Gilts
There was a minimal reaction in the gilt market to the Bank of England’s Inflation Report, in which it signalled that rates were likely to be cut less sharply than some pundits had been predicting. The March long gilt future was seven ticks higher at 109.45, in line with the equivalent bund future. Yields on ten-year gilts were little changed at 4.66 per cent.
Rumour of the day
Emprasaria, a recruiter specialising in temps, steady at 77½p, has experienced a heavy fall in the past three months, in common with its sector, losing nearly half its value on fears of an economic slowdown. But the talk is that a trading update today will show an increase in profits and sales in 2007 and a positive start to this year.
Deal of the day
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Graham Roberts, finance director at British Land, sold £100,000 worth of shares at £10 each. The shares gained 9p to £10.08. His move comes a week after the company reported its first fall in net asset values for 14 years and may put a ceiling on its rally, sparked in January when the state of Singapore declared a 3 per cent stake.
Bet of the day
Tate & Lyle updates on trading on Friday. The shares, up 2½p at 506p, have crashed from 820p in the past year after warnings on competition to its Sucralose sweetener and rising costs. Recent stake-building by Harbinger, the activist US fund, has generated a mini-recovery. Capital Spreads offers a rolling price with no expiry of 500.4p-502.6p.
Tiddler to watch
Allied Gold, the gold explorer, has finally become a producer, three months behind schedule but on budget. It has made the first pouring of gold from its revamped mine at the secluded Simberi Island in Papua New Guinea. The shares rose 4½p to 37½p. Mirabaud Securities, the house broker, reiterated its “buy” advice with a 58.8p target.