Yesterday saw a nine-month low but stocks have rebounded this morning thanks to the big names Vodafo...
Yesterday saw a nine-month low but stocks have rebounded this morning thanks to the big names Vodafone, BP and GlaxoSmithKline.
Initial UK trading saw the FTSE 100 jump jumped 81.7 points, or 1.8%, to 4623.6, led by with Vodafone, BP and Glaxo which accounted for two- fifths of the gain.
Vodafone added 2.75p, or 3.1% to 90.25p, having lost 49% of its value this year, while GlaxoSmithKline added 26p, or 1.9%, to £13.77 and BP gained 7p to 538p.
Centrica, the UK's largest natural gas supplier, has signed a contract with a Dutch firm to buy 5.3bn pounds of gas over the next 10 years, to secure its 13.5m UK customer base. Shares added 4p, or 2%, to 208.25p.
Millfield Group, the independent financial adviser firm which recently floated on the stockmarket, rose 3p, or 2.2%, to 139p this morning as it declared said full-year sales almost doubled to £21m.
The firm plans to raise another £17.2m, to continue its acquisition trail and pick up more small financial advisory firms, by selling 12.6 million new shares, or 22% of its equity, at 136p a share, the same price at which the shares closed yesterday. The stock was first offered to investors at 118p a share in March 2001.
But Goal, the educational software developers, plunged 5.5p, or 22%, to 19.5p after announcing the full-year net loss narrowed to £2.1m from £4.3m in the year-earlier period, even though sales rose to £600,000 from £100,000.
Activity in the US was pretty good too yesterday as stocks rose for the first day in four, led by Microsoft and General Electric.
The S&P 500 advanced 3.58 points, or 0.4%, to 992.72, while the Dow Jones Industrial Average gained 28.03 points, or 0.3%, to 9281.82 and the Nasdaq Composite Index rose 19.38 points, or 1.3%, to 1460.34.
Microsoft, which is down 18% on the year, rose $1.88 to $54.16, and General Electric, which yesterday reached its lowest level since October 1998, rebounded to gain 65 cents to $29.60.
The bounce gathered steam as investors who were betting on a market decline bought back shares they'd borrowed and sold. In such transactions, known as short sales, investors profit by buying the shares at a cheaper price. Intel also jumped 60 cents to $19.33 as semiconductor shares advanced.
Currency fluctuation tended to includence trading in the Asian markets today as exporters from Japan made the most while the dollar was down.
Japan's Topix index rose, led by Honda Motor Co. and other automakers, on optimism the government will try to keep the yen from strengthening further after it sold the currency for a fifth time in a month yesterday.
The Topix rose 0.3% to 1016.43 points, while Japan's Nikkei 225 gained 0.2% to 10,496.67 points. Some computer-related shares pared gains in the afternoon as there was concern a US government report - expected later today - will show consumer confidence in Japan's biggest export market had the biggest drop in June since the Sept. 11 terrorist attacks.
Stronger local currencies in Taiwan and South Korea helped drag exporter stocks such as Elitegroup Computer Systems Co. and Hyundai Motor Co. down on concern the value of their overseas sales will be reduced. But the Taiwan dollar rose to a 13-month high, while the won gained for a fifth day to a 18-month high.
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