London afternoon: Footsie cruises higher

21st Sep 2010 14:27

The blue-chip index edged a little higher over the lunch time session but traders are reluctant to go too far out on a limb prior to the Federal Reserve's rate decision, due to be announced this evening. Dual-listed cruise operator Carnival said third quarter revenues rose to $4.4bn from $4.1bn the year before. Diluted earnings per share jumped 22% to $1.62 from $1.33 in the third quarter of last year. The shares steamed ahead yesterday but have been bobbing below the plimsoll line today and the results have done nothing so far to improve buoyancy.Cairn Energy is the best performer after an update of drilling in Greenland. It abandoned one well but added that the presence of both oil and gas confirms an active, working petroleum system in the basin and is extremely encouraging at this very early stage. British Gas Centrica owner is the weakest blue-chip. The company has been engaged in a buying spree, snapping up gas fields in order to secure its supply lines, but the whisper on the street is that the company is contemplating a far bigger purchase in the form of electricity generator International Power. That would put it in a bidding war with French utility giant GDF Suez, which recently agreed to merge parts of its operation with the UK firm. In the FTSE 250, it is oil services group Wellstream that is hogging the limelight. The shares are sharply higher after it confirmed a number of takeover approaches. It made the statement after a steady rise in its share price recently. Shares in the group have risen by a third since the start of July following more encouraging trading news and appreciation of its presence in the fast developing oil prospects offshore Brazil. Italian oil and gas contractor Saipem has been mentioned as possible suitor. Fellow oil services group Wood Group climbs in sympathy.Even further down the oily pole, AIM-listed explorer Nautical Petroleum is climbing fast after another big find in the Central North Sea.Online betting exchange Betfair must think the recent rally is sustainable. It is to take a punt on the market's appetite for new issues and float in London. No pricing details accompanied the statement, but reports recently have suggested the group wants a valuation of up to £1.5bn. It does not intend to issue any new shares as part of the offer.Elsewhere in the online betting world Sportingbet is the latest gaming firm to settle with the US Department of Justice over illegal internet gambling, clearing the way for it to take part in the wave of industry consolidation currently underway. Sticking with the sporting theme, retailer JD Sports saw underlying profits before tax surge 36.5% to £19.39m in the 26 weeks to 31 July from £14.2m. Revenue grew 18.5% to £383.9m from £324m. Like for like (LFL) sales rose by 2.8% in the UK and Ireland. The shares fall back on the figures, having shot up yesterday by 13.36%, but rival sportswear retailer Sports Direct, which has an 11.9% stake in JD Sports, moves ahead.Outsourcing giant Serco said King's College Hospital NHS Foundation Trust has joined GSTS Pathology, the joint venture between Guy's & St Thomas's NHS Foundation Trust and Serco. GSTS Pathology has been awarded a ten-year contract valued at around £300m, starting October 2010, as the principal provider of pathology for King's.Kazakhstan-based mining titan Eurasian National Resources (ENRC) has taken full control of Brazilian company Bahia Minerals BV (BMBV) with the purchase of Zamin BV's 50% stake for $670m in cash.Farnham-based Biocompatibles International says that it has received a "prelimnary approach" which could lead to an offer for the medical technology company .Publishing and training company Wilmington managed to report flat profits even though revenues fell in the year to June 2010 and it says there are signs that key markets are recovering.