CITY investors were struggling to hold the market above the 4200 level as prices traded in a narrow band.
Buyers were thin on the ground as support levels were tested with the FTSE 100 index trading up 11.3 at 4217.7. Traders were cheered by the upward revision in US gross domestic product from 2.4% to 3.1%, but also noted weekly jobless claims were higher.
Fourth-quarter earnings from recently merged BHP Billiton, up 103/ 4p at 4141/4p, jumped 75%, but the mining giant posted a modest 2.9% increase in full-year net profit of US$1.866 billion (1.187 billion). London and Sydney-listed BHP blamed “weak” and “anaemic” global demand for the flat result, which was struck on a 15% increase in turnover to $117.5 billion.
This was due to higher volume sales of iron ore, coal, copper, and aluminium.
Profits after exceptional items and discontinued operations came in at $1.9 billion, up $211 million on last year. The group is looking for $500 million in merger savings by 2005.
Advertising giant WPP firmed 3p to 5753/4p on the back of a survey indicating 15 of the company’s top 25 clients are planning to increase their spending. Retailer Woolworths fell 13/4p to 371/2p, after Investec downgraded its rating from hold to reduce following a profits warning from WH Smith.
Financial PR and advertising outfit Incepta drifted 11/4p from a year’s high of 213/4p after broker UBS downgraded the shares from buy to neutral because it thinks they are now looking too expensive. It generously raised its 12-month target price by 1p to 21p to reflect the current appetite for recovery plays by private investors. A trading update is due on Monday ahead of interims in October. UBS points out that the price has rallied by about 55% since announcing a rights issue and placing last month. Some brokers have been pinning their hopes on bullish comments about current trading following the recent pickup in sentiment in the financial markets. UBS is sceptical.
Meanwhile, UBS has upgraded property developer Hammerson, down 1p to 552p, from neutral to buy on the back of interim results yesterday showing pre-tax profits up 10 million at 47.4 million. It has also lifted its target price from 555p to 625p. Business parks developer Slough Estates lost 15p to 3653/4p as it announced a fall in half-year pretax profits, 5.8% to 71.8 million. New chief executive Ian Coull said he would sell four noncore assets, worth about 160 million.
Hedge fund operator Man Group rose 15p to 1225p. US securities house Morgan Stanley has upgraded its recommendation from equal weight to overweight and set a target price of 1400p. Institutional investors have discovered an appetite for hedge funds, helping Man swell the cash rolling in to record levels.
AIM-listed Motion Media tumbled 43/4p to 131/2p as it tried to play down speculation that a major order for its new mm146 videophone for use in the cable TV market was about to be announced. The company has high hopes for the product and said it is in talks with a number of significant companies, but talk of a substantial order is wide of the mark.
Newcastle United’s failure to grasp a place in the European Champions League after losing a penalty shootout to Partizan Belgrade left the shares 5p lower at 311/2p.
Bid hopes lifted flat audio speaker designer NXT 18p to 1941/2p.
Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables. Ofex prices relate to the previous close.
