Market Wrap, Friday 28th March 2008

As expected, the FTSE closed down 24.6 points today at 5,692.9, whilst the FTSE 250 was down 20.7 points at 9,961.3 on the day.  The FTSE had been 50 points higher during the day, but the strength fell off.  Not a bad week, though, especially aftre the recent few weeks, as the FTSE is up about 198 points on the week.

Over the pond, by the time London closed The DJI was up about 24 points at 12,326, whilst the S&P500 was up 3 points at 1,328.9 and the Nasdaq up 6 points at 2,287. The US heard that cosnsumer spending was up slightly, 0.1% last month. It had said spending was down over there, but personal income was up, with 0.5% rise in Febraury. However, a profit warning from JC Penney Co caused some concern.

Back here in London, and carrying on from this morning, it was the housebuilders under pressure. Persimmons closed down 40p at 749.5p after Nationwide’s house price survey said house prices fell again for the 5th consecutive month in March, and forecasted that it would continue to fall. Peers were off too, with Barratts was down over 27p at just shy of 411p after a broker downgrade as Panmure Gordon gave a downgrade to ’sell’ from ‘hold’, and Redrow down nearly 2p at just shy of 313p, Bellway down 11p at 874 and Taylor Wimpey down 1.25p at just shy of 186p.

Land was down too, with Land Securities closing down 39p at 1,497, British Land down 31.5p at 902.5, and Liberty Intnl down 22p at 955p after UBS reiterated its ‘neutral’ stance and cut its target to 10-quid.

Also carrying on from this morning, and back to the Terminal 5 fiasco, British Airways ended the day down over 7p at 240p as investors showed concenrs on the ongoing debacle at the airline’s new home. Another 34 flights were cancelled today, with other airlines enjoying the extra passengers.

The banks were also down, with the rumours that Lehman Brothers were feeling it all too causing investors to be cautious here.  Lloyds TSB was down over 8p at 451.25 and HBOS down 17.5p at 540p.

Miners were stronger as commodities were up. Vedanta was up 67p t 2,133, Anto up 18p at 675.5p, and Anglo up 29p at 3,020.

Oil was down, though, causing BP to close down 9p at 503p and Tullow Oil down to 648, off 12.5p on the day.

Enterprise Inns continued up today, closing nearly 46p to the good at just shy of 410p after a decent trading update.  As we said this morning, broker rating were changed to ‘buy’, with comments that the news could mean another £1 to £1.50 a share.  Peers were also up, with Punch Taverns up 35.5p at 554 after pulling out of its merger hopes with Mitchells & Butlers, who closed up 13p at 342.5p.  Despite the FT saying other private equity groups had pulled out of the bid running too, it seems there are still one or two interests.