Strong performance by Barratt
AS was predicted, the FTSE 100 index opened significantly higher following news that the government has announced a second package of measures aimed at encouraging banks to lend.
The top flight index rose by over 100 points in the early morning session however by the afternoon fortunes had changed as Royal Bank of Scotland plummeted on news the government had raised its stake in the beleaguered bank. By the close of business, the FTSE 100 index was 38 points lower at 4108.
In The Journal North 40 list, one of the few stocks bucking the overall negative trend was GlaxoSmithKline. The drugs company announced it intends to expand its alliance with Belgium-based drug discovery company Galapagos. The programme to discover and develop novel anti-infective drug candidates for Glaxo’s “Infectious Diseases Centre of Excellence in Drug Discovery” was initiated in December 2007.
Galapagos’s responsibility lies with discovering and developing natural drug candidates through to clinical Proof of Concept at which point Glaxo will have the exclusive option to license for further development. GSK shares ended the day 43p higher at 1277p.
Elsewhere in the regional portfolio, Arriva was in focus as one broker lowered its price target from 708p to 377p although it has maintained its overweight rating. The shares closed 4.5p lower at 477.25p
The strongest performance of the day came from Barratt Developments whose shares rose by 7.2% to end the day at 85p.
Motor retailer Vertu motors recorded the biggest fall in its share price as the shares fell 18% to 11.25p.
Fiona Erdozain fionae@brewin.co.uk
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