Market report: Friday close
London shares plunged in the wake of the worsening situation on credit markets, with the FTSE 100 index falling 232.9 to 6038.3 - below the 6220 at which it started the year.
That compares with its high for the year of 6732.4 reached on 15 June. The wider FTSE 250 shed 322.6 to 10,889.5.
The US Department of Justice has got its teeth into another British company and is vowing not to let go. This time it is BP.
The DoJ said it has widened the time-frame for one of its ongoing investigations into the oil giant's trading of raw materials in the US.
BP, down 15p at 530½p, has been the subject of three probes in the US since June 2006 for its alleged manipulation of propane, crude oil and petrol between 2002 and 2004. This time, the DoJ and the Commodities and Futures Trading Commission have got together to look at BP's dealings as far back as 1999.
BP says it was co-operating fully with the authorities and will continue to provide all the data and any type of information required. The probes were one of the reasons BP boss Lord Browne resigned in May. BP has been beset by problems in recent years, including spillages after corrosion of its Alaska pipeline and the Texas oil refinery explosion.
The DoJ was behind last week's fine of $300m for British Airways, down 24¾p at 377¾p, after it was found guilty of price fixing fuel surcharges.
The sell-off in London mirrored losses overnight on Wall Street and in Asian markets today. Dealers say the problem has been exacerbated by illiquidity in the stock market, which is making it difficult for bears to cover their short positions and the bulls to get the right price for their stock as they head for the exits.
Alliance & Leicester fell 52p to 1068p as bid speculation continued. Among the fallers were Antofagasta, 32p lower at 620p, and the UK's largest hedge fund operator, Man Group, off 47¾p at 479¼p. Second liners on the slide included Beazley Group, down 13p at 150p, Henderson, 14½p at 139¼p, and housebuilder Berkeley Group, down 81p at 1529p.
Aim-listed Helius Energy says General Capital Group is buying back up to 1.6m shares in the company at 36.25p. That compares with today's price of 37½p. The renewable energy specialist has proposed the buyback to avoid dilution of its stock due to the issue of the new shares to General Capital. Helius said it will fund the buyback out of the proceeds from the issue of shares to General Capital.
UBS has downgraded Soco International from buy to neutral but raised its target price from 2130p to 2200p on valuation grounds. The oil exploration company has enjoyed a strong run of late, having soared 37% since early June. That compares with a rise of just 12% for the exploration and production sector. It fell 74p to 2030p.
This, combined with a flat oil price has led UBS to increase its target. But it reckons Soco's outperformance has been encouraged by raised expectations on recent drilling results, which it believes is now fully reflected in the current share price. Soco will now seek to secure acreage ahead of the expiry of its exploration licence.
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