Advertising shares end the day up
following interest rate cut
LONDON - Cordiant Communications and WPP led a boom day yesterday for advertising stocks, boosted by the Bank of England's decision to cut interest rates by a further 0.5%.
Investors flocked back to media and marketing shares after the rate cut.
Cordiant and WPP climbed 6% each to 106.5p and 676p respectively, while PR group Incepta, which owns City PR firm Citigate Dewe Rogerson, soared 19.4% to 43p.
PR-dominated firm Chime Communications, parent of Bell Pottinger, climbed 3.1% to 106.5p.
In the media-buying arena, Tempus stayed still at 550p, while Carat-owning Aegis ended the day up 2.4% to 96.25p.
The rate cut has helped TV companies stage a recovery. Granada jumped 11.5% to 157.25p and Carlton Communications rose 14.9% to 247p. Rival BSkyB was up 2.2% to 825p.
Pearson, which suffered a credit downgrade from "buy" to "hold" by UBS Warburg on Wednesday and plunged to 842.5p, regained some ground yesterday. It climbed 5.4% to 883.50p, higher than its close of 876p on Tuesday.
Radio group GWR, owner of Classic FM, climbed 13.3% to 247.5p, while rival Capital Radio ended the day up 4.9% to 747.5p.
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