The recent rally in the ITV share price ran out of steam yesterday amid further concerns over the outlook for the UK advertising market. ITV shares, which last month hit their highest level for a month, closed 2.2 % cheaper at 100¼p after UBS lowered its advertising growth forecasts, citing among other factors price deflation caused by the internet. As a result of its bearish outlook, UBS removed ITV from its “buy” list and cut its 2006 earnings per share forecast by 8 % to 6p and its 2007 estimate by 19 % to 5.7p. It said a private equity bidder would be unlikely to pay more than 110p a share for ITV. All told it was not a good day for media stocks. EMI drifted 1.9 % to 264¾p on fears that a trading update next week could disappoint. Late rumors of a profits warning pushed Reed Elsevier 1 % cheaper at 588½p. In the wider market the FTSE 100 closed 29.7 points higher, or 0.5 %, at 6,030.9, lifted by the strength in oil and mining stocks as crude and metals prices rallied. The FTSE 250 slipped 24.5 points, or 0.2 %, to 10,152.3, weighed down by weakness in property stocks. Stock market newcomer Hogg Robinson was one of the most actively traded issues, with 155m shares changing hands on its first day of dealings. Placed at 90p by brokers Merrill Lynch and Citigroup, its shares came to rest at 95½p.
Prices on 10 year UK Gilds dropped to 95.46 as yields rose 2bps to 4.575%.
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