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08:54GMT 26Nov2009-Water firms up as price ruling eases div worries

Shares in Britain's water companies jump after regulator Ofwat freezes bills but opts against price cuts, easing pressure on dividends and making it less likely companies will be forced to conduct rights issues.
The news sends United Utilities up 2.3 percent while Severn Trent gains 3.9 percent, Northumbrian Water adds 5.7 percent, and Pennon rises 2.3 percent amid relief that Ofwat did not pursue plans to force them to cut bills by around 4 percent.
"On Severn Trent I still see it needs a dividend cut but not 20 percent but 10 percent, on United Utilities previously I had a 30 percent dividend cut now I've got 20 percent," says Lakis Athanasiou, analyst at Evolution Securities.
He sees no chance of divdend cuts at Northumbrian and Pennon, adding that all of the companies should now be able to avoid rights issues.
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08:53GMT 26Nov2009-FTSE small caps off 0.2 pct at the open

The FTSE Small Cap Index is down 0.2 percent in early trade, outperforming the blue chip index and the mid caps which are 1.3 and 1.1 percent weaker respectively.
Jarvis Plc falls 10.2 percent after reporting a swing to loss in the first-half of the year, hurt by restructuring costs and reduced volume in the rail business, and forecasting full-year operating levels to be broadly breakeven on new project delays.
Billing firm Intec Telecom Systems Plc climbs 5.7 percent as UBS lifts its target price to 146 pence from 140 pence and keeps its "buy" rating after the company posted a 91 percent rise in full-year profit on Wednesday.

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08:52GMT-26Nov2009-Stocks sink early in broad retreat

European shares drop 1.7 percent early in a broad retreat, tracking falls in Asia where exporters got hit by a decline in the dollar which hit a 14-year low against the yen, while Europe's energy and mining shares take a beating as commodity prices fall.
At 0840 GMT, the FTSEurofirst 300 is down 1.7 percent at 1,004.94.
Rio Tinto is down 2.8 percent and Total down 1.3 percent.
Banks also fall, with BNP Paribas down 2.5 percent and HSBC down 2.9 percent.
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08:16GMT 26Nov2009-DSG climbs on better than feared H1

DSG shares climb as much as 5 percent to 38.4 pence after Europe's second-biggest electricals retailer reports a smaller-than-feared first-half loss and a return to underlying sales growth in recent weeks.
"We are reiterating our "buy" recommendation on the company, which we view as the only credible restructuring story in the sector," says Seymour Pierce analyst Freddie George, raising his full-year profit forecast by 20 million pounds to 75 million.
"It is highly rated and similarly valued to Kesa, but there is huge potential to improve earnings in 2011 from the restructuring programme."
Singer analyst Matthew McEarchran says the DSG update bodes well for Kesa , whose shares are up 0.3 percent.
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