Market report - Tuesday at close

By THIS IS MONEY
Updated: 18:00 EST, 27 March 2000

Takeover speculation swept the utilities sector today sending shares in key water and electricity companies sharply higher in afternoon trading.

Welsh multi-utility Hyder declared it was in talks with a number of other companies which could lead to a takeover offer. The announcement sent Hyder shares gushing 48% higher - up 90 3/4 p to 280p - by the close of trading.

Other utilities followed in its wake, with Anglian Water up 30p to 490p, Kelda, the former Yorkshire Water, jetting ahead 26p at 276p and Pennon, the Exeter-based utility, rising 76p to 490p.

The latter led the risers in the FTSE-250 Index which was swept 44.3 points higher to 6646.4 on the takeover wave.

The FTSE-100 Index fared less well. The continuing attraction of key technology shares helped the Footsie keep its head above water for most of today, until a poor opening on Wall Street undermined the mood and sent the Index falling. By the close the blue chip benchmark was down 37.1 points at 6650.1.

The drop was led by the merging pharmaceutical giants Glaxo Wellcome and SmithKline Beecham which dropped 88p to £17.01 and 36 1/2 p to 792p respectively.

Meanwhile business and computer services Capita group led the field, with a sharp 10% jump, up 149p at £16.13 following a strong buy rating from Morgan Stanley Dean Witter.

Other computer services and technology-linked groups were close behind with CMG up 160p to £58.10p, software group Misys up 42p to 917p, Sema Group up 42p to £13.32. And Footsie newcomer software company Baltimore Technology shot ahead 426p to £101.98 as it announced a much-needed ten-for-one share split.

Another recent arrival in the Footsie, Kingston Communications, had a more mixed day. After announcing it was moving into own-branded mobile phone services the telecoms company shares made firms gains, but later fell back to close up a fractional 5p to £11.03.

Strong current trading figures convinced investors that House of Fraser had pulled itself out of the doldrums. Despite flat profits for its last financial year, the group jumped 2p to 57p.

Health clubs company LA Fitness put on some muscle as it unveiled plans to join the digital age with an interactive TV service.

The plans, being laid in partnership with Bupa and Video Networks, toned up LA Fitness shares 9p to 364p.

And the more sedentary pursuit of computer games also provided some signs of life. Eidos, which saw its shares plunge on Friday, bounced back with a 26p gain to 412p.

Yesterday's announcement from Storehouse that it was selling its Bhs stores to retail tycoon Philip Green continued to weigh on its shares.

While the £200 million price tag was at the upper end of expectations, some traders had been hoping for a full takeover of Storehouse. Shares in the group, which will be left owning Mothercare, fell 3 3/4 p to 39 1/4 p today.

The top risers in the FTSE-100 were Capita up 149p to £16.13, South African Breweries up 28 1/2 p to 518 1/2 p, Misys up 42p to 917p and Cadbury Schweppes up 18 3/4 p to 433 3/4 p.

The big fallers were Glaxo Wellcome down 88p to £17.01, SmithKline Beecham down 36 1/2 p to 792p, Anglo American down 1115p to £28.61 and Billiton down 10 3/4 p to 269 1/2 p.