IFA Wealth Forum

IFA Wealth Forum

Posts 1-1 of 1
  • User photo
    Darren Beddard    Group moderator
    The company name is only visible to registered members.
    U.K. Stocks Drop for Third Day
    U.K. stocks retreated for a third day,

    British Sky Broadcasting Group Plc and ITV Plc slipped more than 1.8 percent after Goldman Sachs Group Inc. recommended selling the shares. Capita Group Plc declined 3.8 percent after UBS AG advised investors to sell the stock.

    The benchmark FTSE 100 Index sank 15.63, or 0.4 percent, to 4,489.7 as of 12:58 p.m. in London.

    Anglo American, the world’s fourth-biggest diversified mining company, led declines on the FTSE 100, falling 5.9 percent to 1,513 pence

    The extent of the bulk commodity price declines as negotiations proceed into the first quarter of 2009 are a material risk,” London-based Deutsche Bank analyst Rob Clifford wrote separately.

    Xstrata sank 6.6 percent to 822 pence. The world’s fourth- largest copper producer had its share recommendation reduced to “neutral” from “buy” by Merrill Lynch, which cited the size of its debt and declining metal prices.

    Manufacturing Plunged

    Copper for delivery in three months has fallen more than 60 percent since peaking in April. The contract rose 4.1 percent to $3,325 a ton in London today.

    U.K. manufacturing plunged 2.9 percent in November, extending its longest streak of declines since 1980, and factories raised prices at the slowest pace in a year as Britain’s recession worsened, according to two reports today.

    BSkyB, the U.K.’s biggest pay-television provider, dropped 5.1 percent to 451 pence. ITV, the U.K.’s largest commercial broadcaster, lost 1.9 percent to 39 pence. Goldman Sachs downgraded both stocks to “sell” from “neutral” and added them to its “conviction sell” list.

    “BSkyB has moved back to its average four-year premium to the sector, leaving it vulnerable to any disappointment,” London-based analyst Richard Jones wrote in a note. ITV appears “expensive,” he said.

    Yell, Capita

    Yell Group Plc jumped 16 percent to 55.5 pence. Goldman Sachs upgraded the U.K. Yellow Pages publisher to “buy” from “neutral,” saying “given management’s commitment to cost cutting and reducing back office functions, we expect earnings margins before interest, taxes, depreciation, and amortization to prove to some extent insulated.”

    Capita lost 28.5 pence, or 3.8 percent, to 724. The U.K.’s biggest supplier of administrative services had its rating cut to “sell” from “buy” by UBS.

    “During 2009 Capita might see fewer large contract wins as the time it takes to complete deals might grow given the current business turbulence,” London-based UBS analyst Jarrod Castle wrote to investors.

    GlaxoSmithKline Plc added 1.6 percent to 1,305 pence, a fourth day of gains. Europe’s largest drugmaker will boost its reliance on acquisitions and licensing deals to bring new medicines to the market, Chief Executive Officer Andrew Witty said in an interview yesterday.

    Glaxo has 30 drugs in the final stage of testing needed before approval and plans to release about five new products a year, Witty said. The drugmaker will sustain drug development by seeking smaller, “bolt-on” alliances and takeovers, or deals valued from about $50 million to the “low billions,” he said.

    The following stocks also rose or fell in the U.K. or Ireland. Company symbols are in parentheses.

    U.K. companies:

    BBA Aviation Plc (BBA LN) surged 13.5 pence, or 17 percent, to 92.5. The U.K. provider of services to private and corporate jets announced a preliminary agreement with NetJets Inc. and said strong cash flow will allow the company to reduce debt.

    Eidos Plc (EID LN) slumped 4.5 pence, or 26 percent, to 12.75 pence. The maker of the “Tomb Raider” video game said sales through the end of last year missed the company’s internal forecasts.

    Enfis Group Plc (ENF LN) jumped 17.5 pence, or 47 percent, to 55 pence. The maker of lights named after enfys, the Welsh word for rainbow, said it has an order pipeline of more than £20 million ($30 million).

    JD Sports Fashions Plc (JD/ LN) jumped 31.25 pence, or 15 percent, to 236.25. The U.K.’s third-largest sporting-goods retailer said annual profit will beat analysts’ estimates after holiday sales increased and it avoided discounting before Christmas.

    Jessops Plc (JSP LN) rallied 0.75 pence, or 27 percent, to 3.5 pence, bringing this week’s gain to 265 percent. The U.K.’s largest specialist camera retailer said holiday sales rose at the expense of margins and maintained its annual profit forecast.

    Novera Energy Plc (NVE LN) climbed 2 pence, or 4.8 percent, to 44 pence. The U.K. company generating power from renewable sources expects to announce 2008 sales of 35.5 million pounds, up 3 percent from a year earlier.

    Provident Financial Plc (PFG LN) declined 28 pence, or 3.2 percent, to 844 pence. Credit Suisse Group cut its recommendation on the U.K. lender to low-income households to “underperform” from “neutral.”

    Unite Group Plc (UTG LN) sank 10.25 pence, or 6.7 percent, to 142.75 pence. The U.K.’s biggest provider of student housing said the net asset value of the Unite U.K. Student Accommodation Fund dropped 26 percent in the fourth-quarter of 2008.

    Irish companies:

    Elan Corp. (ELN ID) jumped 39 cents, or 6.6 percent, to 6.39 euros, on speculation that Pfizer Inc., the world’s biggest drugmaker, may buy the Irish maker of medicines
    • 09 Jan 2009, 2:53 pm