Week on week analysis of the media sector reflects last week’s crushing losses. The FTSE dropped to a seven-year low, after a heavy sell-off as sentiment remained fragile on continuing concerns of military action against Iraq and worries about the global economy.
On the corporate news-front, investors considered news that SMG‘s shareholders have approved the £216m sale of its newspaper division, including the Herald, to US publisher Gannett. The stock was seen down 4.97% week on week.
Cable & Wireless was cheered by news that Graham Wallace, the man largely blamed for the recent problems at the group, is to step down following pressure from shareholders (see Beleaguered C&W Chief To Exit The Fray). The stock was seen up 11.65% week on week.
Elsewhere, WPP is also in focus after Sir Martin Sorrell claimed a war with Iraq would not alter his prediction that the global advertising market will recover in 2004 (see Sorrell Sticks To 2004 Ad Recovery Forecast). The stock was seen down 5.95%.
The closing prices of media company shares on Friday were:
