Index rise continues in the US ; FTSE 100 Annabel Breakey Brewin Dolphin [Newcastle Journal (England)]
(Newcastle Journal (England) Via Acquire Media NewsEdge) ON Wednesday the FTSE 100 Index lost some of the ground gained on Tuesday falling 4.3 points to close at 6427.6, however it was a different story across the pond.
On Tuesday the Dow Jones Industrial Average surpassed its previous high, which was set in 2007. Investors were spurred on by US Service sector data along with expectations of continued support from central banks.
Within the FTSE 100 Index, the biggest riser was Vodafone, whose shares climbed on the back of a Bloomberg report that the company was in merger talks with Verizon Communications, the US telecoms company with which it shares ownership of the US mobile phone joint venture, Verizon Wireless.
However, many traders remained cautious. Amrit Panesar, a senior trader at Accendo Markets commented: "Whilst this has ramped up the share price, uncertainty remains for Vodafone as these so called rumours have no foundation and no specific details as of yet."
Nevertheless the shares closed up 6.8% at 180p.
It was not such a good day for tobacco stocks which were hit by reports that UK ministers are set to introduce legislation this year to implement plain packaging.
Within The Journal North Index, Graniger was downgraded by JPMorgan Cazenove from neutral to underweight after a review of the European property sector. JPMorgan reported "the sector is increasingly under threat from technology developments and many companies are underestimating the pace of change in the retail space". This announcement affected the shares as they closed down at 136.8p.
Sage continued its share buyback program, purchasing 500,000 ordinary shares at an average price of 344.03p and they will be held as Treasury shares. The shares finished the day's trading at 344.1p.
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