UK Market News

LONDON (ShareCast) - The London stock market has given up having dull days, and today's frenetic journey was in an upward direction for all but a handful of Footsie (news) stocks.

Fund manager Schroders (LSE: SDR.L - news) benefited from the world-wide recovery in share prices to claw back some of its recent heavy losses.

Hopes that concerted government action to restore confidence to the world's financial systems would stave off the prospect of a global recession boosted commodity stocks. Many leading miners and oils notched up double-digit percentage gains in line with recovering metals and oil prices.

Asia-focused bank Standard Chartered (LSE: STAN.L - news) climbed higher after it said it meets the capital requirements under the UK government's banking sector scheme and will ensure it continues to do so. "As previously stated, we do not intend to raise capital under the UK's recapitalisation scheme," it added.

TUI Travel (LSE: TT.L - news) added around one-fifth to its value on hopes that German parent company TUI AG (Xetra: TUAG00 - news) will lift its 51% stake in the company. The German company said it would concentrate on its travel businesses after selling off a stake in its German shipping unit.

Failing to participate in the rally were the three banks that are taking advantage of the government's assistance programme. The government has said it will buy preference shares issued by Royal Bank of Scotland (EU331.SW - news) , HBOS (LSE: HBOP.L - news) and Lloyds Bank on condition that the issuing banks do not pay any dividends on ordinary shares until the preference shares have been bought back. Robbed of the support of their hefty dividend yields, all three stocks fell back.

HBOS suffered the most after agreeing to a lower take-out price in the merger with Lloyds TSB (EUR286.SW - news) . Lloyds TSB, which had originally offered 0.833 of its shares for each HBOS share, is now only prepared to offer 0.605 of its shares for each share in the Halifax-owner.

Defensive favourite British American Tobacco (LSE: BATS.L - news) moved up after Citicorp observed that the company's 6%+ dividend yield compares favourable with the 4.3% yield on a 10-year gilt.

Still on the subject of dividends, UBS (Virt-X: UBSN.VX - news) is predicting a dividend cut at bookmaker's William Hill (LSE: WMH.L - news) as the bookie has a £1.2bn debt facility which runs out on 1 March 2009. UBS has cut its price target for William Hill to 187p from 250p.

Airline British Airways (LSE: BAY.L - news) gots a lift from Dresdner Kleinwort raising its recommendation from "hold" to "buy" on the grounds that the company's problems are now reflected in the share price.

Housebuilder Taylor Wimpey (LSE: TW.L - news) was marked sharply lower after it emerged that hedge fund Toscafund had reduced its holding below 3%, having previously owned more than 10% of the company.

Outsource giant Capita Group has paid £13.6m, net of cash acquired, for IP based business networking solutions firm ABS Network Solutions. "The acquisition will add valuable new expertise and capacity to Capita IT Services' existing networks business," said the UK blue chip.

Defence and security firm QinetiQ is to acquire tender assessment and management software group Commerce Decisions for a total of £9.85m. The acquisitions of the Oxford-based company will strengthen Qinetiq's consultancy business, QinetiQ said.

Unexpected costs related to investment in its businesses caused a fall in pre-tax profits at YouGov (LSE: YOU.L - news) and prompted the pollster and market research firm to implement cost control measures.

Shares in Clinton Cards (LSE: CC.L - news) were sharply lower after the card retailer plunged into a full year loss as a result of an impairment charge of £30m related to its Birthdays business.

Shares in membership management systems provider Gladstone (LSE: GLD.L - news) soared after Constellation Software (CSU.TO - news) launched a 25p cash per share offer for the company.

Body armour and security services provider Shieldtech (LSE: STEC.L - news) catapulted higher after saying third quarter trading was up significantly on the corresponding period of 2007.

FTSE 100 - Risers Schroders (SDR) 900.00p +32.35% Schroders NV (SDRC) 698.50p +27.58% Kazakhmys (LSE: KAZ.L - news) (KAZ) 408.50p +22.12% TUI Travel (TT.) 232.25p +20.96% Standard Life (LSE: SL.L - news) (SL (005850.KS - news) .) 260.00p +20.51% Standard Chartered (STAN) 1,200.00p +20.06% National Grid (LSE: NG.L - news) (NG.) 647.50p +16.56% Severn Trent (LSE: SVT.L - news) (SVT (SVTV.PK - news) ) 1,229.00p +16.38% Cairn Energy (LSE: CNE.L - news) (CNE) 1,736.00p +15.97% Rio Tinto (LSE: RIO.L - news) (RIO) 2,797.00p +15.39%

FTSE 100 - Fallers HBOS (HBOS) 90.00p -27.54% Lloyds TSB Group (LSE: LLOY.L - news) (LLOY) 162.00p -14.47% Royal Bank of Scotland Group (RBS (LSE: RBS.L - news) ) 65.70p -8.37% Fresnillo (LSE: FRES.L - news) (FRES) 209.00p -0.95% Hammerson (HMSO) 801.50p -0.80% Land Securities Group (LAND) 1,098.00p -0.45% Admiral Group (LSE: ADM.L - news) (ADM) 885.50p +0.57% Liberty International (LII) 810.50p +0.68% British Land Co (BLND) 686.00p +1.78% Drax Group (LSE: DRX.L - news) (DRX) 593.50p +1.89%