Market report: Tuesday close

WHO is the big seller calling time on 650-strong pubs chain

US broker Smith Barney placed two lines totalling 7.8m shares - about 4% of the company - at the lower level. Word is the seller could be mullet-loving founder Tim Martin, who decided to take a back seat last year by becoming non-executive chairman.

At the last count, he held about 31m shares, or 17% of the company. But his decision to back off from the day-to-day running of the business raised questions about the future of Wetherspoon and whether it would be bid for or be taken private again.

Three years ago, the company was converting old High Street banks into pubs at a rate of knots, and was enjoying phenomenal growth. The shares then trading at a peak of 440p. After that, Wetherspoon lost some of its momentum then rocked the City with a profit warning, which has been reflected in the share price.

The wider market today extended its recordbreaking run, reaching a new three-year high. But Wall Street opened a touch lower for choice in early trading this afternoon. London's FTSE 100 index rose 10.1 to 5082.1. Musicmaker EMI shaded ½p to 249¼p. US investment bank JP Morgan remains bearish and has repeated its underweight rating following the recent profits warning from rival Sanctuary.

It points out EMI and Warner Music have failed to guide on the performance of the recorded music market during the current year, and argues the evidence is growing that pressures are increasing. The warning from Sanctuary highlighted the increasing reliance on releases from a small number of key bands. Sanctuary slid 2p to 23¾p.

Chrysalis slumped 11p to 146½p following a trading update. Broker Bridgewell Securities says radio revenues are down by 14.5% with a similar outlook for June while July and August are difficult to predict. It also warned the slowdown in consumer spending will have an impact on the books division.

Reuters firmed 2¾p to 398½p after broker Credit Suisse First Boston repeated its outperform rating and 510p target. ITV was ¼p higher at 115¾p after a parcel of 7.1m shares went through at 115p.

Aim-listed SR Pharma was suspended 1p cheaper at 26p at the company's request ahead of an announcement relating to the reverse takeover of Atugen, a biotech company based in Berlin.

Atugen has focused on developing therapeutic molecules that it hopes can be developed to treat various cancers. Shire Pharmaceuticals, which soared to the top of the leaderboard yesterday after Transkaryotic Therapies, the US company it is buying, came out with some positive test results, came off the boil dipping 10p to 617½p.

Transkaryotic is developing a drug to help cure Hunter Syndrome, a disease that attacks the central nervous system. Sinclair Pharmaceuticals, up 3p at 125p, says its dermatitis treatment Atopiclair has been launched in the US after positive trial results.

Chief executive Michael Flynn said: 'We expect Atopiclair to be one of our most important revenue drivers over the next three years, and the launch of our biggest product to date in the biggest market is a very significant event for us.'