Market Update: Reuters and Hanson Show Promise Amid Optimism Over Market Conditions
Reuters, the leading information provider, has seen its stock price rise to 426p, sparking optimism among City punters, who believe that next week's update may indicate that the company is performing better than expected, driven by market-share gains fueled by the launch of its Trader product in September. Meanwhile, Hanson, a building materials company, has risen 8p to 508p as the US is considering a law that would set up a $140bn (pounds 74bn) fund to compensate asbestos victims, a move that would greatly benefit Hanson, which is facing significant asbestos-related lawsuits in the US.
Key Takeaways:
- Reuters' stock price has risen to 426p, sparking optimism that next week's update will be bullish.
- Market conditions are becoming increasingly favorable for Reuters, with the number of London Stock Exchange terminals used by financial services professionals rising to 83,000 in February, up from 82,000 in December.
- The launch of Reuters' Trader product in September has contributed to the company's market-share gains.
- Hanson's stock price has risen 8p to 508p due to growing optimism that the US will pass a law setting up a fund to compensate asbestos victims, which would greatly benefit the company.
- Hanson faces significant asbestos-related lawsuits in the US, with over 130,000 claims and a potential liability of pounds 220m.
- Comments from a rival, Rinker, indicate that the building materials market in the US is buoyant, providing a positive outlook for Hanson.
- Marconi has dropped 6.5p to 535.5p following a profits warning from its US rival Foundry Networks.
- Kingston Communications has dropped 2.5p to 68.25p amid rumors that Kohlberg Kravis Roberts is looking to reduce its 25% shareholding in the company.
- Colt Telecom has fallen 0.75p to 52.75p as Credit Suisse First Boston played down recent rumors of a bid for the company.
- Davis Services has gained 5p to 450p as Deutsche Bank becomes the second broker in as many days to suggest that the laundry group is vulnerable to a private equity bid.
- Regent Inns has added 2.5p to 84p due to whispers that the turnaround at the pubs group is running ahead of expectations.
- Speedy Hire has improved 8.5p to 667.5p as brokers talk of record trading across the group.
- MFI has been pushed 1.25p higher to 120p by vague takeover rumors.
- Elevation Events has added 1p to 13p after announcing a double acquisition.
- Ultimate Leisure has dropped 19.5p to 294p after an executive sold 100,000 shares.
- Bond International has risen 9.5p to 107.5p after a director sold 1 million shares.
- Optimisa has risen 5p to a fresh high for the year of 450p after acquiring market research specialist KAE for pounds 1.8m.
Statistics:
- Reuters' stock price: 426p
- Hanson's stock price: 508p
- London Stock Exchange terminals: 83,000 (February), up from 82,000 (December)
- Asbestos-related lawsuits against Hanson: over 130,000
- Potential liability for Hanson: pounds 220m
- Fund to compensate asbestos victims in the US: $140bn (pounds 74bn)
- Number of London Stock Exchange terminals: 83,000 (February)
- Colt Telecom's stock price: 52.75p
- Davis Services' stock price: 450p
- Speedy Hire's stock price: 667.5p
- Bond International's stock price: 107.5p
- Optimisa's stock price: 450p
- Acquisition price for KAE: pounds 1.8m
Sources:
- Reuters
- Reuters' update (next week)
- Morgan Stanley
- Credit Suisse First Boston
- London Stock Exchange
- Bloomberg
- Reuters
- Hanson
- Hanson's annual meeting (next week)
- Rinker
- Foundry Networks
- Kingston Communications
- Kohlberg Kravis Roberts
- Colt Telecom
- Credit Suisse First Boston
- Deutsche Bank
- Davis Services
- Elevation Events
- Bond International
- Optimisa
- KAE