Tobacco sell-off stubs out early gains for FTSETobacco shares were under pressure yesterday in another jittery trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. .
British American Tobacco British American Tobacco Plc (LSE: BATS, AMEX: BTI, KLSE: BAT) is the second largest listed tobacco company in the world. It is based in London, England and is a constituent of the FTSE 100 Index with a market capitalisation of over £29 billion as of June 2005. fell 33p to £19.02 on fears that a large chunk of shares may soon come onto the market. This follows news that the Swiss group Richemont is considering splitting into two companies, a luxury goods business and a company to hold the 30% stake in BAT it holds in partnership with investment group Remgro.
Citigroup said in a note: "Of the 30% stake, about 6% is owned (indirectly) by the Rupert family The Rupert family is a well-known billionaire family from Stellenbosch, South Africa.
Anton Rupert (4 October 1916 – 18 January 2006) and his wife Huberte Rupert (– 28 October 2005) moved to a home in Thibault Street on the northern banks of the Eerste River in , 11% through South African-listed paper, and 13% directly via Richemont. Our concern is that BAT shares would be given directly to Richemont shareholders, many of whom may then sell them."
Meanwhile, Imperial Tobacco, which announced a long-awaited £4.9bn rights issue this week, lost 92p to £20.95 after UBS UBS Union Bank of Switzerland
UBS United Bible Societies
UBS United Blood Services
UBS United Buying Service
UBS Used Bookstore
UBS University Business Services
UBS Universal Building Society (UK)
UBS Ulaanbaatar Broadcasting System issued a sell note. "We believe that Imperial's lower exposure to the emerging markets and international brands means it will see lower organic growth than its peers," said the bank.
Despite an early rally on Wall Street, the FTSE FTSE
A company that specializes in index calculation. Although not part of a stock exchange, co-owners include the London Stock Exchange and the Financial Times.
The FTSE is similar to Standard & Poor's in the United States. 100 slipped 16.5 points to 6181.6. Dealers cited weaker UK retail sales and manufacturing figures for the decline, along with inflation worries after the oil price hit $135 a barrel. A $15bn (£7.5bn) rights issue from the Swiss bank UBS did not help sentiment.
Shares in the London Stock Exchange London Stock Exchange
London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. lost 50p to £10.38 after poorly received results, while the sugar group Tate & Lyle fell 11p to 474p for similar reasons.
A surprising gainer yesterday was British Airways, whose shares have been hit recently by the higher oil price. News that a proposed pilots' strike may be averted cheered investors, and BA shares added 9.5p to 212.25p. Its low-cost rival easyJet added 17p to 279.5p as the company sought a judicial review of prices charges by BAA's Gatwick airport.
Telecoms companies were wanted after Cable & Wireless reported a forecast-beating 23% rise in annual underlying profits, and said it may consider a demerger demerger n (Comm) → Abspaltung f, Demerger m later this year. C&W ended 4.1p higher at 156.6p, while Vodafone climbed 4.9p to 163.5p ahead of its results next week. The move in the mobile phone company's shares added nearly 11 points to the FTSE 100.
The day's main bid speculation surrounded Cadbury, which recently spun off its American drinks operations into a separate, US-listed company. Cadbury shares closed up 16.5p at 698p on revived talk that the investment guru Warren Buffett Warren Buffett
Known as "the Oracle of Omaha," Buffett is Chairman of Berkshire Hathaway and arguably the greatest investor of all time. His wealth fluctuates with the performance of the market, but for the last few years he has been reported to be worth over $30 billion, making , Kraft or Hershey might be interested in the company.
Miners had a mixed performance. Analysts at Bernstein Research raised their price target for Rio Tinto Rio Tinto may refer to:
Xstrata added 87p to £42.24 as Mick Davis, chief executive, splashed out £6.95m for 167,480 shares and, separately, Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. raised its price target from £39.05 to £48.80. But Vedanta Resources Vedanta Resources plc (LSE: VED) is a diversified and integrated metals and mining group. Headquartered in the United Kingdom, its principal operations are located in India, with a major market share in each of the main metals: aluminium, copper, zinc and lead. fell 64p to £26.48 as Goldman cut its recommendation on the business from buy to neutral.
Power companies were lit up by news of a hostile bid in the US. The Texas group NRG Energy has made an unsolicited $11bn all-share offer for US rival Calpine, which turned the spotlight on International Power as a potential takeover target Takeover target
A company that is the object of a takeover attempt, friendly or hostile.
See target company. . The UK company's shares surged 11.25p to 449.25p, while Scottish & Southern Energy also benefited, adding 42p to £14.69.
Elsewhere, housebuilders' slide continued. Taylor Wimpey lost another 3.75p to 101p, as the ratings agency Fitch put some of the its debt on a negative rating due to the continuing weakness in the UK and US housing markets.
Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba finally ended the decline that followed the announcement of its £12bn rights issue, recovering 3.25p to 244.75p. But most of the other banks continued to slide, with HBOS HBOS Halifax Bank of Scotland down 4p at 441.5p, Barclays 6p lower at 392p and Bradford & Bingley falling 2.75p to 101.5p.
The banknote maker De La Rue rose 3.5p to 895p as it announced a 21% rise in annual profits, a plan to return £160m to shareholders via a special dividend, and also confirmed it was in talks to sell its cash-systems business. Analysts believe this division could fetch about £400m if a sale went ahead.
The Scottish cashmere cashmere
Animal-hair fibre forming the downy undercoat of the Kashmir goat. The fibre became known for its use in beautiful shawls and other handmade items produced in Kashmir, India. The fibres have diameters finer than those of the best wools. firm Dawson International climbed 38% to 2.25p as fabrics group Leeds International, up 0.5p to 18.5p, declared a 28.76% stake. Leeds said the stake was an investment and it planned to work with Dawson's management "to increase shareholder value". It has no plans to take the shareholding above 30%.
Finally, Freeplay Energy added 1p to 7p on news of a contract to incorporate its rechargeable technology in Roberts radios, but a profit warning from the recycling specialist Straight saw its shares drop 25p to 82.5p.
Long wait on the cards
There was good news for the leisure group Rank yesterday. A tribunal has ruled that Revenue & Customs should repay £36.3m in VAT which was applied to interval bingo, where customers play the game between the main sessions. Rank shares added 1.5p to 89.75p, but investors should not get too excited. Revenue & Customs has until July 10 to appeal, and if it does the case could drag on for years. Landsbanki analyst Mark Reed said: "Given the government's need for tax revenue at the moment we would expect an appeal. There is [also] a risk that this legal victory may negate government enthusiasm for any further help [for the bingo industry]."