Broker snap: MS sees earnings risk for utilities
26th Nov 2009 10:45
On the day when Ofwat, the water regulator, released its final ruling on pricing restrictions for the water companies, Morgan Stanley has issued a timely review of the utilities sector. Two of Thursday morning's best performing stocks, Severn Trent and United Utilities, are named as Morgan Stanley'
Read moreLondon open: Dull start for Footsie
26th Nov 2009 08:35
London's blue chips have opened lower despite relief among water investors over the final price settings for the next five years. Water companies will have to cut bills in real terms between 2010 and 2015, the water regulator Ofwat said, though not by as much as it previously proposed. Ofwat said a
Read moreOfwat waters down price cut proposals
26th Nov 2009 07:18
Water regulator Ofwat has ruled that water companies will have to lower bills over the next five years, though by less than it previously proposed. Ofwat said average annual bills will have to fall by £3 to £340 between 2010 and 2015. However, the price cuts proposed by Ofwat are less favourable
Read moreThursday tips round-up: United Utilities, Britvic, WS Atkins
26th Nov 2009 06:37
On its financial performance, United Utilities' first half was largely in line with expectations. Recession has pushed down demand for water, particularly from industry, taking an estimated 4 per cent out of the group's revenues. It will be given two months to appeal against Ofwat's price review ru
Read moreLondon close: Footsie at one-week high
25th Nov 2009 16:06
Welcome results from Compass and investors' insatiable appetite for mining stocks helped London's blue chip index finish the session near the top of the day's range. A small improvement to the third quarter gross domestic product figure brought some relief. The Office of National Statistics said th
Read moreWater firms await Ofwat pricing proposals
25th Nov 2009 15:02
Water companies are not normally known as generators of great excitement, but all eyes will be on the sector tomorrow as the regulator Ofwat gives its final determination on how much they can charge customers over the next five years. With householders still reeling from the economic crisis, the wa
Read moreLondon afternoon: Compass leads London north
25th Nov 2009 14:01
A marginal improvement to the third quarter gross domestic product figures has lifted spirits in London, overshadowing some mixed corporate updates. The Office of National Statistics (ONS) said the UK economy shrank less than previously estimated in the third quarter, contracting by 0.3% between J
Read moreLondon midday: Footsie maintains lead
25th Nov 2009 12:09
Stocks are steady at lunchtime Wednesday as miners remain firmly on the front foot, while bid speculation is behind big gains at International Power. The hot money is on International Power at the moment, with investors betting that French utility GDF Suez will bid £6bn, or 400p-a-share, for the el
Read moreLondon open: Good gains as miners rally
25th Nov 2009 08:43
Footsie has posted good gains in early dealings, despite a lower finish on Wall Street last night. Miners are again behind the rise, with an end to the brief rally by the dollar sending buyers in search of alternatives. Second liners Randgold and Kazakhmys are leading the way, but the gains are pre
Read moreLondon pre-open: Strong start expected
25th Nov 2009 07:36
Footsie is expected to post good gains in early dealings, despite a lower finish on Wall Street last night. Contract caterer Compass Group saw little growth in revenue when it declared full year results this morning, but pre-tax profit still showed a healthy rise on the back of a strong improvement
Read moreUnited Utilities hikes divi by 5%
25th Nov 2009 07:04
Water company United Utilities is to look at selling off other parts of its non-regulated business after agreeing to sell its holdings in Northern Gas Networks and Manila Water for £130m. The disposals were announced alongside the company’s half year results which showed an improvement in underlyin
Read moreWednesday preview: Compass, UU, Johnson Matthey, GDP
24th Nov 2009 17:35
Contract caterer Compass Group is expected to show little or no like for like growth in revenue when it declares full year results on Wednesday, but pre-tax profit is still expected to show a healthy rise on the back of a strong improvement in margins and currency gains. Market consensus is for pr
Read moreBroker tips: Retailers, Pennon, Informa
24th Nov 2009 12:52
Nomura Securities has been casting an eye over the general retail sector where it reckons almost all data indicators point to an improvement. The broker has picked four stocks it likes in the sector: Marks & Spencer, KESA Electricals, Home Retail Group and HMV. Marks & Spencer is set to 'benefit f
Read moreBroker snap: Hold fire on Pennon
24th Nov 2009 12:50
Broker Charles Stanley was reassured by half year results from Pennon last week, but as with all UK water companies, Thursday's Ofwat's final determination for the next five-year regulatory period 2010-15 is likely to have a bearing on its future prospects. The broker reckons Pennon remains 'relat
Read moreLondon close: Footsie 100 points higher
23rd Nov 2009 16:37
Footsie closed more than 100 points higher on Monday thanks to a record price for gold, an early rally on Wall Street and strength across the financial sector. Gold has hit new highs, and that has led to sharp mark-ups in the price of gold miner Randgold and silver and gold miner Fresnillo. Elsewhe
Read more