Market Report: Vodafone has to wait for US payout

It has been almost 12 months since Vodafone learnt that, after six dry years, it would finally be getting a dividend from its US joint venture Verizon Wireless, and the market is impatient for more. Yesterday, however, investors were having to come to terms with the fact that they will have to wait a little bit longer to find out whether the next chunk of cash is on its way.

With Verizon Communications – Vodafone's partner in the business and the one in charge of the purse strings – announcing its results yesterday, hopes were high that this would be an opportunity for a new payout to be announced. What the City got instead was an admission from the US giant's finance chief, Fran Shammo, that the subject of a dividend was not even expected to be discussed at next week's board meeting.

That knocked Vodafone back as low as 181.35p during trading, and although the mobile phones giant did manage a partial recovery, by the time the bell rang its share price was still 2.15p lower at 183.05p.

Dealers weren't getting too worried, however, saying they were still confident over the chances of a new payout being approved. They also highlighted that Vodafone's share price has been on the rise recently, with the company – which today unveils its first-quarter results – having jumped more than 11 per cent in two months.

It was another strong day for the FTSE 100, which closed 28.42 points better off at 5,714.19 to set a new two-and-a-half month high. The US reporting season was helping the top-tier index advance, while poor economic data from the States and a tough Spanish bond auction were shrugged off.

Irish building materials group CRH was in the red following reports from India claiming it is interested in the cement business of Jaiprakash Associates, the construction company which developed the country's Formula One track.

The talk was that a deal could end up being worth up to $1.6bn (£1bn), although Goodbody's Robert Eason pointed out the group's recent sale of its stake in Portugal's Secil meant CRH "has plenty of financial headroom". Nonetheless, the stock was pushed back 9p to 1,204p, with CRH also hurt by Exane BNP Paribas cutting its rating to "neutral".

Elsewhere among the energy groups, Royal Dutch Shell crept down 2.5p to 2,298p. Dealers highlighted the continuing presence of vague speculation it may be interested in a move for Maurel et Prom, although the boss of the French oil company dismissed such rumours last month. Shell was also the subject of a Bloomberg report claiming it is in talks with Anadarko over potentially buying the US group's Mozambique gas assets.

On the 10th anniversary of its listing, luxury brand Burberry rose 57p to 1,289p, pushed up by French peer Hermes' results coming in ahead of expectations.

The London Stock Exchange enjoyed a late move as bid speculation made a return around the bourse, which closed 21p better off at 1,023p on the FTSE 250. Frequently the subject of takeover whispers, the latest rumours put forward the Singapore Stock Exchange as a possible suitor, with a potential price being suggested of 1,350p a pop, although traders treated the tale with a heavy dose of salt.

Having recommended the stock as a buy for nearly two years, Bank of America Merrill Lynch's analysts announced they were downgrading TalkTalk's rating to "neutral". They were quick to point out this "does not mean that we have 'lost faith' in the company", although this didn't stop the broadband provider retreating 7.1p to 182.7p.

Kurdistan oil explorers were in focus, with Afren spurting up 9.1p to 128p after a promising update from its Simrit well. Not that the pessimists at Liberum Capital were happy – citing the current complications involved with operating in the autonomous region of Iraq, they warned that "in the absence of exports options and with a limited domestic market, the value is unclear".

Meanwhile, on Aim, fellow Kurdistan-driller Gulf Keystone Petroleum climbed 8.75p to 221p as it announced a further resources upgrade to its Shaikan field.

After the bell, small-cap digital radio group Sepura (down 0.5p to 70.5p) announced that – citing "substantial institutional demand" – four major shareholders had decided to sell a total of nearly 11 million shares.

News
Emma Watson has become the latest target of the 4Chan nude hacking scandal
peopleThreats follows actress' speech on feminism and equality at the UN
Life and Style
food + drink
Arts and Entertainment
British actor Idris Elba is also a DJ and rapper who played Ibiza last summer
film
Life and Style
tech
PROMOTED VIDEO
News
ebooksAn unforgettable anthology of contemporary reportage
Life and Style
tech
Life and Style
Alan Turing, who was convicted of gross indecency in 1952, was granted a royal pardon last year
life
Arts and Entertainment
Sheridan Smith as Cilla Black and Ed Stoppard as her manager Brian Epstein
tvCilla Episode 2 review: Grit under the glamour in part two of biopic series starring Sheridan Smith
News
i100
Life and Style
life
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

IT Project manager - Web E-commerce

£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...

Trainee / Experienced Recruitment Consultants

£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...

Trainee Recruitment Consultant - Soho

£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...

Trainee Recruitment Consultants - Banking & Finance

£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...

Day In a Page

Secret politics of the weekly shop

The politics of the weekly shop

New app reveals political leanings of food companies
Beam me up, Scottie!

Beam me up, Scottie!

Celebrity Trekkies from Alex Salmond to Barack Obama
Beware Wet Paint: The ICA's latest ambitious exhibition

Beware Wet Paint

The ICA's latest ambitious exhibition
Pink Floyd have produced some of rock's greatest ever album covers

Pink Floyd have produced some of rock's greatest ever album covers

Can 'The Endless River' carry on the tradition?
Sanctuary for the suicidal

Sanctuary for the suicidal

One mother's story of how London charity Maytree helped her son with his depression
A roller-coaster tale from the 'voice of a generation'

Not That Kind of Girl:

A roller-coaster tale from 'voice of a generation' Lena Dunham
London is not bedlam or a cradle of vice. In fact it, as much as anywhere, deserves independence

London is not bedlam or a cradle of vice

In fact it, as much as anywhere, deserves independence
Vivienne Westwood 'didn’t want' relationship with Malcolm McLaren

Vivienne Westwood 'didn’t want' relationship with McLaren

Designer 'felt pressured' into going out with Sex Pistols manager
Jourdan Dunn: Model mother

Model mother

Jordan Dunn became one of the best-paid models in the world
Apple still coolest brand – despite U2 PR disaster

Apple still the coolest brand

Despite PR disaster of free U2 album
Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits