UK MARKET TALK ROUNDUP: SHARES LOSING

21st Jun 2010 11:46

Stocks on the fall in the UK today. Compiled by Dow Jones Newswires Markets Desk, [email protected] Contact us in London. +44-20-7842-9464 [email protected] 1046 GMT [Dow Jones] The cost of the Gulf of Mexico oil spill has been more than discounted into BP's (BP.LN) share price, say J O Hambro UK equity income managers. Continues to hold the stock at a current position size of 5.1% of the JOHCM UK Equity Income Fund, a slight overweight relative to the FTSE All-Share index. The managers think the company's current valuation is very low, its balance sheet is strong and note that it is producing excess cashflow based upon current oil prices. Says despite the cancellation of this year's remaining BP dividend payments, the fund will still grow its dividend this year by 3-4%. BP shares -4.2% at 342p. ([email protected]) 1006 GMT [Dow Jones] BP's (BP.LN) efforts to capture more oil from the leak in the Gulf of Mexico continue to advance, says Westhouse Securities. Notes the company now has two containment systems in operation, adding that its work on a third containment system remains on track for the end of June or early July. Expects the war of words between partners and sub-contractors on the well to begin to heat up. Reckons this process will eventually wind its way into the courts, where it most likely will drag on for years. While the long-term implications of the spill remain unknown, the brokerage maintains its buy recommendation on the shares, "given the improved short-term outlook following the creation of the $20Bln independent claims facility and ongoing success with containment operations." Shares -5.2% at 339p. ([email protected]) 0919 GMT [Dow Jones] Singer Capital Markets downgrades GW Pharmaceuticals (GWP.LN) to fair value from buy following approval and launch of its multiple sclerosis medicine Sativex in the UK. Analyst Shawn Manning, who has a target price of 137p for GW, says the stock is fully valued. Adds any upgrades are dependent on progress on the rest of GW's pipeline or better than expected sales of Sativex. Notes some investors may take profits. Shares -3.6% at 136p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires June 21, 2010 06:46 ET (10:46 GMT)