UK investors seek stock market bounce next week

01 May, 2006

The London stock market will look to rebound in shortened trading next week, with an interest rate decision and a flood of company results shifting into focus.
The British stock market kicks back into action on Tuesday after a public holiday on Monday. Ahead of the long weekend on Friday, London's FTSE 100 index of leading shares ended the week at 6.023,1 points - a decrease of 1.78 percent or 109.6 points from the closing level the previous week.
The previous Friday, the FTSE had finished at 6,132.7 points - the highest since February 15, 2001 - as the index was boosted by heavyweight energy and mining groups, which are benefiting from record high oil and metals prices.
Next week's centrepiece will be an interest rate call from the Bank of England on Thursday, which is widely expected by analysts to leave British borrowing costs at 4.50 percent for the ninth month in a row.
In the energy sector, British company BG Group and Anglo-Dutch giant Royal Dutch Shell are set to publish their first-quarter numbers on Wednesday and Thursday respectively.
The pair are expected to reveal how record high energy prices during the period have boosted their coffers. Energy groups represent about a quarter of the FTSE in terms of their combined market value. High crude costs therefore tend to boost their share prices.
Results are also due on Wednesday from cigarette giant British American Tobacco and British satellite broadcaster BSkyB. The English Premier League on Friday announced it had awarded BSkyB the television rights to at least half of the 138 lives matches from 2007 to 2010.
The deal confirmed the satellite company's status as the dominant broadcaster in English football, which is critical for its profile in the country. Also on Wednesday next week, low-cost airline easyJet issues its interim earnings release.

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