Gilts

Gilt prices fell dramatically after central banks around the world announced coordinated action to pump liquidity into the credit markets. The June long gilt future was 54 ticks lower at 111.32, while two-year gilt yields rose ten basis points to 3.77 per cent, having hit a five-year low of about 3.62 per cent earlier in the session.

Rumour of the day

Mears Group rose 4p to 284p on strong results. There are suggestions it may team up with Assura, down 3p at 167p, which owns and runs clinics, in a break-up bid for Nestor Healthcare, down 2¼p at 53¼p, the troubled provider of out of hours GPs. Mears is thought to be interested only in the home visit or social care part of Nestor’s business.

Deal of the day

Media Corporation, the owner of websites such as onthebox.com and gambling.com, gained 0.125p to 3.625p after Jason Drummond, the chairman, bought a million shares at 3p each, bringing his holding to 7.7 per cent. Marlborough Fund Management also picked up shares sold by one of New Star’s funds that is winding up.

Bet of the day

Speculation is mounting as to who will replace Mike Turner as chief executive of BAE Systems when he retires in five months. Cantor Alphabet is offering Paul Lester, VT Group’s chief at 3-1, with Lord Drayson at 4-1. BAE staffers Alan Garwood, 5-1, Ian King, 6-1, and Walt Havenstein, 8-1, have backers, as does Sir Ken Smith, of GKN, at 8-1.

Tiddler to watch

Computacenter rose 11¾p to 183p after better than expected results. Credit Suisse reiterated its “outperform” rating with a 260p target, while Panmure Gordon upgraded its target from 219p to 229p. The data centre and managed services division should continue its recovery this year, while Vista should boost computer distribution.

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