Sharewatch – W/E 31/01/97

The announcement on Friday afternoon of broadcasters’ digital television plans caused some major gains and losses within the sector. Those who threw in their lot with the digital “revolution” had a good day’s trading, while ITV companies which decided to stay aloof and cable companies which would suffer from the competition all experienced price drops.

The main news was that BSkyB, Carlton Communications and Granada, representing a large portion of the commercial TV sector, had joined forces to submit a bid to the ITC to run a digital licence. Carlton profited the most, rising 39 from 519.5p to 558.5p, while Granada rose 19.5 and BSkyB 18.5. Flextech, which has joined the BBC to launch a digital service, climbed 29 to 699p.

STV, an ITV company not involved in this activity, shed 31.5p to 627.5p, while most of the major cable players were also hit. Cable & Wireless was down 13 to 466p, Nynex fell 14.5 to 99.5p, General Cable lost 13 to 176 and Telewest fell 11 to 117p.

There was also an interesting rumour that Mirror Group had been about to mount a takeover bid for Midland Independent Newspapers last week but had pulled out at the last minute. This caused MIN to lose 5.5p over the week and Mirror Group to lose 1p over the same period. Hollinger, owner of the Telegraph titles, is also supposed to be interested in acquiring the regional newspaper group.