Wall Street's Losses Cut Gains
May 17, 2011
The blue-chip Financial Times-Stock Exchange 100 share index added 16.8 to 3872.7 on provisional volume of 535.0 million shares. Stocks opened higher and hit the session's best level of 3884.1, just ahead of midday, then retreated in the wake of Wall Street's opening decline. In New York Tuesday, the Dow Jones Industrial Average ended a volatile session up 32.10 points to 5648.39, but by early afternoon Wednesday the DJIA had retreated to 5645. The benchmark September futures contract traded at 3888, compared with Tuesday's settlement at 3870, while the FT-SE 250 index of second-line shares rose 20.6 to 4406. Dealers said trading was relatively quiet, ahead of August U.S. non-farm payrolls data due Friday. Merchant bank Schroders led advancing stocks on the FT-SE 100. Its shares gained 95 pence to 1465, ahead of first-half results scheduled for release on Friday. Traders said speculative bid rumors drove volume to 278,000 shares in the thinly traded stock. Meanwhile, the company's non-voting shares rose from 65 pence to 1135 pence, though none were traded. Engine maker Rolls-Royce added 6.5 pence to 230, extending gains made earlier in the week following news of an order for its Allison Engine unit. Food retailers were the session's worst performers, down 2.5% overall, as traders reported heavy profit-taking following the sector's recent advances. ASDA fell 4 pence to 106 -- it's lowest level since April. Tesco dropped 9 pence to 291, Safeway fell 9.5 pence to 323, and Price Graham slid 8 pence to 376.5. Elsewhere, mobile phone operator Vodaphone plunged 15.5 pence to 223.5 following a downgrade to ``hold'' from ``add'' by NatWest. The stock, which on volume of 15.5 million was the market's third busiest issue, was also hurt by media reports of a possible ``spectrum tax'' from a future Labor government on mobile phone and broadcast companies. Broadcasting stocks also suffered from the reports. British Sky Broadcasting recovered from an early 9 pence loss to end half-penny lower at 570.5 pence, while HTV, the regional broadcaster for Wales, fell 9 pence to 333.5. STV, regional broadcaster for Scotland, lost 6 pence at 696.5 and United News & Media, which has two ITV franchises, slid 6.5 pence to 698.5. Yorkshire TV stock fall 32 pence to 1180, amid uncertainty about Granada Group's willingness to make an outright bid beyond its current 24% stake. The Labor plan could cut the northern English broadcaster's license fee payments in half. News that food distributor Booker PLC made an agreed bid for wholesaler Nurdin & Peacock sent shares in both companies soaring. Booker rose 22.5 pence to 383, while Nurdin & Peacock surged forward 68.5 pence to 200.5.
VastPress 2011 Vastopolis
