1. The Market Today
2. Biggest Movers
3. Conquerors -- Cable & Wireless, Manchester United
4. Vanquished -- Lloyds TSB, Alliance & Leicester
5. Reporting Next Week
6. And Finally...
The Market Today
Carburton Street, London -- The day was characterised by large declines on the FTSE 100 index, with disappointing results from Lloyds TSB (LSE: LLOY) encouraging a wide sell-off of retail banking stocks. The announcement that the new Vodafone AirTouch (LSE: VOD) and Mannesmann combination will be listed next Monday inspired last-minute tracker buying for the telecom stock. Profits were taken on the outperforming media stocks for re-investment into the mobile phone giant.
In light of the Vodafone index weighting situation, and making things just a little more confusing for market reporters, FTSE International has proposed the introduction of capped FTSE 100 and FTSE All-Share indices. The creation of the new indexes in March, with planned 10% weighting restrictions, will be used as benchmarks for stock market trackers. No doubt the new indexes will provide extra scope for Wise "outperformance" by those who proclaim market beating products.
Biggest Movers in the FTSE All-Share
Up
Up
1 Phonelink (LSE: PLK) +28.1%
2 Arjo Wiggins (LSE: AWA) +21.8%
3 New Look Group (LSE: NEW) +20.4%
4 MDIS Group (LSE: MIS) +20.1%
5 Royalblue (LSE: RYB) +18.9%
Down
1 Jarvis (LSE: JRVS) -11.9%
2 Sage Group (LSE: SGE) -9.4%
3 Bank of Scotland (LSE: BSCT) -9.3%
4 Lloyds TSB (LSE: LLOY) -8.8%
5 Johnson Matthey (LSE: JMAT) -7.9%
Conquerors
A possible offer for the 54% holding of Hong Kong Telecom that Cable & Wireless (LSE: CW.) owns was revealed this morning. Pacific Century Cyberworks have stated their liking for the Far East subsidiary, but other bidders may come out from the woodwork. All the telecom speculation gave Cable & Wireless investors a boost, their shares rising 64p (5%) to 1358p.
Manchester United (LSE: MNU) and Vodafone today joined forces. The telecom firm is to splash its name over the shirts of Beckham, Giggs and company in a four-year deal worth £30m. Fans of the Red Devils will also have an array of mobile services and applications on offer, to keep in touch with the team's performance. The deal scored well with the market, United's shares heading 5p (2%) onwards to 292p. Meanwhile, tracker-induced buying of Vodafone saw the stock edge 8p (2%) to 351p.
A strong overnight performance on the Nasdaq Composite inspired high-flying technology shares to soar further. Unwelcome problems on numerous high-profile websites was the story behind the rise in Baltimore Technologies (LSE: BLM), the Internet security software firm adding 1,675p (18%) to 10,875p. Other selected hi-tech movers were Psion (LSE: PON), adding 592p (18%) to 3752p, Scoot.com (LSE: SCO) gaining 37p (14%) to 303p and the cash-burning QXL.com (LSE: QXL) shifting 195p (14%) to 1562p.
Business-to-business Internet software firm Infobank International Holdings (LSE: IBI) revealed an agreement with Requisite Technology today. Lots of talk about e-commerce, e-hubs and e-procurement gave investors further reason for e-xcitement, Infobank shares soaring 475p (22%) to 2537p.
Wassall (LSE: WSSL) finally declared that it had received a bid this morning, after talks had started back in early December. The recommended cash offer from the US private equity firm KKR comes in at 400p per share. Wassall shares jumped 26.5p (7%) to 388p on the news.
Upmarket furniture retailer Heal's (LSE: HAL) showed that there was some life in the retail sector over Christmas. Its AGM statement announced that like-for-like sales over the festive period had risen 11%. Promising noises concerning a new Kingston-upon-Thames store and the obligatory e-commerce development helped push the shares 12.5p (6%) to 210p.
Another upmarket retailer found favour today, but for different reasons. Troubled Liberty (LSE: LBTY) announced that it had received proposals that could lead to a possible offer, boosting the shares 17.5p (8%) to 235p.
Vanquished
Banks hogged the vanquished spotlight today. Lloyds TSB (LSE: LLOY) announced full year results consisting of a 16% increase in profits before tax and earnings per share. It all failed to impress the stock market. Remarks over increased and aggressive competition gave some shareholders a worry over future profits. These concerns outweighed the figures and the shares dropped 60p (9%) to 626p.
The fall-out from Lloyds helped spread negative vibes through out the sector, with Abbey National (LSE: ANL) shedding 29p (3%) to 655p, Alliance and Leicester (LSE: AL.) losing 17p (3%) to 502p and Halifax (LSE: HFX) declining 32p (3%) to 446p.
And still on banking theme, the battle for the National Westminster Bank (LSE: NWB) is now over. NatWest announced this morning that "The Board now advises those shareholders who have not done so to accept the offer by The Royal Bank of Scotland."
After the formal capitulation, shares in NatWest were the only winners in the sector, rising 26p (2%) to 1171p. Shareholders in Royal Bank of Scotland (LSE: RBOS) suffered only a minor fall as investors came to terms with the successful bid. Their shares fell only 4p (1%) to 871p.
But not to be left out of the general sector malaise, the losing player in the NatWest bid, the Bank of Scotland (LSE: BSCT), crashed 64p (9%) to 613p.
Reporting Next Week
Next week is banking reporting week, with a major player in the sector reporting full year results every day. After today's results from Lloyds TSB (LSE: LLOY), and their comments over competition, those who follow the sector will be looking out for any similar remarks. And who knows, there may even be talk of further consolidation...
Alliance and Leicester (LSE: AL.) kick off the results frenzy on Monday. Barclays (LSE: BARC) sends out its full year statement on Tuesday. Woolwich (LSE: WWH) give their annual story on Wednesday, Abbey National (LSE: ANL) dispense theirs on Thursday and Halifax (LSE: HFX) round the week off on Friday.
The pharmaceutical sector also steps into the reporting spotlight next week. Soon to be merged, Glaxo Wellcome (LSE: GLXO) and SmithKline Beecham (LSE:SB.) both announce full year numbers on Wednesday. Positive noises over profits, pipeline products and cost savings from the merger should keep investors away from any further medication.
And a busy week is in store for high-flying tech-stock investors.
Flat loudspeaker designer NXT (LSE: NTX) broadcasts its interim numbers on Monday. Investors will be keen to hear news on further licensing deals and any developments on the speech recognition front, to keep the stratospheric share price in orbit.
Good news is also expected from Royalblue (LSE: RYB), the call-centre software developer. The IT firm downloads its full year numbers on Monday. IT cousin Sema Group (LSE: SEM) reveals its annual profits on Friday and software tiddler Trace Computers (LSE: TCC) gives the six months' tale on Wednesday.
Hardware is also in focus. All things circuit boards will be discussed on Monday should Concurrent Technologies (LSE: CNC) electrify investors with its twelve month figures. Shareholders in Xaar (LSE: XAR) may inject enthusiasm into the company, as the inkjet printer firm publishes its interim numbers on Wednesday.
And finally, a roundup of other notable reporters: Cadbury Schweppes (LSE: CBRY) could put some fizz into the share price when it unwraps its final profits on Wednesday, advertising agency WPP (LSE: WPP) should reveal the benefits of recent Internet marketing campaigns when it produces its full year profits on Friday, and investors in factory outlet developer Freeport Leisure (LSE: FRL) will be hoping that the poor trade on the High Street hasn't spread to obscure retail parks when it reports interim profits on Tuesday.
And Finally...
There are some days when "And Finally..." stories just fall into your lap. Today is one of those days.
Martin Waller, Deputy City Editor of the Times, has voiced his opinion on the recent tabloid share scandal. In an article today, he heavily criticises the growing newspaper obsession with share tipping. He wisely asks why journalists who purport to have hundreds of hot recommendations a year are still trudging to work every day.
Waller does give sound advice in his feature. He remarks "The dream of getting rich quick via share tips is based on fallacy... by the time the tip has filtered through to them, any number of spivs, dealers and -- dare I say it? -- journalists will have taken their bite."
Waller smugly comments that his broadsheet employer rarely gives advice: "This paper gives half a dozen investment recommendations every year in the Tempus column on the business pages."
But does Waller actually read his paper? It appears not. The Times Tempus column regularly puts forward its advice. Should he flick through to the column today, he would find the following suggestions.
On lastminute.com: "This is a dot-com with legs which seems sure to be chased by investors. Buy."
On Shell (LSE: SHEL): "Buy the shares."
On Regalian Properties (LSE: RGAL): "Investors old-fashioned enough to be interested in shares backed by real, undervalued assets may choose to buy."
Perhaps Waller should refer his financial readers to The Motley Fool in future, where readers have no danger from duff penny share tips. The Motley Fool, of course, gives no share recommendations whatsoever.
Let us know your thoughts on stock market newspaper punditry over on the Evening Fool Board.
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