Sharewatch: Granada Rises On Positive Forecasts

Granada was seen in focus yesterday after a positive note from Investec, which advised clients to build positions on war-related weakness. Investec claims only a “small amount” of advertising has been pulled because of the war in Iraq. The stock was seen up 5.26%.

However, Granada’s chief executive, Charles Allen, had little to smile about after former Merrill Lynch analyst, Neil Blackley, declared he would be “gobsmacked” if Allen was still in his job in two years’ time (see Black Tidings For Advanced Television Sector).

Speaking at an RTS event, Blackley claimed Allen and Carlton’s Michael Green would have to make way for those with new skills if the planned merger of the two groups went ahead (see ITV Merger To Be Investigated By Competition Commission).

Elsewhere, bullish market sentiment persuaded many traders to buy on weakness and the Daily Mail was seen up 4.86%.

Tuesday saw the media sector in recovery following heavy losses over the first 14 days of conflict in Iraq, as investors adjusted to the prospect of a drawn out conflict.

The closing prices of media company shares on Tuesday were: