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London midday: Footsie deep in red on bank failure fears

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Date: Monday 06 Oct 2008

  • Market Movers
  • FTSE 100 4,722.98 -5.17%
  • techMARK 1,264.19 -3.38%
  • FTSE 250 7,614.34 -4.77%

LONDON (ShareCast) - Footsie has endured a miserable morning following the collapse of Hypo Real Estate in Germany amid fears of more problems to come in Europe and elsewhere.

The fall-out has spread to all sectors and share prices this morning with worries about a complete freezing of the financial system unless there is concerted action to get banks lending to each other.

South Korea has even requested talks with is neighbours suggesting the crisis may now stretch to Asia. HBOS is in the firing line again with Royal Bank of Scotland also weak. Barclays is also sharply lower.

The impact is also being felt by the miners with worries over metals demand if the global economy does slow. ENRC and Kazakhmys are worst hit.

British Energy is the only Footsie stock in the blue at present.

Elsewhere, industrial ceramics group Cookson said overall trading in the third quarter showed a strong improvement in performance, reflecting the addition of Foseco's contribution and continuing currency translation gains.

Easyjet increased the number of passengers it flew in September as travellers continued using budget airlines amid tough economic times. About 4.2m passengers flew with EasyJet during the month, compared with around 3.4m in September last year.

Business outsourcing specialist Xchanging has acquired a 75% interest in Indian IT services provider Cambridge Solutions for approximately £83m. The consideration will comprise of 3,172m Indian rupees (equivalent to £45m at current rates) and the issue of 15.2m new Xchanging shares.

Engineering consultant WS Atkins has boosted its position in the nuclear sector with the acquisition of consultant MG Bennett & Associates Ltd for £2.5m cash.

Smart card and ID management software specialist Intercede said it has generated a profit at both pre and post tax level for the six months to September. Sales for the first half of the current financial year are more than 25% higher than for the comparable period last year, it said.

Beer flow monitoring company Brulines expects results for the half year ended 26 September to be in line with market expectations as while gas cylinder supplier Pressure Technologies expects to be ahead of forecasts.

Private firm Progressive Board has made a recommended cash offer for the remaining shares it does not own in the business media outfit SPG Media. The offer values SPG Media at approximately £11.85m.

Citigroup has issued a downbeat assessment of the UK pub sector, cutting its ratings for JD Wetherspoon and Marston’s while reducing the price targets for a host of other pub groups. JD Wetherspoon’s rating is cut to “sell” from “hold” and Marston’s to “hold” from “buy”, as the groups suffer from the squeeze on consumer spending and get to grips with rising costs.

Sportswear retailer JJB Sports was on the back foot Monday morning after broker Altium Securities cut its price target. Altium, which maintained it “sell” recommendation on the stock, has trimmed its price target from 35p to 27p.

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