DO POP IN PUB. ALL ARE WELCOME

FTSE 100 steady as Hilton gains
Thu Dec 22, 2005 08:49 AM GMT




LONDON (Reuters) - The FTSE 100 held steady in early trade on Thursday, supported by gains in Hilton after it confirmed that bidders were interested in buying its Ladbrokes gambling arm and as BAE Systems extended its rise on a new Saudi defence deal.
Shares in Hilton (HG.L: Quote, Profile, Research) topped the list of blue-chip gainers with a rise of more than 4 percent to 371 pence, while among mid-caps shares in Ladbrokes rival William Hill (WMH.L: Quote, Profile, Research) rose 3 percent.

"Regardless of whether Ladbrokes is bid for, we believe that the current actions of management in disposing of lower-return hotel assets will ultimately result in the conglomerate discount evaporating, which will mean decent upside in the share price," said brokerage Davy in a note.

By 8:37 a.m., the FTSE 100 index was up 4.6 points at 5,592.0, close to the morning's high of 5,592.8 -- its best intraday level since August 2001.

On Wednesday, the benchmark struck a 4-1/2 year closing high.

Shares in BAE Systems (BA.L: Quote, Profile, Research) were on the rise again, extending Wednesday's gain with a rise of 3.8 percent in the wake of news of a deal between Britain and Saudi Arabia to supply the world's top oil exporter with fighter aircraft that could be worth as much as 10 billion pounds.

On the downside, shares in Tate & Lyle (TATE.L: Quote, Profile, Research) were among the top fallers, shedding just under 2 percent after dealers said UBS cut its recommendation on the stock to "reduce".

Among mid-caps, shares in builder Wilson Bowden (WLB.L: Quote, Profile, Research) rose 2.2 percent, lifted by its announcement that reservations per site picked up significantly during the last 11 weeks and that it expected a forward order book in the new year ahead of its long-run average.

Among property stocks, shares in Minerva (MNR.L: Quote, Profile, Research) tacked on 1.3 percent after the Guardian newspaper reported market talk that a shareholder was building a sizeable stake in the property company, which is developing the Park Place shopping centre in Croydon.

Dealers said they expected volumes to be low and direction to be fairly weak as many traders and investors head home early ahead of the Christmas holiday.

The market will be open for a shortened trading session on Friday and will reopen on December 28.