UK MARKET TALK ROUNDUP: SHARES GAINING

27th Jul 2010 10:49

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] 0949 GMT [Dow Jones] Credit Suisse raises Tullow Oil (TLW.LN) price target to 1504p from 1449p following the announcement of a significant new find offshore Ghana. The two highly-pressurized reservoir zones encountered in the Owo well contain light oil, which is higher in value than the 'gassy' oil in Tweneboa. On a risk/reward basis, the brokerage continues to recommend a switch from Cairn Energy (CNE.LN) into Tullow in the UK E&P space ahead of Cairn's first well result from Greenland in August. Cairn rated underperform with 382p target. Tullow rated outperform. Tullow shares +2.3% at 1267p. ([email protected]) 0905 GMT [Dow Jones] UK banks are sharply higher on news that Basel 3 proposals have been watered down, analysts say. Lloyds Banking (LYG) and Barclays (BCS) particularly gaining from new requirements that will see both being able to recognize some minority interest capital as Tier 1 capital. Credit Suisse says Lloyds could also start paying dividends again, earlier than previously expected, on looser capital definitions. Lloyds +4.4% at 69p; Barclays +6.6% at 336p; Royal Bank of Scotland (RBS) +4.1% at 49p; HSBC Holdings (HBC) +2.1% at 663p; Standard Chartered (STAN.LN) +2.3% at 1893p. ([email protected]) 0852 GMT [Dow Jones] BP's (BP.LN) 2Q earnings have the Gulf of Mexico Macondo oil spill disaster casting a long shadow over them, says Evolution Securities. Says the company reports underlying net income of $5B, up 70% year-on-year, but the headline figure was hit by a $32.2B pre-tax charge relating to the Macondo well accident. Adds liquidity and working capital remain key concerns, and as a result the group is to reduce net debt to between $10B-15B over the next eighteen months from the current $23B via a disposal program mainly in the exploration and production business that could raise up to $30B. Has a buy rating, and 580p target price. Shares +0.5% at 420p. ([email protected]) 0813 GMT [Dow Jones] Misys (MSY.LN) final results were "light on revenue, in line on profit and ahead on EPS," says Panmure Gordon. Says that while net cash of zero is "well ahead of our expectations", the news of a banking order book -15% is "not encouraging." Brokers adds "Given the results, we reiterate our view that CEO Mike Lawrie needs to dig deep in his box of tricks - labelled 'vision things' - to convince investors to remain with the company post Allscripts." Retains buy recommendation with 296p target. Shares +2.8% at 257p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 27, 2010 05:49 ET (09:49 GMT)