Market update - 11 March

The FTSE 100 was 15.3 points behind at 3699.9 while the FTSE 250 gained 38 points to 5992.8 at 11:58 am this morning.

Although the overall trend in the banking and insurance sectors remained positive, HSBC, down 5.5 per cent or 22p at 376.7p, missed out as traders questioned whether or not the lender would win enough shareholder support for its rights issue, especially in light of the recent volatility in its stock in both London and Hong Kong. Standard Chartered was also unsettled, losing 2.9 per cent or 23.5p to 786.5p after UBS switched its stance to “neutral” from “buy”.



“New disclosures with the results last week emphasised the short-dated nature of the wholesale loan book... This allows for the significant re-pricing of new business to flow quickly to revenues, in particular as the bank continues to lend. It also means credit migration is a manageable issue, compared with real-estate heavy peers,” the broker said,

“However, recent share price strength leaves the relative valuation somewhat full at more than twice that of the sector.”



Moving up

Redrow was firm at 147.5p, up 1.25p, after Merrill Lynch weighed in on the recent stake building by Steve Morgan, the former boss and founder of the house builder.

Upgrading the stock to “buy”, the broker said: “With his initial long held 17 per cent stake, subsequently boosted by acquiring a 6.5 per cent holding from Toscafund as well as CDS [contracts for difference] giving him a further 6.5 per cent, Steve Morgan’s total 29.9 per cent holding in Redrow now gives him considerable potential leverage.”

“We suspect that having exited from a management role at Redrow in 2000, at a time when Redrow was regarded as a premium stock within its peer group, Steve Morgan perceives the recent share price underperformance as an opportunity to return to the business he founded in 1974. And [market] sentiment clearly believes that Morgan will not be content with simply with board representation but will instead seek a controlling influence on the group… We must stress however that we see the dynamics of what happens at/to Redrow as something of a one-off; we do not see it as marking a return of sector-wide M&A.”



Moving down

British American Tobacco fell to the bottom of the benchmark index, losing 6 per cent or 109p to 1705p after Nomura reduced its target price for the stock to 1495p from 1525p.

Cairn Energy was 4.3 per cent or 81p behind at 1789p after placing 5 per cent of its share capital to raise new funds. Analysts were mostly positive on the move, with Collins Stewart saying that, although dilutive, the placing still leaves the shares with a 60 per cent upside.

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
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: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Guru Careers: Communications Exec / PR Exec

£25 - £30K: Guru Careers: We are seeking a highly-motivated and ambitious Comm...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral