Market Wrap 21/02/08

The FTSE closed up 38.6 points at 5,932.2, which was about 70 points down from the ‘just through 6k level’ just after lunch. Hitting 6k was a target for many, it would seem. No gap close today, for those watching. The FTSE 250 closed up 57.3 points at 10,181.2.

By the time London closed, over the pond the DJI was about 18 points down at 12,409, whilst the S&P500 was only just down about 2.5 points at 1,357, and the Nasdaq was even at 2,328. The DJI and S&P both closed gaps.

Back here in London, Phramaceutical Shire closed up 23p at 974 after the drugs group reported stronger sales to US$2.4 bln against US$1.79 bln last time out. Shire said sales of its recently acquired ADHD drug Vyvanse had risen to US$76 mln for the year, whcih was better than the expected US$49m.

Reed Elsevier was top of the board, though, closing up 43.5p at 627.5 after the Anglo-Dutch publisher announced a US$4.1 bln acquisition of insurance data specialist Choicepoint. Reed Elsevier also reported some decent figures for last year, with a pre-tax profit of £998m, up from forecats of £954m. Revenue was up 2% at £4.58 bln.

DIY retailer Kingfisher closed up 3.5p at 135.5 after a trading update on its 4th quarter which showed sales were slowing but did see a forecastfor full year profit in line with expectations.

Heavyweight miners did well as gold and copper got stronger. Xstrata closed up 113p at 4,060 after Brazilian media got stuck in to the Vale saga stying there’s a bigger bid coming, maybe at 47-quid a share.

Sainsburys was up nearly 8p at 373p on news that the Sainsbury family trust has sold some of its shareholding to 71.3m shares, which is over 4% lower than last reports.

Centrica didn’t have a good day, down nearly 13p at 314p after mediocre annual results. Scottish & Southern Energy closed down 31p at 1,504, International Power down 10p at 408.25 and British Energy closed down 14p at 531p as the whole sector took a hit.

British Airways was also down, 10p less at 272 as oil prices rise and news that the pilots have voted for strike action because of allegations that the airline will be farming in some lesser qualified (cheaper, we expect) pilots for its new ‘OpenSkies’ subsidiary airline.

Bank Alliance & Leicester was down yet another 12.5p at 479.5 after its news yesterday sank in further. Broker Morgan Stanley gave the bank an ‘underweight’ from ‘equal-weight’ rating, together with a 370p target, down from 730p. HSBC also joined in with a downgrade to ‘underweight’ from ‘neutral’.

Scottish & Newcastle closed down 20.5p at 787 after it was just about confimed that South African brewer SABMiller wouldn’t be counter-bidding against the heineken/Carlsberg offer for S&N.