Market Wrap, Tuesday 3rd June 2008

The FTSE ended the day up 50.1 points at 6,057.7, whilst the FTSE 250 ended up 58.6 points at 9,986.9.

Over the pond, by the time London closed the DJI was up 20 points at 12,524, whilst the S&P500 was up 5 points at 1,391, and the Nasdaq up 16 points at 2,508. Fed Res chairman, Bernanke, said from Barcelona that he reckons the economy will pick up later this year. News that factory orders were up 1.1%, when expected to be under 1%, was also received well.

Back here in London, we saw some of the banks bounce after yesterday’s poor Bradford & Bingley news.  RBS closed up nearly 19p at just shy of 245p on rumours that there were some trying to build a decent holding in the bank, and also that many short positions wer ebeing closed before the result of the bank’s £12 bln rights issue. It seems that RBS isn’t struggling to get out of the offer, and that investors are taking up the rights.  Peers also had a good day, with Lloyds TSB up 11.5p at just shy of 389p, and yesterday’s hot potato, B&B, closing up 1.25p at 68.25p. Broker Collins Stewart gave B&B a new target of just 60p, down from 135p, and Morgan Stanley reckoned 50p was a better target, down from 82p.  Not all banks did so well, though, with HBOS closing down over 8p at just shy of 352p, Barclays down over 5p at 360.25p, and Alliance & Leicester down nearly 3p at 400.25p.

Staying with financials, insurer Prudential closed up 15.5p at 670.5p after Merrills said it was more favoured than Arriva, whilst Royal Sun Alliance closed up 3.4p at 137.8p after ABN Amrto gave a higher target of 164p, up 9p from its previous target of 157p.

On to retailers, where Home Retail Group, who own Homebase and Argos, closed up 14.5p at just shy of 243p after a Seymour Pierce upgrade to ‘buy’ from ‘hold’.  Peer Kingfishger, who own B&Q, also looked good, closing up 3.5p at 137.6p.

Staying with retailers, Carphone Warehouse closed up 9p at 238p with rumours still around that someone will come in with a bid.

On to oil, where AMEC closed up 35.5p at 884 after saying it was helping BP with some project management on offshore work. Broker Evo reitereated its ‘add’ stance and 9-quid target.

On to minres, where ENRC closed down 77p at 1,367 on the back of rumours that fellow national Kazakhmys may sell its stake in ENRC after its lock-in period expires. Peer Vedanta also had a bad day, closing down 81p at 2,424, and peers followed too, with BHP closing down 17p at 1,931 and Rio Tinto down 41p at 6,129.

On to housebuilders, where Barratt Developments closed down 11p at 156.5p, Bellway down 20p at 603p, and Redrow closed down 9.5p at 223.25p.

Internet gaming firm PartyGaming closed down 22.5p at 277.5p after rumours said that a compromise deal with the US Dept of Justice were a bit speculative and presumptious.

the lower oil price helped easyJet, who closed up nearly 10p at 295.5p, and peer Ryanair posted some decetn figures for the year, closing up €0.23 at 2.86.