London midday: BSkyB drags FTSE 100 lower

8th Jul 2011 12:07

The top share index is oscillating between gains and losses, with satellite broadcaster BSkyB the heaviest faller after the fallout from the turmoil at its suitor News International. News Corporation, which hopes to take over the 60% of BSkyB it doesn't already own, last night dramatically announced that it would be closing down the News of the World after widespread phone-hacking allegations. Meanwhile, the former editor of the newspaper, Andy Coulson, has been arrested. The drama makes it less likely that News Corp will be allowed to swallow up all of BSkyB.Panmure Gordon said the probability of the News International takeover of BSkyB going ahead has fallen below 50% from about 90%. Meanwhile, shares in DMGT, publisher of the Mail on Sunday, were posting strong gains as investors licked their lips over the prospect of higher Sunday sales. Trinity Mirror, publisher of the Mirror and Sunday Mirror (and the Sunday Mail in Scotland), saw its shares jump more than 10%. "The opportunity for TNI (Trinity Mirror) here is much improved market share of circulation and advertising," said broker Panmure Gordon. "In terms of demographic, the Mirror titles are arguably closest to the NoW, and there is conceivably 2.6m circulation up for grabs." Turning to less exciting matters, banking peers Barclays, Lloyds and RBS were among the best performers. Following suit were insurers Old Mutual, Aviva, Resolution, Prudential and RSA Insurance.Both Hammerson and British Land have announced deals. Property company British Land is to buy a portfolio of 17 freehold and leasehold racket clubs from French bank Societe Generale for £179m. The clubs will be let on new 25-year leases to Virgin Active pending Virgin's acquisition of the Esporta business. Shares fell into the red.Meanwhile, real estate investment trust Hammerson edged higher after acquiring a 999-year leasehold interest in 99 Bishopsgate, in the heart of London's financial district, for £100m, including costs. House builder Bovis was also higher on the FTSE 250 after completing marginally fewer sales in the first half of this year than last, although the average sales price increased by around 3%. Completions eased to 801 from 803 in the first half of last year, but net private reservations in the first half of the year rose 16% to 802 from 691 the year before. UK price comparison site Moneysupermarket.com saw shares riser after saying that it expects revenues to be around 23% ahead of last year when it reports its first half results next month. "Trading in the second quarter has been strong and consistent with the trends seen in the first quarter," the statement said. Shares in storage barn operator Big Yellow rose by 1% after it saw 'occupancy growth' up from 143,000 square feet in the second quarter of 2010 to 162,000 square feet between April and June this year.FTSE 100 - RisersAssociated British Foods (ABF) 1,100.00p +2.42%Marks & Spencer Group (MKS) 384.00p +1.96%Wolseley (WOS) 2,099.00p +1.84%Imperial Tobacco Group (IMT) 2,183.00p +1.39%Capital Shopping Centres Group (CSCG) 390.90p +1.37%3i Group (III) 294.60p +1.34%Man Group (EMG) 259.10p +1.33%Rolls-Royce Group (RR.) 664.00p +1.30%ICAP (IAP) 496.70p +1.24%Johnson Matthey (JMAT) 2,059.00p +1.18%FTSE 100 - FallersBritish Sky Broadcasting Group (BSY) 779.00p -4.06%Vedanta Resources (VED) 2,015.00p -2.23%ARM Holdings (ARM) 625.00p -1.88%Royal Bank of Scotland Group (RBS) 37.51p -1.83%International Consolidated Airlines Group SA (IAG) 246.40p -1.44%International Power (IPR) 305.90p -1.35%Lloyds Banking Group (LLOY) 47.69p -1.21%Cairn Energy (CNE) 409.40p -1.09%Petrofac Ltd. (PFC) 1,526.00p -0.97%Severn Trent (SVT) 1,483.00p -0.94%FTSE 250 - RisersSports Direct International (SPD) 260.00p +4.00%Premier Farnell (PFL) 201.80p +3.49%CSR (CSR) 326.70p +2.93%St. Modwen Properties (SMP) 195.10p +2.90%Berendsen (BRSN) 560.00p +2.38%Moneysupermarket.com Group (MONY) 110.50p +2.22%Kesa Electricals (KESA) 143.00p +2.07%Britvic (BVIC) 397.10p +1.98%Bodycote (BOY) 385.70p +1.85%Aberdeen Asset Management (ADN) 225.40p +1.85%FTSE 250 - FallersSpirent Communications (SPT) 140.80p -6.63%Supergroup (SGP) 932.00p -3.87%Betfair Group (BET) 700.00p -2.98%Bovis Homes Group (BVS) 436.40p -2.70%Electrocomponents (ECM) 248.50p -2.40%Anglo Pacific Group (APF) 330.50p -2.22%Yule Catto & Co (YULC) 248.90p -1.62%Bwin.party Digital Entertainment (BPTY) 139.50p -1.62%New World Resources A Shares (NWR) 892.50p -1.54%ITE Group (ITE) 209.70p -1.50%