Market Report: Investors desert BAE Systems
Friday 20 December 2013
Investors flew out of defence specialist BAE Systems on Friday after news it had failed to win a £6bn contract on which punters had been pinning their hopes.
BAE revealed on Thursday – after the markets had closed – that the United Arab Emirates pulled out of a deal for up to 60 Typhoon aircraft. Not only was that deal off but negotiations for another major contract – BAE’s supply of Typhoons to Saudi Arabia – are dragging on due to pricing and has been delayed until next year.
Rob Stallard, analyst at RBC Capital Markets, said: “We’ve been arguing for some time that the market may have been too optimistic about BAE’s and Eurofighter’s chances for Typhoon in UAE. This is certainly negative for BAE as we think some investors expected it, especially after David Cameron visited for the Dubai Airshow.”
BAE nosedived 19.9p to 422.1p as punters failed to hide their disappointment.
The wider market finally got itself a “Santa rally” and headed up 21.88 points to 6,606.58.
Mike van Dulken, head of research at Accendo Markets, said: “The Fed’s taper announcement continues to be digested as a signal of economic recovery rather than policy tightening.”
The majority of mining stocks were out of favour after a credit crunch in China following short-term rates rising to 7.5 per cent, and digger Anglo American lost 22p to 1,261p while gold miner Randgold Resources eased 46p to 3,765p.
Sailing off into the sunset for a second day was cruise-ship operator Carnival, after a number of analysts rated it a buy following better-than-expected fourth-quarter figures on Thursday afternoon. It glided up 77p to 2,389p.
Oil and gas specialist BG Group slipped 10p to 1,247.5p after disappointing news of a commercial well at its Carioca field in Brazil.
New planning proposals from Labour to constrain the betting industry were bad news for bookies, and William Hill lost 6.7p to 384.5p, while on the FTSE 250, Ladbrokes declined 0.2p to 172.7p.
Aim-listed Densitron Technologies warned that it will report a loss for the current year and collapsed 1.75p to 5.75p.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 5 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...