LONDON (ShareCast) - London's top stocks have dipped back into the red with housebuilders suffering on a gloomy monthly housing survey from Nationwide.
The building society reported a fall in house prices for a fifth straight month and now expects a slight fall in inflation for the year as a whole. Persimmon leads the fallers but Barratt is also under the cosh.
Pub owner Enterprise said trading is in line with last year, though it cautions that consumer confidence is low and trading conditions continue to be difficult. Investors were cheered though by plans to hive off its pub properties into a separate company possibly ahead of a switch to REIT status.
Mining groups are also doing well boosted by strong metal prices Vedanta Resources, Antofagasta, Anglo American and BHP Billiton are all up.
The London Stock Exchange is also up on news that it has embarked upon a £500m share repurchase programme.
In M&A news, Punch Taverns has ended talks with rival Mitchells and Butlers over a straight merger, saying that the terms proposed are no longer in the best interests of its shareholders, though it says it is mulling a possible deal with other parties at a lower price.
In broker news, HSBC has started coverage on drugs group Shire with an “overweight” rating and a 1,177p price target. Goldman Sachs has lowered its rating on Associated British Foods to ‘neutral’ from ‘buy’, citing the company’s recent strong share price performance.
British Airways is one of the major losers after flights at London Heathrow’s new Terminal 5 were cancelled due to problems at the terminal.
Mapeley plummeted after the property firm confirmed that talks regarding a possible offer have been terminated.
Dairy Crest expects full-year results before exceptionals to be in line with expectations, but said the market continues to be challenging.
Regeneration specialist St. Modwen Properties said it still expects growth in the company's net asset value in 2008 from its marshalling and development programme, but at a lower level than in the recent past.
Biometrics and security solutions provider RCG Holdings has signed a collaborative agreement with Malaysian computer company Acer.
Stockbroker and fund manager Brewin Dolphin announced that its first half results are likely to be broadly in line with the results achieved last year.
Africa-focused oil and gas firm Afren saw losses more than double in 2007 due to increased development activities but said the year saw “tremendous operational and acquisition-led progress.”
Africa-focused oil group Bowleven is to raise up to £38m though a placing equivalent to 16% of its share capital after another six months of losses.
Public sector focused software group Civica has agreed a buy-out by management, backed by 3i, worth 270p per share cash or £190m in total.
Rail maintenance specialist Jarvis said it expects performance in the second half of its financial year is likely to show an improvement on the first half and full year results should be in line with management expectations.
Shares in Wagon dropped after the automotive components firm said full year profits will be lower and warned that 2008/09 financial year will also be hampered by a number of factors.
Homeland security specialist Croma swung into pre-tax profit for the half-year thanks to strong divisional performances, adding that it is well placed to exceed market expectations for the year.
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