Sharewatch: Media Stocks Rise On Positive Sentiment

Media stocks were lifted higher yesterday as the market continued to react to Monday’s announcement from Aegis. The media and market research firm raised its forecasts for advertising growth this year amid signs of improving corporate confidence (see Aegis On Track To Deliver Strong Growth This Year).

Granada put in one of the strongest performances of in yesterday’s media market with shares increasing by 2.44% to close at 126p. Daily Mail & General Trust rose by 2.43% and BSkyB was seen up by 2.16%, despite reports that more than 10 million British households are refusing to join the digital television revolution.

The market also considered news that press tycoon Conrad Black could be forced out as chairman of Hollinger International as controversy over unauthorised executive payments lingers on (see Black Could Be Ousted As Hollinger Chairman).

The broader market dipped yesterday as analysts downgraded a number of major London Blue chips. However, the FTSE 100 climbed 0.7% higher and the FTSE 250 managed a slight 0.1% gain.

The closing prices of media company shares on Wednesday were: