Market report: Wednesday close

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The group, which tests the quality of telecom networks, dipped 2p to 68¾p after a seller unloaded 60m. They were placed in double-quick time with various institutional investors by US broker Citigroup at 69p.

Spirent has come up from a low of 47¾p since last summer after it returned to the black for the first time in three years. In November, it reported an increase in work from leading US telcos.

Share prices generally were in retreat, with the FTSE 100 index dipping back below 5000. The blue-chip barometer fell 7.7 points to 4992.8, unnerved by reports that a big US hedge fund had gone to the wall. That also led to falls in New York this afternoon.

Biofuels, which makes diesel fuels from ingredients such as rapeseed, stood out with a rise of 56p to 253½p after a bullish annual general meeting. The group expects operating profits of £30m a year from its first plant on Teesside. Not bad for a company valued at just £60m.

Matalan moved to quash City rumours that it may be the next retailer to rush out a profits warning in the wake of yesterday's shock alert from Boots, down 1p at 635p, which highlighted a dramatic slowdown in consumer spending.

The discount fashion retailer rose 2¼p to 233½p after assuring brokers it would match market expectations for full-year profits due to a solid increase in underlying sales and gross margins during its second half. Forecasts for the year just ended are unchanged, with pre-tax profits in line with a consensus estimate of £84m, the group said in a trading update.

During the 26 weeks to 26 February, total sales at the 183-strong chain increased 12.2%, taking the full-year figure to 12.6%. On a like-for-like basis, second-half sales were up 4.6% against a 6.2% decline. Full-year like-for-like sales growth was 4.5%.

The group is learning from its mistakes. At Christmas 2003, it was left holding large lines of unsold stock. These days, it clears stock as it goes along, doing without the need for 'distress' markdowns.

Matalan is still in talks to sell its Lee Cooper division after receiving an approach last October. This year Matalan has been tipped as a target for the likes of Wal-Mart/Asda, US retailer Target and Tesco, up 3p at 308½p. Matalan founder and chairman John Hargreaves holds 52% and is reckoned to be a seller at around 300p.

Housebuilder Country & Metropolitan leapt 29½p to 280½p on news of a bid approach. Word is the bid could come from rival Persimmon, down 14p at 774½p.

Business is booming at security printer De La Rue, up 17¼p at 400p, and that means profits for the full year should come in ahead of the current City consensus forecast of £55.5m.

The group continues to enjoy strong trading in the security paper and print division, thanks to new orders and the high level of 'overspill' work.

It was the first day of dealing on Aim for Castor Investments, a shell company backed by Barry Muncaster, the man behind BioProgress, down ½p at 75½p. It follows an introduction of shares in Castor - which will focus on acquisitions in the healthcare and lifesciences industry - by broker Teather & Greenwood at 5p. The price more than doubled to 10.25p.