Investors continued their exodus of the online gaming sector yesterday after Empire Online said growth in the online poker market was nearly flat during the third quarter, raising concerns across the industry.
More than 129 million shares in PartyGaming changed hands as the group plunged 11 per cent, or 9p, to 71p - valuing the company at less than £3 billion for the first time since its flotation this summer.
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The gaming sector was also rocked by the news that PartyGaming is no longer prepared to allow players of websites owned by rivals to gamble at the same tables as clients of its flagship PartyPoker brand.
Empire Online lost more than a quarter of its value, or 62p, to 121p, while Sportingbet fell 20.5p to 286p and online money transfer firm NETeller slipped 71p to 737.5p.
But the rest of the market started the week in a rather more upbeat mood. The FTSE 100 closed up 12.2 points at 5,374.5 as investors were attracted back into the market after concerns about US inflation and aggressive interest rate rises sparked steep falls last week. The index is still some way off the 5,500 level it rose to a week ago.
Analysts said the market should resume its upward trend.
Stuart Fraser, investment director at private client stockbroker Brewin Dolphin said: "There was a bit of an overreaction to what was a little bit of sabre-rattling by the Federal Reserve. A bit of sense has come back. People are viewing the fact that equities are still OK, priced relative to bonds."
Resource stocks, which were among the hardest hit in last week's sell-off, topped the blue-chip gainers list as copper prices hit fresh record highs and as gold traded at an 18-year peak. Antofagasta finished up 2.8 per cent, or 41p, at 1,505p and Xstrata added 2.6 per cent, or 36p, at 1,430p.
Oil giant BP also fared well, advancing 9p to 631p, but rival Royal Dutch Shell B faded 8p to 1,865p.
The media was another buoyant area on positive broker comments. Advertising agency WPP increased 2.3 per cent, or 13p, to 569p after Citigroup upgraded it to "buy". News and information group Reuters closed 2.25 per cent, or 8.25p, higher at 374.25p as CSFB noted a trading statement was due on 27 October and made positive comments on the stock.
Retailer Marks & Spencer also gained, up 2.3 per cent, or 8.75p, to 384p as analysts expressed optimism ahead of its second-quarter trading update today. Scottish Power dropped 2.5 per cent, or 14.5p, to 572.5p after saying its trading outlook remained in line with expectations and issuing restructuring plans.
Cadbury Schweppes added 6p to 556.5p after last week's warning sent ripples of disquiet through food groups. Robert Wiseman Dairies dipped over 3 per cent, or 10p, to 292.5p.
Telecoms equipment maker Marconi stood out with a 9.3 per cent, or 28.75p gain to 337p on speculation that Sweden's Ericsson may buy it. Marconi declined to comment on what it said was just a stock market rumour.
Source: Business Scotsman
