FTSE makes slight progress on speculations

Bus and train operator Go-Ahead Group declined by 4.5 percent to £12.80 in the London equities markets on Tuesday as it was feared that higher fuel prices and wage inflation could cut into operating margins.

Bookmaker William Hill gained 2 percent to 551p on improved results and tight cost controls. This news also aided Hilton Group, owner of Ladbrokes, to rise by 1.4 percent to 294.75p.

TV broadcaster ITV was up 0.6 percent to 129 ¼p on speculation that Apax Partners, a US private equity firm and Goldman Sachs might link up to buy ITV. Goldman Sachs, however, later downplayed the possibility of a deal.

In the drinks sector, speculation about takeovers and mergers surrounded pubs and bars group Mitchells & Butlers as shares were up 2.5 percent to 343p on a volume of 9.5 million shares, twice its usual daily volume. This rise in value and volume came on the possibility that the company might be the target of a takeover.

Brewer Scottish & Newcastle was linked to the speculation even though it has left the pubs industry to focus on brewing. The rumors sent shares in S&H up by 0.7 percent to 467 ¼p. Spirit Group was also mentioned in the speculation.

British Airways gained 2.1 percent to 271 ¾p on news of an 8.5 percent rise in premium traffic and a move to increase passenger fuel surcharges to protect profits from higher fuel prices.

The FTSE 100 was up 0.1 percent to 4,190.1 while the FTSE 250 fell 0.4 percent to 7,407.4. 3 billion shares were traded on the day.

Story link: FTSE makes slight progress on speculations