London open: Footsie lower as financials struggle

Related Companies

Related Indices

Related Sectors

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Tuesday 01 Jul 2008

LONDON (ShareCast) - London has opened lower with financial stocks weak and transport groups again under pressure from the surge in oil prices.

Struggling housebuilder Barratt Developments is the early focus as the Telegraph reported it is close to securing a rescue refinancing with lenders that will relax its banking covenants and help it ride out the property downturn. It made strong early gains though has given some of these back.

Insurers are weak led by Prudential and Old Mutual, while banks are down again with Barclays and Royal Bank of Scotland under pressure.

BP is lower despite thr rise in the price of crude after authorities in Moscow refused half of the work permits requested by TNK-BP. British Airways and Carnival are down with the oil price.

Manitowoc, the American industrials group, last night emerged as victor in a long-running takeover tussle for Enodis, the UK food equipment maker, beating its US rival, Illinois Tool Works.

Music, films and games retailer HMV is ahead of schedule in its recovery programme after a strong set of full-year results. Profit before tax and exceptional items from continuing operations grew 25.2% to £56.6m in the year to 26 April 2008 from £45.2m the year before. Total sales growth from continuing operations was 11.3%, with like-for-like sales up 7.3%.

Mail order group N Brown increased revenues by 12.3% in the 17 weeks ended 28 June 2008, a slight rise from the rate up until April. Sales were particularly strong during the sunny spell in May, which coincided with the mailing of summer catalogues. The growth in sales continues to be broadly based across various customer and product groups, it added.

Contractor Morgan Sindall has warned the prolonged slow down in the commercial property and open market housing sectors will impact its expectations for 2009, though it remains on track to meet its expectations for 2008. Sindall has experienced increasingly challenging market conditions over the last quarter.

Carpetright's profits fell from £67m to £59.5m last year with the carpet retailer adding it was more challenging than anticipated with the deteriorating economic environment, a decline in consumer confidence and a reduction in housing transactions having adverse impacts on revenue. "We remain cautious about the short-term prospects," it added.

Van hire company Northgate profits for the 12 months to next April will be flat due to weaker conditions in the used vehicle market. Profit before tax for the year to April rose 5% to £79.5m (2007 - £75.4m).

Electric power group Tanfield crashed on a warning trading is at a significantly lower level than previously forecasted with a "marked slowing" in its markets throughout June. As a result it will not meet the market's expectations for the year.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).