The FTSE-100 made some modest gains yesterday following Tuesday's six-month closing low as investors took some short-term hope from the Bank of England's new inflation report.
The 148-point drop on Tuesday was prompted by fears of rising interest rates. Figures yesterday showing unemployment falling and a slight rise in average earnings pointed to interest rate rises in the near future.
But the Bank of England's report suggested it would be two years before inflation rose above its target and that the immediate future would see inflation undershooting its target.
Even the eclipse failed to plunge London trading into total darkness, with the FTSE-100 Index closing up 36 points at 6,014.4.
Among some of the highest risers was satellite broadcaster BSkyB which gained 22p to 583p after unveiling full year results. The broadcaster's bottom line was badly hit by its digital costs, but figures for subscribers were ahead of forecast and cheered investors.
CGU reported half year figures showing profits at the top end of analysts' forecasts, buoyed by strong life and pension sales. Shares rose 11p to 840p.
Many of yesterday's worst fallers staged a slight recovery.
Standard Chartered gained 22p to 828p and Dixons bounced back 54p to pounds 10.95.
Freeserve, the 80 per cent Dixons owned Internet group was up 3p to 181p, and Exchange Holdings, another recent Internet float recovered some of its recent losses - up 4p to 193p. Telecom stocks also recovered with Telewest up 7p to 224p, Energis up 39p to pounds 14.20 and BT up 2p to 913p.
Colt Telecom unveiled blockbusting second quarter turnover figures, pushing its shares up 56p to pounds 12.53.
Another strong telecom gainer was Kingston Communications, the Hull-based group floated on the market last month. A strong set of first quarter figures lifted the formerly council-owned telco up 12p to 310p.
Country Gardens saw its shares grow by 1p to 292p after unveiling an 11 per cent rise in like-for-like sales and a 15 per cent jump in first-half profits.
However, travel group Airtours dived 7p to 412p following its announcement that its third quarter profits had fallen, partly due to the pounds 2.8 million cost of its bid for smaller package holiday rival First Choice.
First Choice shares also lost 9p to 163p.
Sun Life gained 18p to 434p ahead of today's figures, with traders speculating that the insurer could also reveal a deal to sell its GRE life operations to Dutch insurance giant Aegon.
Lloyds TSB saw gains 33p of 840p, with many still seeing the bank as the "pick of the sector" in the wake of the recent interim results reporting season.
Shares in FI Group were also on offer, down 26p at 362p, as Merrill Lynch downgraded its stance to "neutral" from "accumulate", citing concerns about "stretched valuations" at current levels. Forecasts for the company, however, were held - with year to April, 2000, set to rise to pounds 26.2 million.
No comments:
Post a Comment