UK MARKET TALK ROUNDUP: SHARES GAINING

17th Jun 2010 10:14

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] 0914 GMT [Dow Jones] Societe Generale upgrades Antofagasta (ANTO.LN) to hold from sell on valuation grounds. Reckons the market has turned excessively gloomy on the outlook for commodities in general. Thinks base metals prices will trend higher as Chinese infrastructure spending remains very strong, and that spot prices of bulk commodities should be supportive. SocGen expects copper consumption to exceed supply this year, which is likely to push up prices. Also notes copper consumption is supported by ongoing emerging markets infrastructure projects and may also benefit from a recovery in U.S. housing construction. Keeps target price at 850p. Shares +0.2 at 879p. ([email protected]) 0856 GMT [Dow Jones] Standard & Poor's Equity Research upgrades Prudential (PRU.LN) to buy from hold, "now that the dust has begun to settle after the termination of the American International Assurance transaction." Updates earnings forecasts to allow for positive comment around the AGM on sales in Asia and the US. "Our 2010 'as reported' (actual currency, before restatements) forecast sales growth rates are increased to 18% from 10% in the US and to 20% from 6% in Asia." Raises target price to 685p from 622p. Shares +0.4% at 572p. ([email protected]) 0841 GMT [Dow Jones] Collins Stewart upgrades BP (BP.LN) to buy from hold. Says the setting up of a $20B claims response fund and the cancelling of the dividend have clarified two of the most important issues which have been overhanging the shares. Adds some investors may prefer not to hold BP at all for the next several months because of environmental concerns or social conscience issues, and Collins Stewart says it fully acknowledges that the risks on the stock remain high. "Nevertheless, we think the balance of risk and reward has shifted enough to upgrade the stock to buy," it adds. Has 450p target price. Shares +8% at 365p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 17, 2010 05:14 ET (09:14 GMT)