Gilts

Gilt future prices jumped as worry about the global banking system drove a flight to government bonds as a haven. They were also helped by the prospect of an interest-rate cut on Thursday. The December gilt future rose £1.58 to £114.09, pushing yields on the ten-year government bond down by 17 basis points to 4.22 per cent.

Rumour of the day

C&C, the Irish maker of Magners cider, down 19 cents to €1.55, reports interim results on Thursday and is likely to show a further loss of market share to Bulmers with a gloomy outlook. Dresdner Kleinwort said that, with cashflow dwindling and €30 million of debt repayment due this year and next, it will have to halve its dividend to placate banks.

Deal of the day

Stephen Oliver, a director of Marston’s, the brewer and pub group, revealed a 10,000 share purchase on Friday at 140p, but that failed to stem a second day of falls after a Citigroup downgrade yesterday and Friday’s talk that Kaupthing would be liquidating stock. The shares fell 17¼p to 115¾p, making a 27 per cent drop in two days.

Bet of the day

Sainsbury’s will issue a trading statement tomorrow that should show if shoppers are trading down to Aldi and Lidl. The price, down 16½p to 313p, has held up amid talk that Robert Tchenguiz, the property investor, is refusing to loan stock for short-selling. Paddypowertrader.com quotes the Sainsbury’s rolling daily bet at 313.3p-314p.

Tiddler to watch

Tristel, which makes disinfectants that combat hospital-acquired infections such as MRSA, rose ½p to 39½p after reporting annual results that were better than expected. It is confident that it can keep growing by selling more of its products to different departments within hospitals. It has two product launches in the pipeline.

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