Emap helps FTSE close up
Publishing group Emap paced London’s leading shares to another positive close today as a trading update cheered investors.
Emap was the highest top-flight climber after saying it was on track to deliver full-year results in line with expectations in spite of uncertainty over the economic outlook.
The FTSE 100 Index continued its recent rally to end the day at another three-year high – up 13.8 points at 5259.7 – as investors also took heart from upbeat broker notes and a positive start to trading in New York.
Emap cheered 21p to 826.5p as it said performances by titles such as heat, Closer, Match and Zoo had driven an “encouraging” start to its financial year.
DIY firm Kingfisher was not far behind as renewed bid speculation caused investors to pile into its shares. The stock lifted more than 2% or 6p to 253.5p amid rumours that Build Center chain Wolseley was interested in its B&Q business.
Amongst those benefiting from positive broker notes, catering group Compass Smith saw its stock rise 4.25p to 244.75p after Barney upgraded it to a “buy” from a “hold”.
Banking firm Standard Chartered also made good progress after Credit Suisse First Boston raised its rating from “neutral” to “outperform”, taking it 14p higher to 1090p.
Music giant EMI also provided cheer by saying a warm response to chart-topping albums from Coldplay and Gorillaz had lifted trading in its new financial year. Its stock moved 1% higher, up 3p to 258p.
However, a string of power and water companies were in the red, including Severn Trent losing 20p to 953p, Scottish & Southern Energy down 11p to 966.5p and International Power off 2.25p to 210p.
An analyst said the stocks had fallen on the view that they had been overbought. The downbeat mood also affected second tier players, including Northumbrian Water down 6.75p at 215.25p.
Those reporting results today included Bovis Homes, which was the third-heaviest FTSE 250 faller after saying it was unlikely to achieve expansion targets this year unless there was a significant rise in orders this autumn. The stock weakened 5% or 36p to 654p.
The news proved disappointing for a number of rivals in the housebuilding sector, with Bellway losing 26p to 855.5p, Taylor Woodrow off 8.75p at 333.75p and George Wimpey down 11p to 432.75p.
Tour operator MyTravel was also in the red after City watchdog the Financial Services Authority said it had fined the company £240,000 (€348,900) for failing to tell the stock market about a change in its profit expectations. Its stock weakened a penny to 177p.
On a brighter note, news that cash machine group Moneybox had agreed to join forces today with rival Cardpoint in an £87.3m (€127m) deal boosted the former’s shares by 0.25p to 42.5p.
The highest Footsie risers today were Emap up 21p to 826.5p, Centrica adding 5.75p to 230p, Kingfisher up 6p to 253.5p and Schroders rising 15.5p to 810.5p.
The heaviest fallers were Severn Trent down 20p to 953p, Rolls-Royce off 6.25p to 298.75p, Boots down 11p to 606.5p and Hammerson off 15p to 879p.
