Markets edge ahead2005-11-29 17:02:24

Barclays fell 6 to 596 - Britain's third largest bank kicking off the trading update season for the major banks by forecasting that earnings will rise above £5 billion this year for the first time.

Despite strong numbers set to come out of its investment banking and fund management arms investors were disappointed that the update was unlikely to prompt any earnings upgrades - largely due to rising expenses and expectations that cost pressures will remain.

Compass Group put on 15.50 to 216 - the catering group reporting a near 10% fall in full year pre-tax profits to £581 million on a 7.9% increase in turnover to £12.7 billion.

Though the figures weren't as bad as some analysts had been forecasting the firm admitted it has been under the cosh due to pricing pressures in the market, the impact of the London bombings and higher pensions costs.

Meanwhile, the UN investigation into UN-related contract bidding irregularities that the firm has been involved in is ongoing.

P&O added 4.75 to 439.75. As expected the ports and ferries group has agreed to be bought out by the Dubai Government-backed Dubai Ports World.

The £3.3 billion all-cash deal worth 443p a share or a 46% premium to P&Os share price on October 30th when it first confirmed the presence of a bidder will see the creation of the world's third largest ports company.

Game Group fell 3 to 74.75. In a trading update the specialist pc and video games software retailer has downgraded full year profits to between £3 million and £13 million.

The downgrade comes on the back of a forecast decline in margins of 300bp compared with last year caused by price deflation in the games console and software market, symptomatic of tough trading conditions.

Despite strong consumer demand for the Sony PSP console, supplies have been behind plan and intermittent. Meanwhile, Microsoft's Xbox360 will launch on December 2nd, but again, the supply of hardware in the initial launch period will be extremely limited.

De La Rue gained 13.25 to 417.25 - the bank note printer reporting that it intends using surplus cash to buy back up to 15% of its shares.

The buyback announcement came as the firm unveiled a 6.3% jump in half year profits on the back of productivity and restructuring gains.

Rentokil Initial

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2005-11-29 17:02:24 © Moneyextra.com