Inchcape stalls on slower sales

WORRIES over a slowdown in sales in some of its key overseas markets pushed car dealer Inchcape into reverse yesterday.

The FTSE 100 Index closed 90 85 points adrift at 5752 81 The FTSE 100 Index closed 90.85 points adrift at 5752.81.

Investors were sent scurrying from the forecourts as dealers noted a double downgrade of the stock by broker SG from buy to sell, with a target price reduced from 465p to 366p.

Recent data from the company’s important markets in Australia and Singapore has heightened concerns, with SG taking its red pen to profit forecasts for this year as well as for 2012 and 2013. Inchcape shares fell 33¼p to 373¾p.

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Mexican silver miner Fresnillo, up 34p to 1659p, topped a list of just seven blue chip companies closing in positive territory as the price of silver climbed nearly 4 per cent to a two-month high above $40 an ounce. With gold hitting a record high above $1,600 an ounce as investors chased safer assets, Randgold Resources struck it 95p richer at 5560p, while mid-cap precious metals producers African Barrick Gold and Hochschild climbed 17p to 472¼p and 13p to 509½p. Investors tuned in to BSkyB, 4p brighter at 713½p, as UBS turned buyer from its previous neutral stance with an 860p price target, flagging the prospects for cash returns, while bullish comments from Barclays Capital fired British Gas owner Centrica up 1p to 318½p.

Falling equity prices weighed on the insurance sector

Falling equity prices weighed on the insurance sector, where Resolution and Old Mutual fell 12¼p to 265p and 5¾p to 125½p, Aviva was 16p poorer at 392p and Legal & General dropped 4¼p to 112p.

The FTSE 100 Index closed 90.85 points adrift at 5752.81.

Technology provided a rare bright spot, with Arm Holdings and Autonomy adding 5p to 569p and 6p to 1730p, while Computacenter advanced 4½p to 471p and banking software firm Misys gained 1¼p to 385p as traders await bid developments.

But the sell-off continued at another bid target, software developer Micro Focus International, down 14½p to 299½p amid concerns that would-be buyers had got cold feet.

On Wall Street, the Dow Jones closed the day down 95 points at 12,385.

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