UK MARKET TALK ROUNDUP: SHARES GAINING

2nd Aug 2010 10:17

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] 0917 GMT [Dow Jones] HSBC (HBC) shares +3.4% at 668p, shooting higher Monday following the company's 1H earnings, which show net profit doubled on lower impairment charges. "Today's numbers underline the overall strength of the bank, whilst the dramatic reduction in the loan impairment provision is an additional bonus," says Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers. Adds the shares have recently struggled, but these earnings may render the company worthy of a revisit for many investors. "The general market view of the shares as a buy seems to have been vindicated today," says Hunter. ([email protected]) 0912 GMT [Dow Jones] HSBC's (HBC) 1H results are positive, says Execution Noble analyst Joseph Dickerson, but the increase in costs should be taken with caution. Adds while investment banking profits are down, HSBC still did better than its peers in U.S. and Europe. Shares +3.2% at 667p. ([email protected]) 0858 GMT [Dow Jones] Deutsche Bank cuts National Grid (NG.LN) target to 620p from 815p following the completion of its rights issue. Sees 20% upside. Says the completion of the issue leaves National Grid with an attractive yield and the funds to accelerate growth of its UK energy network. Says the 7.7% prospective '12E dividend yield looks sustainable and is one third higher than the sector average. Keeps buy recommendation. Shares are +1.6% at 517p. ([email protected]) 0816 GMT [Dow Jones] JPMorgan Cazenove starts coverage of Jupiter Fund Management (JUP.LN) at overweight. Thinks Jupiter has considerable scope for future, highly profitable growth in assets under management (AUM). Says the company has the scope to leverage its investment performance and brand into new products, new distribution segments and geographies. Suggests the operating platform could cope with twice the current level of AUM with only modest additions to the fixed cost base. Says the shares can have a premium valuation over time, to reflect the company's attractive competitive position and growth potential. Shares are +0.7% at 194p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires August 02, 2010 05:17 ET (09:17 GMT)