Gilts
Gilt futures fell to their lowest in more than six weeks, as Warren Buffett’s plans for bond insurers eased credit concerns and boosted stock markets. The March long gilt future was down 101 ticks at 109.38. Yields on ten-year benchmark gilts were ten basis points higher at 4.65 per cent. Fears over UK inflation figures out today []also weighed.
Rumour of the day
Electrocomponents, which distributes electronics to company science laboratories and engineers, was up 1p at 188p ahead of a trading statement tomorrow[], which is expected to be broadly in line. There is talk it may cut its dividend at the year-end in March. Investec believes it will shortly feel the weight of the economic downturn.
Deal of the day
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Six directors of Dairy Crest, owner of the Cathedral City and Utterly Butterly brands, spent £116,600 buying shares at 542.31p each. The price rose 19p to 560p. It reported rising sales in January but warned of a challenging outlook. Dairy Crest is one of a number of companies sharing a £116 million Office of Fair Trading fine over dairy price fixing.
Bet of the day
With oil remaining firmly above $90 a barrel, BetsForTraders.com is offering odds of 2-1 for Shell to be trading back above £17.80p in five market days. The oil company’s shares closed up 85p at £17.71, having fallen from £21.50 since the start of the year, amid worries that profitability is being hit by lower margins at its retail unit.