London afternoon: Stocks trade sideways

10th Mar 2010 14:25

The market traded sideways over the lunchtime session allowing the blue-chip index to retain its tenuous position above the 6500 level.Mining stocks are doing their bit to bolster the Footsie as metal prices rise following a sharp increase in imports into China in February. Banks are also doing their bit, with the likes of Lloyds and Royal Bank of Scotland drawing comfort from a much improved performance from state-owned bank Northern Rock.Life insurer Standard Life is lifting its efficiency targets after delivering profits ahead of market expectations in 2009. Underlying profit before tax in 2009 rose to £291m from £154m the year before. Lower oil prices and production slashed Tullow Oil's net income in 2009, though it had an outstanding year for drilling with 13 out of 15 wells striking oil or gas. Net income fell 92% to £19m in 2009, as sales dipped 16% to £582m due to lower production volumes and commodity prices.The Rock reduced losses to £257m, down from £1.36bn in 2008 and swung into the black in the second half of the year. Underlying losses were cut from £1.29bn to £383m, generating a bonus pot of £14.9m to staff for beating the loss target. Barclays dances to a different tune to the other banks after press reports that it is looking at buying a large US retail bank as it tries to rebalance its business away from a booming investment banking franchise. According to people briefed on the plan, Antony Jenkins, the new head of Barclays' retail banking activities, is preparing a strategy paper that will go to the board in the next two to three months.Most of the interesting action is taking outside of the FTSE 100 today, however. FTSE 250 constituent Tullett Prebon confirmed it is in preliminary discussions with a third party which may or may not lead to an offer. Its sector peer, interdealer broker ICAP, is higher in sympathy while the London Stock Exchange also garners support.Bid speculation is also driving another FTSE 250 stock higher, housebuilder Barratt Dev elopments, which is rumoured to be in the sites of sector leader Persimmon.Spread bet firm IG Group reported a 11% rise in quarterly revenue and said it is well positioned for further growth. Total revenue for the three months ended 28 February was approximately £69m compared with £62m in the corresponding quarter last year.Interserve, the services, maintenance and building group, has won contracts in the UK and through its Middle East associates worth over £200m in aggregate. Fund manager F&C Asset Management (FCAM) missed out on the strong market rally since last March, though it did move back into profit last year. FCAM has been hit by a steady stream of institutions moving their money away in recent years and saw a further outflow in 2009, though the pace slowed. Car dealer Inchcape said 2009 profit fell less than expected but on a cautionary note, it warned market conditions in 2010 are expected to remain challenging.Spurned takeover target Shanks Group recovers some of its poise as Goldman Sachs rates the waste management firm a 'buy' after the shares tumbled in the wake of the collapse of bid talks with private equity group Carlyle.The acquisition of FKI is working out better than expected for engineering conglomerate Melrose, which saw headline profits rise by almost two-thirds in 2009.Speciality chemicals maker Yule Catto reported a 27% rise in 2009 pre-tax profit and said it would it would be recommencing dividend payments in 2010.Marketing services group Chime Communications reported a 14% rise in 2009 profit and added that 2010 had started well. Chime said it was cautiously optimistic for the full year as it reported pre-tax profit of £18.8m for the year ended 31 December 2009 compared with £16.3m the year before. Revenue rose to £300.9m from £277.4m earlier.Shares in Neuropharm rallied after the speciality pharmaceutical company said it may propose a members' voluntary liquidation amid continuing uncertainty as to whether an offer will be made for the group.Norseman Gold fell to a six-month low following the Australian gold miner's decision to cut production guidance for the current 2009/10 financial year again. It now predicts output of 65,000 ounces, down from previous estimates of 75-80,000 ounces and 80-85,000 at the end of January.Knitwear group Dawson International's ongoing businesses delivered a satisfactory trading performance in 2009, with an operating profit of £2m (2008: £1.9m) and funds generated at £6.7m. Losses from the out going home furnishings arm meant a pre-loss of £5.84m. Revenues fell to £72.9m from £87.4m.