Market Report: Credit Suisse puts Qinetiq back on the radar

Few public offerings in recent years have attracted quite as much hysterically negative publicity as that of Qinetiq, the defence technology agency that came to the market in early February. Since then, however, the shares have remained firmly underneath radar screens and out of the finance pages, falling 23 per cent from the high of 219.5p they hit soon after listing to open at 168.5p.

The company reports its debut results tomorrow and, according to dealers, the investment bank Credit Suisse spent most of yesterday pushing the shares. The initial public offering was the first by the Government since taking power in 1997 but the decidedly dull performance of the shares has meant the controversy over the sale has died down.

One broker said: "Lots of us bought into the stock at the initial offering, but it turned out to have been hugely oversubscribed but hugely overhyped. The market doesn't seem to like Qinetiq because the newsflow hasn't been bad." Even so, the shares gained 6.5p to close at 175p yesterday, with 4.6 million shares changing hands.

The housebuilder Persimmon was out of favour with investors after brokers said the premium being priced into its under-offer rival McCarthy & Stone is too high. Persimmon, the only housebuilder in the FTSE 100, dropped 36p to close at 1,200p, while McCarthy & Stone closed 28.5p lower at 879p. The housebuilders have had a strong week and profit-takers sold off the entire sector.

Trading was quiet for a Monday, with a lack of decent stories to encourage traders into the market. The FTSE 100 closed 2.5 weaker at 5,762.1, with the bulk of the support being provided by BP and Royal Dutch Shell, up 2.5p to 636p and 21p to 1,845p respectively on the back of stronger crude oil prices.

Shares in PartyGaming fell as speculation intensified that two of the online poker giant's founders would offload up to 500 million shares worth an estimated £600m. The shares closed down 4.75p at 122.5p. Anurag Dikshit and Vikrant Bhargava quit the board two weeks ago, raising questions over their stakes in the business. Insiders said the two men were looking to sell between 450 and 500 million shares through a share placing arranged by PartyGaming's broker, Dresdner Kleinwort Wasserstein.

Carphone Warehouse was well bid before today's results, as traders took reports that the company is struggling to cope with demand for its "free" broadband as a good sign. Dealers will be keen to hear developments this morning, but the rumour among traders late yesterday was that the unbundling of the local loop, crucial to Carphone Warehouse's strategy, is not going as smoothly as anticipated. The shares succumbed to a late bout of profit-taking to close 4.25p firmer at 331.5p.

Two stocks that traders believe are firmly in play for a takeover offer remained well bid yesterday. Enodis, the manufacturer of commercial ovens and refrigerators, closed 2.25p better at 202p, with traders predicting a bid this week that is expected to value the shares at 220p. Meanwhile, the struggling soft drinks manufacturer Britvic, fresh from its second profits warning since coming to the market six months ago, is also expected to face a bid, this time from PepsiCo, at up to 280p per share. Shares in Britvic nudged 7.5p better to 218.75p.

The photo booth operator Photo-Me International rallied strongly as it said it was conducting a review that could lead to a sale. Many traders have been bullish on the shares for some time, believing that it is a matter of when, not if, identity cards are introduced in the UK. The shares climbed 20.5p to 106.5p, as traders said a bid could value the shares at up to 115p.

Traders took the news that the moderate left-wing candidate, Alan Garcia, appears to have won the general election in Peru as good news for Monterrico Metals. The company was rumoured to be having problems accessing its assets in Peru, which are thought to include one of the biggest copper deposits in the world at the Rio Blanco prospect. The broker Collins Stewart reiterated its "buy" recommendation on the shares, along with a target price of 669p. The shares climbed 33.5p to close at 275p.

Finally, there was a disappointing first day of dealing on AIM for the uranium producer Brinkley Mining, which is developing prospects in the Karoo province in South Africa. The shares listed at 50p after a placing by the broker Beaumont Cornish that raised £19.3m, giving the company a market capitalisation of £152.4m. By the close, they had dropped to 33p, a 34 per cent discount to the placing price. One market-maker blamed sellers who bought the stock in a pre-IPO placing at a big discount, with no lock-in period, taking the opportunity to sell at the higher levels.

Voices
Scotland's First Minister Alex Salmond delivers his speech at the Scottish National Party (SNP) Spring Conference in Aberdeen, Scotland April 12, 2014.
voices
Arts & Entertainment
Jessica Pare as Megan Draper and Jon Hamm as the troubled, melancholy Don Draper
tvAnd six other questions we hope Mad Men series seven will answer
Life & Style
The new low cost smartphone of Motorola, 'Motorola Moto G', is displayed in Sao Paulo, Brazil on November 13, 2013. The smartphone, with dimensions 65.9mm W x 129.9mm H x 6.0 - 11.6mm D is equipped with a Qualcomm Snapdragon 400 with quad-core 1,2 GHz CPU, a 4.5-inch display and Android Operating System 4.3 and a suggested price of $ 179 USD.
techData assessing smartphones has revealed tens of millions of phones are at risk of being harvested
News
David Beckham is planning to build a stadium in Miami’s port for a new football team he will own
news... in his fight for a football stadium in Miami's port area
VIDEO
News
weird newsMan live-photographs cracking of mysterious locked box on Reddit
Sport
Oliver Giroud kisses the Arsenal badge after giving the Gunners the lead
sportArsenal 3 West Ham 1: Two goals from the German striker and one piece of brilliance from Giroud puts the Gunners back above Everton
News
Plans to decriminalise non-payment of television licence fees would cost the BBC £500m according to estimates drawn up within the Corporation
people
News
weird news
Arts & Entertainment
Seeing red: James Dean with Sal Mineo in 'Rebel without a Cause'
filmAs 'Rebel without a Cause' is re-released, Geoffrey Macnab reveals how its star James Dean perfected his moody act
News
Obesity surgery in rats has been found to change the way the body processes alcohol
news
Arts & Entertainment
Heads up: Andy Scott's The Kelpies in Falkirk
artThe Kelpies are the latest addition to a growing army of giant sculptures. But naysayers are asking what a pair of gigantic horse heads tells us about Falkirk?
Life & Style
US Airways has been at the centre of a Twitter storm after it responded to customer complaints with a graphic sexual image
techUS Airways takes an interesting approach to customer service
Arts & Entertainment
Philip Arditti as Yossarian and Christopher Price as Milo Minderbinder in Northern Stage's 'Catch-22'
theatre
Arts & Entertainment
The Purple Wedding: Joffrey and Margaery Tyrell tie the knot
TV The second episode of the hit series featured a surprise for viewers
Life & Style
Back to nature: women with body issues have found naked yoga sessions therapeutic
lifeDoing poses in the altogether is already big in the US, and now it’s landed here – in mixed classes
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Management Consultancy - Operational Research Analysts

£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...

Corporate Actions Consultant - Market data, ISO15022, presales

£45000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: Corporate Acti...

Prudential Risk/Operational Risk Associate - London

£350 - £400 per day: Harrington Starr: An opportunity has arisen at a FCA regu...

PhD/MSc educated Operational Research Analysts - Consultancy!

£35000 - £50000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...

Day In a Page

Homelessness: Why is the supported lodgings lifeline under threat?

Why is the supported lodgings lifeline under threat?

Zubairi Sentongo swapped poverty in Uganda for homelessness in Britain. But a YMCA scheme connected him with a couple offering warmth and shelter
A History of the First World War in 100 Moments: When the world’s biggest shed took over Regent’s Park

A History of the First World War in 100 Moments

When the world’s biggest shed took over Regent’s Park
The pain of IVF

The pain of IVF

As an Italian woman vows to keep the babies from someone else’s eggs, Julian Baggini ponders how the reality of childbirth is often messier than the natural ideal
Supersize art

Is big better? Britain's latest super-sized art

The Kelpies are the latest addition to a growing army of giant sculptures. But naysayers are asking what a pair of gigantic horse heads tells us about Falkirk?
James Dean: Back on the big screen

James Dean: Back on the big screen

As 'Rebel without a Cause' is re-released, Geoffrey Macnab reveals how its star perfected his moody act
Catch-22: How the cult classic was adapted for the stage

How a cult classic was adapted for the stage

More than half a century after it was published 'Catch-22' will make its British stage debut next week
10 best activity books for children

10 best activity books for children

Keep little ones busy this bank holiday with one of these creative, educational and fun books
Arsenal 3 West Ham United 1: Five things we learnt from the battle between the London sides

Five things we learnt from Arsenal's win over West Ham

Arsenal still in driving seat for Champions League spot and Carroll can make late charge into England’s World Cup squad
Copa del Rey final: Barcelona are paying for their complacency and not even victory over Real Madrid will put things right

Pete Jenson on the Copa del Rey final

Barcelona are paying for their complacency and not even victory over Real Madrid will put things right
Rafa to reign? Ten issues clay courts will serve up this season

Rafa to reign? Ten issues clay courts will serve up this season

With the tennis circus now rolling on to the slowest surface, Paul Newman highlights who'll be making the headlines – and why
Exclusive: NHS faces financial disaster in 2015 as politicians urged to find radical solution

NHS faces financial disaster in 2015

Politicians urged to find radical solution
Ukraine crisis: How spontaneous are the pro-Russian protests breaking out in Ukraine’s east?

Ukraine crisis

How spontaneous are the pro-Russian protests breaking out in Ukraine’s east?
A History of the First World War in 100 moments: The first execution at the Tower of London for 167 years

The first execution at the Tower of London for 167 years

A history of the First World War in 100 moments
Fires could turn Amazon rainforest into a desert as human activity and climate change threaten ‘lungs of the world’, says study

New threat to the Amazon rainforest:

Fires that scorch the ‘lungs of the Earth’
Liverpool, Chelsea and Manchester City: And the winner of this season’s Premier League title will be...

Who’s in box seat now? The winner of the title will be ...

Who is in best shape to take the Premier League prize?