Market report: CMG surges ahead as the hi-tech romp continues

COMPUTER services group CMG charged to a new high as Morgan Stanley alighted on the shares.

The price surged 165p to 1,905p with the American investment house suggesting it will go to 2,500p.

IT shares have enjoyed a remarkable romp since FTSE International, which controls the City indices, decided to introduce a computer sector at the start of the year.

Shares of CMG, one of the more reticent hi-tech companies, have joined in the fun, nearly trebling. They are now on a spectacular rating. Stockbroker Granville expects profits of pounds 47.3m. Last year the group hit pounds 38.6m.

The rest of the stock market put on a resilient display with Footsie improving 56.1 points to 5,898.4. The supporting indices also made headway.

A firm New York opening and expectations that the Monetary Policy Committee will peg interest rates were behind the most robust blue chip performance for more than three weeks.

Royal & Sun Alliance suffered the expected correction, off 45p to 655p, as Tuesday's rogue order driven trade was rubbed out.

Among the best performing leaders were BAT Industries, up 28.5p to 581.5p on Swiss buying, often a sign that corporate activity is in the wind, and Railtrack, back on the main line with a 41p gain (after 95p) on its results and its involvement in the high speed rail link between London and the Channel Tunnel.

Courtaulds, the chemical group, fell 21.5p to 444p as the American PPG Industries decided not to bid, leaving the way clear for Akzo Nobel, the Dutch group which has made a 450p cash offer.

MFI Furniture, the struggling retailer, was back in the takeover frame with Ikea, the Swedish group, punted as a possible predator. The shares rose 5.5p to 87.5p in brisk trading. Before trading prospects deteriorated the shares were riding at 160p.

Storehouse, ahead of an investment dinner at London's Savoy Hotel, hosted by Henderson Crosthwaite, shaded 1.5p to 274.5p.

Queens Moat Houses, the hotel chain which once teetered on the brink of collapse, softened 0.5p to 35.5p as Salomon Smith Barney, the US securities group, emerged as a 14.63 per cent shareholder. SSB, which presumably picked up most of the shares sold by Banque Nationale de Paris Suisse on behalf of mystery Swiss investors, already held just under 3 per cent.

Asda was helped 7p higher to 188.5p on Dresdner Kleinwort Benson support, and Vodafone jumped 26.5p to 739.5p as analysts upgraded following Tuesday's results.

An analysts' visit left builders merchant Graham a shade firmer at 187.5p and JJB Sports enjoyed a tip sheet's attention, gaining 30p (after 55.5p) to 590p.

Game, the computer games retailer, was another to fail to hang on to its best level. Placed at 200p, the shares hit 255p before settling at 230p.

Booker, selling its controlling stake in Agatha Christie, to Chorion, rose 21p to 269.5p. Chorion, the old Trocadero, hardened 2p to 25.25p.

Drug shares were unruffled by indications of tougher government price controls; Glaxo Wellcome rose 47p to 1,683p. Reports that generators may be forced to sell some plants clipped National Power but PowerGen gained 10.5p to 789.5p. Builders were helped by positive comments from DKB and Merrill Lynch.

Trading warnings made predictable impacts. Future Integrated Telephony fell 15.5p to 36p after forecasting a "substantial" loss. Kevin Clarke quit as managing director.

Theo Fennell lost 7p to 57.5p; the luxury goods group said year's figures would be hit by overseas expansion.

Tandem, the cycle maker, hardened 0.25p to 8.75p as a shareholders' revolt emerged. Investors with 16.2 per cent want to replace three directors with members of their consortium. The idea, it appears, is to pump a racecourse business run by consortium member John Sanderson into Tandem. Mr Sanderson's company manages the Catterick, Doncaster and Redcar courses. Loss-making Tandem's peak was 20.5p, hit two years ago.

Galen, the health group which came to market in July, fell 30p to 415p. The shares have been weak lately. Finance director Geoffrey Elliott said he doubted if there had been a leak of the profit announcement due later this month. Any leak "wouldn't provoke a sale", he said.

The fall, he said, was caused by selling by small shareholders. "There is no institutional selling," he maintained. The shares were placed at 150p; they peaked at 527.5p.

Packaging group MY Holdings firmed to 82.5p as stockbroker Albert E Sharp said a re-rating was overdue. It expects a modest profits advance to pounds 14.55m this year.

Voices
A Russian hunter at the Medved bear-hunting lodge in Siberia
Save the tigerWildlife charities turn to those who kill animals to help save them
News
Davis says: 'My career has been about filling a niche - there were fewer short actors and fewer roles – but now I'm being offered all kinds of things'
PeopleWarwick Davis on Ricky Gervais, Harry Potter and his perfect role
News
i100
Sport
Frank Lampard will pass Billy Wright and equal Bobby Charton’s caps tally of 106 caps against
sportFormer Chelsea midfielder in Etihad stopgap before New York contract
PROMOTED VIDEO
Arts and Entertainment
The first film introduced Daniel Radcliffe to our screens, pictured here as he prepares to board the train to Hogwarts for the first time.
booksHow reading Harry Potter helps children grow up to be gay-friendly
Arts and Entertainment
A scene from Aladdin is performed at the Tony Awards in New York in June
theatreBrit producer Lythgoe makes kids' musical comedy a Los Angeles hit
Sport
Usain Bolt of Jamaica smiles and shakes hands with a competitor after Jamaica won their first heat in the men's 4x100m relay
sport
News
Chancellor George Osborne, along with the Prime Minister, have been 'complacently claiming the economy is now fixed', according to shadow Chancellor Ed Balls
i100... which is awkward, because he is their boss, after all
Life and Style
A small bag of the drug Ecstasy
Health
Life and Style
Floral-print swim shorts, £26, by Topman, topman.com; sunglasses, £215, by Paul Smith, mpaulsmith.co.uk
FashionBag yourself the perfect pair
News
news
News
ebookA unique anthology of reporting and analysis of a crucial period of history
News
Netherlands' goalkeeper Tim Krul fails to make a save from Costa Rica's midfielder Celso Borges during a penalty shoot-out in the quarter-final between Netherlands and Costa Rica during the 2014 FIFA World Cup
newsGoalkeepers suffer from 'gambler’s fallacy' during shoot-outs
News
people
Arts and Entertainment
Standing the test of time: Michael J Fox and Christopher Lloyd in 'Back to the Future'
filmReview: A week late, Secret Cinema arrives as interactive screening goes Back to the Future
Extras
indybest
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

Financial Analyst - Forecasting - Yorkshire

£300 - £350 per day: Orgtel: Financial Analyst, Forecasting, Halifax, Banking,...

Business Architect - Bristol - £500 per day

£500 per day: Orgtel: Business Architect - Banking - Bristol - £500 per day A...

Regulatory Reporting-MI-Bank-Cardiff-£300/day

£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Day In a Page

Save the Tiger: Meet the hunters tasked with protecting Russia's rare Amur tiger

Hunters protect Russia's rare Amur tiger

In an unusual move, wildlife charities have enlisted those who kill animals to help save them. Oliver Poole travels to Siberia to investigate
Transfers: How has your club fared in summer sales?

How has your club fared in summer sales?

Who have bagged the bargain buys and who have landed the giant turkeys
Warwick Davis: The British actor on Ricky Gervais, how the Harry Potter set became his office, and why he'd like to play a spy

'I'm a realist; I know how hard this business is'

Warwick Davis on Ricky Gervais, Harry Potter and his perfect role
The best swim shorts for men: Bag yourself the perfect pair and make a splash this summer

The best swim shorts for men

Bag yourself the perfect pair and make a splash this summer
Has Ukip’s Glastonbury branch really been possessed by the devil?

Has Ukip’s Glastonbury branch really been possessed by the devil?

Meet the couple blamed for bringing Lucifer into local politics
Dress the Gaza situation up all you like, but the truth hurts

Robert Fisk on Gaza conflict

Dress the situation up all you like, but the truth hurts
Save the tiger: Tiger, tiger burning less brightly as numbers plummet

Tiger, tiger burning less brightly

When William Blake wrote his famous poem there were probably more than 100,000 tigers in the wild. These days they probably number around 3,200
5 News's Andy Bell retraces his grandfather's steps on the First World War battlefields

In grandfather's footsteps

5 News's political editor Andy Bell only knows his grandfather from the compelling diary he kept during WWI. But when he returned to the killing fields where Edwin Vaughan suffered so much, his ancestor came to life
Lifestyle guru Martha Stewart reveals she has flying robot ... to take photos of her farm

Martha Stewart has flying robot

The lifestyle guru used the drone to get a bird's eye view her 153-acre farm in Bedford, New York
Former Labour minister Meg Hillier has demanded 'pootling lanes' for women cyclists

Do women cyclists need 'pootling lanes'?

Simon Usborne (who's more of a hurtler) explains why winning the space race is key to happy riding
A tale of two presidents: George W Bush downs his paintbrush to pen father’s life story

A tale of two presidents

George W Bush downs his paintbrush to pen father’s life story
Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover

The dining car makes a comeback

Restaurateur Mitch Tonks has given the Great Western Pullman dining car a makeover
Gallery rage: How are institutions tackling the discomfort of overcrowding this summer?

Gallery rage

How are institutions tackling the discomfort of overcrowding this summer?
Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players

Eye on the prize

Louis van Gaal has £500,000 video surveillance system installed to monitor Manchester United players
Women's rugby: Tamara Taylor adds fuel to the ire in quest to land World Cup

Women's rugby

Tamara Taylor adds fuel to the ire in quest to land World Cup