Market report: Thursday close

ANGLO-AUSTRALIAN group

Earlier this year, Brambles was being linked with America's General Electric, whose finance arm GE Capital had just raised £2.5bn by selling some bonds. GE already controls 20% of the pallets market in Australia and is thought to have first taken a look at Brambles almost 10 years ago. Brambles certainly looks vulnerable as its shares trade well below their 2001 peak of 372p.

Last year the group issued a profits warning and in June reported a 29% drop in profits after the management was forced to admit it had lost about 14m pallets.

Share prices generally traded in narrow limits for much of the day, unimpressed by opening gains for the Dow in New York this afternoon. The FTSE 100 rose 21.7 to 4314.7 in thin trading.

The world's biggest advertising agency, WPP, came under early selling pressure but later rallied to trade up 3 1/4p at 556 1/4p despite further evidence that conditions in the industry remain grim.

French rival Havas weighed in with an attributable net loss of e58m (£40.6m) in the first half of 2003 after goodwill writedowns. The results were at the bottom end of brokers' expectations. Operating profits fell to e68m from e115m.

Havas has warned its planned restructuring will cost e180m although it is expected to bring savings of e90m in a full year. It is also forecast to have a positive effect of e110m on its cash in 2004. The company said that, having put the plan in place, its priority would be to refinance convertible-bonds due in 2006. Havas shares fell sharply in Paris. WPP boss Sir Martin Sorrell has been brutally honest about the outlook for advertising during the past couple of years, so investors sat up and took notice when he recently came out with some optimistic comments.

Financial Times and educational publisher Pearson fell 3 1/4p to 623 3/4p as US securities house Morgan Stanley downgraded from overweight to equal weight and slashed its target price from 700p to 630p. It says risks to colleges from increased fees, reduced grants and some enrolment cuts cannot be ignored.

Spirent rose 6p to 56 1/4p on turnover of 38m shares following yesterday's presentation to brokers.

Further losses and gloomy comments about current trading left Television Corporation down 11p at 70p. Interim pre-tax losses grew from £253,000 to £974,000 and the group has disposed of its loss-making post-production unit Molinaire.

Kesa Electricals firmed 8p to 226p despite the poor reception given to yesterday's disappointing profits news. BNP Paribas has raised its target price for the retailer from 240p to 250p and has repeated its outperform recommendation. But broker E*Trade Financial has turned seller with a 190p target price, less than the shares were floated at in July. It warns of increased competition and the threat to extended warranties from a Government investigation.

Boots fell 6 1/2p to 679 1/2p after US bank JP Morgan cut its rating from overweight to neutral. It has kept fair value at 720p.