UK MARKET TALK ROUNDUP: SHARES LOSING

1st Jul 2010 09:19

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] 0819 GMT [Dow Jones] Royal Bank of Scotland lowers Barclays (BARC.LN) target to 410p from 420p to reflect EPS cuts. Cuts '10 EPS forecast by 26% to 24.6p, '11 by 11% to 39.3p. Aside from the cyclical weakness in BarCap and the group's Spanish operations, the forecasts also capture the UK bank levy, lower corporate tax rates and a GBP1B gain on own debt from the wider credit spread in 2Q FY '10. Although the company's disappointing underlying group performance in 2Q '10 overshadowed Wednesday's Global Retail Banking Seminar, the brokerage does not think near-term trends reflect normalized levels. Keeps at buy. Shares -2.5% at 264p. ([email protected]) 0816 GMT [Dow Jones] A reverse takeover of Polyus Gold by KazakhGold (KZG.LN) to form a unified company to be called Polyus Gold International will benefit current Polyus (PLZL.RS) minorities, broker UralSib Capital says. The new company's shares on the London Stock Exchange won't have the restrictions limiting how many Russian shares can be used as depositary receipts, previously restricted to 35% for Polyus Gold, UralSib says. Broker points out that local investors in Polyus shares in Moscow "may prefer to exit in the near term due to deterioration in liquidity on the Micex and RTS." Keeps a buy recommendation on Polyus and $70 target. Shares -3.5% at RUB1582.42. ([email protected]) 0728 GMT [Dow Jones] UniCredit reduces Lanxess (LXS.XE) price target to EUR41 from EUR43. Says although earnings should be solid in 2010, 2011 should bring with it only a small earnings increase. Notes however weakening growth in Europe wouldn't materially impact earnings - just lead to one year of minor growth. Says in 2010 strong demand in rubbers and semi-crystalline products combined with a strong dollar should allow Lanxess to beat its own guidance. Keeps at buy. Shares -1% at EUR34.46. ([email protected]) 0717 GMT [Dow Jones] Liberum Capital upgrades Lonmin (LMI.LN) to buy from hold. Says it remains bullish for PGM prices in the medium term due to anticipated growing PGM deficits over the next three years, adding Lonmin has one of the highest operational leverages into rising prices. Also says Xstrata's (XTA.LN) 25% shareholding provides downside protection. Notes Lonmin is the second worst performing FTSE-100 stock year to date. Shares -1.6% at 1388p, in a sharply negative overall market. ([email protected]) 0711 GMT [Dow Jones] Diageo (DGE.LN) announces agreement with the UK Diageo Pension Scheme on a 10-year funding plan. However, given that the company states that the impact of the new arrangement and the ongoing negotiations are expected to be cash neutral and for there to be no impact on the net assets of the company, "then we do not expect this announcement to be material for the share price," says Shore Capital. Has a buy rating on the stock. Shares -0.7% at 1052p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 01, 2010 04:19 ET (08:19 GMT)