UK MARKET TALK ROUNDUP: SHARES GAINING

5th Jul 2010 14:06

Stocks on the rise in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 1306 GMT [Dow Jones] BP (BP.LN) is +4.2% at 335p, rising to the top of the FTSE 100 gainers. It leap-frogs Marks & Spencer (MKS.LN), +2.3% at 341p, which was leading the upside earlier. This follows reports that BP is looking for sizeable investors, likely in the Middle East, to take an investment in the company. The reports come as the cost of the Gulf of Mexico response is now over $3B. Meanwhile, a Libyan oil official tells Zawya Dow Jones that Libya should buy a stake in the company. A trader says it must be remembered that Wall Street is closed Monday, and therefore it may be free from the aggressive selling it has witnessed of late. ([email protected]) 1210 GMT [Dow Jones] Credit Suisse raises Premier Oil (PMO.LN) price target to 1703p from 1657p on reserves upgrades. CS notes Premier now estimates the Catcher/Catcher East discovery has discovered 80-100 million barrels of oil equivalent, versus a previous estimate of 18-33 mmboe in the UK Central North Sea. Credit Suisse says Premier shares were up 8% on Friday on the back of Korea National Oil Corp's preliminary approach for Dana Petroleum (DNX.LN) and it remains the brokerage's top E&P pick on both a value and growth basis. Keeps the stock at outperform. Shares +1.9% at 1348p. ([email protected]) 1021 GMT [Dow Jones] Marks & Spencer (MKS.LN) +2.8% at 342p, leading the FTSE's blue-chip gainers. It rises on positive momentum ahead of the company's interim management statement, Wednesday. Yusuf Heusen, sales trader at IG Index, says over the last year or so, the 320p/340p area has tempted the value buyers. "[M&S] will be hoping the latest numbers show the retailer is making steady progress, albeit against the backdrop of a fragile consumer recovery," he says. Liberum Capital expects the sales report to be strong and says the shares could rally on this during the week. Says given a strong start to the year, a relatively benign environment for gross margins and prudent cost guidance, forecasts look conservative. Has neutral recommendation. ([email protected]) 0934 GMT [Dow Jones] Bank of America Merrill Lynch raises Victrex (VCT.LN) price objective to 960p from 825p. Brokerage increase EPS by 28% and 35% respectively for 2010 and 2011, following last month's positive 1H10 update on tonnage and margin progression. Says the secular growth of Victrex's Polyetheretherketone plastic material product 'PEEK' is likely to continue, replacing more expensive and/or less durable material, over the medium-term. However, keeps an underperfom rating, saying the stock has been a strong performer year to date, "but given contracting macro lead indicators and growing risks to auto production we see more defensive exposure within the sector being justified at this point." Shares +0.8% at 1063p. ([email protected]) 0918 GMT [Dow Jones] UBS cuts PayPoint (PAY.LN) target to 275p from 340p. Expects the shares to fall further if Camelot is allowed to enter the payment processing market by the Lottery Commission. The brokerage's bearish scenario suggests that PayPoint could see 44% lower earnings if Camelot enters the market. Expects the company to go to the Competition Commission if Camelot receives the required permission. Cuts PayPoint '11 EPS forecast to 32.9p from 37.3p and '12 to 37.3p from 40.6p. Keeps at neutral. Shares +2.4% at 271p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 05, 2010 09:06 ET (13:06 GMT)