UK MARKET TALK ROUNDUP: SHARES LOSING

15th Jul 2010 10:29

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] 0929 GMT [Dow Jones] Collins Stewart downgrades Mothercare (MTC.LN) to hold from buy and cuts target price to 550p from 678p following the company's 1Q update, which showed deteriorating trends in the UK market. UK sales were disappointing, down 4.1% year-on-year on weak sales in toys, Collins Stewart says. While the group has held market share in childrenswear and in home & travel, given the deterioration in toys and the uncertain consumer outlook, the brokerage cuts its FY like-for-like assumption to -2% from -1% and its '12 assumption to -1% from +2%. Shares -5% at 525p. ([email protected]) 0904 GMT [Dow Jones] The Gulf of Mexico oil spill will eventually costs BP (BP) $39Bln, spread out over the next three years, says Citigroup. The gross costs of the spill will be around $50Bln, but after accounting for tax deductions and the share of costs borne by BP's partners in the well, the net cost is just under $39Bln, it says. Citi expects BP to be fined around $3,500 per barrel spilled under the clean water act, less than the $4,300 maximum allowed because the company has been so proactive in paying compensation, it adds. Gives buy rating, 590p price target. Shares -0.1% at 401p. ([email protected]) 0823 GMT [Dow Jones] UBS nudges down London Stock Exchange (LSE.LN) price target to 660p from 667p. Although UBS thinks there is long-term potential in LSE's strategy, it continues to see execution risks and headwinds in the short term, including its market share and pricing. Meanwhile, says the company's interim management statement shows resilient revenue yields across a range of products. Increases '11 EPS forecast to 65.9p from 65.4p, but cuts '12 EPS forecast to 72.2p from 73.8p, to reflect lower yields at SETS - its flagship electronic order book - and lower volumes expectations. Keeps at neutral. Shares -0.4% at 624p. ([email protected]) 0756 GMT [Dow Jones] KBC Peel Hunt lifts Ashmore Group (ASHM.LN) price target to 320p from 305p following the company's better than expected trading update. Raises '10 EPS estimate to 20.2p from 18p to reflect the higher opening level of assets under management. Says the stock is well supported by both earnings and the cash on the balance sheet. Says: "We consider this valuation remains attractive, given the long-term potential for the continued development of emerging market debt as an asset class." Keeps the stock at buy. Shares -4.3% at 262p. ([email protected]) Contact us in London. +44-20-7842-9288 [email protected] (END) Dow Jones Newswires July 15, 2010 05:29 ET (09:29 GMT)