Market report: Wednesday close

DRUGS giant

Dealers say the move takes it head-to-head with US rival Pfizer's Viagra in its own backyard. They fear GSK will have its work cut out making inroads into Viagra's dominant position. In addition, Eli Lilly-Icos launches impotence treatment Cialis later this year. Brokers say the Levitra news is already reflected in the share price. Rival AstraZeneca, which last week won FDA approval for its fatbusting drug Crestor, fell 68p to 2502p. It faces tough competition in the US, a market thought to be worth $20bn (£12.6bn) a year. Switzerland's Novartis has also launched a generic rival to AZ's ulcer treatment Losec.

The wider market struggled to stay above 4200 as investors reflected on yesterday's bombing of the UN headquarters in Baghdad. The FTSE 100 index fell 33.4 points to 4217.4. Wall Street opened lower this afternoon in response to poor numbers from computer giant Hewlett-Packard after the close of business yesterday.

Electrical retailer Dixons added 1 1/2p to 141 1/2p prompted by news that privately owned rival Powerhouse was in financial trouble. It was later confirmed to have called in the receiver. Broker Credit Suisse First Boston has upgraded Dixons from neutral to outperform and raised its target from 135p to 160p.

Personnel services group Hays was static at 116p on turnover of five million shares amid whispers a large line of stock was overhanging. CSFB has raised its target price from 110p to 130p and lifted its earnings forecast for the next couple of years after results on Monday from Michael Page, down 5 1/2p at 153p. UBS has lifted its price for Hays from 99p to 105p. Reckitt Benckiser fell 15p to 1123p, also on talk of a large stock overhang.

Abbey National was shown as one of the biggest fallers in the Footsie, down 22 1/4p to 544 3/4p, after going ex-dividend.

Water utility Kelda fell 1/2p to 442 1/2p after Commerzbank cut from accumulate to reduce. It has also downgraded Severn Trent, off 2p at 663p, from accumulate to hold. Telephone directories group Yell does not appear to be short of admirers and rose 5 1/4p to 308 1/4p after a clutch of brokers sang its praises. Merrill Lynch has begun coverage with a buy rating, while US securities house Goldman Sachs has rated it outperform. Morgan Stanley says Yell combines solid cash flow generation in the UK with growth opportunities in the US. But it warns that margins may come under pressure. Merrill has set a target price of 340p, compared with last month's flotation price of 285p.

Retailer Beale slumped 4 1/2p to 80 1/2p after warning the hot weather had affected its profitability.

Bullion Resources returned from suspension on AIM, 1/2p better at 6 1/2p. The shares were frozen in April because of 'operational and construction' problems. Bullion came to AIM in June 2002 following a placing at 40p.

Fellow AIM member Sportingbet slid 1p to 29p. Major shareholder David Cowham has sold two million shares, reducing his stake to 4.5m, or 2.17%. Alkane Energy was suspended at 13.62p after interim pre-tax losses surged from £113,000 to £20.1m.

Prices and indices in this section are supplied from various sources and calculated at different times and may not always match those listed on the site.