Prices finish off their worst2007-03-05 16:55:07

HSBC Holdings gained 13.50 to 899.50 - Europe's largest bank posting pre-tax profits of 22.1 billion - a record, but marginally lower than analysts had been forecasting.

Meanwhile, a 12% rise in profits to 5.8 billion at the bank's CIBM investment bank arm - largely due to buoyant capital markets - came against a backdrop of a 2.8 billion impairment charge up 36% on 2005 as the mortgage lending market deteriorated in the US. And where a 725 million drop in personal finance profits was witnessed by the bank.

British Airways gave up 35.25 to 496.25 - this following weekend news that EU and US authorities are close to agreeing an 'open skies' policy that would see transatlantic routes into and out of Heathrow airport opened up to more airlines.

At present, direct transatlantic flights from Heathrow are limited to BA, Virgin Atlantic, United Airlines and American Airlines. But with US Air, BMI, Continental and Delta, among others, set to be given an opportunity to fly into Heathrow a price war would seem likely.

Given that BA derives a substantial proportion of its profits from transatlantic routes and that any price war is most likely to impact the high end business class section of the market, investors were understandably spooked.

Carillion fell 11.50 to 361.75 - the support services and construction company announcing it has won a 20-year contract for the maintenance of the M40 between the M25 and Warwick, worth around £100 million.

The contract has been awarded by UK Highways, which has a 30-year concession with the Highways Agency to operate and maintain this sector of the M40. Carillion has been the maintenance provider for the first 10 years of the concession.

The new contract includes network management, safety inspections, cyclical and routine maintenance, accident and emergency response, third party claims and winter maintenance.

William Hill softened 15.50 to 619.50 - the UK's biggest bookmaker reporting a 19% increase in pre-tax profits to £292.2 million 2005: £245 million - principally due to a number of high profile football upsets, a positive impact from its purchase of Stanley Leisure's betting shops and an increasing number of punters using its roulette video games.

The firm took the opportunity to confirm it has set aside £10 million to spend on expansion in the Spanish and Italian markets and that having planned to buy back up to £400 million worth of shares it was now considering other ways of spending the money.

Timestrip surged 0.875 to 8 - the developer and manufacturer of smart label technologies announcing it has received a Notice of Allowance from the US Patent Office that all the claims in its patent application 10/482,984 'Time Indicator' are considered allowable and will form the basis of a US patent in the coming weeks.

The Notice of Allowance also indicates that the total term of the patent will be increased by 14 months to reflect delays experienced in the handling of the Application by the US Patent Office.

In a separate development, the company has also been notified of a Decision to Grant in respect of its patent application in Mexico. The company's core patent has already been granted in the EU and South Africa.

Abbot Group

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2007-03-05 16:55:07 © Moneyextra.com