Financial News

LONDON (ShareCast) - Two broker upgrades in the last four days continue to keep BT (LSE: BT-A.L - news) bubbling higher.

Merrill Lynch (NYSE: MER - news) and Morgan Stanley (NYSE: MS - news) both raised their ratings on the back of hopes that global services may be over the worst.

J Sainsbury is the main news mover today. It is raising £242m through a placing at 310p and a covertible bond to raise a further £190m. The news overshadowed another very strong trading update with like-for-like sales up 7.8%, led again by the Basics range with sales up 50%.

Broker Charles Stanley believes the supermarket chain's plan to accelerate expansion plans is a sensible strategic move. "Some small earnings downgrades may occur as a result of the capital raising, and this may result in share price weakness which investors should take advantage of, given the 'undemanding' valuation of the shares which is 'underpinned at current levels by asset backing arguments."

Miners are weak again with China sabre rattling against the Rio Tinto (LSE: RIO.L - news) rights issue and merger of its iron ore business in Australia with BHP Billiton (LSE: BLT.L - news) 's.

FTSE 100 - Risers BT Group (BT.A) 105.60p +3.02% Vodafone Group (LSE: VOD.L - news) (VOD) 117.25p +2.22% AstraZeneca (LSE: AZN.L - news) (AZN) 2,695.00p +2.20% BAE Systems (LSE: BA.L - news) (BA.) 334.25p +2.06% Carnival (CCL) 1,491.00p +2.05% Rolls-Royce Group (RR.) 337.25p +1.81% Cobham (COB) 170.90p +1.73%

FTSE 100 - Fallers Sainsbury (J) (SBRY) 309.50p -6.71% Antofagasta (LSE: ANTO.L - news) (ANTO) 588.50p -6.59% Eurasian Natural Resources (ENRC) 629.00p -6.40% Lonmin (LSE: LMI.L - news) (LMI) 1,224.00p -5.92% Kazakhmys (LSE: KAZ.L - news) (KAZ) 643.50p -5.71% Vedanta Resources (LSE: VED.L - news) (VED) 1,411.00p -5.56% United Utilities Group (UU.) 508.50p -5.48%