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Wednesday 12th of January 2011
January 10, 2011    

Smith & Nephew gains on report of rejected bid

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by Elaine Frei
Smith & Nephew gains on report of rejected bid

European equities markets saw declines Monday on concerns that debt problems could spread to Portugal next.

The FTSE 100 was down 0.47 percent to 5,956.3 in London, while the FTSE 250 was 0.85 percent lower to 11,575.3.

The biggest gainer in London was Smith & Nephew (LSE: SN), which added 9.54 percent on the 100 on an unsourced media report that Johnson & Johnson (NYSE: JNJ) made an offer late last year but that the medical devices manufacturer rejected the bid as undervaluing the company.

Also seeing gains on the 100 was product testing company Intertek Group (LSE: ITRK), which gained 5.55 percent on positive comment and an increased target share price from Credit Suisse.

Over on the 250, oil well construction and supply group Hunting (LSE: HTG) led gainers as it added 4.91 percent, the best in a mixed energy sector that also saw gains for Exillon Energy, which was up 4.57 percent.

Decliners in the energy sector included oil and gas explorer Afren (LSE: AFR), which turned in the worst performance in the sector with a drop of 2.02 percent, while BP (LSE: BP) was down 1.25 percent after a leak closed the Trans-Alaska Pipeline, with no word on when the pipeline, which carries 15 percent of US crude production, will reopen.

BP is the largest shareholder in the Trans-Alaska Pipeline System.

Most miners were lower in London as base metals prices dropped on the news that copper imports into China were down in December.

Miner Kenmare Resources (LSE: KMR) was the biggest loser in the sector and on the 250, falling 5.32 percent, while three of the top five decliners on the 100 came from the sector, including drop of 3.8 percent for Vedanta Resources (LSE: VED) while Eurasian Natural Resources (LSE: ENRC) was down 2.54 percent and Kazakhmys (LSE: KAZ) was 2.45 percent lower.

The only gainer in the mining sector was Randgold Resources (LSE: RRS), which was up 0.69 percent.

The biggest decliner on the 100 was Capital Shopping Centres Group (LSE: CSCG), which dropped 3.85 percent on a media report that Simon Property (NYSE: SPG) will not make a formal bid.

Barclays Bank (LSE: BARC) was up 0.58 percent, but the rest of the London sector was lower, led by Lloyds Banking Group (LSE: LLOY), which fell 1.87 percent, joining banks across the rest of Europe which were generally lower.

The FTSE Eurofirst 300 was down 0.85 percent to 1,134.62 while the IBEX fell 1.29 percent to 9,437.8, the Dax was 1.31 percent lower to 6,859.065 and the CAC-40 dropped 1.29 percent to 9,437.8.

There were only 2 gainers on the Dax and only 3 gainers on the CAC-40, while banks were the biggest decliners on both indices.

Most markets in the Asia-Pacific region were lower Monday on the possibility that China, India and Indonesia could all raise their interest rates in order to rein in inflation.

Declines also came in reaction to US employment numbers showing that the economy there did not add as many jobs as expected last month and on a statement by US Federal Reserve chairman Ben Bernanke in testimony before a Senate committee that it could take up to five years for the labor market to return to normal.

South Korea’s Kospi was down 0.26 percent to 2,080.81, while the Hang Seng fell 0.67 percent to 23,527.3 in Hong Kong, the Straits Times Index was 0.98 percent lower to 3,229.27, the Shanghai Composite was down 1.66 percent to 2,791.81 and India’s Sensex dropped 2.38 percent to 19,224.1.

On the other hand, Australia’s markets were higher, with the Sydney Ordinaries adding 0.14 percent to 4,818.7 while the S&P/ASX200 was up 0.16 percent to 4,712.3, while in Taiwan the Taiex gained 0.4 percent to 8,817.88.

Tokyo’s markets were closed in observance of Coming of Age Day, which recognizes those who will turn age 20, the age of majority in Japan, during the year.

New York markets were lower in early afternoon trade, with the Dow Jones Industrial Average down 0.32 percent to 11,636.9, while the S&P 500 had dropped 0.2 percent to 1,268.94 and the Nasdaq Composite was 0.1 percent lower to 2,700.51.

Crude oil prices were higher at just past 1 p.m. in New York on the shutdown of the Alaska Pipeline due to a leak, with West Texas Intermediate crude up 64 cents to $88.67 per barrel, while at last report Brent crude had added $1.70 to $95.03 per barrel on the ICE Futures Europe exchange in London.

Among metals, copper prices were lower in New York trade but gold and silver had both advanced in early afternoon trade.

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