firm Zimmer Holdings were sniffing with intent to bid.
Other safety was found in energy, where Scottish & Southern Energy closed up 14p at 1,453p, United Utilities up 4.5p at 709.5p, and National Grid closed up 2p at 710p.
On to mining, briefly, where Xstrata closed up 52p at 2,871 after deciding it needed to announce that it reckons market conditions will improve towards the year’s end.
On to housing related movements, where the main FTSE faller today was the heavily US exposed Wolseley, the building materials supplier, that closed down almost 37p at 389.5p. That’s over 8.5% fall in one day. Those US house build figures did the damage, one can confidently assume.
On to the housebuilders themselves, where Persimmons closed down 27p at 305p, Taylor Wimpey down 4.5p at 42.25p, and Barratts down over 11p at 118p. All following the sector trend.
Staying in property, Real Estate Investment Trust (REIT) Brixton closed down 23p at just shy of 225p after poor interims were announced, which we explained in detail this morning. Merrills reiterated its ‘underperform’ stance on Brixton.
Another positive note - Oil services group Wellstream closed up 70p at 1,110p after announcing a £600m deal with Petroleo Brasileiro.
As also mentioned this morning, Punch Taverns received a JP Morgan downgrade, closing down 26p at just shy of 227p, and peer Marston’s received the same JP Morgan treatment, closing down 11.5p at 194.25p as a result. Mitchells & Butlers fell in synpathy, down 17p at 272.25p.
Lloyd’s insurer Hiscox closed up 2.5p at just over 227p as inevstors studied the interims announced yesterday and saw more value.
Over the pond, by the time London closed the DJI was down about 125 points at 11,354, whilst the S&P500 was down 12 points at 1,267, and the Nasdaq down over 22 points at 2,394. News from the US government that wholesale level inflation has risen at the fastest speed in 30 years was received with open mouths. Core inflation, which does not take in to account food and energy costs, was up 1.2% last month, on top of the 1.8% in June. Then the Commerce Department said that housebuilding was at its lowest level for 17 years in July, just incase any more doom and gloom was needed. An annual rate of 965k units were being started, compared to 1.08m in June. What with the possible US government bail out of mortgage giants Fannie Mae and Freddie Mac still ringing in investors’ ears from yesterday, it was inevitable that Wall Street would take a hit and that London would follow some more. Don’t forget, as we mentioned this morning, rumours that Lehman Brothers would be posting some rather concerning 3rd quarter numbers also had the banks reeling. Then we had the Kenneth Rogoff comments. He is the ex-IMF chief economist that people take notice of, especially when he says that one of the largest US major banks will be going to the wall in the next 3 months. This implies that he knows more, and has informers where it matters.
Back here in London, it was the financial sector that was blooded. Obviously. HBOS closed down 22p at 277.5p, also hindered by a WestLB downgrade to ‘add’ from ‘buy’, whilst RBS closed down 13.5p at 215p, Barclays down 18.5p at just over 324p, Standard Chartered down 87p at 1,326, and Lloyds TSB closing down almost 18p at just over 288p.
The insurance guys also carried on from this morning, downwards, with Aviva closing down nearly 29p at jusrt shy of 496p, the Pru off 30.5p at 519.5p, and Legal & General down 6.4p to close at 96.7p.
Finding something postive was difficult, but medical supplier Smith & Nephew had a fairly good day, closing up 13.5p at 632p as investors moved in seeing a safe stock, but also helped by rumours of a US firm Zimmer Holdings were sniffing with intent to bid.
Other safety was found in energy, where Scottish & Southern Energy closed up 14p at 1,453p, United Utilities up 4.5p at 709.5p, and National Grid closed up 2p at 710p.
On to mining, briefly, where Xstrata closed up 52p at 2,871 after deciding it needed to announce that it reckons market conditions will improve towards the year’s end.
On to housing related movements, where the main FTSE faller today was the heavily US exposed Wolseley, the building materials supplier, that closed down almost 37p at 389.5p. That’s over 8.5% fall in one day. Those US house build figures did the damage, one can confidently assume.
On to the housebuilders themselves, where Persimmons closed down 27p at 305p, Taylor Wimpey down 4.5p at 42.25p, and Barratts down over 11p at 118p. All following the sector trend.
Staying in property, Real Estate Investment Trust (REIT) Brixton closed down 23p at just shy of 225p after poor interims were announced, which we explained in detail this morning. Merrills reiterated its ‘underperform’ stance on Brixton.
Another positive note - Oil services group Wellstream closed up 70p at 1,110p after announcing a £600m deal with Petroleo Brasileiro.
As also mentioned this morning, Punch Taverns received a JP Morgan downgrade, closing down 26p at just shy of 227p, and peer Marston’s received the same JP Morgan treatment, closing down 11.5p at 194.25p as a result. Mitchells & Butlers fell in synpathy, down 17p at 272.25p.
Lloyd’s insurer Hiscox closed up 2.5p at just over 227p as inevstors studied the interims announced yesterday and saw more value.
Morning Market, Tuesday 19th August 2008
The FTSE 100 was down early doors, following the nagative day on Wall street. The 100 was down about 70 points at 5,380, whilst the FTSE 250 was down 175 points at 8,949.
Lst night over the pond, the DJI closed down over 180 points at 11,479.39, whilst the S&P500 closed down almost 20 points at 1,278.60, and the Nasdaq down over 35 points at 2,416.98. Concerns in the financial sector came to head again as rumours and stronger chat regarding the two largest mortgage lenders Fannie Mae and Freddie Mac may have to be bailed out by the Fed Reserve. This is serious stuff. Their share prices were at their lowest level for almost 20 years, which shows the concern for inevstors. No more news regarding details of any possible bail out were forthcoming. The gloom spread to the US banks, though, with press reports that Lehman Brothers' 3rd quarter figures won't be very good at all, and further gloom from Kenneth Rogoff, the ex-IMF chief economist, whos said that one of the larger US banks will be going under in the next few months. The US PPI figure is due later today, with a rise to 0.5% for July exepcted, down from 1.8% in June, with the core PPI expected to remain at the 0.2% figure for June. The US new residential construction figures are also due for July, with build starts expected to fall to 950k.
In the Far East today, the Nikkei 225 closed down just over 300 points at 12,865.05, whilst in Hong Kong the Hang Seng was down about 116 points at 20,815 by lunchtime chow time.
Back here in London, obviously it was the financial sector that was hardest hit, and banks that took the brunt of it this morning, with HBOS down the most - off 14p at 285.5p, with peers also having a headache, with RBS down over 9p at 219p, Barclays off 14p at 329p, and Lloyds TSB down 9p at 297p.
Staying in the sector, Insurance giant Aviva was down over 19p at 505p, The Pru down 18p at 532p, and Legal & General down 3.3p at 99.8p.
On to property, where Brixton posted a loss of £236.7m before tax, down from a £191.7m profit last time, and an 18% drop in NAV for their 1st half, adding that the commercial property market is now even more challenging. Merrill Lynch reiterated its 'underperform' stance. Brixton was down 15p at 233p, with peers also hit, including British land down 25p at 724p, and down 48p at 875p.
On to energy shares, where Scottish & Southern Energy was up 9p at 1,448, and BG Group up 3p at 1,102p.
Medical supplier Smith & Nephew was up 7p at 626p, mainly due to be considered a 'safe' stock at the moment, it seems.
On to the High Street, with electrical retailers doing slightly better after a Goldman sachs upgrade of ratings on the sector afetr a review. Currys 7 PC World owner DSG International was up a fraction of a penny at 52.5p, whilst Kesa electricals was up 1p at 165p.
On to the housebuilders, where the reaction was as expected. Persimmon was down 23p at 309p, Taylor Wimpey down 3p at 44p, Bellway down 31p at 525p, and Bovis Homes down 22p at 404p.
Rightmove was down another 15p at 291p after investors still didn't like that housing report they gave yesterday, also the news we mentioned yesterday that an on-line rival from 10k estate agents is live in October.
On to pub stocks, well, hotels and leisure, with pubs included, where Punch Taverns was down 20p at 272p after a JP Morgan downgrade, whilst peer and Marston's also received the same Goldman treatment and was down 10p at 196p.
Wellstream was up 19p at 1,059p after reporting a £600m contrcat with Petroleo Brasileiro.
Hiscox, the Lloyd's insurer, was up 2p at 227p after investors looked again at yesterday's figures and decided there was value in this one.
Lst night over the pond, the DJI closed down over 180 points at 11,479.39, whilst the S&P500 closed down almost 20 points at 1,278.60, and the Nasdaq down over 35 points at 2,416.98. Concerns in the financial sector came to head again as rumours and stronger chat regarding the two largest mortgage lenders Fannie Mae and Freddie Mac may have to be bailed out by the Fed Reserve. This is serious stuff. Their share prices were at their lowest level for almost 20 years, which shows the concern for inevstors. No more news regarding details of any possible bail out were forthcoming. The gloom spread to the US banks, though, with press reports that Lehman Brothers' 3rd quarter figures won't be very good at all, and further gloom from Kenneth Rogoff, the ex-IMF chief economist, whos said that one of the larger US banks will be going under in the next few months. The US PPI figure is due later today, with a rise to 0.5% for July exepcted, down from 1.8% in June, with the core PPI expected to remain at the 0.2% figure for June. The US new residential construction figures are also due for July, with build starts expected to fall to 950k.
In the Far East today, the Nikkei 225 closed down just over 300 points at 12,865.05, whilst in Hong Kong the Hang Seng was down about 116 points at 20,815 by lunchtime chow time.
Back here in London, obviously it was the financial sector that was hardest hit, and banks that took the brunt of it this morning, with HBOS down the most - off 14p at 285.5p, with peers also having a headache, with RBS down over 9p at 219p, Barclays off 14p at 329p, and Lloyds TSB down 9p at 297p.
Staying in the sector, Insurance giant Aviva was down over 19p at 505p, The Pru down 18p at 532p, and Legal & General down 3.3p at 99.8p.
On to property, where Brixton posted a loss of £236.7m before tax, down from a £191.7m profit last time, and an 18% drop in NAV for their 1st half, adding that the commercial property market is now even more challenging. Merrill Lynch reiterated its 'underperform' stance. Brixton was down 15p at 233p, with peers also hit, including British land down 25p at 724p, and down 48p at 875p.
On to energy shares, where Scottish & Southern Energy was up 9p at 1,448, and BG Group up 3p at 1,102p.
Medical supplier Smith & Nephew was up 7p at 626p, mainly due to be considered a 'safe' stock at the moment, it seems.
On to the High Street, with electrical retailers doing slightly better after a Goldman sachs upgrade of ratings on the sector afetr a review. Currys 7 PC World owner DSG International was up a fraction of a penny at 52.5p, whilst Kesa electricals was up 1p at 165p.
On to the housebuilders, where the reaction was as expected. Persimmon was down 23p at 309p, Taylor Wimpey down 3p at 44p, Bellway down 31p at 525p, and Bovis Homes down 22p at 404p.
Rightmove was down another 15p at 291p after investors still didn't like that housing report they gave yesterday, also the news we mentioned yesterday that an on-line rival from 10k estate agents is live in October.
On to pub stocks, well, hotels and leisure, with pubs included, where Punch Taverns was down 20p at 272p after a JP Morgan downgrade, whilst peer and Marston's also received the same Goldman treatment and was down 10p at 196p.
Wellstream was up 19p at 1,059p after reporting a £600m contrcat with Petroleo Brasileiro.
Hiscox, the Lloyd's insurer, was up 2p at 227p after investors looked again at yesterday's figures and decided there was value in this one.
Monday, 18 August 2008
Market Wrap, Monday 18th August 2008
The FTSE 100 closed down 4.6 points today at 5,450.2, whilst the FTSe 250 closed down 70.9 points at 9,124. The FTSE had been down early doors, then recovered to positive territory as the US opened, but faded again towards to close. The RightMove report on the housing market seemed to be playing on everyone's mind.
Over the pond, by the time London closed the DJI was 50 points down at 11,610, whilst the S&P500 was down 5 points at 1,293, and the Nasdaq down 9 points at 2,443. With oil creeping up a little, what with the tropical storm concerns in the Gulf of mexico giving some supply concerns, although news later on that this should be unlikely helped. The US National Association of Homebuilders survey for August is due around about now, as we type, so that could also impact on share prices if it is worse than feared.
Back here in London, as we reported this morning the RightMove report did no favours to the housing worries here in the UK. The banks and housebuilders reacted accordingly. As we said this morning, house prices in London were down 5.3% for July 7 August, and 3.8% down on this time last year.
It was the mining heavyweights and oil stocks that prevented the FTSE having a worse day than it did, though, with BHP Billiton reporting some decetn figures, closing up 8p at 1,537p after posting a 30% rise in H1 profits. The Chinese demand for metals helped, and a mention of the hopeful Rio Tinto merger was also mentioned, with BHP saying that it made more sense than ever for the merger to go ahead. The full year profit to 30th June was posted at US$15.4 bln, a record. BHP did say that short trm progress would be weaker due to the whole current economic scenario. Peers reacted well, with Rio (of course) having a good day, closing up 78p at 4,683p, Kazakhmys closing up 30p at 1,203, Anglo up 56p at 2,791, and Vedanta Resources up 16p at 1,738p.
On to the oil majors, where RD Shell closed up 21p at 1,784p, Tullow Oil up 25p at 702p, and Cairn Energy up 25p at 2,686p.
Talking of oil, those that use the stuff suffered as the price rose again. Airline British Airways closed down over 8p at just shy of 253p, and with Sir Dick Branson throwing a tantrum over the proposed Iberia merger and American airlines tie up, investors felt there could be possible problems if the regulators agree with him.
On to financials, where insurer Friends Provident had a good day, closing up 4p at 92.8p after some bid rumours. Peer Old Mutual closed up 2p at 96.6p. Man Group closed up 13p at 519.5p. On to the London Stock Exchange (LSE:LSE), where a bad day saw the market owner close down 38p at 765p as a reactuion to the new pan-European trading exchange 'Turquoise' that opened on Friday.
On to the High Street, where B&Q owner Kingfisher closed down almost 2p at 128.2p ater a HSBC downgrade to 'neutral' from 'overweight, whilst lowering its target from 2-quid to 145p.
After upsetting everyone with their property update, RightMove closed down over 14p at just shy of 306p as investors moved away from the on-line property group. News in the weekend press that there is a free property webite being launched by the National Association of Estate Agents in a couple of months. The NAEA represents some 10k residential estate agents, so the extra competition didn't o rightMove any favours, either.
On to the housebuilders, who obviously also suffered due to the RightMove report, with Persimmons closing down almost 20p at 333p, Taylor Wimpey down almost 4p at just shy of 47p, and Bovis Homes closing down over 25p at just over 425p.
Michael Page International had a better day, closing up 25p at 342.5p after announcing a rise of 22% in H1 pre-tax profit, whilst bid rumours of the £1.3 bln range from Adecco, the swiss peer, also assisted investors' decisions to move in.
On to media, where ITV pulled back a little after the bid rumours from Endemol of last week, closing down 1.7p at 43.7p.
Over the pond, by the time London closed the DJI was 50 points down at 11,610, whilst the S&P500 was down 5 points at 1,293, and the Nasdaq down 9 points at 2,443. With oil creeping up a little, what with the tropical storm concerns in the Gulf of mexico giving some supply concerns, although news later on that this should be unlikely helped. The US National Association of Homebuilders survey for August is due around about now, as we type, so that could also impact on share prices if it is worse than feared.
Back here in London, as we reported this morning the RightMove report did no favours to the housing worries here in the UK. The banks and housebuilders reacted accordingly. As we said this morning, house prices in London were down 5.3% for July 7 August, and 3.8% down on this time last year.
It was the mining heavyweights and oil stocks that prevented the FTSE having a worse day than it did, though, with BHP Billiton reporting some decetn figures, closing up 8p at 1,537p after posting a 30% rise in H1 profits. The Chinese demand for metals helped, and a mention of the hopeful Rio Tinto merger was also mentioned, with BHP saying that it made more sense than ever for the merger to go ahead. The full year profit to 30th June was posted at US$15.4 bln, a record. BHP did say that short trm progress would be weaker due to the whole current economic scenario. Peers reacted well, with Rio (of course) having a good day, closing up 78p at 4,683p, Kazakhmys closing up 30p at 1,203, Anglo up 56p at 2,791, and Vedanta Resources up 16p at 1,738p.
On to the oil majors, where RD Shell closed up 21p at 1,784p, Tullow Oil up 25p at 702p, and Cairn Energy up 25p at 2,686p.
Talking of oil, those that use the stuff suffered as the price rose again. Airline British Airways closed down over 8p at just shy of 253p, and with Sir Dick Branson throwing a tantrum over the proposed Iberia merger and American airlines tie up, investors felt there could be possible problems if the regulators agree with him.
On to financials, where insurer Friends Provident had a good day, closing up 4p at 92.8p after some bid rumours. Peer Old Mutual closed up 2p at 96.6p. Man Group closed up 13p at 519.5p. On to the London Stock Exchange (LSE:LSE), where a bad day saw the market owner close down 38p at 765p as a reactuion to the new pan-European trading exchange 'Turquoise' that opened on Friday.
On to the High Street, where B&Q owner Kingfisher closed down almost 2p at 128.2p ater a HSBC downgrade to 'neutral' from 'overweight, whilst lowering its target from 2-quid to 145p.
After upsetting everyone with their property update, RightMove closed down over 14p at just shy of 306p as investors moved away from the on-line property group. News in the weekend press that there is a free property webite being launched by the National Association of Estate Agents in a couple of months. The NAEA represents some 10k residential estate agents, so the extra competition didn't o rightMove any favours, either.
On to the housebuilders, who obviously also suffered due to the RightMove report, with Persimmons closing down almost 20p at 333p, Taylor Wimpey down almost 4p at just shy of 47p, and Bovis Homes closing down over 25p at just over 425p.
Michael Page International had a better day, closing up 25p at 342.5p after announcing a rise of 22% in H1 pre-tax profit, whilst bid rumours of the £1.3 bln range from Adecco, the swiss peer, also assisted investors' decisions to move in.
On to media, where ITV pulled back a little after the bid rumours from Endemol of last week, closing down 1.7p at 43.7p.
Morning Market, Monday 18th August 2008
The FTSE was lower this morning, with the house price report by RightMove giving cause (?!) for everyone else to feel down, especially the banks (who haven't got cash to lend, anyway!).
The FTSE 100 was down nearly 10 points this morning at 5,446, whilst the FTSE 250 was down 55 points at 9,140.
Over the pond, on Friday Wall Street ended the week slightly happier as oil had fallen back to about $113 bbl, which also helped inflation concerns, and the dollar gained some strength as rumours that the Russians are buying more and more dollars helped the currency. The DJI closed up almost 44 points at 11,659.90, whilst the S&P500 closed up over 5 points at 1,298.20, and the Nasdaq up just over a point at 2,452.52. Today in the US we will hear the figures for the Housing Market index (HMI) for August, which will give more than a guide on the housing market in the US.
Back here in London, the RightMove report confirmed that house prices in London are on the slide, just like the rest of the country, with over a 5% drop in july & August. This is a drop of 3.8% on the prices asked last year.
In the Far East today the Nikkei 225 closed up over 146 points at 13,165.45, whilst in Hong Kong the Hang Seng was up about 246 points at 20,914 by lunchtime chow time.
On to the black stuff, where a tropical storm in the Gulf of Mexico gave a little concern on supply, with Light Sweet (Sep del) now at US$114.50 bbl, and Brent North Sea crude (Oct del) also up, rading at US$113.40 bbl. Both up over a dollar on Friday's close.
Back here on the stockmarket, BHP Billiton was up over 20p this morning at 1,552 after announcing a 30% rise in H1 profit, with upped Chinese demand helping, and further strngth to the team up and merger with rio Tinto all the more possible and logical. Well, BHP would say that, wouldn't they? Profits of US$15.4 bln for y/e 30June sounded very good. Peer Rio Tinto was up a quid at 4,705p, whilst Xstrata was up 16p at 2,894, Anto up 11p at 546, Anglo up 51p at 2,786p, and Vedanta up 20p at 2,898.
On to the banks, where HBOS was up 4p at 307p after news that the Commonwealth Bank of Australia could be sniffing with intent in a supposed A$6 bln offer for its Australian banking unit, BankWest. Peers didn't fair as well, though, as the housing market report wasn't received well. RBS was down 3p at 3-quid, barclays down 3p at 347p, and Lloyds TSB down 4p at 308p.
On to users of the black stuff, with the price of a barrel up nearly one and a half bucks over the weekend, airline British Airways was down over 4p at 257p. Weekend press reports that Virgin Atlantic boss Sir Dick Branson is stamping up and down in some sort of tantrum until he gets an audience with the EU and US airline regulators over the proposed merger beetween BA and iberia, plus the planned code share and closer tie up with American Airlines. One could suggest he gets off his 4rse and furthers his own tie ups, like the deal he did with Singapore Airlines a few years ago. But we won't.
After frightening and depressing everyone with their downbeat housing market report, inevstors got thier own back somewhat by selling rightmove, who were down 29p at 291p this morning. Ironic, that.
Due to that report we have mentioned about 8 times so far, the housebuilders were also under pressure this morning. Persimmons was down 8p at 344p, Barratts down 5p at 126p, taylor Wimpey down a fraction of a penny at 50p, Bovis Homes down 6.5p at 445p, and Redrow was down over a penny at 167p.
Michael Page International was up 9p at 326.5p after announcing a 22% rise in 1st half pre-tax profit. Rumours that Adecco, MPI's Swiss rival, could be sniffing with intent to a bigger bid also attracted investors as Adecco rejected a £1.3 bln bid from Adecco last week.
On to our very own London Stock Exchange (LSE:LSE) where we say a 10p fall to 793p as a reaction to this latest pan-European equities trade reporting platform called Turquoise, which was launched on friday. sector peer ICAP was down 8p at 465p.
The FTSE 100 was down nearly 10 points this morning at 5,446, whilst the FTSE 250 was down 55 points at 9,140.
Over the pond, on Friday Wall Street ended the week slightly happier as oil had fallen back to about $113 bbl, which also helped inflation concerns, and the dollar gained some strength as rumours that the Russians are buying more and more dollars helped the currency. The DJI closed up almost 44 points at 11,659.90, whilst the S&P500 closed up over 5 points at 1,298.20, and the Nasdaq up just over a point at 2,452.52. Today in the US we will hear the figures for the Housing Market index (HMI) for August, which will give more than a guide on the housing market in the US.
Back here in London, the RightMove report confirmed that house prices in London are on the slide, just like the rest of the country, with over a 5% drop in july & August. This is a drop of 3.8% on the prices asked last year.
In the Far East today the Nikkei 225 closed up over 146 points at 13,165.45, whilst in Hong Kong the Hang Seng was up about 246 points at 20,914 by lunchtime chow time.
On to the black stuff, where a tropical storm in the Gulf of Mexico gave a little concern on supply, with Light Sweet (Sep del) now at US$114.50 bbl, and Brent North Sea crude (Oct del) also up, rading at US$113.40 bbl. Both up over a dollar on Friday's close.
Back here on the stockmarket, BHP Billiton was up over 20p this morning at 1,552 after announcing a 30% rise in H1 profit, with upped Chinese demand helping, and further strngth to the team up and merger with rio Tinto all the more possible and logical. Well, BHP would say that, wouldn't they? Profits of US$15.4 bln for y/e 30June sounded very good. Peer Rio Tinto was up a quid at 4,705p, whilst Xstrata was up 16p at 2,894, Anto up 11p at 546, Anglo up 51p at 2,786p, and Vedanta up 20p at 2,898.
On to the banks, where HBOS was up 4p at 307p after news that the Commonwealth Bank of Australia could be sniffing with intent in a supposed A$6 bln offer for its Australian banking unit, BankWest. Peers didn't fair as well, though, as the housing market report wasn't received well. RBS was down 3p at 3-quid, barclays down 3p at 347p, and Lloyds TSB down 4p at 308p.
On to users of the black stuff, with the price of a barrel up nearly one and a half bucks over the weekend, airline British Airways was down over 4p at 257p. Weekend press reports that Virgin Atlantic boss Sir Dick Branson is stamping up and down in some sort of tantrum until he gets an audience with the EU and US airline regulators over the proposed merger beetween BA and iberia, plus the planned code share and closer tie up with American Airlines. One could suggest he gets off his 4rse and furthers his own tie ups, like the deal he did with Singapore Airlines a few years ago. But we won't.
After frightening and depressing everyone with their downbeat housing market report, inevstors got thier own back somewhat by selling rightmove, who were down 29p at 291p this morning. Ironic, that.
Due to that report we have mentioned about 8 times so far, the housebuilders were also under pressure this morning. Persimmons was down 8p at 344p, Barratts down 5p at 126p, taylor Wimpey down a fraction of a penny at 50p, Bovis Homes down 6.5p at 445p, and Redrow was down over a penny at 167p.
Michael Page International was up 9p at 326.5p after announcing a 22% rise in 1st half pre-tax profit. Rumours that Adecco, MPI's Swiss rival, could be sniffing with intent to a bigger bid also attracted investors as Adecco rejected a £1.3 bln bid from Adecco last week.
On to our very own London Stock Exchange (LSE:LSE) where we say a 10p fall to 793p as a reaction to this latest pan-European equities trade reporting platform called Turquoise, which was launched on friday. sector peer ICAP was down 8p at 465p.
Morning Opinion, Monday 18th August 2008
So, here we are in the morning again now. Apologies for just evening blogs, but this holiday period has been a bit tight on staff and the team in general, with other family problems affecting the whole gang. Things are going to be more than back to normal soon, with two new additions to the team and some really positive moves for the whole Market Bytes in general. There will be morning market updates most mornings again, team permitting. All the best guys.
Here in London this morning the market wasn't in the right direction for investors, opening fairly weak. The housing market again paints gloom on everything, even though most people don't want to move. As long as interest rates stay where they are, everyone will just have to manage the extra few quid a month on food and utilities. Not the end of the world, if you sit back and think about it. Even negative equity doesn't matter if you're not going to move, does it, as long as the mortgage is staying put. It will all come back round again. Why the scare-mongering from the media all the time, we don't know. Does it matter what one's house is worth if you aren't going to move? The higher it gets the more tempting it is to free up some cash to buy another house, and then have more to worry about. One could even have a selfish, cynical view, in that if the house prices fell back to 2000 levels, everyone's house would be half price. Those that wanted to move could move alot easier! Still, we digress. The fact is that despite all the worry imposed on us by the TV and newspapers, most people in steady employment are really just a few quid a mopnth worse off due to petrol, electric/gas and a slightly higher food bill. Manageable for most. Those of us that make money tarding down as well as up aren't oo bothered what the markets or currencies do. The same US opening rules apply. Just check the charts!
Here in London this morning the market wasn't in the right direction for investors, opening fairly weak. The housing market again paints gloom on everything, even though most people don't want to move. As long as interest rates stay where they are, everyone will just have to manage the extra few quid a month on food and utilities. Not the end of the world, if you sit back and think about it. Even negative equity doesn't matter if you're not going to move, does it, as long as the mortgage is staying put. It will all come back round again. Why the scare-mongering from the media all the time, we don't know. Does it matter what one's house is worth if you aren't going to move? The higher it gets the more tempting it is to free up some cash to buy another house, and then have more to worry about. One could even have a selfish, cynical view, in that if the house prices fell back to 2000 levels, everyone's house would be half price. Those that wanted to move could move alot easier! Still, we digress. The fact is that despite all the worry imposed on us by the TV and newspapers, most people in steady employment are really just a few quid a mopnth worse off due to petrol, electric/gas and a slightly higher food bill. Manageable for most. Those of us that make money tarding down as well as up aren't oo bothered what the markets or currencies do. The same US opening rules apply. Just check the charts!
Friday, 15 August 2008
Market Wrap, Friday 15th August 2008
The FTSE closed 42.6 points at 5,454.8, off about 83 points from the session's high, whilst the FTSE 250 closed up 60.5 points at 9,194.9. It was the commodity stocks that pulled the FTSE back. Oil was backing off.
Over the pond, by the time London closed the DJI was up about 74 points at 11,690 as Wall Street took strength from the lower oil price. The US manufacturing data was also out, much better than expected, helping the Dow to what looks like a better day.
Back here in London, it was the heavyweight miners that took the pressure. With gold now down to US794 ounce, it looks like the metals have all had their strong run for now. Eurasian Natural Resources (ENRC) closed down 67p at 969p, Kazakhmys closed down 89p at 1,173, Vedanta Resources down 84p at 1,722, BHP down 53p at 1,529, Rio down 195p at 4,605, Anto down 28.5p at 535, and Anglo down 188p at 2,735.
On to oil, where the price of the black stuff was under US$113 bbl now, meaning the oil majors suffered somewhat. The dizzy height of US$147 bbl seems a long way away now. BP closed down 11.5p at 515.5p, and RD Shell down 40p at 1,763p.
This lower oil price helped tjhose that use the stuff, of course, with British Airways seeing some interest from investors, closing up 7.25p at 261p. News yesterday that the airline had also signed an agreement with American Airlines and Iberia for a transatlantic flights, including code-sharing and timetable tie-ups also helped.
On to the High Street, where John Lewis said its sales were now up 9.3%, citing the poor summer as a rason for people to go shopping. Or words to that effect. Broker Seymour Pierce commented that John Lewis had an excellent week, bringing smiles to faces in the stores. Peers followed the sentiment, with Marks & Sparks closing up over 10p at 276p, Next up 28p at 1,037p, Kesa Electricals up 8p at 168.5p, and B&Q owner Kingfisher 3.2p at 130.1.
Intercontinental Hotels Group closed down 1.5p at 725.5p after a Morgan Stanley downgrade to 'underweight' from 'equal-weight' with a lower target of 810p, down from 980p. On the other hand, Whitbread closed up 34p at 1,183 after Morgan Stanley said it prefers the leisure group to InterContinental Hotels Group.
Michael Page International closed down 17.5p at 317.5 after news that it had ended talks with Adecco over a possible deal was taken as negative.
Over the pond, by the time London closed the DJI was up about 74 points at 11,690 as Wall Street took strength from the lower oil price. The US manufacturing data was also out, much better than expected, helping the Dow to what looks like a better day.
Back here in London, it was the heavyweight miners that took the pressure. With gold now down to US794 ounce, it looks like the metals have all had their strong run for now. Eurasian Natural Resources (ENRC) closed down 67p at 969p, Kazakhmys closed down 89p at 1,173, Vedanta Resources down 84p at 1,722, BHP down 53p at 1,529, Rio down 195p at 4,605, Anto down 28.5p at 535, and Anglo down 188p at 2,735.
On to oil, where the price of the black stuff was under US$113 bbl now, meaning the oil majors suffered somewhat. The dizzy height of US$147 bbl seems a long way away now. BP closed down 11.5p at 515.5p, and RD Shell down 40p at 1,763p.
This lower oil price helped tjhose that use the stuff, of course, with British Airways seeing some interest from investors, closing up 7.25p at 261p. News yesterday that the airline had also signed an agreement with American Airlines and Iberia for a transatlantic flights, including code-sharing and timetable tie-ups also helped.
On to the High Street, where John Lewis said its sales were now up 9.3%, citing the poor summer as a rason for people to go shopping. Or words to that effect. Broker Seymour Pierce commented that John Lewis had an excellent week, bringing smiles to faces in the stores. Peers followed the sentiment, with Marks & Sparks closing up over 10p at 276p, Next up 28p at 1,037p, Kesa Electricals up 8p at 168.5p, and B&Q owner Kingfisher 3.2p at 130.1.
Intercontinental Hotels Group closed down 1.5p at 725.5p after a Morgan Stanley downgrade to 'underweight' from 'equal-weight' with a lower target of 810p, down from 980p. On the other hand, Whitbread closed up 34p at 1,183 after Morgan Stanley said it prefers the leisure group to InterContinental Hotels Group.
Michael Page International closed down 17.5p at 317.5 after news that it had ended talks with Adecco over a possible deal was taken as negative.
Thursday, 14 August 2008
Market Wrap, Thursday 14th August 2008
The FTSE 100 closed up 48.8 points at 5,497.4, up about 52 points from its session's low, whilst the FTSE 250 closed up 24.9 points at 9,134.4. Once Wall Street had opened to news of better CPI figures, investors bought financial stocks, not worrying about the inflation report of earlier in the day.
Over the pond, by the time London closed the DJI was up nearly 95 points at 11,628, whilst the S&P500 was up 8 points at 1,294, and the Nasdaq up 19 points at 2,448. Buyers returned to the financial sector. After initially having a poor start after the US Labor Department reported another rise in consumer prices, it was noted that the 0.8% overall rise for July's Consumer Price Index (CPI) wasn't as bad as June's. It was twice as bad as expected, though, causing inflation to be at its highest annual pace for the last 17 years.
Back here in London, it was the mining heavyweights and oil majors that had a good day. Commodity prices were on the up again, but for how long, we can't say. They have had a good year so far. Anyway, ENRC closed up 46p at 1,036p, Anto up 25.5p at 563.5p, Kazakhmys up 57p at 1,262, and BHP up 70p at 1,582. Even the 2nd tier did well, with Dana petroleum closing up 57p at 1,285p, International Ferro Metals clsoing up 7.5p at 74.5p, and Aquarius Platinum up 37p at 487. Merrill Lynch helped the sector too, with a comment that the whole mining sector looked 'oversold'.
On to oil, where RD Shell closed up 38p at 1,803, Cairn Energy up 68p at 2,705p, oil services group Petrofac up 23.5p at 544p, Wood Group up 17p at 397p, and JKX Oil & Gas closed up 36p at 392.5p after a UBS upgrade to 'buy' from 'neutral' citing fundamentals.
Aero engine maker Rolls Royce didn't have such a good day, though, closing down 15.5p at 387.5p after yesterday's Dresdner Kleinwort downgrade. News that Rolls Royce is planning a 50/50 JV with US firm Goodrich to develop and supply engine controls didn't help, either.
On to travel, where FirstGroup closed down 17.5p at 558, Thomas Cook down a penny at 236p, and TUI Travel down 5p at 223p. TUI helped the sector with comments that demand for package holidays is still high. The poor UK weather probably helping there. TUI added that it is confident that its 2008 and 2009 targets can be achieved, with prompted both Deutsche Bank and Landsbanki to reitereate their 'buy' stances on the travel firm.
IT services group Logica closed up over 15p at just shy of 128p after posting 1st half results that were better than expected, with revenue up 6% to £1.77 bln. The group upped its full year growth forecast from 3% to 4% on the back of progress so far this year.
Autonomy closed up 62p at 1,058p after a Panmure Gordon upgrade to 'buy' from 'hold' as everyone expects the group to join the FTSE 100 in the next shuffle.
On to the housebuilders, where Bellway closed down 16.5p at 560p after its trading update confirmed that June and July were still poor months in the housing market, adding that it expects the 2nd half of the year to be down about 45%. Peers fell back on the news, with Barratts closing down nearly 11p at just shy of 125p, and Taylor Wimpey down nearly 6p at 48p.
Johnston Press closed down 9p at 54p after a Landsbanki downgrade to 'reduce' from 'hold', reminding evryone of its 50p target.
Paypoint closed down 36p at 600.5p after an uninspiring trading update, saying that its 2nd quarter earnings were only in-line with expectations.
Speedy Hire closed down over 33p at just shy of 485p after the recent Merrill Lynch downgrade.
Over the pond, by the time London closed the DJI was up nearly 95 points at 11,628, whilst the S&P500 was up 8 points at 1,294, and the Nasdaq up 19 points at 2,448. Buyers returned to the financial sector. After initially having a poor start after the US Labor Department reported another rise in consumer prices, it was noted that the 0.8% overall rise for July's Consumer Price Index (CPI) wasn't as bad as June's. It was twice as bad as expected, though, causing inflation to be at its highest annual pace for the last 17 years.
Back here in London, it was the mining heavyweights and oil majors that had a good day. Commodity prices were on the up again, but for how long, we can't say. They have had a good year so far. Anyway, ENRC closed up 46p at 1,036p, Anto up 25.5p at 563.5p, Kazakhmys up 57p at 1,262, and BHP up 70p at 1,582. Even the 2nd tier did well, with Dana petroleum closing up 57p at 1,285p, International Ferro Metals clsoing up 7.5p at 74.5p, and Aquarius Platinum up 37p at 487. Merrill Lynch helped the sector too, with a comment that the whole mining sector looked 'oversold'.
On to oil, where RD Shell closed up 38p at 1,803, Cairn Energy up 68p at 2,705p, oil services group Petrofac up 23.5p at 544p, Wood Group up 17p at 397p, and JKX Oil & Gas closed up 36p at 392.5p after a UBS upgrade to 'buy' from 'neutral' citing fundamentals.
Aero engine maker Rolls Royce didn't have such a good day, though, closing down 15.5p at 387.5p after yesterday's Dresdner Kleinwort downgrade. News that Rolls Royce is planning a 50/50 JV with US firm Goodrich to develop and supply engine controls didn't help, either.
On to travel, where FirstGroup closed down 17.5p at 558, Thomas Cook down a penny at 236p, and TUI Travel down 5p at 223p. TUI helped the sector with comments that demand for package holidays is still high. The poor UK weather probably helping there. TUI added that it is confident that its 2008 and 2009 targets can be achieved, with prompted both Deutsche Bank and Landsbanki to reitereate their 'buy' stances on the travel firm.
IT services group Logica closed up over 15p at just shy of 128p after posting 1st half results that were better than expected, with revenue up 6% to £1.77 bln. The group upped its full year growth forecast from 3% to 4% on the back of progress so far this year.
Autonomy closed up 62p at 1,058p after a Panmure Gordon upgrade to 'buy' from 'hold' as everyone expects the group to join the FTSE 100 in the next shuffle.
On to the housebuilders, where Bellway closed down 16.5p at 560p after its trading update confirmed that June and July were still poor months in the housing market, adding that it expects the 2nd half of the year to be down about 45%. Peers fell back on the news, with Barratts closing down nearly 11p at just shy of 125p, and Taylor Wimpey down nearly 6p at 48p.
Johnston Press closed down 9p at 54p after a Landsbanki downgrade to 'reduce' from 'hold', reminding evryone of its 50p target.
Paypoint closed down 36p at 600.5p after an uninspiring trading update, saying that its 2nd quarter earnings were only in-line with expectations.
Speedy Hire closed down over 33p at just shy of 485p after the recent Merrill Lynch downgrade.
Wednesday, 13 August 2008
Market Wrap, Wednesday 13th August 2008
The FTSE 100 closed down 85.9 points at 5,448.6 today, whilst the FTSE 250 closed down 181.7 points at 9,109.5.
Over the pond, by the time London closed the DJI was down 153 points at 11,489, whilst the S&P500 was down over 11 points at 1,278, and the Nasdaq down 17 points at 2,413. News that US retail sales fell 0.1% in July didn't help, being a little lower than the even zero figure expected.
The price of the balck stuff had a little spike, mainly due to US oil inventories were down again. Tropical Storm Edouard didn't help, either.
Back here in London, the expected news that interest rates will remain at 5% again this month didn't surprise many. The Bank of England actually said that interest rates may remain on hold for two years so inflation can be tackled, even if it means that the UK economy will be hovering on the edge of recession. The BoE said that it expects the annual CPI inflation rate to rise to 4.8% by the end of this year, up from the current 4.4%. the blame is with food and energy costs, which continue to rise.
News in the US from JP Morgan that it has seen more losses in its mortgage investments so far in the 3rd quarter than it did in the 2nd quarter put pressure on the UK banks too. HBOS closed down 24p at 307p, RBS down down nearly 16p at just shy of 230p, Barclays down 27p at 355.5p, and Lloyds TSB down 20.5p at 308.5p.
On to the High Street, where Marks & Sparks closed down nearly 30p at just over 266p, whilst Next closed down 89.5p at 990.5p, B&Q owner Kingfisher down 13.8p at 124.6p, supermarket giant Sainsburys closed down 27.5p at just over 340p, and DSG International down over 10p to 54.5p after a JP Morgan downgrade to 'underweight' from 'neutral'. DSG also traded ex-div today.
On to insurance, where Friends Provident closed down 4.7p at 87.5p after a Merrill Lynch downgrade to 'underperform' from 'neutral' citing the group's slowing disposal programme.
Aero engine maker Rolls Royce closed dow 8p at 403p after a Dresdner Kleinwort downgrade to 'hold' from 'buy', citing the prospect of a global recession is likely to effect demand for aircraft engines.
On to mining, where their were some positives, at least. Anglo American closed up 112p at 2,791p, Kazakhmys up 39p at 1,205, Vedanta up 51p at 1,750, and BHP up 44p at 1,512.
British Energy cosed up 1.5p at 706.5p after the nuclear generator announced better than expected 1st quarter results, adding that discussions with French power giant EDF about a possible takeover were continuing. Peer Drax Group closed up 6.5p at 705.5p on the back of the positive sentiment.
The housebuilders didn't have such a good day, though, with Barratt Developments down 24.5p at 135.5, Taylor Wimpey down nearly 5p at just shy of 54p, and Bellway down 35.5p at 576.5p.
Staying with houses, Savills closed down 40.5p at just shy of 212p due to the current estate agent pressures, whilst on-line estate agent Rightmove closed down 29p pence at 325p.
On to the pubs, where JD Wetherspoon closed down over 42p at just shy of 247p, Punch Taverns 45p at 323, and Enterprise Inns down 43p at 343p.
Over the pond, by the time London closed the DJI was down 153 points at 11,489, whilst the S&P500 was down over 11 points at 1,278, and the Nasdaq down 17 points at 2,413. News that US retail sales fell 0.1% in July didn't help, being a little lower than the even zero figure expected.
The price of the balck stuff had a little spike, mainly due to US oil inventories were down again. Tropical Storm Edouard didn't help, either.
Back here in London, the expected news that interest rates will remain at 5% again this month didn't surprise many. The Bank of England actually said that interest rates may remain on hold for two years so inflation can be tackled, even if it means that the UK economy will be hovering on the edge of recession. The BoE said that it expects the annual CPI inflation rate to rise to 4.8% by the end of this year, up from the current 4.4%. the blame is with food and energy costs, which continue to rise.
News in the US from JP Morgan that it has seen more losses in its mortgage investments so far in the 3rd quarter than it did in the 2nd quarter put pressure on the UK banks too. HBOS closed down 24p at 307p, RBS down down nearly 16p at just shy of 230p, Barclays down 27p at 355.5p, and Lloyds TSB down 20.5p at 308.5p.
On to the High Street, where Marks & Sparks closed down nearly 30p at just over 266p, whilst Next closed down 89.5p at 990.5p, B&Q owner Kingfisher down 13.8p at 124.6p, supermarket giant Sainsburys closed down 27.5p at just over 340p, and DSG International down over 10p to 54.5p after a JP Morgan downgrade to 'underweight' from 'neutral'. DSG also traded ex-div today.
On to insurance, where Friends Provident closed down 4.7p at 87.5p after a Merrill Lynch downgrade to 'underperform' from 'neutral' citing the group's slowing disposal programme.
Aero engine maker Rolls Royce closed dow 8p at 403p after a Dresdner Kleinwort downgrade to 'hold' from 'buy', citing the prospect of a global recession is likely to effect demand for aircraft engines.
On to mining, where their were some positives, at least. Anglo American closed up 112p at 2,791p, Kazakhmys up 39p at 1,205, Vedanta up 51p at 1,750, and BHP up 44p at 1,512.
British Energy cosed up 1.5p at 706.5p after the nuclear generator announced better than expected 1st quarter results, adding that discussions with French power giant EDF about a possible takeover were continuing. Peer Drax Group closed up 6.5p at 705.5p on the back of the positive sentiment.
The housebuilders didn't have such a good day, though, with Barratt Developments down 24.5p at 135.5, Taylor Wimpey down nearly 5p at just shy of 54p, and Bellway down 35.5p at 576.5p.
Staying with houses, Savills closed down 40.5p at just shy of 212p due to the current estate agent pressures, whilst on-line estate agent Rightmove closed down 29p pence at 325p.
On to the pubs, where JD Wetherspoon closed down over 42p at just shy of 247p, Punch Taverns 45p at 323, and Enterprise Inns down 43p at 343p.
Tuesday, 12 August 2008
Market Wrap, Tuesday 12th August 2008
The FTSE 100 closed down 7.3 points today at 5,534.5, whilst the FTSE 250 closed down almost 93 points at 9,291.2. It was a bit of a rollercoaster today, with the FTSE range being up over 27 and down over 50 points, with the psycological 5,500 support line being evident.
Over the pond, by the time London closed the DJI was down over 51 points at 11,731, whilst the S&P500 wasdown 4 points at 1,301, and the Nasdaq up nearly 6 points at 2,446. News that JP Morgan was having further writedowns, with its mortgage arena still taking more hits, its comments on 'substantial losses' in its mortgage investments so far in the 3rd quarter, even more than its 2nd quarter, caused some concern on wall street. Then news that the US trade deficit unexpectedly fell in June, with exports at an all-time high did help repair some dmage to attitude. The US Commerce Department said that the trade imbalance dropped to US$56.8 bln in June, down by 4.1% from a revised May deficit of US$59.2 bln. This is the smallest deficit in 3 months, and much better than the US$61.5 bln deficit the markets had been expecting.
Back here in London, the economic news was not so good. With news that annual inflation had risen to more than twice the Bank of England's official target during July wasn't taken well, despite being expected. Driven by the continuous rise in food, petrol and utility bills, the rise to 4.4% from 3.8% was hardly a surprise. This is the highest rise since official CPI data began being collated in 1997.
On to the markets, where the miners took some pressure. ENRC closed down 71.5p at 988.5p, Kazakhmys closed down 68p at 1,166p, Xstrata down 67p at 2,883, and Ferrexpo down over 10p at 234.5p. Ferrexpo is down nearly 50% from its peak reached on entering the FTSE 100 2 months ago.
On to oil, where BP closed up 10p at 535p as oil was gaining support at the US$113 bbl level. RD Shell closed up 30p at 1,810p.
On to the banks, where Standard Chartered closed down 109p at 1,490p after a Citigroup downgrade to 'sell' from 'hold' as a reaction to the bank's 1st half results last week.
On the the High Street, where Marks & Sparks closed down 8p at 296p, Next closed down 52p at 1,080, B&Q owner Kingfisher down 3.1p at 138.4p, and DSG International, owners of Currys and PC World, closed up 5p at just shy of 65p on rumours of a bid coming.
Thomson Reuters closed down 77p at 1,481 after its 2nd quarter results failed to impress. Operating profit fell to US$336m, down 18% on last year. UBS reminded everyone of its 'sell' stance.
WPP Group, the advertising giant closed down 16p at 487p after news that Citigroup had taken a placing of 28m shares at a price of 486p.
ITV closed up 3p at 50.6p after rumours that a possible takeover approach following the recent fall in market value could be on the cards, with Endemol being favourite. ITV are now up a third in value since their low 2 months ago.
Trinity Mirror, on the other hand, closed down 9p at 116 after a JP Morgan downgrade to 'underweight' from 'neutral', citing the ongoing loss of advertising revenue will continue to affect figures.
Intercontinental Hotels closed up 22.5p at 773p as 1st half figures looked good.
Weir Group closed down 71p at at 832 on profit taking after the gains after the decent 1st half results announced.
Northern Foods closed up over 4p at 65.25p, Dairy Crest Group up 30.5p at 464p and Domino's Pizza up 12.5p at 202.25p as food groups were in fashion today.
Over the pond, by the time London closed the DJI was down over 51 points at 11,731, whilst the S&P500 wasdown 4 points at 1,301, and the Nasdaq up nearly 6 points at 2,446. News that JP Morgan was having further writedowns, with its mortgage arena still taking more hits, its comments on 'substantial losses' in its mortgage investments so far in the 3rd quarter, even more than its 2nd quarter, caused some concern on wall street. Then news that the US trade deficit unexpectedly fell in June, with exports at an all-time high did help repair some dmage to attitude. The US Commerce Department said that the trade imbalance dropped to US$56.8 bln in June, down by 4.1% from a revised May deficit of US$59.2 bln. This is the smallest deficit in 3 months, and much better than the US$61.5 bln deficit the markets had been expecting.
Back here in London, the economic news was not so good. With news that annual inflation had risen to more than twice the Bank of England's official target during July wasn't taken well, despite being expected. Driven by the continuous rise in food, petrol and utility bills, the rise to 4.4% from 3.8% was hardly a surprise. This is the highest rise since official CPI data began being collated in 1997.
On to the markets, where the miners took some pressure. ENRC closed down 71.5p at 988.5p, Kazakhmys closed down 68p at 1,166p, Xstrata down 67p at 2,883, and Ferrexpo down over 10p at 234.5p. Ferrexpo is down nearly 50% from its peak reached on entering the FTSE 100 2 months ago.
On to oil, where BP closed up 10p at 535p as oil was gaining support at the US$113 bbl level. RD Shell closed up 30p at 1,810p.
On to the banks, where Standard Chartered closed down 109p at 1,490p after a Citigroup downgrade to 'sell' from 'hold' as a reaction to the bank's 1st half results last week.
On the the High Street, where Marks & Sparks closed down 8p at 296p, Next closed down 52p at 1,080, B&Q owner Kingfisher down 3.1p at 138.4p, and DSG International, owners of Currys and PC World, closed up 5p at just shy of 65p on rumours of a bid coming.
Thomson Reuters closed down 77p at 1,481 after its 2nd quarter results failed to impress. Operating profit fell to US$336m, down 18% on last year. UBS reminded everyone of its 'sell' stance.
WPP Group, the advertising giant closed down 16p at 487p after news that Citigroup had taken a placing of 28m shares at a price of 486p.
ITV closed up 3p at 50.6p after rumours that a possible takeover approach following the recent fall in market value could be on the cards, with Endemol being favourite. ITV are now up a third in value since their low 2 months ago.
Trinity Mirror, on the other hand, closed down 9p at 116 after a JP Morgan downgrade to 'underweight' from 'neutral', citing the ongoing loss of advertising revenue will continue to affect figures.
Intercontinental Hotels closed up 22.5p at 773p as 1st half figures looked good.
Weir Group closed down 71p at at 832 on profit taking after the gains after the decent 1st half results announced.
Northern Foods closed up over 4p at 65.25p, Dairy Crest Group up 30.5p at 464p and Domino's Pizza up 12.5p at 202.25p as food groups were in fashion today.
Monday, 11 August 2008
Market Wrap, Monday 11th August 2008
The FTSE 100 closed up 52.6 points at 5,541.8, whilst the FTSE 250 closed up 182.2 points at 9,384.1. Not a bad start to the week.
Over the pond, by the time London closed the DJI was up 53 points at 11,787, whilst the S&P500 was up nearly 4 points at 1,300, and the Nasdaq up 20 points at nearly 2,434. Wall Street liked the price of the black stuff falling back, with the price of a barrel now sub US$114 bbl.
Back here in London, it was the financial sector that was of some interest. Banking giant RBS closed up 8.5p at 249 p after news that private equity outfits were getting involved with intent to profit. Apollo, TPG and Blackstone's GSO Capital are apparently taking up US$8 bln in loans from RBS at a reduced rate of 30%. Buying debt, so to speak, that should make 30% in returns. Peers also attracted some positive attention, with Barclays closing up 13p at 379.5p, and Lloyds TSB up nearly 13p at just shy of 331p,
On to the miners, where investors moved out again, taking some recent profits with them. ENRC closed down 64p at 1,060p after Kaz said it now owned 25% of ENRC, whilst Kazakhmys closed down 14p 1,234 desite the news. Xstrata closed down 40p to 2,950p, Lonmin down 20p to 3,402p, and Rio Tinto down 95p to close at 4,590 after news that it may list its American coal business to raise some cash. Rio apparently want to raise some US$15 bln from the sale of various non-core assets and side businesses. Aquarius Platinum, on the other hand, closed up over 6p at 432p after a double upgarde to 'buy/overweight' from 'neutral' by HSBC and UBS after they took a look at the metal producer's results last week.
Recent media star (err, we mean one investors have been watching) ITV was still attracting investors, closing up 2.8p at 47.6p as rumours that Endemol were sniffing with intent to bid.
On to the housebuilders, where Bellway closed up a healthy 44.5p to 648p after a Goldman Sachs upgrade to 'neutral' from 'sell' cisting a decent balance sheet despite the recent mire trodding. Peers followed up, with Taylor Wimpey closing up over 7p at 58.5p, and Bovis closing up 42.25p at 480.25p. The possibility that the ditherer, Darling, and his boss, Brown, will finally take a firm stance and tell everyone that there is a holiday on stamp duty until the end of the financial year seems likely. Well, we think so, anyway. This will cause some interest in the private property sector again, with targets for completion by 5th April 2009 the goal for anyone considering getting on the ladder. A 50% reduction on next year's stamp duty would help too, with 0.5% to 2% instead of 1% to 4% giving help again. In 18 months hopefully we're all back to some sort of normality. Someone tell Darling to give us a call for some advice.
Credit expert Experian closed down 5p at 409.5p after a Goldman Sachs downgrade to 'sell' from 'neutral' with a target reduced from 421p to 375p citing that it expects pressures next year.
Over the pond, by the time London closed the DJI was up 53 points at 11,787, whilst the S&P500 was up nearly 4 points at 1,300, and the Nasdaq up 20 points at nearly 2,434. Wall Street liked the price of the black stuff falling back, with the price of a barrel now sub US$114 bbl.
Back here in London, it was the financial sector that was of some interest. Banking giant RBS closed up 8.5p at 249 p after news that private equity outfits were getting involved with intent to profit. Apollo, TPG and Blackstone's GSO Capital are apparently taking up US$8 bln in loans from RBS at a reduced rate of 30%. Buying debt, so to speak, that should make 30% in returns. Peers also attracted some positive attention, with Barclays closing up 13p at 379.5p, and Lloyds TSB up nearly 13p at just shy of 331p,
On to the miners, where investors moved out again, taking some recent profits with them. ENRC closed down 64p at 1,060p after Kaz said it now owned 25% of ENRC, whilst Kazakhmys closed down 14p 1,234 desite the news. Xstrata closed down 40p to 2,950p, Lonmin down 20p to 3,402p, and Rio Tinto down 95p to close at 4,590 after news that it may list its American coal business to raise some cash. Rio apparently want to raise some US$15 bln from the sale of various non-core assets and side businesses. Aquarius Platinum, on the other hand, closed up over 6p at 432p after a double upgarde to 'buy/overweight' from 'neutral' by HSBC and UBS after they took a look at the metal producer's results last week.
Recent media star (err, we mean one investors have been watching) ITV was still attracting investors, closing up 2.8p at 47.6p as rumours that Endemol were sniffing with intent to bid.
On to the housebuilders, where Bellway closed up a healthy 44.5p to 648p after a Goldman Sachs upgrade to 'neutral' from 'sell' cisting a decent balance sheet despite the recent mire trodding. Peers followed up, with Taylor Wimpey closing up over 7p at 58.5p, and Bovis closing up 42.25p at 480.25p. The possibility that the ditherer, Darling, and his boss, Brown, will finally take a firm stance and tell everyone that there is a holiday on stamp duty until the end of the financial year seems likely. Well, we think so, anyway. This will cause some interest in the private property sector again, with targets for completion by 5th April 2009 the goal for anyone considering getting on the ladder. A 50% reduction on next year's stamp duty would help too, with 0.5% to 2% instead of 1% to 4% giving help again. In 18 months hopefully we're all back to some sort of normality. Someone tell Darling to give us a call for some advice.
Credit expert Experian closed down 5p at 409.5p after a Goldman Sachs downgrade to 'sell' from 'neutral' with a target reduced from 421p to 375p citing that it expects pressures next year.
Friday, 8 August 2008
Market Wrap, Friday 8th August 2008
The FTSE 100 closed up 11.7 points at 5,489.2 today, whilst the FTSE 250 closed up 113.2 points at 9,201.9.
Over the pond, by the time London closed the DJI was up 209 points at 11,641, whilst the S&P500 was up 18 points at 1,284, and the Nasdaq up 40 points at 2,396. It seems the news from Fannie Mae that their reported last quarterly loss was 3-times what was expected didn't seem to matter. The fact oil was falling again helped stocks gain some strength.
Back here in London it was British Airways that had a really good day, closing up nearly 21p at just shy of 276p, as Citigroup upped its traget to 350p from 3-quid, and the price of the black stuff falling back giving more reason to buy into a fuel user of this size. If this Iberia deal comes off it will do some good, says Citigroup, with savings in the hundreds of millions.
Staying with oil related stocks, Thomas Cook closed up 17p at just over 237p after a Dresdner Kleinwort upgrade to 'hold' from 'reduce' for the travel group.
On to the banks, where RBS closed up 7.5p at 240.5p as invetsors felt the 6month figures weren't as bad as expected, despite posting a loss after £5.1 bln profit last year for the same period.
ITV closed up 1.7p at 44.8p as investors felt the drop after posting results on wednesday may have been too harsh.
Schroders closed up 64p at 1,068p after posting a profit of £135.7m, down from £185.6m last year. Schroders reiterated its 'outperform' stance.
Now for some negatives... With oil falling so did the heavyweights. BP closed down 12.5p at 519.5p, RD Shell down 38p at 1,750.5p, Cairn Energy down 102p at 2,626p, Dana Petroleum down 61p at 1,289p, and Hardy Oil & Gas down nearly 32p at 464.25p.
On to the miners, where the metals were falling back. Kazakhmys closed down 86p at 1,248p, Xstrata down 154p at 2,990p, Anto down 27.5p at 539p, Vedanta down 91p at 1,765, and Randgold down 134p at 2,305p.
British American Tobacco closed down 38p at 1,839 after its proposed bid deal, after Swiss group Richemont said this morning that it is will distribute most of its 20% stake in BAT to shareholders.
On to retail, where Currys & PC World owner DSG International closed up 5.5p at 55p after news that director Andrew Lynch bought 20,000 shares at 50p each, spending 10-grand. Debenhams closed down 3.5p at 53p after a Pali International downgrade to 'sell' from 'neutral' with 45p target.
Northern Foods closed up nearly 5p at 60p after a Goldman Sachs upgarde to 'buy' from 'neutral' with 75p target, up 2p, based on fundamentals.
Over the pond, by the time London closed the DJI was up 209 points at 11,641, whilst the S&P500 was up 18 points at 1,284, and the Nasdaq up 40 points at 2,396. It seems the news from Fannie Mae that their reported last quarterly loss was 3-times what was expected didn't seem to matter. The fact oil was falling again helped stocks gain some strength.
Back here in London it was British Airways that had a really good day, closing up nearly 21p at just shy of 276p, as Citigroup upped its traget to 350p from 3-quid, and the price of the black stuff falling back giving more reason to buy into a fuel user of this size. If this Iberia deal comes off it will do some good, says Citigroup, with savings in the hundreds of millions.
Staying with oil related stocks, Thomas Cook closed up 17p at just over 237p after a Dresdner Kleinwort upgrade to 'hold' from 'reduce' for the travel group.
On to the banks, where RBS closed up 7.5p at 240.5p as invetsors felt the 6month figures weren't as bad as expected, despite posting a loss after £5.1 bln profit last year for the same period.
ITV closed up 1.7p at 44.8p as investors felt the drop after posting results on wednesday may have been too harsh.
Schroders closed up 64p at 1,068p after posting a profit of £135.7m, down from £185.6m last year. Schroders reiterated its 'outperform' stance.
Now for some negatives... With oil falling so did the heavyweights. BP closed down 12.5p at 519.5p, RD Shell down 38p at 1,750.5p, Cairn Energy down 102p at 2,626p, Dana Petroleum down 61p at 1,289p, and Hardy Oil & Gas down nearly 32p at 464.25p.
On to the miners, where the metals were falling back. Kazakhmys closed down 86p at 1,248p, Xstrata down 154p at 2,990p, Anto down 27.5p at 539p, Vedanta down 91p at 1,765, and Randgold down 134p at 2,305p.
British American Tobacco closed down 38p at 1,839 after its proposed bid deal, after Swiss group Richemont said this morning that it is will distribute most of its 20% stake in BAT to shareholders.
On to retail, where Currys & PC World owner DSG International closed up 5.5p at 55p after news that director Andrew Lynch bought 20,000 shares at 50p each, spending 10-grand. Debenhams closed down 3.5p at 53p after a Pali International downgrade to 'sell' from 'neutral' with 45p target.
Northern Foods closed up nearly 5p at 60p after a Goldman Sachs upgarde to 'buy' from 'neutral' with 75p target, up 2p, based on fundamentals.
Thursday, 7 August 2008
Market Wrap, Thursday 7th August 2008
The FTSE 100 closed down 8.6 points today at 5,477.5, whilst the FTSE 250 closed down 58.9 points at 9,072.6. The FTSE had been up about 53 points during the session. The miners did well, but the insurers didn't. And as expected, UK interest rates stayed at 5% after the Monetary Policy Committee was torn between the pressures on the economy and the struggle with inflation. Sitting where we were was the sensible and expected option.
Over the pond, by the time London closed the DJI was down 119 points to at 11,536, although had recovered from even further negative territory, some 56 points lower. The weekly unemployment figures was up again, and news that Wal-Mart sales were down didn't help.
Back here in London, it was the miners who continued with interest from investors as M&A possibilities helped, as did metal prices rising. ENRC closed up a quid at 1,117, whilst Anto closed up 24p at at 566.5p, and Vedanta up 28p at 1,856. The Xstrata bid for Lonmin has moved investors and speculators' interest back to the sector.
Oil was seeping up again, so the oil heavyweights took on some buyers. BP closed up 11p at 532p, whilst RD Shell closed up 6p at 1,749, BG Group up 36p at 1,106p, and Dana Petroleum closing up 73p at 1,350. Dana also received a Goldman Sachs upgrade to 'buy' from 'neutral', whcih probably helped.
On to the banks, where news from Barclays this morning that they had taken a £2 bln write-down, helping 1st half profits fall by 33% didn't help the sector, although some feared worse. Pre-tax profit £2.75bn, down from £4.1bn last year for the same 6 motnhs. H1 profits at Barclays Capital were down 68% to £524m after takeing a £2 bln write-down on its credit market exposures.
Medical equipment manufacturer Smith & Nephew closed up almost 30p at 597p after announcing better than expected figures, with better 2nd quarter earnings on US$1 bln.
On to insurers, where it wasn't as good. Friends Provident closed down 4.5p at 87.2p after a 20% drop in 1st half profits to £211m was announced.
On to property, where Hammerson closed down 24p at 965p after posting a pre-tax loss for its 1st half. After Liberty Intnl's figures yesterday, this wasn't good news for the sector and REITs in general. A KBC Peel Hunt downgrade to 'hold' from 'add' followed. Peer Liberty Intnl closed down 48.5p at 851.5p.
International Power closed down 14p at 407p after announcing a 19% rise in 1st half operating profit, but added that the 2nd half operating profit looks to be hit by £45m due to the Rugeley plant downtime.
Laird Group closed up 12.5p at 327p after a Goldman Sachs upgrade to 'buy' from 'neutral'.
Over the pond, by the time London closed the DJI was down 119 points to at 11,536, although had recovered from even further negative territory, some 56 points lower. The weekly unemployment figures was up again, and news that Wal-Mart sales were down didn't help.
Back here in London, it was the miners who continued with interest from investors as M&A possibilities helped, as did metal prices rising. ENRC closed up a quid at 1,117, whilst Anto closed up 24p at at 566.5p, and Vedanta up 28p at 1,856. The Xstrata bid for Lonmin has moved investors and speculators' interest back to the sector.
Oil was seeping up again, so the oil heavyweights took on some buyers. BP closed up 11p at 532p, whilst RD Shell closed up 6p at 1,749, BG Group up 36p at 1,106p, and Dana Petroleum closing up 73p at 1,350. Dana also received a Goldman Sachs upgrade to 'buy' from 'neutral', whcih probably helped.
On to the banks, where news from Barclays this morning that they had taken a £2 bln write-down, helping 1st half profits fall by 33% didn't help the sector, although some feared worse. Pre-tax profit £2.75bn, down from £4.1bn last year for the same 6 motnhs. H1 profits at Barclays Capital were down 68% to £524m after takeing a £2 bln write-down on its credit market exposures.
Medical equipment manufacturer Smith & Nephew closed up almost 30p at 597p after announcing better than expected figures, with better 2nd quarter earnings on US$1 bln.
On to insurers, where it wasn't as good. Friends Provident closed down 4.5p at 87.2p after a 20% drop in 1st half profits to £211m was announced.
On to property, where Hammerson closed down 24p at 965p after posting a pre-tax loss for its 1st half. After Liberty Intnl's figures yesterday, this wasn't good news for the sector and REITs in general. A KBC Peel Hunt downgrade to 'hold' from 'add' followed. Peer Liberty Intnl closed down 48.5p at 851.5p.
International Power closed down 14p at 407p after announcing a 19% rise in 1st half operating profit, but added that the 2nd half operating profit looks to be hit by £45m due to the Rugeley plant downtime.
Laird Group closed up 12.5p at 327p after a Goldman Sachs upgrade to 'buy' from 'neutral'.
Wednesday, 6 August 2008
Market Wrap, Wednesday 6th August 2008
The FTSE 100 closed up 31.6 points today at 5,486.1, whilst the FTSE 250 closed up 55.8 points at 9,131.5. Hype around the miners after Xstrata bid for Lonmin.
Over the pond, by the time London closed the DJI was down 23 points at 11,592, whilst the S&P500 was down 3 points at 1,281, and the Nasdaq was up 6 points at 2,356. Wall Street was turning up, after a lower start today.
Back here in London, it was the miners in the news. Xstarta bid for platinum producer Lonmin with an all cash offer at 33-quid, 42% above the Lonmin close price yesterday, prompting a near 50% jump in the Lonmin share price to close at 3,426, up 1,107p on the day. Evo reckons 40-quid a pop is more like it, which values Lonmin at £12.5 bln. Brazil's Vale Inco and Russia's Norilsk Nickel could also be interested in lonmin according to two of the City's brokers. Xstrata, meanwhile, closed down 33p at 3,167p. Peers reacted positively, with Anto closing up 22.5p at 542.5p, Vedanta closing up 54p at 1,828, and Aquarius Platinum up 66.5p at 451.5p. Aquarius would be worth 7-quid a pop if the same earnings multiples as the Xstrata bid were used for Aquarius, is worth noting.
On to the London Stock Exchange (LSE:LSE), where a 39p rise closed the Paternoster Square-based centre of the action close at 920p after a decent update. Trades were up 35% on last year to £263.5 bln for July.
On to insurance, Old Mutual closed down 12.1p at 94.3 after announcing a 3% rise in 1st half profit, but the low value of the Rand and cash required in their US business hindering things, with £107m put aside may not be enough.
ITV closed down 2.7p at 43.6p after announcing a 1st half loss of £1.54 bln, against a profit of £105m last year, prompting a UBS reminder of its 'sell' stance.
On to property, where Liberty International closed down 70p at 9-quid after a downbeat update and announcing a 13.4% slide in 1st half NAV. Peers reacted as expected, with Hammerson closing down 28p at 989p, British Land closing down 21.5p at 737p, and Great Portland Estates closing down 24p at 351p, prompting a Altium Securities downgrade to 'hold' from 'buy'.
Trinity Mirror closed down 12.25p at 122p on profit taking after yesterday's leap.
High Street electrical giant, DSG International, closed down 2.5p at 50.5p after a UBS downgrade to 'neutral' from 'buy'.
Johnston Press closed up 6p at 60p after broker upgrades to 'buy' from 'sell' with a 70p target. Decent interim results are expected last this month.
Over the pond, by the time London closed the DJI was down 23 points at 11,592, whilst the S&P500 was down 3 points at 1,281, and the Nasdaq was up 6 points at 2,356. Wall Street was turning up, after a lower start today.
Back here in London, it was the miners in the news. Xstarta bid for platinum producer Lonmin with an all cash offer at 33-quid, 42% above the Lonmin close price yesterday, prompting a near 50% jump in the Lonmin share price to close at 3,426, up 1,107p on the day. Evo reckons 40-quid a pop is more like it, which values Lonmin at £12.5 bln. Brazil's Vale Inco and Russia's Norilsk Nickel could also be interested in lonmin according to two of the City's brokers. Xstrata, meanwhile, closed down 33p at 3,167p. Peers reacted positively, with Anto closing up 22.5p at 542.5p, Vedanta closing up 54p at 1,828, and Aquarius Platinum up 66.5p at 451.5p. Aquarius would be worth 7-quid a pop if the same earnings multiples as the Xstrata bid were used for Aquarius, is worth noting.
On to the London Stock Exchange (LSE:LSE), where a 39p rise closed the Paternoster Square-based centre of the action close at 920p after a decent update. Trades were up 35% on last year to £263.5 bln for July.
On to insurance, Old Mutual closed down 12.1p at 94.3 after announcing a 3% rise in 1st half profit, but the low value of the Rand and cash required in their US business hindering things, with £107m put aside may not be enough.
ITV closed down 2.7p at 43.6p after announcing a 1st half loss of £1.54 bln, against a profit of £105m last year, prompting a UBS reminder of its 'sell' stance.
On to property, where Liberty International closed down 70p at 9-quid after a downbeat update and announcing a 13.4% slide in 1st half NAV. Peers reacted as expected, with Hammerson closing down 28p at 989p, British Land closing down 21.5p at 737p, and Great Portland Estates closing down 24p at 351p, prompting a Altium Securities downgrade to 'hold' from 'buy'.
Trinity Mirror closed down 12.25p at 122p on profit taking after yesterday's leap.
High Street electrical giant, DSG International, closed down 2.5p at 50.5p after a UBS downgrade to 'neutral' from 'buy'.
Johnston Press closed up 6p at 60p after broker upgrades to 'buy' from 'sell' with a 70p target. Decent interim results are expected last this month.
Tuesday, 5 August 2008
Market Wrap, Tuesday 5th August 2008
The FTSE 100 closed up 134.30 points at 5,454.5, whilst the FTSE 250 closed up 288.3 points at 9,075.7. The weaker oil price helping both sides of the pond.
By the time London closed, over the pond the DJI was up 196 points at 11,480, whilst the S&P500 was up 19 points at 1,268, and the Nasdaq up nearly 37 points at 2,322. The Fed Res will be telling us what they will be doing with interst rates later on too, and it seems there is some positive feeling around, with a continuing of the current 2% rate being the decision expected, but maybe some hint that a small rise could be following shortly in the accompanying statement.
On to the black stuff, where the price of a barrell was not sub US$119 bbl. Let's hope this is shown on the pump prices in the UK.
Back here in London, it was the insurance sector and other financials that were having a good day. Legal & General closed up 11.7p at 108.3p after annoucing a 6% rise in 1st half operating profit, which was at the top end of what had been expected. Peers liked the news, with Standard Life closing up 21p at just over 244p, Friends Provident up 6.3p at 91.5p, and Aviva up nearly 39p at 531.5p despite the downgrade yesterday.
Staying with financials, namely the banks, there were some decent rises. Asian-biased Standard Chartered closed up 119p at 1,542p after news of over 30% rise in 1st half profit, whilst Barclays closed up 30p at just over 369p after news that Swiss Re will buy Barclays' UK life assurance business for £753m, RBS up 15.5p at 230.5p, HBOS up 36.5p at just over 336p, and Lloyds TSB up over 31.25p at 324.5p.
The oil heavyweights responded to the lower barrel price, with BP closing down 6p at 512p, RD Shell down 14p at 1,722p, and BG Group down 36p at 1,050p. Wood Group, the oil services firm, closed down 21p at 391.25p, Petrofac down 19.5p at 610.5p, AMEC down 18.5p at 820p, Wellstream down 81p at 1,032, Dana Petroleum down 93p at 1,227, and Talvivaara Mining down 16p at 260p.
On to the miners, where ENRC closed down 48p at 850p, BHP down 21p at 510p, and Ferrexpo closed down 11.5p at 257p.
On to the High Street, where Next closed up 72p at 1,057p, and B&Q owner Kingfisher closed up just over 10p at 133.3p, and Sports Direct closed up 11.5p at just shy of 78p.
Plumbing suppling giant Wolseley did ok today as well, closing up 52.5p at 405.5p on rumours that it will offload its US business.
Drax closed down 29.5p at 693.5p after announcing a £206m 1st half earnings for this year, whcih was 28% worse that last year. This prompted Evo to remind of its 'reduce' stance. Peers fell too, with Scottish & Southern Energy down 32p at 1,353, and International Power down 4p at just shy of 414p.
Michael Page International closed up nearly 37p at 352p after confirming that Adecco had made an approach. Peer Hays closed up nearly 9p at 90p as a reaction.
Housebuilders did well, all on hopes of some interest rate help, we think, with Persimmons up 54.5p at 366p, Bellway up over 77p at 584.5p, and Bovis up over 60p at 418p.
Johnston Press closed up 14p at 54p.
Pub Group JD Wetherspoon came off the bottom, closing up nearly 37p at 270p.
By the time London closed, over the pond the DJI was up 196 points at 11,480, whilst the S&P500 was up 19 points at 1,268, and the Nasdaq up nearly 37 points at 2,322. The Fed Res will be telling us what they will be doing with interst rates later on too, and it seems there is some positive feeling around, with a continuing of the current 2% rate being the decision expected, but maybe some hint that a small rise could be following shortly in the accompanying statement.
On to the black stuff, where the price of a barrell was not sub US$119 bbl. Let's hope this is shown on the pump prices in the UK.
Back here in London, it was the insurance sector and other financials that were having a good day. Legal & General closed up 11.7p at 108.3p after annoucing a 6% rise in 1st half operating profit, which was at the top end of what had been expected. Peers liked the news, with Standard Life closing up 21p at just over 244p, Friends Provident up 6.3p at 91.5p, and Aviva up nearly 39p at 531.5p despite the downgrade yesterday.
Staying with financials, namely the banks, there were some decent rises. Asian-biased Standard Chartered closed up 119p at 1,542p after news of over 30% rise in 1st half profit, whilst Barclays closed up 30p at just over 369p after news that Swiss Re will buy Barclays' UK life assurance business for £753m, RBS up 15.5p at 230.5p, HBOS up 36.5p at just over 336p, and Lloyds TSB up over 31.25p at 324.5p.
The oil heavyweights responded to the lower barrel price, with BP closing down 6p at 512p, RD Shell down 14p at 1,722p, and BG Group down 36p at 1,050p. Wood Group, the oil services firm, closed down 21p at 391.25p, Petrofac down 19.5p at 610.5p, AMEC down 18.5p at 820p, Wellstream down 81p at 1,032, Dana Petroleum down 93p at 1,227, and Talvivaara Mining down 16p at 260p.
On to the miners, where ENRC closed down 48p at 850p, BHP down 21p at 510p, and Ferrexpo closed down 11.5p at 257p.
On to the High Street, where Next closed up 72p at 1,057p, and B&Q owner Kingfisher closed up just over 10p at 133.3p, and Sports Direct closed up 11.5p at just shy of 78p.
Plumbing suppling giant Wolseley did ok today as well, closing up 52.5p at 405.5p on rumours that it will offload its US business.
Drax closed down 29.5p at 693.5p after announcing a £206m 1st half earnings for this year, whcih was 28% worse that last year. This prompted Evo to remind of its 'reduce' stance. Peers fell too, with Scottish & Southern Energy down 32p at 1,353, and International Power down 4p at just shy of 414p.
Michael Page International closed up nearly 37p at 352p after confirming that Adecco had made an approach. Peer Hays closed up nearly 9p at 90p as a reaction.
Housebuilders did well, all on hopes of some interest rate help, we think, with Persimmons up 54.5p at 366p, Bellway up over 77p at 584.5p, and Bovis up over 60p at 418p.
Johnston Press closed up 14p at 54p.
Pub Group JD Wetherspoon came off the bottom, closing up nearly 37p at 270p.
Monday, 4 August 2008
Market Wrap, Monday 4th August 2008
The FTSE 100 index closed down 34.5 points to 5,320.2, having retreated from a morning peak of 5,414.7, while the FTSE 250 index fell back 56.8 to 8,783.1.
Over the pond, by the time London closed the DJI was down 15 points at 11,315, whilst the S&P500 was down 11 points at 1,249, and the Nasdaq down 16 at 2,294. News that inflation was up didn't help. The fuel price being blamed there.
Back here in London the miners were suffering due to metal prices falling back. ENRC closed down 58p at 998p, Kazakhmys closed down 135p at 1,288p, Vedanta down 156p at 1,755, and Anto down 44p at 503.5p.
The oil heavyweights fell back too, with BP closing down over 3p at 518p, RD Shell down 14p at 1,736, and BG Group down 24p at 1,086.
On to the banks, where HSBC closed down 9p at 828p after news that profits for the 1st half were down to £10 bln, which was down nearly £3 bln from last time. Write downs blamed there. Peers fell too, with Lloyds TSB down nearly 7p at 293.5p, and Standard Chartered down 70p at 1,423.
Wolseley closed up 13.5p at 353.25p on rumours it will sell its US business.
Imperial Energy closed up 86p at 1,160p after confirming another cash bid for the company.
Similarly, Punch Taverns closed up 54.5p at 312p after press rumours of a bid in the offing.
Despite oil falling back, airline easyJet closed down 10.5p at 320p after a Credit Suisse downgrade to 'neutral' from 'outperform' after an airline sector review.
Trinity Mirror closed up 14.5p at 115p after a Lehman Brothers upgrade for the newspaper publisher to 'equal-weight' from 'underweight'.
Over the pond, by the time London closed the DJI was down 15 points at 11,315, whilst the S&P500 was down 11 points at 1,249, and the Nasdaq down 16 at 2,294. News that inflation was up didn't help. The fuel price being blamed there.
Back here in London the miners were suffering due to metal prices falling back. ENRC closed down 58p at 998p, Kazakhmys closed down 135p at 1,288p, Vedanta down 156p at 1,755, and Anto down 44p at 503.5p.
The oil heavyweights fell back too, with BP closing down over 3p at 518p, RD Shell down 14p at 1,736, and BG Group down 24p at 1,086.
On to the banks, where HSBC closed down 9p at 828p after news that profits for the 1st half were down to £10 bln, which was down nearly £3 bln from last time. Write downs blamed there. Peers fell too, with Lloyds TSB down nearly 7p at 293.5p, and Standard Chartered down 70p at 1,423.
Wolseley closed up 13.5p at 353.25p on rumours it will sell its US business.
Imperial Energy closed up 86p at 1,160p after confirming another cash bid for the company.
Similarly, Punch Taverns closed up 54.5p at 312p after press rumours of a bid in the offing.
Despite oil falling back, airline easyJet closed down 10.5p at 320p after a Credit Suisse downgrade to 'neutral' from 'outperform' after an airline sector review.
Trinity Mirror closed up 14.5p at 115p after a Lehman Brothers upgrade for the newspaper publisher to 'equal-weight' from 'underweight'.
Friday, 1 August 2008
Market Wrap, Friday 1st August 2008
The FTSE closed down 57.2 points today at 5,354.7, which was up about 33 points from the low, whilst the the FTSE 250 index closed down 16.8 points at 8,839.9. The FTSE actually gained 2.1 points this week.
Over the pond, by the time London closed thr DJI was down about 67 points at 11,310, whilst the S&P500 was down about 8 points at 1,259, and the Nasdaq down nearly 28 points at 2,298. News that the US lost 51k jobs in July wasn't taken well, with the unemployment rate up to its highest level for more than 4 years. Analysts had expected 72kk job losses, though, so one could say it wasn't as bad as feared, although the belief is the US is heading for recession. The Institute for Supply Management says its manufacturing index was at 50.0, which is the neutral figure for growth or contraction. Again, this was a little but better than economists expected. News from General Motors gave a 2nd quaretr loss of US$6.35 bln, with revenue down to US$38.2 bln. This was worse than expected, and a minus $11.21 EPS isn't anything to boast about.
back here in London, news that EDF, the French energy giant was no longer expecting to take over British Energy caused the UK power station sparky king to close down 29.5p at 7-quid. 29-1/2 pence lower at 700, after its takeover by France's EDF appeared not to be going ahead, at least for the time being. EDF said condition for a deal weren't met, but it does still want to expand internationally.
On to the miners, where commodity prices falling dragged down the majors. BHP closed down 88p at 1,911, Rio down 293p at 5,047, Kazakhmys down 76p at 1,423, Vedanta down 107p at 1,911-p, and Aquarius Platinum closed down 42.5p at 456.5p.
Gasman Centrica closed down nearly 18p at 297p after a JP Morgan downgrade to 'neutral from 'overweight' citing fundamentals, and also the threat of a windfall tax imposed by the government because these oil & gas companies are making too much money. With the government now saying it may actually impose a tax that doesn't exist, one is again reminded it really doesn't pay to be successful in the UK. The heavyweights all backed off, with BP closing down 0.25p at 521.25p, RD Shell down 19p at 1,780p, and Wood Group, the oil services provider falling back over 7p to close at just shy of 416p.
On to the price of the black stuff itself, which was up $2.50, but is still sub US$127 bbl, 20-bucks down from its peak 3 weeks ago.
On to the banks, where HBOS was up nearly 12p at 302.25p after investors were still pleased with the lower than expected write-downs the other day. A Collins Stewart broker upgrade to 'buy' from 'trading buy' also helped. Peers also did well, with Barclays up 3.5p at 341.5p, RBS up 3.5p at 215.25p, and Lloyds TSB up nearly 5p at 3-quid.
Food and goods supplier Unilever closed down 29p at 1,359p after an ING downgrade to 'hold' from 'buy' for the Dutch stock, with a 10% reduction in target from €22 to €20.
On to retail, where B&Q owner Kingfisher closed up nearly 6p at 124.2p after saying it had sold its Italian business, Castorama Italy to Groupe Adeo for €560m, which will help its plan to reduce some of its £1.5 bln debt. Staying with retail, but moving to the High Street, Next closed up 16p at 970.5p, and Marks & Sparks closed up nearly 5p at 263.25p. Supermarket Morrisons closed up 6.5p at 265.5p after a SG Securities upgrade to 'buy' from 'sell', adding a 311p target.
On to British Airways, who closed up nearly 4p at 259p after investors looked at the price of oil falling back 20% from its peak and the Iberia merger news also sank in so they decided the carrier was looking value again. UBS also reminded everyone that they still had a 'buy' stance on this one.
BAE Systems closed up 10p at 460p after a decent update and quite strong 1st half earnings figures.
On to pharmas, where Shire Pharma continued its rise with another 36p jump to 867.5p after investors still liked yesterday's results.
GKN closed down 6.5p at just shy of 207p after news from General Motors and BMW was seen as a sign the sector and associates were going to be under pressure.
Publisher Trinity Mirror closd up 14.25p at 100.5p after a double upgrade by Merrill Lynch and Morgan Stanley after the results posted yesterday were better than expected. Merrills upped the stock to 'neutral' from 'underperform', whilst Morgan Stanley upped it to 'overweight' from 'equal-weight'.
Greggs, the bakery chain closed up 207p at 3,727 after a Citigroup upgrade to 'hold' from 'sell' after yesterday's results were taken well.
Over the pond, by the time London closed thr DJI was down about 67 points at 11,310, whilst the S&P500 was down about 8 points at 1,259, and the Nasdaq down nearly 28 points at 2,298. News that the US lost 51k jobs in July wasn't taken well, with the unemployment rate up to its highest level for more than 4 years. Analysts had expected 72kk job losses, though, so one could say it wasn't as bad as feared, although the belief is the US is heading for recession. The Institute for Supply Management says its manufacturing index was at 50.0, which is the neutral figure for growth or contraction. Again, this was a little but better than economists expected. News from General Motors gave a 2nd quaretr loss of US$6.35 bln, with revenue down to US$38.2 bln. This was worse than expected, and a minus $11.21 EPS isn't anything to boast about.
back here in London, news that EDF, the French energy giant was no longer expecting to take over British Energy caused the UK power station sparky king to close down 29.5p at 7-quid. 29-1/2 pence lower at 700, after its takeover by France's EDF appeared not to be going ahead, at least for the time being. EDF said condition for a deal weren't met, but it does still want to expand internationally.
On to the miners, where commodity prices falling dragged down the majors. BHP closed down 88p at 1,911, Rio down 293p at 5,047, Kazakhmys down 76p at 1,423, Vedanta down 107p at 1,911-p, and Aquarius Platinum closed down 42.5p at 456.5p.
Gasman Centrica closed down nearly 18p at 297p after a JP Morgan downgrade to 'neutral from 'overweight' citing fundamentals, and also the threat of a windfall tax imposed by the government because these oil & gas companies are making too much money. With the government now saying it may actually impose a tax that doesn't exist, one is again reminded it really doesn't pay to be successful in the UK. The heavyweights all backed off, with BP closing down 0.25p at 521.25p, RD Shell down 19p at 1,780p, and Wood Group, the oil services provider falling back over 7p to close at just shy of 416p.
On to the price of the black stuff itself, which was up $2.50, but is still sub US$127 bbl, 20-bucks down from its peak 3 weeks ago.
On to the banks, where HBOS was up nearly 12p at 302.25p after investors were still pleased with the lower than expected write-downs the other day. A Collins Stewart broker upgrade to 'buy' from 'trading buy' also helped. Peers also did well, with Barclays up 3.5p at 341.5p, RBS up 3.5p at 215.25p, and Lloyds TSB up nearly 5p at 3-quid.
Food and goods supplier Unilever closed down 29p at 1,359p after an ING downgrade to 'hold' from 'buy' for the Dutch stock, with a 10% reduction in target from €22 to €20.
On to retail, where B&Q owner Kingfisher closed up nearly 6p at 124.2p after saying it had sold its Italian business, Castorama Italy to Groupe Adeo for €560m, which will help its plan to reduce some of its £1.5 bln debt. Staying with retail, but moving to the High Street, Next closed up 16p at 970.5p, and Marks & Sparks closed up nearly 5p at 263.25p. Supermarket Morrisons closed up 6.5p at 265.5p after a SG Securities upgrade to 'buy' from 'sell', adding a 311p target.
On to British Airways, who closed up nearly 4p at 259p after investors looked at the price of oil falling back 20% from its peak and the Iberia merger news also sank in so they decided the carrier was looking value again. UBS also reminded everyone that they still had a 'buy' stance on this one.
BAE Systems closed up 10p at 460p after a decent update and quite strong 1st half earnings figures.
On to pharmas, where Shire Pharma continued its rise with another 36p jump to 867.5p after investors still liked yesterday's results.
GKN closed down 6.5p at just shy of 207p after news from General Motors and BMW was seen as a sign the sector and associates were going to be under pressure.
Publisher Trinity Mirror closd up 14.25p at 100.5p after a double upgrade by Merrill Lynch and Morgan Stanley after the results posted yesterday were better than expected. Merrills upped the stock to 'neutral' from 'underperform', whilst Morgan Stanley upped it to 'overweight' from 'equal-weight'.
Greggs, the bakery chain closed up 207p at 3,727 after a Citigroup upgrade to 'hold' from 'sell' after yesterday's results were taken well.
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