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This Week's Market Movers

Published in Company Comment on 20 October 2006

The FTSE is boosted by a good performance from pharmaceutical shares. Online gamers reveal the cost of exiting the US and boiler-tube cracks put British Energy under a cloud.

London shares rose this week with pharmaceutical companies tugging the FTSE higher. By mid-morning on Friday the benchmark index was up 27 points on the week at 6,157.

Biggest Movers in the FTSE 350 (as at Friday 10am)

Risers
1.Informa (LSE: INF) +14.2%
2.Daily Mail GT (LSE: DMGT) +6.1%
3.PZ Cussons (LSE: PZC) +5.5%
4.Lonmin (LSE: LMI) +5.5%
5.Kazakhmys (LSE: KAZ) +4.9%


Fallers
1.Wolfson Micro. (LSE: WLF) -32.2%
2.British Energy (LSE: BGY) -15.5%
3.PartyGaming (LSE: PRTY) -10.2%
4.Benfield (LSE: BFD) -8.9%
5.CSR (LSE: CSR) -7.8%


Big pharmas were in good spirits ahead of their third-quarter results next week. AstraZeneca (LSE: AZN) put on 5% to 3,513p following better-than-expected figures from Swiss peer Novartis, and GlaxoSmithKline (LSE: GSK) gained 2% to 1,487p after launching its new asthma treatment in the US.

However, telecoms were under the weather after O2 fired the first salvo in a price war. The Spanish-owned mobile operator said it will cut roaming charges, which left Vodafone (LSE: VOD) 1% lower at 129p. Elsewhere, BT (LSE: BT.A) lost 1% to 266p, and COLT Telecom (LSE: COLT) slid 5% to 139p even though it reported its first quarterly profit in five years.

British Energy (LSE: BGY) was under a cloud after it revealed problems with two nuclear reactors. The energy generator tumbled 15% to 474p on news that boiler-tube cracks were found at Hinkley Point B and Hunterston B. But the fallout at British Energy lifted Drax (LSE: DRX) 3% to 800p.

Sportingbet (LSE: SBT) tumbled 23% to 45p when it disclosed the cost of its withdrawal from the American market. The online gamer said its US exit will cost £210m. PartyGaming (LSE: PRTY) was under the cosh, too. It folded 10% to 31p on news that pulling out America will cost around £140m.

Informa (LSE: INF) surged 14% to 568p after receiving a takeover approach from Germany's Springer. Meanwhile, steelmaker Corus (LSE: CS.) , down 1% to 482p, has accepted a takeover approach from India's Tata Steel. Read more.

In other takeover matters commercial property firm Regis said it may make a cash bid for Grainger Trust (LSE: GRI) , which hardened 4% to 680p. Irish food processor IAWS (LSE: IAW) rose 9% to €16.4 after it bought muffin maker Otis Spunkmeyer for £200m, and St Ives (LSE: SIV) slipped 4% to 244p after it rejected a £280m bid from Tangent Communications (LSE: TNG) . Butter maker Arla (LSE: ARU) hardened 14% to 63p when it said it may be taken private.

Alexon (LSE: AXN) racked up 8% to 152p despite a slump in first-half profits. The clothing and footwear retailer blamed a challenging trading environment and unseasonably warm weather. Profits were down at JJB Sports (LSE: JJB) , too. But its shares gained 1% to 202p.

Other shopkeepers with results included Clinton Cards (LSE: CC.) , which rose 2% to 66p, and Mothercare (LSE: MTC) lost 5% to 351p on slowing sales growth. European Home Retail (LSE: EHR) , whose shares have been suspended since August, has appointed an administrative receiver. Lottery operator Chariot (LSE: CRT) is under financial pressure, too. Its shares crashed 92% to 0.2p after it said it may have to appoint an administrator.

Water companies were stagnant this week after Australia's Macquarie Bank swallowed Thames Water for £8b. AWG (LSE: AWG) , which is being courted by 3i (LSE: III) , was unchanged at 1,611p, Kelda (LSE: KEL) held firm at 887p, and Northumbrian Water (LSE: NWG) was static at 305p.

Other companies in the news included taxi maker Manganese Bronze (LSE: MNGS) , which climbed 12% to 545p on bumper annual profits, and Wolfson Microelectronics (LSE: WLF) slumped 32% to 301p on a disappointing trading update. Isoft (LSE: IOT) weakened 11% to 50p after forecasting a drop in sales, and reinsurer Benfield (LSE: BFD) receded 9% to 344p on a profit warning.

The Market Next Week

Shire Pharmaceuticals (LSE: SHP) along with BP (LSE: BP.) , Royal Dutch Shell (LSE: RDSB) and British American Tobacco (LSE: BATS) will report third-quarter figures. Carpetright (LSE: CPR) is pencilled in for a trading update.

Notable announcements next week

Monday: Tristel
Tuesday: Autonomy, BHP Billiton, BP, Carpetright and Reckitt Benckiser
Wednesday: Amvescap and Whitbread
Thursday: AstraZeneca, Aviva, BAT, GlaxoSmithKline and Royal Dutch Shell
Friday: Shire and WPP

David owns shares in BAT, BT, GlaxoSmithKline, Royal Dutch Shell and Vodafone.

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