Rexam’s high financial gearing remains a concern – it has net debt of £1.9 billion against a stock market value of £2.5 billion – although the company remains comfortably within its borrowing covenants.

So, too, is the prospect that it will overpay in any bidding war for the beverage can business of Anheuser-Busch, which InBev is expected to sell if its bid for the US brewer succeeds. However, at 380½p, or ten times current-year earnings, and yielding nearly 6 per cent, Rexam remains a solid hold, says the Times.

Shares in Next are down 39 per cent since the start of the year while M&S has fallen 54 per cent. Those determined to play mid-market clothing arbitrage have preferred the earnings record of Next to the freehold property and international dimension of its bigger rival.

There is an argument that M&S could benefit from its past drive on lower-priced clothing as consumers opt for cheaper goods. But rising supplier inflation will eat margins faster at that end of the market. On a long-term view, M&S (forward p/e ratio of 8) remains a stronger bet with a much clearer growth strategy, but for near-term profit resilience, Next (forward p/e ratio of 6.5) is best, says the Financial Times.

Travis Perkins is well aware of the problems it is facing. In its interim report yesterday, the company spelled out a coherent picture of how to reshape the builders merchant to deal with the downturn. It is reducing its headcount, holding its dividend, cutting the size of its distribution division and reducing debt. The Telegraph believes that Travis is well managed and is doing the right things given the state of the market. On a long-term horizon, hold.

Adverse market movements have reduced Aviva’s surplus capital from £2.9 billion to £1.8 billion over the past six months. However, stock markets would have to fall a further 40 per cent before it would have to contemplate raising fresh capital or cutting that dividend. On a prospective yield of 7.3 per cent at 507½p, the payout is attractive in itself. Poor sentiment on insurers – little better than on banks – is unlikely to lift swiftly. Even so, the Times says hold.

Provident Financial is well funded with £380 million in undrawn and committed funding facilities through to March 2010: enough to grow its loan book by more than a third. Those attractions saw the shares rise 9 per cent to 894½p, or 13 times earnings and yielding a secure 7.1 per cent. Buy on weakness, according to the Times.

With a dividend yield of 7.7 per cent and £70m of cash this still looks like a solid prospect, the Financial Times adds.

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