Market report: Friday close

LUCKY STRIKE and Pall Mall fags group

Swiss-owned luxury goods group Compagnie Financière Richemont is selling a near-1% stake worth almost £125m to joint-venture partner Remgro. That will raise an exceptional profit of €80m (£54.4m) for the year to 31 March, and reduce Richemont's stake from 18.8% to 18.2%, or 389m shares worth almost £4bn.

Richemont and Remgro hold about 27% of BAT through joint-venture vehicle R&R. The sale comes just days after BAT reported full-year pre-tax profits up from £1.55bn to £1.88bn.

Share prices generally made headway in thin trading with the FTSE 100 index rising 12.8 points to 5027.6. In the US, the Dow rose on news that the economy added 262,000 jobs in February, slightly ahead of market forecasts of about 220,000, and the largest increase since October last year. Jobs growth from January was revised downward to 132,000 from 146,000. The dollar softened against the pound and the euro on disappointment that the figure had fallen short of best expectations.

Prudential rose 3¼p to 500p as the City continued to reflect on this week's profits news. Broker Merrill Lynch has set a yearend target of 580p and there is vague talk of a bid from the Continent. That would be good news for Legal & General, up 1¼p at 117¼p, which owns 3.5% of the Pru.

The City gave the thumbs-up to full-year numbers from Lloyds TSB, up 9¼p to 497½p. Pre-tax profits were 10% higher at £3.36bn. But not everyone was impressed.

Broker Panmure Gordon has repeated its sell recommendation and 420p target. The results are slightly ahead, noted Panmure, although it does not believe the dividend can grow until earnings hit 50p a share. This could take up to seven years, it argues.

Renewed takeover speculation drove logistics group Exel 23½p higher to 833½p. The share price has been buoyed by talk of a bid from UPS, Deutsche Post or Federal Express but chief executive John Allan is saying little.

He hinted, however, that no approaches had been received. His comments came as the group unveiled full-year pre-tax profits ahead of forecast at £163m.

Rentokil Initial came off the boil, falling 5¾p to 164½p. It had enjoyed a run up on the back of City presentations by the new management and talk of a break-up bid. But broker Dresdner Kleinwort Wasserstein remains a seller and says talk of a bid is wide of the mark.

Housebuilders got a boost from JP Morgan, which has raised its target on Persimmon, up 13½p at 777½p, from 509p to 634p, and for Taylor Woodrow, 5½p better at 302¾p, from 278p to 348p. It has also upgraded George Wimpey, up 4frac34;p to 458p, from underweight to neutral and raised its sights from 416p to 480p. The investment bank says the new year has seen a recovery in the housing market.

Asia Energy goes from strength to strength, climbing 36p to a record 812½p following bullish comments from blue-blooded broker Cazenove. The shares were floated a year ago at around 60p. Carry on like this and the company will soon by vying for a place in the FTSE 100.

Cash shell Gordian Investments started trading on Aim following a placing by broker Teather & Greenwood at 5p. The shares were at 7.25p.

Shares in loss-making Irish drugs company Elan 1.22p to 4.44p. It has agreed to provide information to the US Securities and Exchange Commission after last week pulling its Tysabri multiple sclerosis treatment.