Sharewatch: BSkyB Rises Despite Murdoch Concerns

BSkyB was the media market’s big story yesterday as investors awaited the seemingly inevitable announcement that James Murdoch, son of major shareholder Rupert Murdoch, sill succeed Tony Ball as chairman.

However, investors disquiet, over what some investors have called “blatant nepotism” was already priced into the shares and the stock rose 3.67%.

Elsewhere, cyclical stocks with a heavy US exposure were seen boosted by bullish sentiment. WPP was seen up 2.85%.

Broader market sentiment was boosted by positive US manufacturing data which rose to its strongest level since January 2000. The indicator lead some economists to conclude that the market’s growing economic strength will carry over into the fourth quarter. Although concerns over a “jobless recovery” and the recent weakness of the dollar continue to weigh on the bulls.

Sterling hit a six month high against the Euro yesterday amid mounting speculation that the Bank Of England will raise interest rates this week.

The closing prices of media company shares on Monday were: