Market report: Thursday close

OIL and gas explorer

UBS became the second big house to downgrade it in 24 hours, moving from neutral to reduce but retaining its 12-month target of 240p. BG's price has been boosted by talk of a bid from Shell or Total. The shares now trade at a 5% premium to the rest of the European oil and gas sector and UBS thinks enough is enough.

It is sceptical about the possibility of a bid at these levels despite a flurry earlier this week during which more than 23m shares changed hands in a day. The move by UBS follows one by Merrill Lynch, which also downgraded from buy to neutral.

Speculators lifted Edinburgh Oil & Gas, which has a 5% stake in the North Sea Buzzard Field, by 9 1/2p to 131p. Almost 3.5% of the company has changed hands after a line of 1.44m shares was snapped up at 128p. Traders normally price it in 2000-share bundles.

Shares generally came off the boil today, undermined by opening falls on Wall Street this afternoon. The FTSE 100 index fell 29.1 points to 4339.7.

UBS has repeated its buy recommendation on GUS, down 4 1/2p at 765 1/2p, and raised its target from 810p to 850p. JJB Sports founder and chairman Dave Whelan has sold 3.5m shares, It reduces his holding to 57.6m shares, or 24%. In June, he backed out of plans to take JJB private. The shares were 1p better at 292p.

Royal & SunAlliance retreated 2 1/4p to 94p as the rump of its recent £960m rights issue was placed in the market with various institutions. Its financial advisers - Goldman Sachs, Merrill Lynch and Cazenove - placed the 119.7m shares at 96 1/4p, compared with the heavily discounted rights issue price of 70p. About 92% of the issue was taken up.

Standard Chartered rose 10 1/2p to 965p on reports that Malaysian businessman Tan Sri Khoo Teck Puat may consider an offer of 1050p a share for his near-14% stake. He was one of three white knights who defended the bank from an unwanted approach from Lloyds in the 1980s.

BAE Systems fell 4p to 182p, Merrill moving from buy to neutral. It says the defence contractor has run up far enough for now. Merrill has also downgraded Rolls-Royce, 4 1/4p weaker at 177 1/2p, from buy to neutral.

Bus operator Go-Ahead accelerated 35p to 1087 1/2p after reporting a first-quarter performance ahead of expectations.

IT recruitment specialist Lorien marked time at a year's peak of 90 1/2p. Interim profits in July collapsed from £1.3m to £200,000 and the group warned full-year figures would come in way below forecasts of £1.4m.

There is talk that rival Spring Group, down 1 1/2p at 106 1/2p, may be putting together an offer. Lorien is valued at almost £17m.

In-car entertainment group Armour slipped 1/2p to 46p despite better-than-expected pretax profits, up from £246,000 to £1.26m in the year to 31 August. Chairman Bob 'The Bear' Morton is optimistic about prospects for the current year.

Multi Group may be about to return, after being suspended at 9 3/4p in March. Word is that financiers have got together to take a 54% stake in the shares, expected to come back sharply lower.