LONDON (ShareCast) - Mortgage lender Alliance & Leicester fell back again as broker Collins Stewart forecast a 30% dividend cut in 2008 and 2009.

Earnings will likely be materially weaker than previously estimated due to the sharp reduction in mortgage lending. Firms with better funding abilities are taking market share at the expense of operators like Alliance & Leicester, Collins says.

Rail and bus group FirstGroup is to raise up to £260m with the issue of 43.7m shares, 10% of the shares currently in issue. The final price has yet to set. Adjusted operating profit for the year to March was up nearly 40% at £360m.

Kazakhstan-based natural resources holding company Eurasian Natural Resources Corporation said it has seen a very significant increase in group revenue in the first quarter, with good sales volume growth in the Ferroalloys, Iron Ore and Energy divisions. The group said that excluding alumina, average prices for all commodities have been higher.

Caterer Compass boasted a strong first half, with reported profit before tax up a better than expected 25%, and said it will buy back a further £400m of its shares over the next 18 months.

FTSE 100 - Risers
Eurasian Natural Resources (ENRC) 1,448.00p +5.16%
London Stock Exchange Group (LSE) 1,068.00p +3.29%
BHP Billiton (BLT) 2,081.00p +3.02%
Vedanta Resources (VED) 2,492.00p +2.85%
ICAP (IAP) 606.00p +2.28%
Compass Group (CPG) 349.75p +2.19%
Anglo American (AAL) 3,426.00p +2.12%
John Wood Group (WG.) 454.50p +1.96%

FTSE 100 - Fallers
FirstGroup (FGP) 550.00p -8.18%
HBOS (HBOS) 463.50p -4.43%
Thomas Cook Group (TCG) 270.00p -3.23%
Alliance & Leicester (AL.) 444.25p -3.16%
Sainsbury (J) (SBRY) 378.50p -2.89%
TUI Travel (TT.) 248.25p -2.65%
Persimmon (PSN) 566.50p -2.41%
British Land Co (BLND) 780.00p -2.26%

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