Sharewatch: Positive Predictions Fail To Lift Media Stocks

Media stocks performed poorly yesterday despite an announcement from Maurice Levy, chairman of Paris-based advertising network Publicis, that the 2005 global advertising market is expected to grow by over 3%. BSkyB was seen down 0.15%, Emap dipped by 1.12% and Daily Mail & General Trust suffered a 0.73% slump (see Global Advertising Market To Pass 3% Growth In 2005).

ITV saw shares slide by 0.38% to close at 130˝ following reports that at least one major shareholder at the newly merged broadcaster is calling for Charles Allen to be removed from his position as chairman (see ITV Investors Could Remove Allen As Chief Executive).

Meanwhile, Capital dipped by 1.02% to finish at 485p despite the announcement in its first half trading statement that revenues at the radio group are expected to increase by 3% year on year (see Capital Radio Revenues Nudge Up 3% In First Half).

A set of weaker than expected UK manufacturing output figures pushed the FTSE 100 lower in early trade but a firm start on Wall Street helped the index recover to close up 0.3% at 4,480.7. However, the mid-cap FTSE 250 fell by 0.1% to 6,324.8.

The closing prices of media company shares on Monday were: