Gilts
Gilt prices fell from highs reached on Tuesday as equities stabilised before a decision on interest rates today. The March long gilt future was 35 ticks lower at 110.67, broadly in line with bunds. Yields on ten-year benchmark gilts rose three basis points to 4.5 per cent. The Bank of England is expected to cut interest rates by a quarter-point.
Rumour of the day
Polo Resources, a specialist coal miner and explorer in Asia whose shares are suspended at 11¾p, is expected to relist them shortly after the acquisition of a coalmine in Mongolia, near the Chinese border. Last Friday it raised £25 million in a placing and bought RAB Capital’s 26 per cent stake in the Bangladeshi coalminer GCM Resources.
Deal of the day
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Malcolm Parkinson, a nonexecutive director at James Latham, the 250-year-old, family-managed importer of timber flooring, has bought 7,500 shares at 203p each. The shares have drifted down since last summer amid fears that the global credit crunch would hit imports. The price of timber in America has been falling recently.
Bet of the day
BSkyB shares rallied 38p to 577p after results that were better than expected and a promise that its full-year profits would meet expectations, but fears of an advertising slowdown mean that they are still short of their 720p high last summer. BetsForTraders.com is offering odds of 2-1 for the share price to be above 600p in five market days.
Tiddler to watch
Dresdner Kleinwort lifted its price target for RM Group, the provider of IT for schools and universities, to 230p after a trading statement. RM shares fell 2½p to 206p. Its £28 million cash pile is about 15 per cent of its market value and it has won two out of three recent contracts while government spending has risen.