Tuesday March 25, 05:37 PM
London shares close firmer, buoyed by banks, oils, miners UPDATE
(Updating with full report)
LONDON (Thomson Financial) - Leading shares closed firmer today, near session highs, buoyed by banks following news yesterday of an improved Bear Stearns (NYSE: BSC
- news) offer, and with good gains also seen among oil and mining stocks.
At the close, the FTSE 100 index was up 193.9 points at 5,689.1, just down from a high of 5,704.3, while the FTSE 250 (news) index was 346.2 points higher at 9,794.6.
Volume was solid, with 3.3 bln shares having changed hands in 944,846 deals.
In the US, Wall Street was mixed after a disappointing reading on consumer sentiment punctured some of the market's optimism of the past two sessions. Investors also weighed a report on the housing sector showing a further pullback in home prices.
By London's close, the Dow Jones Industrial Average was off 29.10 points at 12,519.50, the S&P 500 index had gained 2.05 points to 1,351.95, and the Nasdaq Composite (NASDAQ: news) index had taken on 5.89 points 2,332.64.
Back with UK equities, Royal Bank of Scotland (LSE: 90ID.L - news) ended up 30 at 351-1/4, while Alliance & Leicester finished 11-1/2 higher at 548-1/4, and Lloyds TSB was 27-1/2 firmer at 461-1/2.
But it was HBOS (LSE: HBOS.L - news) that headed the FTSE 100 leaderboard, 70-3/4 ahead at 544-1/2, as news of a 5.7 mln stg purchase of stock by the bank's senior managers bolstered investor confidence in the group, hit last week by false rumours of a Bank of England bailout.
Meanwhile, Barclays (LSE: BARC.L - news) ended 30 stronger at 459, as Merrill Lynch (NYSE: MER - news) reiterated its 'buy' stance on the group after recent sector falls.
Other financials were in favour too, with insurers helping to give the FTSE 100 a boost.
Standard Life (LSE: SL.L - news) closed 17-3/4 higher at 252-1/2, Aviva (LSE: AV.L - news) took on 44-1/2 to end at 635-1/2, while Old Mutual (LSE: OML.L - news) finished 9.1 firmer at 114.4.
Mining stocks also helped bolster the FTSE 100, as metal prices rebounded from falls last week. Anglo American (LSE: AAL.L - news) closed up 169 at 2,841, with Xstrata (LSE: XTA.L - news) 233 ahead at 3,713, BHP Billiton (LSE: BLT.L - news) gained 69 to 1,430-1/2, Rio Tinto (Frankfurt: 855018 - news) was 185 firmer at 4,982-1/2, and Kazakhmys (LSE: KAZ.L - news) was 107 higher at 1,541-1/2.
Elsewhere among commodities, oil stocks were supported by a crude price near 100 usd a barrel. BP (LSE: BP.L - news) ended the session up 19 at 514-3/4, while Royal Dutch Shell (Amsterdam: RDSA.AS - news) was 48 firmer at 1,682, and Tullow Oil (Dublin: TQW.IR - news) was 31 ahead at 648-3/4.
Housebuilders also experienced good gains today, boosted by yesterday's stronger-than-expected US housing report. Today's further pullback in home prices, as shown in today's US housing sector report, took the sheen away slightly, though Mark Priest from tradindex.com pointed out that this result was largely expected.
Persimmon (LSE: PSN.L - news) gained 71-1/2 to 770, while Taylor Wimpey (LSE: TW.L - news) was up 19.5 at 183.3. Among midcaps, Bovis Homes ended up 74 at 597-1/2, Redrow (LSE: RDW.L - news) gained 33-3/4 to 303-3/4, and Bellway (LSE: BWY.L - news) gained 57 to 808-3/4, ahead of interim results tomorrow.
Bid talk provided the impetus for shares in British Energy (LSE: BGY.L - news) , up 39-1/2 at 660-1/4. According to a report in the Sunday Times, Centrica (LSE: CNA.L - news) is examining a 10 bln stg bid for the nuclear power company.
Meanwhile, Yell gained 17 to 155 on a technical rebound.
Among today's mere handful of casualties, Morrison shed 7-1/2 to 272, as Merrill Lynch downgraded the group to 'neutral' from 'buy'. The broker said Morrison's retail recovery has been impressive, with its trading rebound catching the market by surprise and resulting in a period of sector and market outperformance.
However, Merrill Lynch said that, with a darkening consumer backdrop and the shares trading at 16.3 times the estimated 2009 earnings per share (EPS), it thinks the recovery looks to be priced in.
Cazenove also cut its stance on the supermarket group, to 'in-line' from 'outperform'.
Meanwhile, tobacco companies lost out as a cigarette display ban is considered. British American Tobacco (LSE: BATS.L - news) was off 58 at 1,822, while Imperial Tobacco (LSE: IMT.L - news) dropped 55 to 2,300.
On the second tier, Filtrona (LSE: FLTR.L - news) was up 14-3/4 at 167-1/2, as UBS (Virt-X: UBSN.VX - news) lifted its rating on the group to 'neutral' from 'sell', while cutting its target to 165 pence from 180 pence.
A broker upgrade also helped shares in Go-Ahead, which took on 54 to 1,586-1/2, with Brewin Dolphin (LSE: BRW.L - news) raising its stance to 'buy' from 'add' on valuation grounds, following the recent significant decline in the transport group's share price, with its 2,155 pence price target left unchanged.
Turning to the fallers, Mouchel Group was off 5-1/2 at 448-3/4, ahead of interims on Monday.
|
Send Article by Email
