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)
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.
