FTSE gets off to confident start
The London market began the trading week confidently today even though the exodus of investors from PartyGaming showed no sign of slowing down.
Investors returning to mining stocks were responsible for the FTSE 100 Index clawing back some of its losses of last week to close 12.2 points higher at 5374.5.
But poker giant PartyGaming failed to share in the good mood in London as investors took fright at comments by a rival in the online gaming sector that growth in the poker market was slowing down.
More than 129 million shares in PartyGaming changed hands today as the group plunged 11% or 9p to 71p – valuing the company at less than £3bn (€4.3bn) for the first time since its flotation this summer.
The gaming sector was also rocked by the news that PartyGaming is no longer prepared to allow players of websites owned by rivals to gamble at the same tables as clients of its flagship PartyPoker brand.
This particularly hit Empire Online which lost more than a quarter of its value or 62p to 121p.
Elsewhere in the sector, Sportingbet fell 20.5p to 286p and online money transfer firm NETeller slipped 71p to 737.5p.
Back in the top flight, miner Antofagasta was the day’s highest riser after adding 3% or 41p to 1505p and was followed by rival Xstrata, up 36p to 1430p.
Record metals prices have carried the sector higher since the start of the year, but a bout of profit-taking this month has pulled stocks such as Xstrata off recent all-time highs.
Oil giant BP also fared well, advancing 9p to 631p, but rival Royal Dutch Shell faded 8p to 1865p.
Media group Reuters also 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 8.25p to 374.25p and tracked advertising giant WPP, which cheered 13p to 569.5p.
Clothing icon Marks & Spencer bounced 8.75p to 384p ahead of its trading update tomorrow, which is expected to show that the rate of decline in sales has slowed in the second quarter.
Elsewhere, telecoms group Marconi rose 9% or 28.75p to 337p on a report that Swedish giant Ericsson is leading the race to buy the troubled group.
Celebrity jeweller Theo Fennell was another strong performer, adding a fifth to its market value, up 5.5p to 31.5p, after saying trading in the first half was boosted by high-spending Russians.
But concerns about higher energy costs hit shares in Dalepak frozen foods maker Northern Foods – off 4p at 148p – despite a pick-up in sales.
The highest Footsie risers today were Antofagasta up 41p to 1505p, Xstrata adding 36p to 1430p, WPP Group up 13p to 569.5p and Marks & Spencer lifting 8.75p to 384p.
The heaviest fallers were PartyGaming down 9p to 71p, Man Group off 44p to 1597p, Alliance UniChem down 22p to 800p and Scottish Power off 14.5p to 572.5p.
