STOCKS NEWS EUROPE-SVM UK Active Fund likes oils, mining, telcos
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09:44GMT 22July2008-SVM UK Active Fund likes oils, mining, telecoms
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SVM UK Active Fund says it remains defensive, with oil and gas, utilities, telecoms and mining as its top sector picks, and keeps short positions on RSA Insurance (RSA.L), HBOS HBOS.L, Investec (INVP.L) and Uniq (UNUNI.L)
"SVM believes that the banking bubble will take some time to unwind both in the U.S. and Europe. Writeoffs may accelerate in the fourth quarter, and continue into next year. Rebuilding tier I capital will prove tough for many smaller banks," the fund says in a note.
"The future earnings model for banks may only justify a valuation in line with book value, giving some further potential downside even for those with better lending practices."
The fund says its largest long investments are BG Group (BG.L), Tullow Oil (TLW.L), Royal Dutch Shell (RDSa.L) and British Energy BGY.L. It also has a position on AstraZeneca (AZN.L).
It adds the slowdown in the UK housing market will lead to a sharp fall in consumer confidence and it expects "weak trading to combine with margin pressures and balance sheet problems to trigger further share price falls in many UK consumer businesses, and the fund will maintain a defensive strategy by limiting exposure."
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09:55GMT 22July2008-Ingenico falls as Cheuvreux slashes rating
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Shares in Ingenico (INGC.PA) drop as much as 12.5 percent after Cheuvreux cuts its rating on the French financial transaction systems producer to "underperform" from "outperform".
The broker says in a note it expects second-quarter sales, to be released on Wednesday, down 3.3 percent on a like-for-like basis and bases its rating change on a "limited upside".
Ingenico is down 9.1 percent at 20.16 euros, making it one of the biggest losers on France's SBF120 .SBF120. Continued...
