London shares lower in early deals on profit taking, Wall Street gains ignored
LONDON (AFX) - UK blue chips eased back in fairly active early trade this morning, extending yesterday's losses on a touch of profit taking in recent tech and telecom gainers, ignoring the overnight gains in New York which saw U.S. investors manage to follow through on Wednesday's Fed rate cut-inspired leap, dealers said. By 8.48 am, the FTSE 100 index was 13.5 points firmer at 5,858.1, with the broader FTSE indices mixed. On Wall Street last night, the DJIA closed 77.75 points higher at 10,693.58, while the Nasdaq composite finished 102.65 points firmer at 2,182.09. In Asia today, the Nikkei 225 index ended 102.61 points lower at 13,765.67, affected by profit-taking among high-tech stocks. The Hang Seng index closed the morning session at 13,504.15, down 44.80 pts. Early trading was solid, with 118 mln shares changing hands in 9.974 transactions. However, the release of the latest UK retail sales figures later this morning could add some more interest -- hopefully adding to the possibility of further UK interest rate cuts in the near future. UK March retail sales volumes are expected to be up a seasonally-adjusted 0.3 pct from February. and 5.3 pct higher year-on-year. February retail sales volumes rose 0.6 pct from January and were up 5.8 pct year-on-year. Further good earnings news in the tech sector from U.S. software giant Microsoft after-hours last night failed to add much inspiration, and European telecom groups Ericsson and Nokia posted divergent sets of results. Telecom equipment maker Marconi still managed to top the early FTSE 100 gainers this morning, bouncing 14-1/2 pence higher to 358 after recent falls, with bad news from Sweden's Ericsson offset by good news from Nokia of Finland. But other recent tech blue chips were cautious, with fellow fibre optics blue chips Spirent going in to retreat after recent gains -- falling 10-1/2 to 400-1/2. Misys topped the FTSE 100 fallers, losing 18 pence at 562 continuing yesterday's CMG warning-inspired decline, with Logica also remaining under pressure, off 15 at 880. ARM Holdings, off 10 at 385 saw profit taking after its recent strong gains, easing 10 at 385. Telecom firms Energis, off 6 at 315, C&W, down 8 at 509, and Vodafone, off 3-1/4 pence at 225-1/2, also ran in to profit taking after recent rallies. Elsewhere, electricals retailer Dixons was hit by a recent downgrade to estimates by joint 'house' broker Schroder Salomon -- its shares lost 2 at 261-1/2. But on the upside with blue chips, BSkyB gained a boost from news of an upgrade in stance by SG Securities to 'buy' from 'hold' -- Lehman Brothers upped its rating for BSkyB in a media sector review yesterday. Prudential shares were lifted by solid Q1 news business numbers, with the group reporting a 29 pct jump in group insurance and investment sales to 5 bln stg, with Q1 UK insurance sales 10 pct higher at 226 mln stg. However, the firm's U.S. operations Jackson National Life disappointed, with its new insurance premiums down 20 pct in Q1. Prudential also revealed that its Scottish Amicable life unit is to withdraw from the sale of mortgage-linked endowments. In reaction, Pru's shares added 22 pence at 794. On the second line, internet banking group Egg -- in which the Pru still holds a majority stake -- saw its shares add 3-1/2 pence at 151 after the firm posted a slight reduction in its Q1 pretax losses to 37.9 mln stg, against a 38.3 mln loss a year earlier. The group also reported a big increase in the firm's provisions for bad, doubtful debt to 16.6 mln stg against 6.0 mln last year -- but this news was shrugged aside. In reaction to the results, HSBC Securities upgraded its stance for Egg to 'buy' from 'add, with an increased price target of 180 pence, up from 150. Elsewhere on the second line, technology issues once again benefited from Nasdaq's continuing rally and the brighter earnings news from across the Atlantic. BATM Advanced Communications topped the early FTSE 250 gainers, adding 3-1/2 pence at 80-1/2, while Guardian IT firmed 22-1/2 pence at 817-1/2, ARC International gained 3 at 109, and Anite Group added 3-1/2 at 139-1/2. Broking firms Close Brother, up 21-1/2 pence at 947-1/2, and Singer & Friedlander, ahead 3-1/2 at 284-1/2, benefited from the recovery in stock markets. Independent Insurance, up 2 at 133-1/2 rallied after yesterday's sharp falls following news that Michael Bright is stepping down as the group's CEO -- with dealers pointing to bid possibilities at the under pressure insurer. But on the downside with FTSE 250 stocks, Corus Group shares eased 1-1/2 pence lower to 68 amid rumours that the firm has highlighted difficult trading conditions. Profit-taking following yesterday's gains in reaction to broker upgrades pulled P&O Princess Cruises down 3-3/4 at 308-1/4; while Bioglan Pharma also saw profit taking after yesterday's advances -- its shares lost 5 at 550. Ultraframe, off 2 at 366-1/2 was blighted by 'sell' advice in this week's Investors Chronicle magazine. Small cap taxi maker Manganese Bronze, off 7 at 105 was also affected by Investors Chronicle 'sell' advice. But small cap property firm Country & Metropolitan gained a boost from 'buy' advice in the same magazine. Elsewhere, Concurrent Technology was also a small gainer, adding 2-1/2 pence at 41-1/2 after a reassuring trading update, with the group noting that Q1 trading is in line with expectations. Pan-Andean Resources also found good gains, up 1-1/2 pence at 20-1/2, helped by positive drilling news in the Gulf of Mexico. Riversoft, ahead 4-1/2 at 89 found support in sympathy with good Q2 results from its U.S. rival Micromuse overnight. Action Computer Supplies extended its recent speculative rise on continuing talk of a bid -- its shares firmed 2-1/2 at 34-1/2. Superscape, ahead 4-1/2 at 72-1/2 remained supported by yesterday's well-received results. Cedar Group, up 9 at 175, was lifted by a fairly reassuring trading.
Related stock : (NIL)