Newspaper article The Evening Standard (London, England)

London Shares Bowl along after a Rebound in Far East; MARKET ROUND-UP

Newspaper article The Evening Standard (London, England)

London Shares Bowl along after a Rebound in Far East; MARKET ROUND-UP

Article excerpt

Byline: Mickey Clark

LET'S hope some of the confidence being shown by stock-market investors can rub off on the England cricket team when the fifth and final Test gets under way at the Brit Oval today.

Googlies, full tosses and even the odd wide have been hurled at traders in recent weeks, but the boundaries have been plentiful. Hopefully, our cricketers can perform in the same vein.

Investors were certainly in good form today, with the FTSE 100 index posting a rise of 44.09 points to 4733.76. Things swung round in Asia this morning, the Shanghai market reversing yesterday's heavy losses to put on 4.5%.

Worries the global economic recovery may have stalled were pushed into the background as prices rebounded. Brokers such as Morgan Stanley have been telling clients there are still a few hundred points to be had before the stock market can be said to be fully valued.

Once again, a lot depended on the miners, which make up a large part of the value of the Footsie 100. Rio Tinto jumped 301/2p to 23421/2p following results, while gains were also posted in Kazakhmys, up 27p to 905p, and Antofagasta, 19p ahead at 7371/2p. Vedanta Resources put on 39p at 1747p, with Goldman Sachs continuing to rate the shares a buy despite dropping its target from 2656p to 2527p.

But early attention surrounded the massive share placing in Zurich by banking giant UBS, down 46 cents at [euro]15.44, owned by the Swiss Government. The bank's own broking arm was among a clutch of advisers putting together an accelerated bookbuilding exercise in 332 million shares in a range of between Swfr16 and Swfr16.50.

Demand was said to be such that applicants would have to be scaled back, with some shares held over for American investors this afternoon. The Swiss Government acquired the shares in UBS in October, when it has to rescue the country's largest bank. It invested around [pounds sterling]3.4 billion last year through mandatory convertible notes.

Also in the banking sector, Barclays rose 6p to 351p after Credit Suisse reinstated the shares with an outperform rating and a 395p target. Lloyds Banking Group topped the [pounds sterling]1 mark again with a rise of 1. …

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