Interest in the utility sector this week was sparked by an approach for Scottish Power. Marks & Spencer, BT, Cable & Wireless and UK Coal were also in the news.
Utility firms and oil companies yanked the FTSE higher this week. At mid morning on Friday, the FTSE was up 60 points to 6,208.
Biggest Movers in the FTSE 350 (as at Friday 10am)
Utility companies were in the spotlight when Scottish Power
(LSE: SPW)
shot up 12% to 733p on news of an approach. Spain's Iberdrola together with an unnamed private equity firm have been mooted as the interested parties. The news hoisted Scottish & Southern
(LSE: SSE)
5% to 1,387p, while International Power
(LSE: IPR)
added 3% to 340p on strong third-quarter figures.
Takeover activity was also on the agenda at Ladbrokes
(LSE: LAD)
, which rose 2% to 419p. The bookmaker said it may buy 888 Holdings
(LSE: 888)
, which scampered 12% higher to 124p. Meanwhile, Galiform
(LSE: GFRM)
, formerly MFI Furniture, hardened 10% to 112p on bid speculation.
Bid rumours were also flying around Sainsbury
(LSE: SBRY)
, which gained 4% to 414p. It seems a private equity firm may be running its slide rule over the supermarket chain. Elsewhere, ITV
(LSE: ITV)
jumped 8% to 112p after it confirmed it is in possible merger talks with NTL
(NASDAQ: NTLI)
.
Marks & Spencer
(LSE: MKS)
was in good form this week, up 6% to 698p, after it said underlying profits in the first-half jumped 32%. In the meantime, Primark owner AB Foods
(LSE: ABF)
lifted 6% to 886p despite a dip in profits. The clothes-to-loaves company said most of its businesses continue to trade well.
BT Group
(LSE: BT.A)
gained 2% to 284p after second-quarter profits came in at the top end of expectations. Cable & Wireless
(LSE: CW.)
also made headway, rising 9% to 159p, on better-than-expected interims. But Yell
(LSE: YELL)
sank 6% to 583p on disappointing revenues.
Sticking with phones, CSR
(LSE: CSR)
stumbled 16% to 630p on a profit warning. The mobile phone chip specialist blamed increased demand for cheaper handsets for its woes. The news hurt fellow chip outfit Wolfson Microelectronics
(LSE: WLF)
, which fell 2% to 288p.
Man Group
(LSE: EMG)
was unchanged at 482p on in-line interims. The hedge fund manager said profits rose 33%, and also dampened speculation that it may consider a takeover bid. LondonStock Exchange
(LSE: LSE)
, up 4% to 1,300p, was also dismissive of talk of an approach. Standard Life
(LSE: SL.)
put on 2% to 288p on buoyant sales, Royal & SunAlliance
(LSE: RSA)
was static at 149p on improved profits, and 3i
(LSE: III)
hardened 4% to 991p on results.
Punch Taverns
(LSE: PUB)
bubbled up 7% to 1,105p on a 21% profit improvement, and SABMiller
(LSE: SAB)
jumped 6% to 1,096p as half-year profits rose. Restaurant and pub chain Whitbread
(LSE: WTB)
firmed 4% to 1,476p on ongoing bid rumours, but Scottish & Newcastle
(LSE: SCTN)
drooped 2% to 546p after it warned that post-World Cup beer sales fell.
Other companies in the news included UK Coal
(LSE: UKC)
, which surged 41% to 345p after revaluing its property portfolio, and Invensys
(LSE: ISYS)
running up 11% to 252p on results. Toy maker Hornby
(LSE: HRN)
fell 12% to 225p on disappointing summer sales, Whatman
(LSE: WHM)
retreated 9% to 260p on an accounting error, and Axis-Shield
(LSE: ASD)
receded 12% to 265p on a profit warning.
The Market Next Week
Vodafone
(LSE: VOD)
will report mid-year results, and HSBC
(LSE: HSBC)
is pencilled in for third-quarter numbers. Look out also for interims from Alliance Boots
(LSE: AB.)
and full-year numbers from easyJet
(LSE: EZJ)
.
Notable announcements next week
Monday: Dignity, HSBC, Latchways, Majestic Wine and Robert Wiseman
Tuesday: Alliance Boots, Burberry, easyJet, Emap, Northern Foods and Vodafone
Wednesday: Dimension Data, EMI, Inmarsat, Sainsbury, Shed Productions
Thursday: Ladbrokes, Mothercare, National Grid and Vedanta
Friday: Homestyle
David owns shares in BT, Vodafone and Yell.
