Wednesday 8 June 2011

The price of oil soaring destabilize nervous market

Other companies travel came under pressure, too, in the midst of concerns rising costs of oil and threats for the tourism industry. TUI Travel and easyJet fell 2.8 240½p and 355½p respectively 10½.

Always on a theme by oil prices, Numis analysts cut their profits forecast for easyJet 210 million pounds to 166 million pre-tax profits of £. "The downgrade reflects our revised estimate of easyJet fuel costs after the recent spike in price and certain losses modest due to recent disorders geopolitical," said analysts, who kept their ratings on the transporter "hold."

Elsewhere on the index, concerns about a surge in costs of fuel and its potential impact on economic recovery took their toll on oil explorers and producers. BP fell 4¼ to 488½p, then Premier oil flat at £ 19.65 as RBS analysts suggest that it could bid to BP Wytch farm oilfield, Dorset, including the giant plans to sell oil.

Copper - often a barometer of economic demand – fell to its lowest in nearly a month, the miners were on the slide. Antofagasta and Xstrata has dropped from 70 percent to £ 13.13 and 62 percent to £ 13,47 respectively. Dragged the FTSE 100 down 73.23 points to 5923.53 and the FTSE 250 was 130.47 points to 11521.94.

Defensive again were doing their best to support blue-chips with Imperial tobacco and GlaxoSmithKline edges up to 10 p to £ 20.01 and 4 p to £ 11.80 respectively.

Pharmaceutical peer Glaxo, AstraZeneca, hangar 33 p to £ 29.76½ reports came just before the closing bell its medical devices unit had attracted the interest of bidders about 20, including medical technology companies and private funds. Sale of Astra Tech was first reported last November, and thought that he could fetch $2bn (£ 1 MD).

The theme of M & A, Diageo has fallen p 14-£ 11.85, analysts turned their attention to potential acquisition division of Fortune Brands spirits beverage company.

Manufacturer of gin Gordon, touted as a potential and analysts to Liberum said they expected to Diageo to buy as much 70pc of beam Global Spirits company that has Diageo brands such as bourbon label Jim Beam. Diageo has been on the trail of the acquisition of the end. Earlier this week, it has agreed to buy Mey IƧki Turkey for £ 1 5.3, marking its acquisition of more than a decade.

Investors has proven riskier stocks, Lloyds banking Group lost 65½p 0.79 and Royal bank of scotland throw a 0.4 percent to 47.32.

Taking the tumble size, however, was Rexam. Whereas Red Bull may give you good wings, manufacturer of boxes for the energy drink is not flying as investors booked profits based on the results of the year. Despite posting them an increase in annual profit, Rexam sank 21.6 348.4 p.

Apart from making profits, the market also somewhat disappointed by the lack of details on Rexam plans to sell its Division of closures, what makes tops and lids for products such as beverage containers. "Even though the Declaration confirmed branch closures was for sale, there may be some disappointment that no further progress has been made since the news was released in December 2010," said analysts Seymour Pierce, who kept their rating on Rexam "buy."

On the second level, cable & wireless Communications jumped 2.86 percent 49.33 take first place after that saying that it would sell its operating activities in Bermuda Canada Bragg Group 70 m $ and announced a share of 100 m $ of redemption.

To join the telecommunications company in the midcap ranking was Capital & counties properties group. Developer said that it planned a joint venture for its redevelopment of several billion pounds of Earls Court in London. There were reports that Capco was in talks with family Kwok based in Hong Kong, which controls the Sun Hung Kai Properties, provide funding for the site. CAPCO said that he received interest in a joint venture of several of the parties.

As Capco also said he is progressing well in the planning application for the development of 8,000 - home, he ticked up 4.3 percent 148.8. This increase reflected by blue-chip real estate stock land securities, edged up to 6 to 741 p.

Gartmore was flat, 103 p as Fund Manager posted his final to merge with rival Henderson income statement.

Leading mid-cap latecomers was Logica. After having posted recipes of dishes throughout the year, the it services company slid 7.8 at 137½p.

Among small-caps Group Yell fell 0.1% to 7.6% after analysts from Barclays Capital preserved their rating "underweight" on Yellow Pages Publisher and reduce their price target to 5 percent to 8 percent. The broker describes recent results for the third quarter Yell "disappointing."


View the original article here


This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

No comments:

Post a Comment