Market report: Tuesday close

INVESTORS were left scratching around for fresh ideas today. Confirmation that Britain's biggest financial services outfit,

The FTSE 100 fluctuated in a narrow band, but slipped further into the red after a weak reading on US consumer confidence dented the Dow in New York. The Footsie fel 11.8 points to 4137.

The half-year results from Prudential were every bit as bad as feared and Merrill Lynch has repeated its 'sell' advice. The shares fell 14 3/4p to 420p, having touched 415p, after it cut its half-year payout to shareholders by 38% to 5.3p. BNP Paribas says the cut had been expected and warns the business is suffering because of lower margins in the UK.

The Pru has ruled out selling its remaining 79% stake in online bank Egg, 2 1/2p lighter at 147p.

Northern Rock rose 10p to 718 1/2p as Credit Suisse First Boston raised its 12-month target price from 870p to 925p and repeated its 'outperform' rating. The broker says the recent flow of negative comments on the mortgage bank are unjustified and ignores the group's strong operational performance.

CSFB has also been having a look at the mining sector. It appears to be taking a bearish stance on Rio Tinto, down 20p at 1335p, saying it prefers BHP Billiton, down 6p at 367p.

Cadbury Schweppes jumped 13 3/4p to 379 1/2p supported by Merrill Lynch, which has raised its rating from 'neutral' to 'buy'. Merrill says the outlook for the confectionery and soft drinks group looks a lot brighter.

Former Chancellor Kenneth Clarke has topped up his holding in Savoy Asset Management, unmoved at 130p, where he is chairman. He has picked up an extra 8000 shares at 125p, extending his holding to 12,000 shares, or less than 1% of the company. Fellow director Paul Tarran has bought an extra 2500 shares at 125p. He now holds 10,000 shares.

Only last week, Savoy reported reduced losses and nabbed 10 investment managers from SG Investment Management, who between them control more than £300m. It stretches Savoy's total funds under management to almost £1bn.

Gresham Computing jumped 8 1/2p to 363 1/2p. There has been a lot of talk in recent weeks that its Real Time Nostro system for intrabank trading transactions will soon be snapped up by HSBC and Citibank. It is already being used by Barclays and JP Morgan Chase.

Dimension Data slipped 3/4p to 25p after JP Morgan cut its rating from 'overweight' to 'neutral'. The bank says the South African group is in urgent need of a recovery in earnings, which it does not see materialising this year.

Medisys firmed 1p to 25 1/2p as more than 18m shares changed hands. It has signed up US retailing giant Wal-Mart as a partner to help launch its Flight blood glucose monitoring system for diabetics.

Better-than-expected half-year profits saw United Business Media bounce 50 1/2p to 393 1/2p. Merrill Lynch has lifted the shares from 'neutral' to 'buy' and repeated its target price of 405p.

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