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Date: Wednesday 27 Feb 2008

  • Market Movers
  • techMARK 1,442.02 -0.30%
  • FTSE 100 6,076.50 -0.18%
  • FTSE 250 10,421.10 +0.36%

LONDON (ShareCast) - A rally by US stocks following a reassuring statement from Federal Reserve chairman Ben Bernanke encouraged UK stocks to stage a late recovery. Although the Footsie closed down on the day there were, in fact, more risers than fallers among its constituents.

Shares in mortgage lender HBOS slumped after it warned fierce competition in the mortgage market and higher funding costs had squeezed margins and could get worse. Sector peer Royal Bank of Scotland closed moderately lower ahead of results tomorrow.

South African insurer Old Mutual was also lower despite reporting that funds under management (FUM) rose 18% in the year.

Fellow insurer Royal & Sun Alliance had a volatile day after declaring results but finished little changed. RSA saw operating profits rise 4% despite the impact of the summer floods in the UK and hiked dividends by 19%.

BP was another stock back close to its overnight level on the day new CEO Tony Hayward gave his first strategy update. Hayward said BP is confident of boosting output over the next four years and keeping production above 4 million barrels a day until 2020 even without any new finds.

AstraZeneca fell back after it said it will not proceed with the next stage of trials for Recetin, its lung cancer treatment, because results failed to impress.

Housebuilders were wanted with Kier on the rise after it posted record levels of revenue and profit for the half-year despite tough conditions in its homes business and hiked dividends by 87.5%.

Fellow housebuilder Barratt shrugged off recent gloom surrounding the housing sector with solid interim profits and a comment that conditions had improved recently, despite its completions falling heavily in the first half.

Mining stocks Vedanta and Kazakhmys moved higher, with the former claiming the prize as biggest riser among Footsie constituents on rumours of stake-building by China. Lonmin, however, was lower after its chairman sold more than £2m of shares in the company yesterday ahead of changes in capital gains tax rules.

Fund manager Henderson Group rose by about 20% after it raised full year dividends by 94% on the back of full year operating profit that jumped 30%.

William Hill’s full-year pre-tax profits failed to meet expectations after a disappointing performance from the bookmaker's internet business. Pre-tax profits fell to £209.2m in the year ended 1 January compared with £235.4m last year and forecasts of between £212m and £222m. Investors drew encouragement, however, from current trading; in the seven weeks to 19 February 2008, the group's gross win has increased by 4%.

Informa upped its dividend by 39% and said current financial uncertainties have so far not impacted the business publisher’s trading.

Profits below expectation in the UK and the Netherlands meant another disappointing performance from software group Logica CMG.

Avingtrans rallied as the firm that makes stands for roadside speed cameras swung into a pre-tax profit and said the short term outlook “appears positive”.

Electronic manufacturing group Stadium gained ground after it reported a 23% increase in full year profit before tax and sale of property to £2.66m.

Support services specialist Serco, best known in London for operating the Docklands Light Railway, headed south despite reiterating its forecast of double-digit sales growth “for the foreseeable future” as orders at the end of 2007 hit record levels and profits met forecasts.

Logistics group TDG was wanted on news of a bid approach worth 275p per share cash from 22% shareholder Laxey Partners. Sector peer Wincanton rose in sympathy.

ArmorGroup gained more than a quarter of its value after the private security services provider confirmed it is in takeover talks with potential bidders.

Mapeley was still on the rise today after the property specialist said yesterday it has received an indicative non-binding proposal from an unnamed suitor.

Shares in Cape Lambert Iron were friendless after the company ruled out considering any return of capital to shareholders until a significant proportion of funds are received from the sale of the Cape Lambert iron ore project to China Metallurgical Group.

Continued losses at flat panel speaker technology company NXT saw the shares fall back. Also on the slide after results was property group A&J Mucklow, which gave back some of its recent gains on news that it slipped into the red at the half way stage due to a revaluation deficit in 2007 versus a surplus the year before.

FTSE 100 - Risers
Vedanta Resources (VED) 2,199.00p +6.13%
Admiral Group (ADM) 1,090.00p +4.01%
Schroders (SDR) 977.00p +2.95%
Unilever (ULVR) 1,629.00p +2.65%
Kazakhmys (KAZ) 1,589.00p +2.52%
Reed Elsevier (REL) 652.50p +2.27%
Associated British Foods (ABF) 865.50p +2.18%
Kingfisher (KGF) 137.20p +2.16%
Schroders NV (SDRC) 883.00p +2.08%
Taylor Wimpey (TW.) 181.90p +2.08%

FTSE 100 - Fallers
HBOS (HBOS) 657.00p -6.81%
Yell Group (YELL) 273.00p -4.46%
Old Mutual (OML) 132.20p -3.50%
London Stock Exchange Group (LSE) 1,465.00p -2.98%
Standard Life (SL.) 227.50p -2.67%
British Airways (BAY) 277.25p -2.46%
Vodafone Group (VOD) 164.20p -2.26%
Rentokil Initial (RTO) 105.00p -2.14%
BT Group (BT.A) 234.75p -1.68%
Rolls-Royce Group (RR.) 446.50p -1.65%

FTSE 250 - Risers
Henderson Group (HGI) 117.00p +21.56%
RPS Group (RPS) 301.50p +6.35%
Kier Group (KIE) 1,493.00p +6.19%
Jardine Lloyd Thompson Group (JLT) 376.25p +4.73%
Hochschild Mining (HOC) 459.00p +4.56%
Ashmore Group (ASHM) 284.00p +4.51%
Capital & Regional (CAL) 486.25p +4.35%
Premier Foods (PFD) 96.50p +4.32%
Mapeley (MAY) 1,825.00p +4.29%
Bellway (BWY) 836.50p +4.17%

FTSE 250 - Fallers
Collins Stewart (CLST) 145.00p -4.92%
LogicaCMG (LOG) 105.25p -3.88%
easyJet (EZJ) 442.50p -2.75%
Chloride Group (CHLD) 189.00p -2.58%
ARM Holdings (ARM) 98.25p -2.48%
Stagecoach Group (SGC) 254.50p -2.40%
Renishaw (RSW) 700.50p -2.37%
Rightmove (RMV) 527.50p -2.31%
Croda International (CRDA) 619.50p -2.21%
Game Group (GMG) 187.75p -2.21%