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FTSE edges higher but supermarkets mixed after market share data(Guardian Web Via Acquire Media NewsEdge) As markets drifted rather aimlessly after recent gains, United Utilities was among the day's losers. The water group fell 11.5p to 896.5p as RBC Capital Markets cut its recommendation from outperform to sector perform, albeit edging its price target 20p higher to 890p. Analyst Maurice Choy said: We see positives in United Utilities, including its 3.4% (0.8% real) regulatory asset base compound annual growth rate, stable regulatory environment, and its ability to maintain dividends on a real basis in AMP6 [the next five year asset management programme] despite total expenditure gap concerns. These positives, however, are largely priced-in. Barring M&A, there are few near-term, material catalysts to suggest outperformance...and we believe a sector perform rating is appropriate at this juncture. Overall the FTSE 100 finished 7.90 points higher at 6830.66, with tensions in Ukraine balanced by continuing hopes the European Central Bank will soon act to bolster the eurozone economy. Speculation had been growing since Friday's comments from ECB president Mario Draghi, but there were conflicting signals about whether the ECB would unveil new measures at its meeting next week. Jasper Lawler, market analyst at CMC Markets UK, said: Price action in European markets has largely been left to market chatter over the prospects of asset purchases (and eventually QE) from the European Central Bank following Mario Draghi's speech at the Jackson Hole confab on Friday. The Germans poured some cold water over ECB speculation early on when finance minister Schaeuble commented that Draghi's Jackson Hole speech was "over interpreted". The ECB then announced BlackRock had been appointed as a consultant for an asset-backed securities purchase program but not long afterwards sources noted that ECB action at the next meeting was unlikely without a slump in inflation. Draghi's hand may eventually be forced into an ABS purchase program but it still appears the ECB will wait as long as possible in the hopes that it won't be necessary. Elsewhere there were mixed performances from supermarkets after the latest Kantar Worldpanel data. J Sainsbury dropped 8.1p to 304.2p and Tesco dipped 2.8p to 249.3p as they continued to see a weak sales performance. But Morrisons added 2.6p to 184.4p despite lower sales, with analysts saying there were signs it might be turning the corner. GlaxoSmithKline climbed 15.5p to £14.63 as its name was added to the list of companies - which also included Johnson & Johnson - said to be interested in German drug discovery group Evotec. A number of companies saw their shares go ex-dividend, including Friends Life, 5.1p lower at 304.6p, CRH, off 22p at £13.98, and Capita, down 13p at £12.14. BG edged up 4.5p to £12.05 after it announced it had seen higher than expected gas flows from a test well off the coast of Tanzania. Partner Ophir Energy added 2.9p to 229.8p. Petrofac put on 26p to £11.49 after Tuesday's falls in the wake of a disappointing update, helped by a buy note from Investec. Foxtons was the biggest faller in the mid-cap index, down 30.3p to 264p as the estate agent group reported upbeat results but cautious about a slowdown in transactions in the second half. Fellow agency Countrywide lost 23.5p to 518.5p. Finally online retailer Asos jumped another 456p to £28.04 after speculation reported here on Tuesday about possible US interest in the group, with eBay one name mentioned. Amazon has also been suggested as a possible buyer in the past. (c) 2014 Guardian Newspapers Limited. |