Gambling helps FTSE end losing streak

Published on Wednesday 19 July 2006 11:34

THE FTSE-100 looked like breaking a four-day losing streak today after a decent start to trading in London followed a rally last night on Wall Street.

Initially, lingering fears about the extent of a US crackdown on internet gambling continued to worry investors in gaming stocks, with Party Poker owner PartyGaming shedding a further four per cent on top of the 17 per cent it lost yesterday.

But the sector rallied after news emerged that BetOnSports, whose Scottish chief executive David Carruthers was arrested on racketeering charges at the weekend, had reached a deal with US authorities to resume business by the end of this week.

That helped reverse the sector's losses, with PartyGaming rallying to rise by eight per cent. Sportingbet rose 17.5 per cent and 888 Holdings was up 11.5 per cent.

"People are taking the view that (the problems affecting) BetOnSports may be company specific," said one trader.

Centrica, owner of Scottish Gas, firmed 1.7 per cent, helped by news brokers at JP Morgan had raised its rating to "overweight" from "underweight" and continuing the strong showing by utilities after recent market falls.

Overall, the FTSE-100 was up 16 points at 5698 just before midday, about half its initial gain. The benchmark index still has a long way to go to recoup the three per cent it has fallen over the past seven days, unsettled by the violence in Israel and Lebanon and the recent rise in oil prices which has fanned concerns over inflation and interest rates.

Midcap property website group Rightmove lost 23 per cent of its value after the government announced changes to next year's introduction of so-called Home Information Packs (HIPs) which must be provided by home sellers. Rightmove admitted revenues and earnings from work associated with the HIPs would be significantly less than originally hoped for.

On the oil markets, US light crude rose 41 cents to $73.95 a barrel while London Brent crude rose 61 cents to $74.97.