Market report: Generators run out of steam on rumours of Cazenove action

Cazenove, the up-market stockbroker, appeared to clip the wings of high-flying generators, National Power and PowerGen.

The electricity duo has enjoyed a remarkable run and the shares were riding at around their all-time high before the stock market got wind of the bearish Cazenove interest which sent NP 19.5p lower to 665p and PG 21.5p to 862p.

The secretive stockbroker is renown for playing its investment cards close to its chest. So when rumours of Cazenove action circulated there was invariably a degree of uncertainty about their accuracy. But after the heady progress of the generators they were clearly vulnerable to any suggested caution.

The generators retreat occurred as other blue chips staged an afternoon rally with Footsie ending 55.8 points higher at 5,237.2. New York was again ruffled by the controversy over the Clinton presidency.

The Cazenove reticence spread to other utilities with Severn Trent off 33p to 938p and Thames Water 18.5p to 877p.

Energy glowed amid the utility gloom, gaining 43p to 727p. The Eastern Electricity group confirmed US PacifiCorp was not the only hovering bidder. PacifiCorp's offer was cleared by the Monopolies and Mergers Commission last month. Talks with the US group continue but there are indications other transatlantic parties have joined the fray. The English generators, NP and PG, are also seen as likely predators. They have improved their relationships with Westminster and the impression prevails the present Government is more receptive to the idea of integrated power companies than its predecessor.

BT was back in demand, shrugging off suggestions investors banking on a Microsoft deal had got their wires crossed. The shares, in busy trading, recovered an early 7p fall to end 8p higher at 577p.

British Airways rose 19.5p to 519p as optimism grew its American Airlines deal will be approved and Associated British Foods gained 19.5p to 600p on its failure to win the up-for-sale Dalgety ingredients business. Dalgety gained 8.5p to 286.5p. Rank, the leisure group, remained in the dumps, losing 10.25p to 297p.

Arcadia and Debenhams, replacing Burton, had mixed fortunes. After initial uncertainty Arcadia ended 26.5p higher at 429.5p but Debenhams had to settle for 488,5p against the equivalent of 403p.

Marks & Spencer, with a trading statement tomorrow, rose 3p to 570p, with Henderson Crosthwaite positive. Northern Foods, confirming its milk demerger, fell 4p to 184p.

Electrocomponents, a distributor of industrial components, lost 7.5p to 472.5p on fears profits downgrading will appear today.

Engineer Ransomes was up 12.5p to 58.5p as the US Textron offer went through. Other takeover action included bid talks at GGT, the advertising group. The shares bounded 44.5p to 177p as the company said negotiations were under way and the market elected Omnicom or WPP and possible bidders. Last week GGT issued a profits warning. WPP fell 4p to 256p after Panmure Gordon placed a line at 255p.

Laura Ashley continued to recover, up 5.5p to 39.5p as hopes of a trading revival mingled with takeover speculation, and Budgens, the grocery chain, put on 7p to 73.5p on bid talk.

Baldwin, the leisure group, rose 8p to 123p following suggestions Singapore billionaire Ong Beng Seng will sell his 29.4 per cent stake, clearing the way for a bidder.

The Singapore tycoon has embarked on a sale programme. He wants to unload his 4 per cent holding in Virgin Entertainment and, with Baldwin's shares underperforming, there is an obvious suspicion he would like to extricate himself from the continental camping to restaurants group.

Ulster Television softened to 241.5p as US group Canwest International lifted its shareholder to 12.14 per cent.

Delyn, the property group, shaded to 115p; 23.98 per cent shareholder, Apollo Sales & Marketing, has moved to oust chairman Paul Norman.

Aukett Associates, the design group, improved 1.25p to 6.75p after Imagina Management, which has a joint venture with Aukett in Madrid, emerged as a 3 per cent shareholder, picking up stock at 6.25p.

John David Sports, down from 366.5p in the past year, hardened 2.5p to 117.5p; three directors picked up 135,000 shares.

Proteus International, the healthcare group, rose 1.5p to 85p with J Sainsbury saying it was in talks over BSE test kits.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
The cartoon depicts the UK (far left) walking around a Syrian child refugee
newsIn an exclusive artwork for The Independent, Ali Ferzat attacks Britain's lack of 'humanity'
Life and Style
tech
Arts and Entertainment
film
Sport
footballManager attacks Sky Sports pundit Jamie Redknapp after criticism of Diego Costa's apparent stamping
News
video
Life and Style
food + drink
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Recruitment Genius: Technical Report Writer

£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...

Recruitment Genius: Web Developer - PHP

£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...

Ashdown Group: Client Services Manager - Relationship Management - London

£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...

Recruitment Genius: Credit Controller / Customer Service

£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...

Day In a Page

Greece elections: In times like these, the EU has far more dangerous adversaries than Syriza

Greece elections

In times like these, the EU has far more dangerous adversaries than Syriza, says Patrick Cockburn
Holocaust Memorial Day: Nazi victims remembered as spectre of prejudice reappears

Holocaust Memorial Day

Nazi victims remembered as spectre of prejudice reappears over Europe
Fortitude and the Arctic attraction: Our fascination with the last great wilderness

Magnetic north

The Arctic has always exerted a pull, from Greek myth to new thriller Fortitude. Gerard Gilbert considers what's behind our fascination with the last great wilderness
Homeless Veterans appeal: Homeless in Wales can find inspiration from Daniel’s story

Homeless Veterans appeal

Homeless in Wales can find inspiration from Daniel’s story
Front National family feud? Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks

Front National family feud?

Marine Le Pen and her relatives clash over French far-right party's response to Paris terror attacks
Pot of gold: tasting the world’s most expensive tea

Pot of gold

Tasting the world’s most expensive tea
10 best wildlife-watching experiences: From hen harriers to porpoises

From hen harriers to porpoises: 10 best wildlife-watching experiences

While many of Britain's birds have flown south for the winter, it's still a great time to get outside for a spot of twitching
Nick Easter: 'I don’t want just to hold tackle bags, I want to be out there'

'I don’t want just to hold tackle bags, I want to be out there'

Nick Easter targeting World Cup place after England recall
DSK, Dodo the Pimp, and the Carlton Hotel

The inside track on France's trial of the year

Dominique Strauss-Kahn, Dodo the Pimp, and the Carlton Hotel:
As provocative now as they ever were

Sarah Kane season

Why her plays are as provocative now as when they were written
Murder of Japanese hostage has grim echoes of a killing in Iraq 11 years ago

Murder of Japanese hostage has grim echoes of another killing

Japanese mood was against what was seen as irresponsible trips to a vicious war zone
Syria crisis: Celebrities call on David Cameron to take more refugees as one young mother tells of torture by Assad regime

Celebrities call on David Cameron to take more Syrian refugees

One young mother tells of torture by Assad regime
The enemy within: People who hear voices in their heads are being encouraged to talk back – with promising results

The enemy within

People who hear voices in their heads are being encouraged to talk back
'In Auschwitz you got used to anything'

'In Auschwitz you got used to anything'

Survivors of the Nazi concentration camp remember its horror, 70 years on
Autumn/winter menswear 2015: The uniforms that make up modern life come to the fore

Autumn/winter menswear 2015

The uniforms that make up modern life come to the fore