Barratt loses some recent gains

Jul 15 2008 by Peter McCusker, The Journal

ALTHOUGH unable to maintain some of their earlier gains, the UK’s leading shares recovered some of the previous week’s losses as the FTSE 100 Index closed 38.8 points higher at 5300.4.

Stock markets were buoyed by news over the weekend that, if required, the US Federal Reserve would make special credit lines available to Freddie Mac and Fannie Mae, who provide over 40% of the finance behind the US mortgage market.

There were mixed fortunes, however, for the constituents of The Journal North 40. Following the news on Friday that Citigroup had sold its large shareholding in Premium Bars and Restaurants the company fell 6.5p to 67p, while shares in Barratt Development also lost some of their recent gains with a 6% fall, closing 4p lower at 67.25p. Shares in coal services specialist Hargreaves Services, where we act as broker, also suffered, closing 20p lower at 536.5p.

Southern Cross Healthcare had a better day with its shares closing 2.5p higher at 97p. Sage was another constituent on the leader board closing at 195.2p, a rise of 4p on the day.

Boldon based Immunodiagnostic Systems reported full year results which included a 73.1% rise in pretax profit to £3.79m on sales of £18.7m which were 88% higher than in 2007. Shares rose 2p to 248.5p on the news.

There were mixed reactions from City analysts following the announcement by GlaxoSmithKline that it was to enter into a collaboration with the Swiss company Actelion to develop Almorexant, an insomnia drug. GlaxoSmithKline shares ended the day 10p lower at 1181.5p.

John Dance John.dance@brewin.co.uk