Gilts

Gilts rose after Andrew Sentance, the Bank of England hawk, said that weaker growth would help to contain inflation. Mr Sentance’s comments reinforced the view among many economists that policymakers were in no rush to raise rates despite strong price pressures. The September gilt future was 17 ticks higher at 104.36.

Rumour of the day

There has been talk that Private & Commercial Finance Group, the AIM-listed secured-consumer loans business, will buck the trend of bad news from the financial sector today by reporting better-than-expected results. However, the London-based company’s outlook may be of more interest, given the slowdown in car sales.

Deal of the day

Brian Caffyn, non-executive chairman of Solar Integrated Technologies, has indirectly exercised warrants for 7.7 million shares at 30p, giving the maker of solar panels £2.31 million of working capital. Mr Caffyn said that he would continue in his role and remain a significant shareholder. Solar’s shares rose 1p to 108½p.

Bet of the day

The outlook for the retail sector is dire, but perhaps interim results due today from Kesa Electricals, the owner of Comet, will offer crumbs of comfort. Shares in Kesa, the leader in France and Belgium through Darty, have fallen from 212p in December to 174½p yesterday. Cantor Index offers a September-based contract spread of 175.6-176.8p.

Tiddler to watch

Imperial Innovations, the technology commercialisation group, has raised its stake in OSspray, which has developed teeth-polishing products that use bioactive glass. Imperial invested £2 million, increasing its stake to 38.1 per cent. Shares in OSspray, which plans to launch its products in the US, were flat at 272p.

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