Capital Radio lament as Tarrant tunes out

LOYAL listeners of

Vaughan has a hard act to follow on the flagship London Capital FM station. Fears that he will struggle to keep Tarrant's audience prompted selling of the stock as investors switched off. It dropped to 475 1/2p before closing 19p down at 486p. February's peak was 564p.

Dealers were also twitchy ahead of Capital's second- quarter trading statement today. 'At the AGM in January, it reported a good first quarter, but a flat second quarter,' said one analyst. 'It's had a difficult time and there is clearly room for further disappointment.'

January's RAJAR (Radio Joint Audience Research) audience figures for the quarter to December showed that Capital had reclaimed its title as London's number one station. Capital

95.8 increased its listeners to 2.3 million, widening the gap over biggest rival Heart FM to more than 400,000 listeners. But without Tarrant, the top spot will definitely be in jeopardy.

Wireless Group, owner of talk-SPORT, gained 2 1/2p to 114p following better than expected annual figures and a strong start to the current year. It reported an operating profit of £2.3m compared with a loss of £2.3m in 2002. At the pre-tax level, it lost £11.2m, well down on last year's £20.3m. Net debt fell to £3m.

Fund managers were unwilling to commit themselves ahead of tomorrow's crucial US employment data. Many feel that US interest rates cannot stay at 40-year lows of 1% for ever and a strong set of job numbers could force the Fed to lift rates in the short term. The Footsie lost an initial 14-point gain to close 27.1 down at 4385.7.

Wall Street dipped 66 points in the early stages following disappointing economic data. A measure of manufacturing activity in the Chicago region came in at

57.6% in March, well below expectations of 61.6%. February factory orders rose a surprisingly weak 0.3% against forecasts of 2.5%.

As the dollar retreated on wild rumours - soon denied by the Fed - that Fed chairman Alan Greenspan was seriously ill after a heart attack, sterling rose to $1.84. The euro hardened to 66.8p and $1.2291 ahead of today's European Central Bank meeting at which economists believe it could reduce rates by 0.25%.

Royal ratcatcher Rentokil Initial rose 2 1/2p to 182 1/4p after global fund manager Franklin Resources lifted its stake to 146.9 million shares, or 8.1%.

Revived terrorism fears again clipped the wings of British Airways - 9 1/2p down at 276 1/2p. Management buyout gossip accompanied a 1 1/2p rise to 147p in MFI Furniture.

Interdealer broker ICAP fell 18p to 285p after warning that if the US dollar rates remain at current levels during 2004/05, profits will be affected by some £10m.

Investment vehicle Eurovestech improved 1/2p to 11 1/2p. Results for the full year will exceed expectations.

Oil explorer Hardman Resources jumped 4p to 55p after Oriel Securities placed the lion's share (75%) of a block of 72m shares at 45p with 30 mainly UK institutions. Collins Stewart did the rest. Aussie explorer Woodside took up its entitlement of 10.5%. Funds raised will see Hardman through its drilling and exploration programme until its Chinguetti well off Mauritania turns cash flow positive in 2006.

Trafficmaster rallied strongly from a depressed 55 1/2p to finish 6 1/2p higher at 66p after declaring that it will strongly defend itself against any legal action taken by rival ITIS Holdings ( 1/2p cheaper at 30 3/4p) over a report commissioned by Trafficmaster on ITIS.

Placed on Aim at 150p, technology-led group Polaron touched 160p before closing at 158 1/2p. It has won a contract extension worth £980,000 with Metronet Rail to refurbish the inter-lock door systems on all trains on the Circle and Hammersmith and City Tube lines.

Attentive Systems, another Aim newcomer, placed at 50p by broker Investec, closed 10p up at 60p.