FTSE 100 movers: BSkyB hit by downgrade

Date: Thursday 14 Jun 2012

British Sky Broadcasting (BSkyB), which more or less built its business in the UK on live football, is paying the FA £2.3bn to broadcast live 116 matches over a three year period, starting from the 2013-14 season. The shares are sharply lower, with Numis Securities reacting to the cost of the deal by downgrading BSkyB to "add", although Citi is sticking with its "buy" recommendation.

Video-on-demand player BT, the telecoms giant, has paid a pretty penny to muscle in on the Premiership action, paying £738m for the right to broadcast 38 games, around half of which it will be allowed to cherry-pick before Sky. BT is also lower, though its fall is not so severe as that experienced by Sky.

After swooning late yesterday afternoon commodities producer and trader Glencore is on the slide again, along with its proposed merger partner Xstrata. Concerns persist about the proposed merger, which is dependent on shareholders giving the thumbs-up to an eye-popping package of incentives for top executives at Xstrata. Given the slap in the face shareholders gave to the WPP board yesterday as they protested at executive pay, there may be trouble ahead for the combination wags have dubbed 'Glenstrata'.

Meanwhile, gold miner Polymetal tracked the price of gold higher, although the majority of the sector was heading south.


FTSE 100 - Risers
Polymetal International (POLY) 813.50p +2.26%
Legal & General Group (LGEN) 117.60p +0.86%
British Land Co (BLND) 486.20p +0.77%
Next (NXT) 3,092.00p +0.72%
Unilever (ULVR) 2,097.00p +0.67%
Land Securities Group (LAND) 724.00p +0.63%
Hargreaves Lansdown (HL.) 478.00p +0.57%
Tate & Lyle (TATE) 649.00p +0.54%
Pearson (PSON) 1,180.00p +0.51%
AstraZeneca (AZN) 2,697.50p +0.45%

FTSE 100 - Fallers
British Sky Broadcasting Group (BSY) 655.50p -5.75%
Man Group (EMG) 68.70p -4.58%
Glencore International (GLEN) 339.65p -4.32%
GKN (GKN) 175.30p -3.84%
Xstrata (XTA) 886.60p -3.63%
BT Group (BT.A) 201.70p -3.54%
IMI (IMI) 818.50p -3.08%
Anglo American (AAL) 2,068.00p -2.98%
Antofagasta (ANTO) 1,043.00p -2.52%
Eurasian Natural Resources Corp. (ENRC) 387.90p -2.49%

NR

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