Footsie cheered as NatWest predicts 4,600 next year

MARKET REPORT

Shares just managed to hang on to their festive cheer with Footsie climbing to a closing high, up 9.6 points to 4,087.2.

It was, however, a typical pre-Christmas trading session with volume low and many offices content to operate with just a token workforce.

Still the undertone remained firm. With the first of the new year tips dribbling into the stock market and NatWest Securities taking a positive view, hopes are high that further progress will be made over the holiday period.

NatWest has emerged as strong bulls. Strategists Bob Semple and David McBain expect Footsie to end next year at 4,600 points. And for 1998 the target is 4,800.

They believe the cheer will emerge in the second six months and say: "The tactic for the first half of 1997 will be to buy into weakness for the second-half run."

Shares, it is argued, are well supported by strong GDP growth which will feed through into a continued robust performance on earnings and dividends.

"A tough fiscal and monetary stance by the new Labour government will bring inflation back below 3 per cent and provide a spur to the gilt market," they say.

It will not be an easy ride with shares likely to come under pressure in what could be a turbulent first six months. But institutions are cash rich and there is "a of money on the sidelines ready to push Footsie up to around 4,600 by the year end".

The NatWest duo appear to be at the top of the range with the median forecast currently resting a little over 4,200.

In the relaxed atmosphere the occasional takeover story gathered support.

Yorkshire Electricity enjoyed a modest surge, gaining 26p to 798.5p.

If, as seems likely, Northern Electric fails to hold off the might of the CE Electric bid, Yorkshire and Southern Electric will be the last survivors of the dozen regional electricity companies which were privatised six years ago.

Yorkshire has been the subject of intense speculation in the past two years. Early this year its shares soared to 898p with many convinced bids were on the table. But Yorkshire maintains it never received an approach. As Yorkshire shares sparked the other survivor was in a closed circuit, unchanged at 778.5p.

OGC International, an oil services group riding at 251p in the spring, was the day's bid victim, receiving an approach "which may or may not lead to an offer". Last week Clyde Petroleum was the target of a hostile pounds 432m bid from Gulf Canada.

Halliburton, a US services group, has approached OGC through its Brown & Root off-shoot.

The US group is involved with Cairn Energy in developing the big Sangu gas field in Bangladesh.

Halliburton is meeting half the development costs in exchange for a 25 per cent equity interest in the field.

OGC jumped 41p to 116p and Cairn moved ahead 5.5p to a 416.5p peak. British- Borneo rose 16.5p to 759p and Lasmo 3p to 237p.

Little Emerald Energy added 0.5p to 3.25p after announcing the start of a seismic programme in Colombia.

British Gas gained 6p to 227.5p. It has renegotiated another "take or pay" North Sea deal - this time with Mobil.

As part of the settlement, British Gas is handing some North Sea assets to Mobil.

Brake Bros, the convenience food group, was the day's big loser, off 180.5p to 576p. Profits are likely to come out at pounds 24m against hopes of pounds 29m and last year's pounds 27.1m. Problems at its Puritan Maid off-shoot did the damage.

Matthew Clark, the cider and wine group, gained 6p to 262.5p as Bass was put forward as a possible bidder and Majestic Wine, floated last month at 160p, attracted a touch of seasonal cheer, bubbling 17p higher to 254.5p.

Allied Domecq recovered 14.5p to 439.5p with market maker Lehman Brothers said to be short of stock.

Lehman also declared a surprisingly high 13.5 per cent holding in Acorn Computer, little changed at 195p.

Hanover International, the hotel group, climbed 12p to 129.5p as Albert E Sharp's fund management arm took its stake to 3.54 per cent.

Guinness Peat, the financial group which built a stake in garage business Gowrings and attempted a bid, continues to develop a taste for Young & Co, the family-controlled Wandsworth brewery. It has lifted its interest in the non-voting shares to 11.35 per cent. The price held at 620p.

Caspian, which owns Leeds United, rose 4p to a peak of 44.5p.

Taking Stock

David Abell, who sold the Suter mini conglomerate to Ascot Holdings in the summer, could have designs on Thomas Jourdan, the Corby trouser press group.

He has acquired a 2.8 per cent interest and family and friends account for a further 1.7 per cent. Jourdan, which returned to profit last year, rose 4p to 26.5p.

Eurovein is selling its main shot blasting business for nearly pounds 13m. It will concentrate on its industrial knives operation.

The deal leaves the company with cash worth around 70p a share. With the Villiers engineering group sitting on 15.3 per cent and looking acquisitive, Eurovein may feel obliged to quickly locate a takeover target. Its shares jumped 21.5p to 76.5p; they were floated at 141p two years ago.

Suggested Topics
News
A model of a Neanderthal man on display at the National Museum of Prehistory in Dordogne, France
science
News
Richard Dawkins dedicated his book 'The Greatest Show on Earth' to Josh Timonen
newsThat's Richard Dawkins on babies with Down Syndrome
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
Extras
indybest
PROMOTED VIDEO
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Travel
Dinosaurs Unleashed at the Eden Project
travel
Arts and Entertainment
music
Sport
football
Life and Style
This month marks the 20th anniversary of the first online sale
techDespite a host of other online auction sites and fierce competition from Amazon, eBay is still the most popular e-commerce site in the UK
News
i100
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

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Application Support Engineer (C++, .NET, VB, Perl, Bash, SQL)

Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...

AIFMD Business Analyst / Consultant - Investment Management

£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...

Business Analyst Solvency II SME (Pillar 1, 2 & 3) Insurance

£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home