Morning Market, Monday 12th May 2008

The FTSE was up about 46.5 points in its first hour, at 6,251.2, whilst the FTSE 250 was up 106.5 points at 10,543.8.

Over the pond on Friday, the DJI closed down 120.9 points at 12,745.88, whilst the S&P500 closed down 9.4 points at 1,388.28, and the Nasdaq down 5.72 points at 2,445.52. The Dow was down 2.4% on the week, the S&P500 down 1.8% and the Nasdaq down nearly 1.3%.  The falls were blamed investors worrying about the credit crunch and also fast-rising energy prices. Also, news that insurance giant AIG (American International Group) was to blame for about 120 points of the week’s fall of the Dow painte some more gloom for investors.

Today in the far East, the Nikkei 225 closed up just over 88 points at 13,743.36, whilst in Hong Kong the Hang Seng was having a holiday.

In Far East trade the price of the black stuff was still above US$125 bbl, but had pulled back slightly.

Back here in London, with oil still strong it was the oil heavyweights who started well.  BP was up 6.5p at 619.5p, BG Group was up 15p at 1,356, Tullow Oil also up 15p at 922p, Cairn Energy was up 36p at 3,382p, and Centrica, depite a trading statement with concerns on gas margins, turned up after a drop on opening and was at 294.5p, up 7p on the day. Dana Petroleum was up 154p at a new high of 1,934p after announcing another discovery in the North Sea. More details coming on that one, we feel.

The miners were also up, with Xstrata looking happy, up 26p at 4,212 after Deutsche Bank reminded us all about its ‘buy’ stance and upped its target to 47-quid, up from 4,140p, saying it expectes earnings to grow strongly this year.  Peers were also up, with BHP up 24p at 1,999, Rio up 70p at 6,472, and Anglo up 36p to 3,418.

One mention on the banks is HSBC, who were up 10p at 876p ahead of a Q1 figures and trade update due last this morning.

Staying with financials, Standard Life insurance group was up 5p at 262p after a Citigroup upgrade to ‘buy’ from ‘hold’, and added a 290p target, up 20p from 270p.

DSG International, owners of PC World & Currys, were in the press as they are apparently closing 200 of their 700 stores, nationwide.  They will be making a few suprstores, that will house both Currys and PC World, but are closing many that aren’t making profit.  They have been discounting goods trying to intice people back in, but this has affected the bottom line.

Southern Cross Healthcare was up 29p at 390.5p after its interim figures were better than expected.  Broker Brewin Dolphin reiterated its ‘add’ rating.

British Energy was 15p lower at 686p after news that there had only been one bid for the companmy, which was from EDF.

Chloride Group was up 41p at 250 after rumours of a bid for the firm were doing the rounds.