10/10/13 Market Movements
Markets closed up, 92.58 points at 6,430.49 today.
|British Sky B (BBL)||Moved further within 5% of TSP||Current price = 871p, TSP = 900p|
BskyB’s full fiscal year results which were released in July were as expected if not slightly better and the company reported a 7% rise in sales to £7,235m versus estimates of £7,221m. No fundamentals have changed since that time although News Corp could return with another bid which is likely to be in excess of 950p. However, there is nothing to suggest any change at this point in time. BskyB will announce its results for the three months to the end of September on 17th October and we expect to see some movement at this date. On a charting basis the resistance level appears to be trading around 900p. We therefore propose we maintain our target sale price at 900p. In addition to most recent broker views regarding target sale prices for BskyB tend to reflect our opinions.
Global markets have risen today as signs have grown that lawmakers in the U.S. could reach an agreement to increase the debt ceiling and avoid default. It is thought that the Republicans will be proposing a short term deal where the debt limit would be increased for six weeks.
In the U.K. the Bank of England (BOE) met today to stimulus plans. As expected, interest rates were decided to be kept on hold at 0.5%. In addition, it was agreed that no changes would be made to the UK’s QE programme.