Enterprise Inns, Punch Taverns gain after OFT decision

| October 22, 2009 | 0 Comments
Enterprise Inns, Punch Taverns gain after OFT decision

European equities markets saw declines Thursday as miners and the energy sector declined on dropping commodities prices.

The FTSE 100 was 0.96 percent lower to 5,207.36 in London, while the FTSE 250 fell 1.08 percent to 9,318.91.

By far the biggest gainers in London came on the 250, where pubs operator Enterprise Inns (LSE: ETI) added 23.43 percent and Punch Taverns (LSE: PUB) gained 14.75 percent after the Office of Fair Trading dismissed a complaint alleging that “supply ties” offer the two companies protection from competition.

The two pubs operators had seen share prices fall recently on concerns that the OFT would rule against them.

Elsewhere in the travel and leisure sector, however, travel related shares did poorly as cruise line operator Carnival (LSE: CCL) turned in the worst performance of the session on the 100 with a decline of 4.27 percent and British Airways (LSE: BAY) dropped 4.12 percent.

Miner Ferrexpo (LSE: FXPO), also listed on the 250, was the worst performer on the 250 as it fell 5.53 percent in a mostly lower sector where only nickel miner Talvivaara Mining Company (LSE: TALV), which was up 4.27 percent, and Anglo American (LSE: AAL), which added 0.4 percent, were higher on the session.

Insurers saw declines as Old Mutual (LSE: OML) fell 3.95 percent and Prudential (LSE: PRU) dropped 3.29 percent on the 100.

The FTSE Eurofirst 300 was down 1 percent to 1,015.61 while the IBEX fell 0.39 percent to 11,828.6, the Dax, which saw only on stock gain on the session, was 1.21 percent lower to 5,762.93 and the CAC-40 dropped 1.35 percent to 3,820.85.

Markets in the Asia-Pacific region were lower on the session.

The Nikkei 225 was down 0.64 percent to 10,267.17 in Tokyo, while the Topix index fell 0.56 percent to 908.6 and the Mothers market dropped 0.36 percent to 443.68.

Banks were lower on an analyst downgrade of US bank Wells Fargo (NYSE: WFC) and on concerns that a recent trend for US banks to see their shares decline in value even when quarterly results are positive will also hit Japanese banks.

Mizuho Financial Group (TYO: 8411) was down 2.2 percent while Sumitomo Mitusi Financial Group (TYO: 8316) fell 2.7 percent and Mitsubishi UFJ (TYO: 8306) dropped 3.1 percent.

Phone company KDDI (TYO: 9433) was 4 percent lower on a downgrade from Citigroup Global Markets Japan, from “buy/medium risk” to “hold/medium risk”.

Japan Airlines (TYO: 9205) dropped 3.2 percent on a news report that the air carrier’s net loss could be up to $5.5 billion for the fiscal year ending next March.

The Straits Times Index was down 0.39 percent to 2,681.97 and the Hang Seng was 0.48 percent lower to 22,210.52 while in Australia the S&P/ASX200 fell 0.53 percent to 4,812.8 and the Sydney Ordinaries dropped 0.57 percent to 4,818.8.

Meanwhile, the Shanghai Composite fell 0.62 percent to 3,051.41, the Taiex was 1.21 percent lower to 7,607.93, the Sensex was down 1.29 percent to 16,789.74, and the Kospi dropped 1.42 percent to 1,630.33.

On Wall Street in midday trade, the Nasdaq Composite was hurt by poor quarterly results in the technology sector, but the Dow was helped by unexpectedly strong results from several of its listed components, including McDonalds (NYSE: MCD) and AT&T (NYSE: T).

At just past 12:30 p.m. in New York, the Dow Jones Industrial Average was 0.56 percent higher to 10,005.51 and the S&P 500 had added 0.08 percent to 1,082.31, but the Nasdaq was down 0.29 percent to 2,144.41.

Oil and metals prices were lower just before 1 p.m. in New York trade.

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