CITY investors were struggling to hold the market above the 4200 level as prices traded in a narrow band.
Buyers were few on the ground as support levels were tested with the FTSE 100 index trading up 4.6 points at 4211.0. There was little inspiration from Wall Street overnight which saw the Dow close with small losses.
Fourth quarter earnings from recently merged BHP Billiton, up 21/ 4p at 4053/4p, 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 last year. The group is looking for $500 million in merger savings by 2005.
Advertising giant WPP firmed 31/4p to 576p on the back of a survey indicating 15 of the company’s top 25 clients are planning to increase their spend.
Financial PR and advertising outfit Incepta drifted 1p 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.
Interim results are due out on Monday.
UBS points out that the price has rallied by around 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, unmoved on 553p, 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.
Hedge fund operator Man Group rose 11p to 1221p. US securities house Morgan Stanley has upgraded its recommendation on the shares from equal weight to over weight and set a new target price of 1400p. Institutional investors have discovered an appetite for hedge funds, helping Man swell the amount of cash rolling in to record levels.
AIM-listed Motion Media saw its share price tumbled 51/4p to 13p 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 says it is in talks with a number of significant companies, but talks 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 was a disappointment to the fans and manager Sir Bobby Robson. It also upset the City which marked the shares 4p lower 321/ 2p. Stockbroker Collins Stewart Tullet suffered its third consecutive day of falls as the shares dropped 17p to 4101/2p. The firm, headed by Terry Smith, has been accused of insider trading and puffing-up share prices by former employee James Middleweek who is suing for wrongful dismissal.
. 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.
