| CATEGORY: MARKET REPORT - AFTERNOON SECTOR: BANKS |
London afternoon: Footsie continues to fall |
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Mon 19 Nov 2007
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LONDON (SHARECAST) - Earlier concerns about Northern Rock were compounded by a poor start on Wall Street, which has slid on banking concerns as well.
Investors turned on the banks again as Northern Rock said offers received were priced below Friday’s close, while real estate issues tumbled on worries about the property market.
Northern Rock admitted that indicative expressions of interest valued the beleaguered mortgage lender at a level “materially below” Friday’s closing value of £559m. Alliance & Leicester fell in sympathy.
Royal Bank of Scotland, Barclays, HSBC and Lloyds TSB are all in trouble, although Standard Chartered heads the risers on reports that China's three leading banks are looking at buying a large stake in the former colonial bank. They are said to have sounded out Singapore state investment agency Temasek over a possible sale of its 17% stake.
Housebuilder Barratt is off colour despite a reassuring trading statement. It says that interest rate rises and the effect of recent liquidity squeeze on the availability and cost of mortgage finance has led to a tightening of the UK housing market. News that private sales were lower than the year before and more in line with 2005/6 levels rubbed off on peer Taylor Wimpey.
There's plenty of bid action today. SABMiller has made an €816m for Dutch brewer Grolsch, while BAT Industries has been unsettled by Richemont's plan to shunt its 19.3% stake in to a separate vehicle and away from its luxury goods arm.
British Land is down as Societe Generale lifted the real estate giant to 'hold' from 'sell', but cut its price target by 9% to 870p on valuation grounds. Hammerson and Land Securities joined the retreat.
Burren Energy has slumped as Italian giant Eni dropped its takeover plans, while surgical equipment group Gyrus has agreed to a £935m bid from Japanese medical equipment and digital camera maker Olympus. The offer is pitched at 630p per ordinary share of Gyrus, a 57% premium to Friday's share price.
Engineering firm Smiths Group has eased back after Goldman Sachs downgraded the shares to 'sell' from 'neutral', with price target cut to 953p from 970p.
ITV is off last week’s four-year low today after UBS lifted shares in the TV broadcaster to 'neutral' from 'sell', although the price target drops to 90p from 100p.
AIM-listed engineer Hamworthy tumbled despite revealing a 15% increase in underlying profits to £6.3m on sales up 30.5% to £106.2m. "With the order book at a record level and a healthy balance sheet, the board remains confident in the group's outlook for the remainder of the year," it said.
Electrical engineering and contracting firm T Clarke is on track to meet current market expectations for the full year following strong trading at its core business since August’s interims. “The board is confident about the prospects for the group,” it said.
Fashion house Marchpole Holdings has reported a sharp drop in profits, citing expansion into new markets and the loss of a license with the designer label YSL.
Acquisitive business and technology consultant Detica reported higher interim profits but said global uncertainty in financial markets has quashed hopes of second half growth in its commercial division.
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| NRK - Northern Rock |
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| Latest Prices |
| Name |
Price |
% |
| Northern Rock |
0.000p |
0.00% |
| Alliance & Leicester |
0.000p |
0.00% |
| Barclays |
312.40p |
-0.98% |
| British American Tobacco |
2,303.00p |
+0.52% |
| Bradford & Bingley |
0.000p |
0.00% |
| Barratt Developments |
102.50p |
+1.69% |
| British Land Co |
466.50p |
-0.72% |
| Burren Energy |
0.000p |
+0.08% |
| T Clarke |
131.00p |
+0.77% |
| Detica Group |
0.000p |
+0.11% |
| Gyrus Group |
0.000p |
0.00% |
| Hammerson |
368.70p |
+0.22% |
| Hamworthy |
343.00p |
-0.58% |
| HSBC Holdings |
651.70p |
-0.05% |
| ITV |
59.20p |
+0.25% |
| Land Securities Group |
642.00p |
+0.16% |
| Lloyds Banking Group |
72.27p |
+1.11% |
| Marchpole Holdings |
0.000p |
0.00% |
| Paragon Group Of Companies |
140.00p |
-0.71% |
| Royal Bank of Scotland Group |
46.24p |
+0.96% |
| SABMiller |
1,914.00p |
-0.67% |
| Smiths Group |
1,193.00p |
+1.27% |
| Standard Chartered |
1,835.00p |
+0.82% |
| Taylor Wimpey |
28.60p |
+5.73% |
| |
| FTSE 100 |
5,371 |
+0.08% |
| FTSE 250 |
10,149 |
+0.87% |
| FTSE 350 |
2,835 |
+0.19% |
| FTSE AIM 100 |
3,211 |
+0.49% |
| FTSE AIM 50 |
2,897 |
+0.07% |
| FTSE AIM All-Share |
702 |
+0.68% |
| FTSE All-Share |
2,773 |
+0.20% |
| FTSE Fledgling |
4,098 |
+0.06% |
| FTSE Small Cap |
2,830 |
+0.51% |
| FTSEurofirst 300 |
1,055 |
-0.05% |
| techMARK |
1,672 |
+0.28% |
| techMARK 100 |
1,841 |
+0.69% |
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