Small Cap report: Wed close

By THIS IS MONEY
Updated:

 

Shares in UK Small Caps companies closed at their firmest, bucking the trend set by their blue-chip counterparts and the Dow Jones, but following the example set by Nasdaq's positive opening.

The FTSE Smaller Cap index closed up 29.1 points at 3,157.9, just off its earlier low of 3,136.4.

Charter continued to sparkle, up 224p, or nearly 92%, at 467 1/2p, after a surprise 500p-a-share agreed bid from US welding group Lincoln Electric. The deal, which values the UK company at £471m, offers a 105% premium on Tuesday's closing price.

Elsewhere, oil service and defence company Hunting put on 11 1/2p at 128p after an encouraging update, with the group noting that current trading is ahead of last year due to improved results in its oil division. It intends to concentrate on its oil division, and is reviewing options for its defence business - with interest already received in those operations.

Body Shop climbed 8 1/2p to 114p after revealing a 29% improvement in its pre-exceptional pre-tax profits to £31.5m, in line with market expectations. The cosmetics retailer also unveiled plans for an e-commerce joint venture called The Body Shop Digital - in conjunction with a unit of Softbank which will hold a 24% stake.

AIM-listed Tradepoint Financial added 1p to 159 1/2p after announcing plans to form a pan-European blue-chip stock exchange in July. The move - which is significantly ahead of its larger rivals - is designed to simplify and reduce the cost of trading, clearing and settlement of European equities.

Selected technology small caps remained supported by Nasdaq's bounce, with Bookham Technologies ahead 380p at 2,780p, Vocalis Group up 30p at 305p, and MSW Technology ahead 7 1/2p at 57 1/2p.

But, Lloyd's of London insurance group Wellington Underwriting shed 7p at 74p after confirming plans for a merger with LIMIT - which ticked up a penny at 82p. Dealers pointed out that the £310m deal, which will be effected via a recommended all-paper offer to Wellington shareholders, was very much discounted.

E-Capital fell 1 1/4p at 12 1/2p after its EGM rubber-stamped the group's recent £15.5m placing and open offer and Andrews Syke shed 11p at 52 1/2p after announcing a share buy-back.

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