Sharewatch: BSkyB Dips Amid Confidence Crisis

Satellite giant BSkyB was the talk of the trading floors for all the wrong reasons yesterday. Confidence in the broadcaster has slipped following the appointment of James Murdoch as chief executive. The son of media tycoon Rupert Murdoch was criticised for failing to outline a clear strategy for the company’s future, causing trepidation among traders and forcing the broadcaster to close down 1.11% at 671p.

Reports suggest that the company is preparing a bid for several contracts to broadcast horse racing, a move that could prove hugely profitable if combined with the existing Sky Bet service (see BSkyB Could Move To Secure British Horse Racing Rights).

Elsewhere, ITV was the subject of the stock market rumour mill, with murmurings of a large placing. But the rumours were later revealed to be the result of Deutsche Bank having an institutional seller offloading around £5 million worth of shares. The broadcaster dipped 2.44% to close at 130p.

Advertising group WPP managed a 3.27% rise to close at 568˝p. Reports suggest that the company has had positive meetings with various analysts, inspiring confidence and fuelling bulk buying.

The FTSE 100 rose marginally yesterday, climbing by 0.6% to 4,410.7 while the FTSE 250 also closed 0.6% higher at 6,294.2.

The closing prices of media company shares on Thursday were: