Sharewatch: Media Stocks Mixed As War Takes Centre Stage

Media traders stood on the sidelines last week, with mixed results for stocks as analysts and market watchers assessed the economic and geopolitical consequences of the unfolding conflict in Iraq.

The market’s movement over the past weeks reveals traders clearly see “value” in winning wars, with many analysts hoping for a short, sharp war to revitalise an economy ravaged by recession. However, Stephen Roach, chief economist at Morgan Stanley, has reportedly warned the war will send the global economy into deep recession.

All eyes are on oil prices, the lynchpin of the US economy, which have slid steadily over the past week on expectations Iraq’s oil resources will be sold to the likes of ExxonMobil and Shell with massive economic and environmental repercussions. The media sector was by no means isolated from these developments and experienced a turbulent week of trading.

On the corporate newsfront, the ongoing will they won’t they Carlton and Granada saga will again take centre stage this week (see ‘Remedies’ May Be Attached To ITV Merger). Leading advertisers are calling on the Competition Commission to block the merger and tomorrow a delegation from ISBA is making a verbal submission to the inquiry. It is likely to voice its concerns that the merger would prompt other broadcasters such as BSkyB, Five and Channel Four to pool their advertising operations. Carlton and Granada stocks were seen down 1.28% and 0.78% respectively.

Elsewhere, Trinity Mirror was in focus amid growing concerns over the circulation of the trademark Daily Mirror title, although the stock was seen up 3.6% week on week.

The closing prices of media company shares on Friday were: