Market Report: Little love for Eros as it puts US move on hold

 

Wall Street will have to wait – Eros International is not in a New York state of mind quite yet. While the Bollywood film company hasn't given up on its dreams of the Big Apple, the news it is delaying its move across the Atlantic meant the group bombed in the Square Mile yesterday.

Earlier in the year the movie producer and distributor – whose recent hits include superhero film RA.One, starring Shah Rukh Khan – revealed it was going to leave the junior stock market Aim and relist on the New York Stock Exchange.

The idea is that the change will prompt a rerating thanks in part to finding itself among more similar companies. However, Eros' admission that it had not yet fixed a date for the move saw it knocked back 54.5p to 199p.

The group blamed "market conditions" for its uncertainty, and Facebook's recent, disastrous float has certainly caused some to worry over the reaction new entrants will receive. However, traders were attacking the move as overdone, highlighting the fact that Eros is now lower than before the switch was first announced.

Steve Liechti of house broker Investec rushed to the company's defence, pointing out that there was no comment on its trading performance and saying he still expected it to meet expectations.

He added that Eros "appears keen to progress its US listing, in our view, when Facebook wake turbulence has subsided and markets move more to a positive frame of mind".

Over in the States, having come in for heavy criticism over its involvement in the social media giant's IPO, there was some much needed good news for Nasdaq. Wall Street's second-biggest exchange has managed to tempt Cadbury-owner Kraft Foods to switch its listing from rival NYSE.

Having rallied nearly 190 points over the past two days, the FTSE 100 ended the week on a downer as the top-tier index closed 12.71 points lower at 5,435.08. Poor export data from Germany didn't help while all eyes were on Spain – which had its credit rating downgraded by Fitch's late on Thursday – ahead of the weekend.

Having risen sharply earlier in the week on China's shock decision to cut interest rates, many of the commodity stocks were giving back some of their games. Vedanta Resources and Rio Tinto retreated 50p to 935.5p and 146p to 2,869p, although mid-tier digger Bumi shot up 38.9p, or 12 per cent, to 365p – just a bounce, said traders, following its recent torrid run.

Marks & Spencer – which revealed plans to launch 50 bank branches – slipped 5.3p to 335.2p after Investec's scribblers highlighted the fact its womenswear ranges have lost market share.

"Women are typically the main household shoppers and thus womenswear share movements can be leading indicators," they fretted.

A number of defensive stocks were rising, including drugs maker GlaxoSmithKline, up 14p at 1,444p, which extended its offer to buy US partner Human Genome Sciences.

Capita, 18p higher at 649.5p, took pole position after the outsourcer was chosen as the preferred partner for a £154m contract with West Sussex County Council.

Meanwhile, an upgrade from JP Morgan Cazenove to "overweight" helped BSkyB up 15p to 696p.

Lamprell took a battering on the FTSE 250. After the oil rig manufacturer late on Thursday released its second profits warning in three weeks, the stock slumped 24.2p to 84.5p yesterday, meaning it has now lost more than 75 per cent since May.

The announcement that WSP had agreed to be bought by Canada's Genivar for £278m, which saw the small-cap group jump 175p to 435p, helped lift the mood around its fellow support services companies. RPS and WS Atkins advanced 5p to 202p and 41p to 694.5p while Hyder Consulting finished 12p stronger at 362p.

Cable & Wireless Worldwide ticked up 0.45p to 35.38p as Orbis, its largest shareholder, said it was still unsure about whether to back the 38p-a-share approach from Vodafone (2.55p higher at 171.5p) for the telecommunications group.

Down on Aim, an upgrade to the oil and gas reserve estimates for its North Chapman Ranch project in Texas prompted explorer Range Resources to spurt up 1.34p to 8.7p.

Start your day with The Independent, sign up for daily news emails
News
Kim Wilde began gardening in the 1990s when she moved to the countryside
peopleThe singer is leading an appeal for the charity Thrive, which uses the therapy of horticulture
Sport
Alexis Sanchez celebrates scoring a second for Arsenal against Reading
football
Life and Style
health
Voices
An easy-peel potato; Dave Hax has come up with an ingenious method in food preparation
voicesDave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
News
i100
News
Japan's population is projected to fall dramatically in the next 50 years (Wikimedia)
news
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
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

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own