Share Dealing
Market update (PM): Sun shines on TUI Travel
Joe McGrath, 25 February 2010
TUI Travel’s shares climbed today after the holiday business benefitted from Carnival Cruises' announcement that it will be lifting prices because of strong reservations for 2010 breaks.
The company’s shares were up 2.4 per cent today at 267.0 pence (1430 hrs), with nine out of 21 current broker notes rating the stock as a ‘strong buy’ and three more rating it as a buy, according to data from Digital Look.
Speaking in the middle of February, Peter Long, chief executive of TUI Travel, hinted that the travel market was improving.
He said, ‘Sustained improvements in demand over a number of months leave us more confident that the worst is behind us.
‘I expect positive momentum in each of the remaining quarters of 2010 as trading benefits from improved demand in all source markets. I remain confident that we can meet our Board’s expectations for 2010.’
Investors were also hungry for shares in Lloyds Banking Group this morning ahead of the bank’s results tomorrow. Today’s better-than-expected results from Royal Bank of Scotland (RBS) led to a flurry of buyers in Lloyds.
Its share price was up 1.3 per cent at 54.17 pence buoyed by this morning’s announcement from RBS.
Lloyds accounted for just under 30 per cent of all purchases this morning as investors prepared for more of the same in tomorrow’s results.
Nick Serff, market analyst at City Index, explained that the bank (84 per cent owned by the British taxpayer) saw an increase in bad debt to £13.9 billion, up from the £7.4 billion it lost in 2008.
He said, ‘Chief executive Stephen Hester believes the rate of mortgage and loan defaults could now have peaked. Staff will also be receiving a bonus for 2009, helped by strong performance from its investment banking arm.’
Lloyds TSB and RBS were both responsible for 54.2 per cent of this morning’s purchase activity and 81.5 per cent of all sales.
TD Waterhouse
Top ten trades
Wednesday 24 February (morning)
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Buy
1. Lloyds Banking Group, 29.4 per cent
2. Royal Bank of Scotland, 24.8 per cent
3. Xstrata, 15.5 per cent
4. Barclays, 6.4 per cent
5. Barratt Developments, 5.7 per cent
6. Taylor Wimpey, 5.1 per cent
7. Tower Resources, 3.6 per cent
8. Rockhoppar Exploration, 3.4 per cent
9. Desire Petroleum, 3.2 per cent
10. Nighthawk Energy, 3 per cent
Sell
1. Royal Bank of Scotland, 49.7 per cent
2. Lloyds Banking Group, 31.8 per cent
3. Barclays, 5 per cent
4. Vodafone Group, 2.9 per cent
5. Range Resources, 2.2 per cent
6. Desire Petroleum, 2 per cent
7. HSBC Holdings, 1.8 per cent
8. GKN, 1.7 per cent
9. Centrica, 1.4 per cent
10. Tower Resources, 1.4 per cent
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