London open: Cash calls can't halt rise

23rd Sep 2009 08:47

UK markets have risen again in early dealings despite a string of hefty cash calls from the building and property sector.Property group Liberty International shares have been hit by a placing today of up to 56.1m new shares, some 9.9% of its shares in issue.Housebuilder Barratt is issuing a lot more shares than that. The builder will place 72.9m shares at 240p, representing a 10.6% discount to the closing price of 268.5p yesterday. In addition, there will be a 1.3 for 1 rights issue. In total, 618.4m new shares will be issued. The rights issue will raise £545m and the placing £175m. Rival Redrow also announced an underwritten rights issue to raise approximately £150m to strengthen its balance sheet and enable it to acquire and develop more sites.Finally, Yellow Pages group Yell is getting nearer to a £500m cash call as part of a 'comprehensive refinancing package' being thrashed out with its banks.Elsewhere, Tullow Oil is going well again after a raft of bullish broker notes yesterday. Miners are also up, led by Kazakhmys and ENRC. United Utilities is on track to deliver results in line with its expectations of a "sound underlying financial performance" for the six months ending to September. The group said underlying operating profit in the regulated business is expected to broadly be in line with the first half of last year, reflecting ongoing revenue and cost pressures.PC and video games retailer Game Group saw profits dive for the half year as the slower rate of hardware sales and the lack of major software launches hit turnover. Profit for the six months to July came in at £10.8m against £32.8 in the same period last year on like-for-like sales that slid 16.3% (total sales down 7%).The sharp downturn in the housing market means that tile and wood floor specialist Topps Tiles expects to sales for the year to 26 September to fall to £186m from £208.1m over the same period the previous year. Like for like sales in the period are likely to be down by 13.4%, the firm, which operates 320 stores, adds.