London shares fall as US authorities arrest another online gaming boss.
London shares retreated this week although at one stage they came within touching distance of the 6,000 level. By mid-morning on Friday the FTSE was down 53 points on the week at 5,881.
Biggest Movers in the FTSE 350 (as at Friday 10am)
This week saw the detention of Sportingbet's
(LSE: SBT)
non-executive chairman by US authorities. Shares in the owner of ParadisePoker were suspended at 239p after Peter Dicks was arrested while visiting America. The news unsettled 888 Holdings
(LSE: 888)
, which folded 6% to 145p, and PartyGaming
(LSE: PRTY)
lost 8% to 105p despite announcing strong interim figures.
Other gaming shares that fell included Leisure & Gaming
(LSE: LNG)
, which crashed 35% to 48p, and World Gaming
(LSE: WGP)
, which crumbled 19% to 65p. Online money transfer service providers were also adversely affected -- NETeller
(LSE: NLR)
fell 16% to 355p and Fireone
(LSE: FPA)
slumped 14% to 195p.
Takeovers were another feature of the market this week. Gondola Holdings
(LSE: GND)
, which owns Pizza Express and ASK, jumped 22% to 402p following an approach that is believed to be from private equity firm Cinven. Casino operator Stanley Leisure
(LSE: SLY)
also made significant headway after it received a proposal concerning a possible approach. It surged 24% to 840p.
Icelandic retailer Baugur is believed to be on to the prowl again. It is bidding for House of Fraser
(LSE: HOF)
and is said to be eyeing up Woolworths
(LSE: WLW)
. That sent shares in Woolies up 7% to 35p.
Sticking with retailing, Matalan
(LSE: MTN)
picked up 4% to 184p after a positive trading update. The discount retailer said like-for-like sales rose for the first time in more than a year. DSG International
(LSE: DSGI)
, which owns Currys and PC World, dipped 4% to 201p on narrowing profit margins.
JD Wetherspoon
(LSE: LDW)
bubbled up 1% to 457p as it reported a 24% increase in annual profits. But Punch Taverns
(LSE: PUB)
, which said trading has been in line with expectations, saw its shares droop 1% to 915p. This was reportedly over worries about the impact of the smoking ban in England next year. The imminent smoking ban also affected Gallaher
(LSE: GLH)
, which wafted 1% lower to 899p despite a rise in interim profits. Read more.
Cairn Energy
(LSE: CNE)
lost ground this week, down 6% to 2,016p. The oil explorer, which plans to spin off its Indian operation in December, said output from its main oil field in Rajasthan has been delayed. Elsewhere, Tullow Oil
(LSE: TLW)
was unmoved at 392p even though its interim profits came in ahead of expectations, Abbot Group
(LSE: ABG)
slid 5% to 278p on flat half-time profits, and Wood Group
(LSE: WG.)
scampered 4% higher to 244p on strong interims.
Auto parts maker Tomkins
(LSE: TMK)
dived 16% to 241p after a profit warning. The company blamed a slowdown in its North American residential and automotive markets for its woes. IMI
(LSE: IMI)
was also under the weather. The maker of fluid controls dripped 3% to 488p amidst concerns over rising costs.
Other companies in the news included Yell
(LSE: YELL)
, which screamed 10% higher to 579p after the Competition Commission said it may loosen price restrictions on its advertising tariffs. Computacenter
(LSE: CCC)
shed 8% to 249p on margin worries while BAE Systems
(LSE: BA.)
ascended 1% to 374p as it outlined plans to dispose of its Airbus stake.
The Market Next Week
Look out for figures from housebuilders Bovis Homes
(LSE: BVS)
and Redrow
(LSE: RDW)
. There are also results due from Next
(LSE: NXT)
, French Connection
(LSE: FCCN)
and Kingfisher
(LSE: KGF)
.
Notable announcements next week
Monday: Bovis Homes, Hiscox, NETeller, Psion and UTV
Tuesday: Cobham, Drax Group, French Connection and Redrow
Wednesday: Acambis, BAE Systems, Bloomsbury, Hikma, Next and Xaar
Thursday: 888 Holdings, Cattles, Kier, Kingfisher and Old Mutual
Friday: Stem Cell Science
David owns shares in Yell.
