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London close: Footsie finishes below best levels

Fri, 06th Jan 2012 17:17

London closed comfortably below its best levels of the day despite better than expected US jobless data which had some market commentators crying 'foul'.US non-farm payrolls grew by 200,000 during the month of December. The consensus estimate was for a reading of 155,000. Morgan Stanley has suggested, however, that a 'seasonal quirk' distorted today´s non-farm payrolls number by +42,000. Barclays Capital seems to be of a similar opinion, indicating that, "while we characterize this employment report as upbeat and consistent with the underlying acceleration in economic activity in the second half of last year, we suggest that the December data probably overstate the rate of improvement in labor market conditions." Barclays' comments are in reference to the fact that couriers and messengers´ payrolls rose by 42,000 on the month, contributing a large portion of the 90,000 increase in trade and transport payrolls. Gains in couriers and messengers payrolls in December are often reversed in January; for example, the 46,000 increase in December 2010 was reversed in January with 49,000 decline. Despite coming off the top after the US jobs data, the top-share index did at least finish the day - and the week, for that matter - higher than it started it.There was not a lot of corporate news about, and broker commentary seemed to have as much impact on share prices as did news flow.Broker viewsFund managers found themselves out of favour after Credit Suisse issued a research note on the sector. The Swiss bank lowered asset managers Ashmore to "neutral" from "outperform", F&C to "underperform" from "neutral" and Jupiter Fund Management to "neutral" from "outperform".Hedge fund manager Man Group had its target price cut to 175p from 215p by Credit Suisse, and ended the day as the worst performing blue-chip.Mobile phone networks giant Vodafone was on the up after a bullish note from Goldman Sachs, while pubs group Mitchells & Butlers raised a glass to Morgan Stanley, which has recommended buying the shares. Satellite broadcaster BSkyB was brought to earth, however, by Morgan Stanley downgrading the stock to "equal weight" from "overweight". The same broker is keener on another player in the broadcasting sector, ITV, which it has upgraded to "overweight" from "equal weight".Comings and goingsNo-frills airline easyJet was thankful for a mild December, in contrast to the snow-bound final month of 2010. The airline saw a sharp year-on-year increase in the number of passengers carried in December, up 13.1% to 4.14m from 3.66m in December 2010. The load factor eased, however, to 85.6% from 85.8% the year before.Underlying passenger numbers (adjusting for disruption) were 4% higher in December 2011, while underlying load factor was one percentage point up on last year.David McKinney, Chief Operating Officer of Pace, is to leave the set-top box maker after his position disappeared in a management restructuring. Key operations and procurement functions that previously reported to McKinney will now report directly to Mike Pulli, the new Chief Executive Officer who used to be President of Pace Americas. Pulli's old position is to be filled by Tim O'Loughlin, who has been with Pace for more than a decade, many of them as part of Pace's Americas leadership team.Fears that a fourth quarter trading update by recruitment firm Robert Walters might include a profit warning proved unfounded, though the group concedes that conditions in the UK market remain difficult. "Group net fee income for the year ended 31 December 2011 was up 18% [15% on a constant currency basis] to £183.6m (2010: £155.4m) and we expect a satisfactory outcome for 2011 as a whole," revealed Robert Walters, Chief Executive Officer of the company that bears his name.Small caps round-upVimto-maker Nichols issued a bubbly update in which it said 2011 figures will be ahead of market expectations. In January 2012, the company is launching a new range of Weight Watchers branded, low calorie soft drinks into the UK and the Republic of Ireland, which it hopes will add a few pounds to its bottom line.A less welcome profits guidance statement came from dry cleaner Johnson Service Group, which said 2011 profits would be marginally below expectations.Diagnostic screening and testing products developer Akers Biosciences slumped to a 52-week low after warning that 2011 revenues will not come up to scratch.GlobeOp Financial Services, saw its share price soar after confirming recent speculation it is holding discussions with Advent International Corporation and TPG Capital regarding possible offers.FTSE 100 - RisersBurberry Group (BRBY) 1,250.00p +3.91%Petrofac Ltd. (PFC) 1,543.00p +3.35%Amec (AMEC) 963.00p +3.16%WPP (WPP) 690.00p +3.14%Lloyds Banking Group (LLOY) 27.11p +2.88%ITV (ITV) 71.35p +2.74%Weir Group (WEIR) 2,146.00p +2.63%Fresnillo (FRES) 1,661.00p +2.53%Vedanta Resources (VED) 1,006.00p +2.08%Aggreko (AGK) 2,089.00p +1.95%FTSE 100 - FallersMan Group (EMG) 112.70p -8.37%Essar Energy (ESSR) 170.70p -3.12%ICAP (IAP) 319.30p -2.98%Ashmore Group (ASHM) 321.30p -2.90%Admiral Group (ADM) 844.50p -2.48%Land Securities Group (LAND) 621.50p -2.36%Unilever (ULVR) 2,123.00p -2.17%CRH (CRH) 1,216.00p -2.09%Resolution Ltd. (RSL) 250.30p -1.69%British Land Co (BLND) 460.30p -1.67%FTSE 250 - RisersJD Sports Fashion (JD.) 660.00p +11.39%Mitchells & Butlers (MAB) 249.80p +8.70%Salamander Energy (SMDR) 227.50p +5.47%Kenmare Resources (KMR) 47.46p +5.28%Allied Gold Mining (ALD) 157.80p +5.06%Hochschild Mining (HOC) 411.90p +4.97%Premier Oil (PMO) 392.40p +4.67%Centamin (DI) (CEY) 81.80p +4.20%Rightmove (RMV) 1,318.00p +4.19%Carpetright (CPR) 513.00p +4.04%FTSE 250 - FallersInternational Personal Finance (IPF) 160.00p -6.98%Jupiter Fund Management (JUP) 196.00p -5.50%Tullett Prebon (TLPR) 262.30p -3.50%Big Yellow Group (BYG) 255.30p -2.59%Savills (SVS) 336.00p -2.35%Unite Group (UTG) 164.00p -2.15%Derwent London (DLN) 1,535.00p -2.10%F&C Asset Management (FCAM) 60.80p -2.09%SEGRO (SGRO) 200.10p -1.96%Daejan Holdings (DJAN) 2,773.00p -1.32%FTSE TechMARK - RisersPace (PIC) 79.00p +7.12%Microgen (MCGN) 137.50p +5.97%Vectura Group (VEC) 53.25p +4.41%FTSE TechMARK - FallersTorotrak (TRK) 35.00p -3.45%Phoenix IT Group (PNX) 155.00p -2.82%jh
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