THE TIPSTER
NEWS that British Airways’ cabin crew has voted in favour of strike action, combined with the state of the airline’s pension scheme has put further downward pressure on the airline’s share price. On a technical level, shares are currently blocked from any further progress by a resistance line in place on the daily chart since September. The stock is currently trading at 201p and traders should be looking to sell and targeting the 188p level. IG Markets has a December-based spread of 199.60p-200.51p
While tourists might be in for a bleak Christmas, there’s plenty of festive cheer on the high street. After news that London saw its best retail sales growth for three years on Monday, Comet owner Kesa Electricals is due to report interim results tomorrow. The stock could be worth a buy and Capital Spreads offers a price of 156.5p-157p.
Lloyds Banking Group has rightly deemed its rights issue a success with a very large take-up – especially compared to some of the disastrous capital-raising attempts that we saw in the sector a year ago – but it has done little to support the company’s share price.
However, there is talk in the markets that the recent move lower could be mere book-balancing in light of all the new shares. With the banking sector heading higher, Lloyds could be poised for a rebound. IG Markets is offering a spread of 55.22p-55.39p.
Good news from the Gulf made the London Stock Exchange (LSE) the standout gainer yesterday. Its share price rallied 7 per cent following Abu Dhabi’s bailout of Dubai, which meant that Borsa Dubai was less likely to sell part of its 22 per cent stake in the exchange. LSE shares have fallen over 15 per cent since the Dubai debt fears first arose and yesterday speculators were bargain hunting.
The LSE is also said to have plans to offer derivatives on the FTSE 100 to widen its portfolio of products, so could the share price be set for a short-term resurgence? City Index is offering a spread of 765.0p-766.5p.
After an upbeat report from Mitchells & Butlers at the end of November and news of a rise in sales growth for Greene King earlier this month, the focus falls on Punch Taverns tomorrow. Analysts believe the firm could follow the recent trend of positivity in the pub sector when it announces its interim statement. ShortsandLongs.com has a rolling spread of 79.8p-80.3p.
Crude oil fell for a ninth consecutive day yesterday – its longest decline since July 2001. Analysts put the drop down to fears that the delay in recovery from the world recession may slow demand for fuel and energy. Prices fell to below $69 on the New York Mercantile Exchange (Nymex) at one point, but will the drop continue further? Spreadex is offering a January contract on light crude oil with a spread of $70.06-$70.18.