GSK regains some of earlier losses
Jan 4 2008 by Peter McCusker, The Journal
IT was a rather gloomy day for the retailers in the FTSE 100 index yesterday as a profits warning from DSG International, the owner of PC World and Currys, dragged the sector lower.
A handful of regional companies managed to buck the overall downward trend, but only marginally. Brulines Holdings added 4.5p to 150p, Ospec Security added 3p to 60p and GlaxoSmithKline regained some of its previous days losses and nudged 1.18% higher to close at 1285p.
Northern Rock was pushed slightly higher up 0.5p at 84.75p, a little closer to the price that RAB Capital, the hedge fund, paid for an additional 350,000 shares in the bank, at 84.79 pence each. RAB announced the purchase on Wednesday.
On the whole, it was a quiet day for news within the portfolio. Housebuilders Bellway and Barratt Developments lost value. This followed a review of UK housebuilders by broker UBS, which cut the share price target for Bellway to 879p from 1170p and Barratt to 562p from 1060p.
The broker has a “neutral” view on the sector as a whole, but has kept its ‘buy’ rating on Barratt, citing its short term defensive qualities.
In its review note, UBS said that despite a poor immediate outlook, it believes that there are brighter prospects for the housebuilding sector from mid 2008 onwards.
Elsewhere, ICI (Imperial Chemical Industries) was delisted from the London Stock Exchange yesterday following the completion of its takeover by Akzo Nobel, the Dutch company. Shareholders in ICI are to receive 670p per share for each share held. Whether ICI is to retain its corporate identity is still under discussion by its new owner.
Katie O’Neill katie.o’neill@wise-speke.co.uk
