Market report: Friday close
Copper miner Kazakhmys saw more than 8% wiped off its stock market value today as the investors took flight following reports that the Kazakhstan government is about to impose a stinging metal export duty.
Sarah Marks, Evening Standard
Kazakhmys fell, at one point, by 140p to 1580p - it eventually closed 110p down at 1610p. It was closely followed by fellow Kazakh miner and possible buyer Eurasian Natural Resources (ENR), down 57p at 1215p.
Kazakhmys, the country's largest copper miner, yesterday announced plans to join the Kazakh stock exchange. Its given motives were to increase trade and liquidity and promote the development of the local stock market.
However, talk of export duties also suggest it may be involved in an intense round of negotiations with the local government. To complicate matters further, Kazakhmys is also being stalked by aluminium miner ENR, which has until next month to declare its intentions.
Overall, leading shares proved remarkably resilient and the FTSE 100 was 76.15 points higher at 6056.5.
Royal Bank of Scotland swung in and out of positive territory and this afternoon were up 18p at 384p, reflecting the hopes of many that a rights issue proves the bank is finally grappling-with all the issues thrown up by the credit crunch.
Chocolate and chewing gum manufacturer Cadbury Schweppes was one of the day's highest risers, climbing 16½p to 573½p on the back of an upgrade from Lehman Brothers, which now has the confectioner at overweight. Impressed by management's savings and improved sales growth, it reckons Cadbury is the most attractive takeout or merger target among the major confectioners.
Tate & Lyle, 14p higher at 530½p, also attracted buyers lured by rumours that it is considering selling its sugar business. Sentiment was also helped by a fairly positive note from Citigroup which raised the target price by 30p to 500p and repeated the hold rating.
However, little positive encouragement can be found in the housing sector. Downbeat reviews from UBS and Citigroup today both urged their clients to get out of bricks and mortar.
UBS says the rate of deterioration in the UK housing market is still accclerating, and it has downgraded Taylor Wimpey, ¼p up at 159p, and Barratt Developments, up 12¼p at 370¾p, to neutral from buy.
It told clients: 'Short of significant intervention by the Government/Bank of England, we believe 2008 is going to see significantly depressed new housing starts and declining selling prices we see no early recovery.'
Meanwhile, Citigroup downgraded Redrow, 9¼p higher at 290p, and Bovis, up 4½p at 528½p, to sell, saying Taylor's trading update showed the housing market has 'dropped alarmingly in recent weeks'. It is predicting a 6% fall in prices in 2008 and expects volume to fall by 25%.
Upbeat results from online payments business NETeller saw it rise 1p to 59p, while it repeated its commitment to reward shareholders with a dividend at or before announcing this year's results.
A higher bid is clearly expected to come in for oil services group Expro, up 65p at 1510p.
It has agreed a $3.15bn (£1.57bn) bid from private-equity group Candover, but has also said it is in talks with a 'number of other parties interested in making an offer.'
Halliburton is seen as the most likely contender as it could extract more synergies than a financial buyer.
In New York, investors were braced for a hectic day as Wall Street woke up to news that Citigroup took has taken a loss of $5.1bn in the first quarter of the year.
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MONDAY'S AGENDA
• Trading on the capital's High Streets will be in the spotlight as the British Retail Consortium publishes March's London sales monitor. Its UK figures, released this week, showed sales plunged 1.6% last month. It was the first monthly drop in almost two years despite Easter falling early, with clothing stores enduring their worst month in eight years.
• Amid growing fears for the health of the housing market, Rightmove releases its house price index for April. In March, asking prices rose for the second month in a row despite a large increase in the number of unsold properties. But the property website warned prices will fall in the coming months as borrowing conditions worsen.
• Bank of America completes the dire reporting season for US banks with first-quarter results. Profits dived 29% last year to $14.9bn (£7.5bn) on the back of writedowns.
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