London close: Leading shares firmer on balance
Leading stocks finished the day mixed but with a slightly firmer bias, as housebuilders and banks helped offset weakness among oils and pub companies.
Directories group Yell was the Footsie's best performer following its well received investor day last Friday. Broker Merrill Lynch said 'buy' with 520p price target.
Taylor Wimpey, Persimmon and Barratt Developments all posted strong gains following last week's quarter point cut in UK interest rates, which also increased the appeal of Wolseley,
Banks did well, especially mortgage lenders Alliance & Leicester and HBOS. Barclays and Royal Bank of Scotland, though firmer, did less well, weighed down by the news that UBS has decided to write off another $10bn from its sub-prime exposure.
The recent market turbulence has forced Lloyds TSB to write down the value of its assets by around £200m, although the UK's fifth-biggest bank says underlying earnings for 2007 are in line with expectations. The bank finished with the biggest gain among the sector's heavyweights.
DIY retailer Kingfisher was also better as ING started coverage with 'buy' advice and 210p price target as it feels long term prospects are substantially undervalued.
On the downside, Punch Taverns and Mitchells & Butlers were both under pressure on fears about possible demotion from the blue chip index. Tate & Lyle was friendless for much the same reason.
Oil plays hit reverse as crude prices continue to trade below $90 a barrel. JP Morgan damaged sentiment further after Royal Dutch was included in its list of top 10 stocks to avoid. BP and Tullow Oil also retreated.
Elsewhere, Blackstone is planning a bid for miner Rio Tinto, the Daily Telegraph reports. The US private equity giant is in the middle of putting together a consortium - believed to include a Chinese sovereign wealth fund - to mount the bid for Rio, currently the target of an unwelcome approach by rival mining giant BHP Billiton.
Carillion finalised the terms of its long awaited recommended bid to buy Alfred McAlpine, creating one of the UK's largest support services and construction companies. Carillion's offer is worth 558p per McAlpine share.
Also on the bid front, formal wear hire specialist Moss Bros scrubbed up well on the news that Icelandic investment group Baugur is considering an offer for the company.
Restaurant group Clapham House may be on the mend after its recent profits warning and disappointing results. Henderson Global Investors has increased its stake in the group above 5%.
There is plenty of movement among the mid-caps. Engineer FKI said a decision by US customers to put off orders for warehouse and distribution projects will hit profits and revenue at the FKI Logistex business, where second half sales are seen down 10-15% on last year.
Media group Emap slipped further after Merrill Lynch dropped its rating to 'neutral' from 'buy' in response to last week's sale of its consumer businesses and failure to offload the business-business arm.
Structural steel supplier Severfield-Rowen has increased its order book to a record £405m, up from £300m, at the half year stage, adding it expects further orders including projects at Stratford, East London and Bradford, West Yorkshire.
Loss making Avanti Screenmedia had some welcome news as it signed two new contracts, one with Inventive Leisure and one with The Good Time Pub Company.
Reinsurance broker Benfield has warned the weak dollar will mean trading profit this year coming in below previous indications while the outlook for 2008 is also uncertain.
Insurer Hiscox expects full year results to be better than last year though trading is becoming more competitive. Gross premium income has increased by 10% in the eleven months to the end of November to £1.14bn.
Fund manager RAB Capital has warned that trading conditions for November have been difficult, and given the influence of performance fees on profitability at RAB, this will hit profits in 2007.
Diagnostic testing kit group Immunodiagnostic Systems reported strong interim profits growth and said it continues to trade marginally ahead of the board's expectations.
SkyePharma surged higher on news that GSK's Requip drug, which uses SkyePharma's patented Geomatrix technology, is close to winning final approval from the Food and Drug Administration in the US.
Worthington Nicholls returned from suspension sharply lower after its trading statement and board room cull last Friday.
FTSE 100 - Risers
Yell Group (YELL) 419.75p +5.93%
Persimmon (PSN) 830.50p +4.60%
Wolseley (WOS) 765.00p +4.29%
Taylor Wimpey (TW.) 223.50p +4.20%
Kingfisher (KGF) 165.20p +3.77%
Lloyds TSB Group (LLOY) 504.50p +3.38%
Compass Group (CPG) 326.25p +3.33%
Prudential (PRU) 716.50p +2.87%
Alliance & Leicester (AL.) 713.50p +2.66%
Barratt Developments (BDEV) 477.50p +2.30%
(Article continues below)Advertisement
FTSE 100 - Fallers
International Power (IPR) 466.00p -1.64%
Mitchells & Butlers (MAB) 499.25p -1.63%
BAE Systems (BA.) 466.25p -1.58%
Punch Taverns (PUB) 827.00p -1.49%
Royal Dutch Shell 'A' (RDSA) 1,991.00p -1.39%
ICAP (IAP) 655.50p -1.35%
Royal Dutch Shell 'B' (RDSB) 1,969.00p -1.35%
Scottish & Southern Energy (SSE) 1,630.00p -1.27%
Scottish & Newcastle (SCTN) 739.50p -1.20%
Rexam (REX) 486.50p -1.17%
FTSE 250 - Risers
Alfred McAlpine (MCA) 525.00p +6.92%
Game Group (GMG) 242.50p +6.13%
Ashtead Group (AHT) 83.00p +5.73%
Jardine Lloyd Thompson Group (JLT) 367.50p +5.68%
Kesa Electricals (KESA) 250.50p +5.47%
St James's Place (STJ) 313.25p +4.94%
UK Coal (UKC) 416.50p +4.91%
Admiral Group (ADM) 1,086.00p +4.73%
RPS Group (RPS) 311.50p +4.71%
Autonomy Corporation (AU.) 838.50p +4.62%
FTSE 250 - Fallers
FKI (FKI) 64.75p -16.72%
Keller Group (KLR) 664.00p -8.79%
Dana Petroleum (DNX) 1,339.00p -5.70%
BlueBay Asset Management (BBAY) 358.00p -5.29%
Mondi (MNDI) 415.75p -5.08%
Axon Group (AXO) 523.00p -5.00%
Aquarius Platinum (AQP) 588.50p -4.46%
Davis Service Group (DVSG) 503.50p -3.82%
Victrex (VCT) 580.00p -3.81%
Gem Diamonds (GEMD) 1,042.00p -3.79%
