Market report: Monday close

By MICKEY CLARK FOR MAILONLINE
Updated:

 

THE recent strong performance by shares in Bradford & Bingley will be rewarded tomorrow when the mortgage lender joins the becomes one of the top 100 companies.

It is to replace Powergen, which has been taken over by German utilities giant E.on. Bradford & Bingley rose 1 1/2p to 325p but its introduction into the FTSE 100 will provide an even bigger boost to the profile of the banking sector, already well represented in the top flight and which now accounts for about 22% of the total in terms of weighting. B&B is capitalised at £2.19bn, its shares having risen from a low of 262p last September. Broker ABN Amro has raised its 2002 profit forecast for B&B by £5m to £263m.

Changes have also been made to the FTSE 250 index with John Laing, up 6 1/2p at 176p, replacing B&B. Railtrack, 3/4p better at 223p, is making a comeback among the second-liners following its return from suspension. It will replace computer software specialist Innovation Group, 2p better at 91p. Brokers say that the move is a little harsh on Innovation, given that Railtrack is being bid for by Network Rail prior to being wound up.

Share prices generally see-sawed for much of the day, making for a lacklustre start to the new quarter. The FTSE 100 index rose 29.4 to 4685.8 as an opening rally on Wall Street began to falter. Broker Merrill Lynch has followed the lead of rival UBS Warburg, which last week cut its year-end forecast for the Footsie from 5500 to 5000.

BAE Systems rose 12 1/2p to 347 1/2p as it looks increasingly unlikely that the defence supplier will win control of US rival TRW. Northrop Grumman has raised its offer for TRW to $7.56bn (£4.9bn). Marks & Spencer, up 9 1/4p at 382p, has attracted the attention of US investment bank JP Morgan, which has begun coverage of the shares with a buy recommendation and a 410p target price. A sell recommendation knocked Xstrata down 58 1/2p to 791p. Broker Credit Suisse First Boston has begun coverage with a 750p target price.

Property developer Brixton Estates eased 1p to 241p as three lines of stock totalling 6.68m shares were sold as part of a delayed trade at 230p. A line of 4.93m shares in Woolworths, up 1 1/2p at 42p, went through at 40p. There was further selling of Cookson, down 1p at 47 1/2p. Two lines totalling 4.3m shares went through on the ticker at 46p.

Vehicle distributor William Jacks retreated 2 1/2p to 87 1/2p on news that chief executive John Adair had sold 20,000 shares at 87p. It leaves him with just 15,000 shares. Holmes Place jumped 24 1/2p to 149 1/2p after the fitness studios operator confirmed it was looking at the possibility of a management buyout. Radio broadcaster Chrysalis rose 3 1/2p to 221 1/2p and Capital Radio was up by 7 1/2p to 637 1/2p after Deutsche Bank moved from market perform to buy on both companies. It reckons radio will be among the first to benefit from any upturn in advertising spending. The broker has set a target of 790p for Capital and 270p for Chrysalis.

A record nine companies were suspended on AIM, mostly relating to the late publication of trading statements or annual report and accounts. They were Cyberes (33 1/2p), World Sport (6 1/2p), i-spire (3 1/4p), Radio First (4 1/2p), Mettoni (7 1/2p), Offshore Tool & Energy (2 1/4p), Equator (13 3/4p), Einstein (1 1/4p) and Constellation (0.18p).

• Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed in the tables. Ofex prices relate to the previous close.

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