NEWS of the BSkyB takeover bid has helped to push the firm’s share price up this week to 699p. Analysts predict that following the rejection of its low-ball attempt, Rupert Murdoch’s News Corp may be prepared to make a bid of up to £8 per share to acquire the remaining 61 per cent of the British company. Cantor Index offers 698.43p–701.10p.
The recent correction in equity markets has meant that Whitbread’s share price has dipped back below £15, providing a possible buying opportunity. After shoring up its pension scheme with its property portfolio, its finances are also on a better footing. April’s glowing results showed revenue up 7.5 per cent and the outlook was optimistic, although rumours of an equity issue damaged the stock price. Nonetheless, expect a continuation of the recent rally. Capital Spreads quotes 1,480.2p-1,483.8p for Whitbread.
Tuesday’s long-awaited budget has dominated the press since the election. But following Mervyn King’s announcement that the Monetary Policy Committee will not hesitate to withdraw stimulus when necessary, investors will also be keeping a close eye on interest rates in the coming weeks. As a hike in rates becomes increasingly necessary to meet inflation, we could see the curve on short sterling steepen – a short sterling buy now could pay off. Cantor Index offers a spread on short sterling of 98.67-98.68.
Property investment holding company Daejan Holdings updates the markets today and this should give another clue as to the state of the global recovery. A month ago the shares hit nine-month lows at 2,093p but rallied back strongly last week, breaking resistance at 2,450p on Friday.
But it might be a case of buying the rumour. Sell on the fact if the update is disappointing, as 2,500p should prove to be a strong resistance level. Spread Co offer a spread on Daejan Holdings of 2,479.1p-2,488.9p.