Date: Tuesday 22 Jun 2010
The budget did little to change the overall direction of the leading share index, which fell in early dealings and remained stuck in the red, though there was movement in specific sectors.A widely expected rise in Capital Gains Tax (CGT) was implemented, with higher rate payers to pay 28% from midnight tonight, compared with the current rate of 18%.
But housebuilders took this in their stride with Barratt, Persimmon and Redrow among the housebuilders to post good gains.
The CGT rise was much less than the 40% rate some analysts had envisaged in anticipation that the Chancellor would seek to realign CGT with income tax. Some had even raised to possibility of CGT rising to 50% in line with the top rate of income tax.
The rise in VAT to 17.5% from 20% failed to rattle retailers.
Marks & Spencer, Home Retail and Next went well in the FTSE 100, while in the FTSE 250, N Brown, Sports Direct and JD Sports are also all going well.
Lloyds Banking went well despite the bank levy, which will be introduced alongside similar taxes in France and Germany.
Miners fell as the bounce they enjoyed yesterday following the announcement that China is to stop pegging its currency to the US dollar faded. Fresnillo and Kazahhmys have both given back some of yesterday’s gains.
Costa Coffee owner Whitbread gave the Footsie a small caffeine rush after a trading update. Premier Inn and Costa Coffee were the star performers for the hotel and restaurant chain group as it posted a record 7.6% like for like sales rise.
But shares in Carnival fell back after the cruise ship operator announced a fall in earnings in the second quarter and failed to impress the market with third quarter guidance.
Pre-tax income in the three months to May 31 fell to $251m from $270m over the same period the previous year as revenues climbed to $3.20bn from $2.95bn. Carnival said it expects third quarter earnings to be between $1.43 and $1.47, above $1.33 over the same period last year, but below some analysts’ estimates.British Airways posted slight gains. The airline has taken a major step towards restructuring its huge pension liabilities after the trustees of its two pensions funds agreed a recovery plan that avoids their closure to members. It should move the merger with Iberia even closer.
Electronic sensors firm Halma produced record results for the seventh year in a row and topped analyst forecasts with an increase in adjusted profit of 9%. Profit before tax from continuing operations jumped to £86.2m in the 12 months ended 3 April, up from £79.1m in 2009, trumping expectations of about £82m.
Distribution and outsourcing group Bunzl said overall trading is in line with full year expectations with revenue growth of 2%. Operating margin has improved in the six months ending 30 June compared to the same period in 2009 as a result of increases in the UK & Ireland and the Rest of the World.
Shares in cigarette vending machine maker Molins went up in smoke after it issued a profit warning. Molins' shares skidded 16% after it warned its full year performance was now lower than previously thought as orders were delayed or cancelled and as it counted rising costs at its Packaging Machinery division.
Youth fashion outfit SuperGroup has terminated an agreement with sole trader 888 Clothing whereby 888 sells on eBay SuperGroup garments classified as seconds, and setting up its own in-house eBay offering.
Business process outsourcing specialist Xchanging has signed a letter of intent with SIA-SSB, the European leader in financial and payment systems services, to form an Enterprise Partnership.
Chemring fell back. The UK military decoy flares and mine detection firm, increased underlying profit in the first half by 7% and has named the successor to chairman Ken Scobie who retires in October after 13 years.FTSE 100 - Risers
Lloyds Banking Group (LLOY) 59.10p +4.31%
Whitbread (WTB) 1,531.00p +3.59%
Intertek Group (ITRK) 1,504.00p +2.80%
Morrison (Wm) Supermarkets (MRW) 268.10p +2.64%
Marks & Spencer Group (MKS) 348.40p +1.66%
Aggreko (AGK) 1,490.00p +1.57%
Home Retail Group (HOME) 238.10p +1.32%
Man Group (EMG) 257.70p +1.30%
Tesco (TSCO) 393.00p +1.28%
Next (NXT) 2,167.00p +1.12%
FTSE 100 - Fallers
Carnival (CCL) 2,424.00p -5.02%
BP (BP.) 334.20p -4.38%
BG Group (BG.) 1,084.00p -3.64%
Fresnillo (FRES) 1,052.00p -3.13%
Kazakhmys (KAZ) 1,197.00p -3.08%
Eurasian Natural Resources (ENRC) 1,030.00p -3.01%
Tullow Oil (TLW) 1,141.00p -2.98%
Cairn Energy (CNE) 433.00p -2.67%
Xstrata (XTA) 1,047.50p -2.65%
Antofagasta (ANTO) 899.50p -2.33%
FTSE 250 - Risers
Brown (N.) Group (BWNG) 278.00p +5.82%
Daejan Holdings (DJAN) 2,400.00p +4.30%
Barratt Developments (BDEV) 108.20p +4.24%
Sports Direct International (SPD) 115.60p +4.24%
Unite Group (UTG) 198.40p +4.15%
Hansteen Holdings (HSTN) 69.50p +3.73%
Supergroup (SGP) 697.00p +3.49%
Taylor Wimpey (TW.) 32.55p +3.33%
Ladbrokes (LAD) 140.10p +3.01%
Redrow (RDW) 126.70p +2.92%
FTSE 250 - Fallers
Domino Printing (DNO) 433.00p -6.20%
Chemring Group (CHG) 3,111.00p -6.01%
CPP Group (CPP) 251.00p -5.28%
Game Group (GMG) 77.50p -4.56%
Eaga (EAGA) 122.70p -3.92%
Cookson Group (CKSN) 463.00p -3.66%
Ferrexpo (FXPO) 283.50p -3.64%
Hays (HAS) 96.50p -3.60%
Tullett Prebon (TLPR) 339.90p -3.52%
Lamprell (LAM) 232.70p -3.52%
No comments:
Post a Comment