Friday 6 May 2011

Volatile day raises doubts in term of bull of the FTSE

It was in evidence on Tuesday as the FTSE 100 closed 0.98 points to 5974.76 following a volatile trading day. The broader 250 FTSE fell 4.35 11743.52 as traders and analysts speculated whether the so-called "great bull run" had hit the wall.

"With the prospect of higher interest rates, higher inflation, a rising unemployment and slowdown in global growth, the negatives are much too much to ignore, more earnings for shares may be difficult to obtain, which means", warned Angus Campbell at Capital spreads. "After such a huge rally, investors are naturally cautious and until in 2011 both UK indices have ground stop."

Political unrest across the Middle East continued to spook investors.

Fall of the price of oil reaches the value of gold, which had benefited from a flight to safety Monday. Randgold resources, including the mines of the precious commodity, fell 400 p to £ 44.80 while hardened African Barrick Gold p 20½ at 547½.

Group Weir was one or other of the big losers of the day despite a 58pc jump better than expected in the benefits of the reporting year. The British engineer titles, which have increased by more than 100pc of last year, fell 84 p to £ 16.95 on making profits as strong recoveries in the shale oil and gas and mining markets fuelled demand for pumps and valves of the company.

Among the smaller caps, rate shares dropped 44.1 - 20pc - 176.4% after the author of the set - top box has warned that one of its American customers had delayed a large order to 2012, reducing its forecast of growth of sales of 2011.

bt Group and Vodafone were among the winners of the day, rising 7.3 percent 191.1 and 3.15 181,85 p. The pair rose after Morgan Stanley analysts placed a rating of "upgrade" on the telecommunications sector.

Analysts, said: "in the reduction of rates (MTR) mobile endpoints, roaming, unbundling and deflation in all DSL products faces." The prospects are more calm now, by reductions in MTR the final furlong, EU lower exposure and fixed prices inflate homelessness. Data mobile are not driving the European sector, but it have impact in the United States and in emerging markets, to which EU companies are subject. Download us our attractive sector view. »

Old mutual led a rally in the financial sector after the Anglo-sud African insurer beat analyst expectations with a 14pc rising profits and said it was close to the sale of his business life U.S.. Shares in the Group spent 4.4 to 137.7 p, then that peers including Aviva also increased.

Prudential, which will be Wednesday deliver its first results of the exercise given his agreement of. 5bn (£ 22bn) of $35 for AIA collapsed last summer, also presented in the ranking, from 13½ to 714 p.

Elsewhere, shares of Cairn energy advanced 6.8 at 448 p after Bank of America, Merrill Lynch upgraded its rating of the Explorer of oil "buy" from "neutral", with a price target increased from 520 p, 485 p.

In a note, Merrill said that it expected the uncertainty on the Elimination of the Cairn India Vedanta Resources to facilitate. "While we do not exclude that the agreement could close after the April 15 deadline, we are optimistic that it will end in the short term," the broker added.

Heritage oil also found under the spotlight, from 7½ to 282 p on speculation that BG Group explores bid for the assets of the Iraqi gas company.

Heritage oil company's shares have plunged since January, when he said that he had found gas in the region of Kurdistan of Iraq - disappointing investors who had hoped for a discovery of oil. Reports in Africa suggest that the company is also close to resolving a dispute tax troublesome in Uganda.

Back among the smaller caps, Ashtead acquired 16.7 to 203,2 after his British industrial equipment rental company
third-quarter loss before tax of £ 1. 7 m.

Evolution of securities raised its price target for the company, which employs diggers from small tools equipment, to 225 percent of 200 p. "in July, our forecast pre-tax 2011 held at 12 million pounds sterling." Yesterday, it was 20 million pounds, after today's announcement, it is likely to rise to £ 25 m to £ 30 m, "evolution of values securities analyst and Philip Sparks said in a note."

Betfair also rose 67½ to 955 p after you have copied rivals Ladbrokes and William Hill by moving parts of its business in Gibraltar. The move, which has been taken to benefit from a lower tax environment in the region, just a few months after that Betfair has completed its controversial London listing last October.


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