Wednesday 3 November 2010

Utilities stocks fail to boost lethargic FTSE 100

Leaping Board winners in wake of Scottish & South were reaching 10.4 percent 332.2 Centrica and National Grid ticking up to 6½ to 590 p.

But the utility companies failed to lift the blue-chip dull swung between gains and losses and ending almost flat.

The FTSE 100 lost 2.73 points investors 5675.16 marked time in advance of the meeting of Federal Reserve hotly awaited next week.

Languish at the head of the losers league table has British Airways, which nose dived 10 to 270.7 percent despite the swinging in the dark. Panmure Gordon analysts have been sticking to their "hold" rating, saying: "Momentum has been strong in the price of shares, powered by revenues, particularly in terms of demand for premium environment improved yields, ATI approval for the transatlantic joint venture with AA and Iberia and planned with Iberia merger".

Minors were also lower with Xstrata losing £ 12.09½ and Rio Tinto excretion 69½p 40½p to £ 40.36.

Having a better day was insurers with Aviva putting on 5.4 398.1 p Goldman Sachs reiterated its "buy belief" on shares.Next Tuesday, Aviva will report its results for the third quarter, which analysts believe will support the case of investment.

"In our opinion, the significance of the number of sales down played b.c market ' is understandable, because they have little bearing on the position of the group, capital dividend paying capacity and resilience in a prolonged low interest rate environment" said broker. "While the body is very focusing market better than expected sales of Aviva markets of Europe and the UK-based show some sustainability gains and that review group or the transition to the Solvency II are not disturbing the underlying transactions.»

Also benefit from a burst of Goldman Sachs was GKN, which rose 3.3% 177.3.Dans a note of the European automotive sector, the broker reiterated its "buy" rating on the manufacturer of parts for cars and planes and raised its price target to 285 p 220 p.

Travelers small caps automobile-related, was flat at 61 automotive dealer p.Le stated that he had seen a solid third quarter through its parts car combined with the increase in sales of new and used vehicles.

Earlier this week, there have been whispers of private investment capital interest in Miss, but Chief Executive, said Friday that they had received no offer.

Among second linings, Hikma Pharmaceuticals seeking particularly healthy, pulling 49½ at 786 p after it struck an agreement with Baxter International, American Society of health care.

Listed on the FTSE 250 Jordan-based undertaking bought Baxter us generic injectibles unit 112 m $, double the size of Hikma US business and giving more 14pc market.

Analysts said the acquisition will position Hikma as the second largest supplier of injectibles to the United States Citigroup.

"Existing expertise Hikma injection and desire of Baxter to divest non-core assets produced an attractive and financially reasonable agreement in our opinion," said the broker who Hikma "medium risk.

Oil and gas services company, hunting, has been on the rise too, breaking 41½ in 644½p .Chasse whose equipment is used in the construction and maintenance of oil, said shale drilling activity and demand for components in the West and to the Brazil he developed able top year-round market expectations.

Their "buy" rating on hunting and raised the prices kept RBS analysts 670 p 630 p.Le Broker target stated that in a context of market improvement, hunting was performing well.

But punters took their money out of the table for Partygaming, sending internet business down 10.8% 251.9 gaming.

Excitation of bidding pushed shares in resources from Berkeley to hereditary 112½p as Russian steel giant, Severstal, approached Berkeley on a possible takeover of uranium, a value on an exploration company 304 million senior dollars.Atout Berkeley is a project of uranium from Salamanca, Espagne.Severstal envisages a cash bid to $2.00 at Berkeley, appearing also in Sydney.


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