The London market defied gravity today and executed a recovery in the wake of tumbling Asian markets.
Dealers managed to shrug off pre-Green Budget jitters and continued falls in Hong Kong and Tokyo to find itself 18.6 points higher at 4917.2 by early morning.
Japanese stocks closed 854 points lower at 15,867.53 but this loss was expected in the wake of the closure of Japan’s oldest securities house.
Consumer rentals firm Thorn, the sister company of EMI until the two groups demerged last year, announced it was starting a strategic review of its businesses after revealing a 28% fall in interim pre-tax profits before chargesof £57.1m.
The company said the review, which came after the company said its value was not being reflected by its worth on the stock market, could result in some demergers.
A strong pound wiped £5m off profits and shares in the group rose 8p to 158p.
Pharmaceutical group British Biotech reported higher losses in the second quarter of £10.8m, up from £8.1m.
But the news came as the company said the first half of the year had brought “considerable progress” leaving shares down 3p to 102p.
Water company Severn Trent reported a small fall in half-year pre-tax profits to £191.3m, from £197.0m. This left shares down 20p to 973p.
Meanwhile, Robert Peel has decided to step down as chief executive of Thistle Hotels with immediate effect. The company said he would remain on the board until February 1998 and shares rose 1p to 157p on the news.
PA News 25/11/97
