Commodities trading good news for FTSE
PartyGaming was out of synch with a buoyant London market today as the value of the poker giant dipped below £3bn (€4.3bn) for the first time.
The trigger for the latest sharp fall in PartyGaming shares – off 10% or 8p at 72p – was a trading update by smaller rival Empire Online that pointed to a subdued poker market.
But a wave of buying in firms that deal in commodities such as oil and metals left the FTSE 100 Index in better shape, up 31.6 points at 5393.9 by mid-morning.
PartyGaming shares peaked at 176p a month after it secured the biggest flotation in London since the dotcom boom, but investors have become alarmed at signs of slowing growth in the online gaming sector.
More than 53 million shares in PartyGaming changed hands within three hours of the start of trading today – more than established heavyweights such as Vodafone and HSBC.
Smaller gaming rivals were also taking a beating with Empire Online losing a quarter of its value or 44p to 139p and Sportingbet down 10.5p at 296p.
Back in the top-flight, media group Reuters attracted buyers following a positive note from broker Credit Suisse First Boston, which stuck by its top-of-the-range forecasts for revenues ahead of a trading statement at the end of this month.
Shares in Reuters added 8.5p to 374.5p and were tracked by advertising giant WPP, which cheered 10.5p to 567p.
Mining stocks led the way as BHP Billiton rose 3% or 23p to 848.5p and Xstrata ticked 33p higher to 1427p. Record metals prices have carried the sector higher since the start of the year, but a bout of profit-taking this month have pulled stocks such as Xstrata off recent all-time highs.
Outside the top flight, telecoms group Marconi rose 10% or 29.75p to 338p on a report that Swedish giant Ericsson is leading the race to buy the troubled group.
Concerns about higher energy costs hit shares in Dalepak frozen foods maker Northern Foods – off 5.25p at 146.75p – despite a pick-up in sales.
