Sharewatch: Market Greets News Of Advertising Recovery

The IPA’s latest Bellwether report brought good news to the media market yesterday by revealing that a rising tide of corporate optimism within the industry cause adspent to climb to levels not seen since the hight of the dotcom boom (see Bellwether Reveals Increasing Optimism For Advertisers).

Global marketing and advertising network, WPP, rose 0.16% on the news and BSkyB was seen up by 0.92%. However, ITV partners, Carlton and Granada, were seen down by 1.73% and 1.41% respectively.

Meanwhile, SMG remained in focus rising 1.12% following the sale of its 27.8% stake in Scottish Radio Holdings to Emap for £90.5 million. The market reacted positively to the deal, which will allow SMG to reduce its mounting debt burden.

Kelvin MacKenzie’s Wireless Group was also in the spotlight after announcing its intention increase its interest in DRG, owner of the London III digital multiplex licence. The radio group also recently agreeing to pay £8.1 million for Forever Broadcasting, which owns three local radio stations in the Midlands and Lancashire (see Wireless Group Invests Further In Digital Radio Market).

The London market dipped yesterday as cyclical stocks ran into profit taking and banks edged slightly lower. The FTSE 100 fell 0.4% to 4,448.3 and the FTSE 250 dipped by 0.2% to close at 6,127.7.

The closing prices of media company shares on Tuesday were: