Market Report: C&W shows that mobiles can shine - Business - News - The Independent

Market Report: C&W shows that mobiles can shine

IT'S GOOD to talk - at least when the mobile phone industry is the subject of debate. Just 24 hours after the stock market seemed intent on disconnecting cellular radio shares, there was a rush to buy Cable & Wireless, the One-2-One group.

The shares jumped 34p to 584p after an upbeat investment presentation which will almost certainly prompt analysts to lift their profit estimates.

On Monday mobile phone shares were hit by worries that the industry regulator intended to probe the business and was set to adopt a much tougher line on competition.

Even the Oftel involvement was dismissed as the stock market had second thoughts and analysts made positive noises. Investment house BT Alex.Brown said it would use any weakness as a buying opportunity and suggested the industry would show record growth adding more than 850,000 subscribers in the normally quiet summer period.

The investment house likes BT, Orange and Vodafone and Dresdner Kleinwort Benson backed Orange, suggesting a 740p price (unchanged at 567p).

C&W appeared to underline the market's optimism. Worldwide subscribers at the end of March totalled 2.9 million and on the domestic front One- 2-One had almost 680,000. There is also talk of corporate action at C&W, perhaps an increase in its One-2-One involvement.

Not surprising, then, that telecom shares should enjoy a much firmer session with BT, up 3p at 790p, and Vodafone 3p to 701p. Securicor, owner of the minority interest in the Cellnet mobile phone group, improved 14p to 381p as stories still buzzed around that BT, which has the controlling 60 per cent of Cellnet, was near to clinching the Securicor stake.

The rest of the stock market tended to be cautious ahead of the US interest- rate decision. Footsie, at one time down 50 points, managed a modest 15.2 gain to 5,108.7 at the close and the mid cap rose 9 to 4,562. But there was, once again, absolutely no joy for small cap companies. Their index slumped a further 6.7, pushing it below 2,000 points for the first time since January 1996. Footsie managed to edge ahead despite another round of cautious comments from analysts.

Engineer Siebe was an exception. The shares gained 9p to 198p after Lehman Brothers said double-digit earnings growth was set to continue and the shares were up to 40 per cent undervalued.

British American Tobacco, British Steel and Pilkington were among shares to get the red pencil treatment from analysts.

Reuters, due to meet analysts after the market closed, fell 12p to 500p and Safeway, the supermarket chain, was cut 12.5p to 292.25p, a two-year low, on worries a downbeat trading statement could materialise.

Diageo, the spirits giant which has been weak, improved 48.5p to 547p on hopes of a US interest rate cut. The shares have slumped from 778.5p since July. Bass, another drinks group to suffer a hangover, recovered 29p to 704p with Morgan Stanley making positive noises. Losses at Coca- Cola Beverages subdued the shares 21.5p to 134p.

British Energy surrendered 17.5p to 582.5p, reflecting vague talk it could buy Yorkshire Electricity

Airtours, the holidays group, climbed 21.5p to 324p after rumoured investment meetings and Business Post, the delivery group, had another steadier session, recovering a further 36.5p to 314p.

Capital Radio was on the wrong wavelength after Sutherlands cut its profits estimates. The stockbroker is looking for pounds 38.5m, down from pounds 41.7m, for the year just ending and for pounds 42.5m (pounds 45.1m) for next year. The shares fell 18p to 465p.

Oil giant Shell remained under the whip of its recent profits warning and little JKX Oil & Gas lost 6.5p to just 11p (the shares once topped 200p) after Ukrainian currency restrictions prompted the oil company to delay its figures.

Alpha Airports, results tomorrow, flew 8p higher to 47p and Chiroscience improved 16.5p to 264p on the discovery of a gene which could help the body's immune system.

Profit warnings continued to flow. Feedback, an electronics group, fused 7p to 18p as it warned of a loss and electrical group Bulgin lost 7.5p to 90p after saying it may not break even in its second six months. But Christie, the estate agent, rose 4.5p to 50p with comments that profits were "well ahead" of last year.

Yates Brothers Wine Lodges hit a new low, off 25.5p to 220p.Greenalls downbeat trading statement did the latest damage to Yates shares, which were 558.5p earlier this year.

Car Group, the stricken second-hand car dealer, managed to halt its reverse, recovering a token 0.25p to 2.25p; doubts about its refinancing remain. Hopes of a reverse takeover at Superframe, the retail display group, put a further 1.5p on the shares at 19p.

SEAQ VOLUME: 970.2 million

SEAQ TRADES: 56,417

GILT INDEX: n/a

SHARES OF TBI, the property and airports group, climbed 5.5p (after 8p) to 98.5p in busy trading; their peak, hit in June, is 129.5p. Proposed analyst meeting are thought to be responsible for the share strength. The group, formerly Markheath Securities, is thought to be intent on taking analysts to three of its airports, including its Florida operation. In June TBI paid pounds 17m for Skavsta airport, near Stockholm.

BRITISH THORNTON firmed to 25p although losses were as bad as feared - pounds 5.3m. But the reshaped group is trading profitably, has pounds 1.5m cash and is seeking acquisitions. Stockbroker Beeson Gregory expects profits to hit pounds 1.75m this year. The company is controlled by chief executive Trevor Semadeni who has 53 per cent of the capital after a reverse take over involving Planit which supplies software point of sale packages to retailers

News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
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

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

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

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week