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
The Sumatran tiger, endemic to the Indonesian island of Sumatra, is an endangered species
voicesJonathon Porritt: The wild tiger population is thought to have dropped by 97 per cent since 1900
Arts and Entertainment
Beast would strip to his underpants and take to the stage with a slogan scrawled on his bare chest whilst fans shouted “you fat bastard” at him
musicIndie music promoter was was a feature at Carter gigs
News
news
Arts and Entertainment
Story line: Susanoo slays the Yamata no Orochi serpent in the Japanese version of a myth dating back 40,000 years
arts + entsApplying the theory of evolution to the world's many mythologies
PROMOTED VIDEO
News
Performers dressed as Tunnocks chocolate teacakes, a renowned Scottish confectionary, perform during the opening ceremony of the 2014 Commonwealth Games at Celtic Park in Glasgow on July 23, 2014.
news
Life and Style
Popular plonk: Lambrusco is selling strong
Food + drinkNaff Seventies corner-shop staple is this year's Aperol Spritz
News
Gardai wait for the naked man, who had gone for a skinny dip in Belfast Lough
newsTwo skinny dippers threatened with inclusion on sex offenders’ register as naturists criminalised
News
Shake down: Michelle and Barack Obama bump knuckles before an election night rally in Minnesota in 2008, the 'Washington Post' called it 'the fist bump heard round the world'
newsThe pound, a.k.a. the dap, greatly improves hygiene
Arts and Entertainment
La Roux
music
Arts and Entertainment
Graham Fellows as John Shuttleworth
comedySean O'Grady joins Graham Fellows down his local Spar
News
people
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Ross Burden pictured in 2002
people
News
Elisabeth Murdoch: The 44-year-old said she felt a responsibility to 'stand up and be counted’'
media... says Rupert Murdoch
Arts and Entertainment
tv
Extras
indybest
Sport
Arsenal signing Calum Chambers
sportGunners complete £16m transfer of Southampton youngster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£350 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Java Developer - Banking - London - Up to £560/day

£500 - £560 per day: Orgtel: Java Developer FX - Banking - London - Up to £560...

HR Business Analyst, Bristol, £350-400pd

£350 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...

Account Manager - (Product & Account Management, Marketing)

£26000 - £30000 per annum + Benefits: Ashdown Group: Account Manager - (Produc...

Day In a Page

The children were playing in the street with toy guns. The air strikes were tragically real

The air strikes were tragically real

The children were playing in the street with toy guns
Boozy, ignorant, intolerant, but very polite – The British, as others see us

Britain as others see us

Boozy, ignorant, intolerant, but very polite
Countries that don’t survey their tigers risk losing them altogether

Countries that don’t survey their tigers risk losing them

Jonathon Porritt sounds the alarm
How did our legends really begin?

How did our legends really begin?

Applying the theory of evolution to the world's many mythologies
Watch out: Lambrusco is back on the menu

Lambrusco is back on the menu

Naff Seventies corner-shop staple is this year's Aperol Spritz
A new Russian revolution: Cracks start to appear in Putin’s Kremlin power bloc

A new Russian revolution

Cracks start to appear in Putin’s Kremlin power bloc
Eugene de Kock: Apartheid’s sadistic killer that his country cannot forgive

Apartheid’s sadistic killer that his country cannot forgive

The debate rages in South Africa over whether Eugene de Kock should ever be released from jail
Standing my ground: If sitting is bad for your health, what happens when you stay on your feet for a whole month?

Standing my ground

If sitting is bad for your health, what happens when you stay on your feet for a whole month?
Commonwealth Games 2014: Dai Greene prays for chance to rebuild after injury agony

Greene prays for chance to rebuild after injury agony

Welsh hurdler was World, European and Commonwealth champion, but then the injuries crept in
Israel-Gaza conflict: Secret report helps Israelis to hide facts

Patrick Cockburn: Secret report helps Israel to hide facts

The slickness of Israel's spokesmen is rooted in directions set down by pollster Frank Luntz
The man who dared to go on holiday

The man who dared to go on holiday

New York's mayor has taken a vacation - in a nation that has still to enforce paid leave, it caused quite a stir, reports Rupert Cornwell
Best comedians: How the professionals go about their funny business, from Sarah Millican to Marcus Brigstocke

Best comedians: How the professionals go about their funny business

For all those wanting to know how stand-ups keep standing, here are some of the best moments
The Guest List 2014: Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks

The Guest List 2014

Forget the Man Booker longlist, Literary Editor Katy Guest offers her alternative picks
Jokes on Hollywood: 'With comedy film audiences shrinking, it’s time to move on'

Jokes on Hollywood

With comedy film audiences shrinking, it’s time to move on