Market report: Tuesday close

By MICKEY CLARK FOR MAILONLINE
Updated:

 

THE slump in retail sales volumes during March was the worst for more than a decade. Hope of a revival in consumer confidence has been hit by rising National Insurance contributions and the war with Iraq. The news sent a shudder through the High Street and prompted a sell-off of retailers' shares.

Boots was a victim, down 2 1/2p at 528p, while Tesco shed 2 1/4p to 176p, Sainsbury's added 1/4p to 220 1/4p and MFI was off 2p at 115p.

Share prices generally had a steadier appearance at the start of the new quarter and the Japanese tax year. Better progress in Iraq also cheered sentiment, and the futures market indicated an opening rise for the S&P 500 index when trading resumes this afternoon in the wake of yesterday's sharp falls. The FTSE 100 index ended up 71.5 points at 3684.8.

Cable & Wireless ticked up 2p to 71p after WestLB Panmure repeated its outperform rating and lifted its target price from 80p to 100p. The band of MPs that make up the powerful Treasury Select Committee wants the Inland Revenue to take another look at the recent £380m settlement relating to a £1.5bn tax dispute that has been reached with the communications group.

The sum of £1.5bn has now been released from an escrow account. It was ring-fenced by C&W because of possible tax liabilities relating to the sale of its One2One mobile phone business to Germany's TOnline. The Committee accuses the Revenue of settling for an 'extremely low' sum.

Broker Credit Suisse First Boston is braced for a rise in stamp duty in next week's Budget, which may further weaken the commercial property investment market. It is continuing to recommend an underweight stance in the property sector and has repeated its underperform rating on Land Securities, down 5 1/2p at 727p, while remaining neutral on Canary Wharf, 5 3/4p cheaper at 139 1/4p, Slough Estates, 13 1/2p off at 294p, and Hammerson, down 5p at 425p. Only British Land, 5p lower at 405 3/4p, holds any attraction.

Scottish Power firmed 8 1/2p to 384 1/2p despite broker UBS Warburg lowering its rating from buy to neutral while maintaining its 420p target price. Warburg has also cut water utility Severn Trent, 19 1/2p dearer at 735 1/2p after yesterday's falls, from buy to neutral but is sticking with its 12-month target price of 810p. Warburg remains a buyer of merchant bank Schroders, up 14 1/4p at 509 1/2p, and has raised its target price from 520p to 600p.

Bid target Oxford GlycoSciences marked time at 193 1/2p even after biotech investors Sir Chris Evans and Alan Goodman revealed they could make an offer. Celltech, which already has an offer on the table, was also static at 266 1/2p.

ReNeuron rose 4 1/4p to 9.37p after the directors announced plans for a management buyout at 10p a share.

Elsewhere on AIM, a crop of stocks had their shares suspended for failing to report within the six-month deadline. Surgical devices maker Lombard Medical was frozen at 2.12p. The company has also failed to update shareholders on bid talks. It raised £2.5m last year to help develop products for treating heart and circulatory conditions.

Shares in Galileo Innovation were suspended at 1p after the company failed to meet the deadline. Arthur Shaw was frozen at 0.21p after saying it will soon become the subject of a reverse takeover.

• Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.

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