Oil fears drill hole in Expro

THE market never takes prisoners. So those obviously very well informed investors who baled out of

Expro warned of lower-than-expected earnings in the second half. Major oil customers have applied the brakes on drilling projects because of global economic and political uncertainties. So earnings will be about 50% down on the 13.8p a share reported in the first-half.

Expro said its Gulf of Mexico operations had been hurt with customers deferring development projects and curtailing well operations. Shop broker Cazenove downgraded from 'buy' to 'hold' and slashed its 2003 earnings forecast by 26% and next year's by 29%. Wood Group, also heavily exposed to the Gulf of Mexico, lost 11p to 145p in sympathy.

Northern Ireland drugs company Galen looked a picture of health at 337 1/2p, up 34 1/2p. Buyers dosed up with stock after its acquisition of Pfizer's women's healthcare portfolio for £225m. It includes two oral contraceptives (Estrostep and Loestrin) and femhrt, a hormone replacement therapy product.

Largely funded by debt, the deal raises Galen's profile in women's healthcare and follows its fairly recent £183m purchase from Eli Lilly of Sarafem, a treatment for women with severe period pain. Several analysts, who believed Galen had overpaid for Sarafem, appeared a lot happier about Thursday's acquisition.

Drugs giant GlaxoSmithKline firmed 7p to 1070p after Deutsche Bank added the stock to its core European focus list on the grounds that 'all the bad news had happened and is now in the price'.

As expected, UK interest rates were left on hold at 3.75% and eurozone rates reduced by 25 basis points to 2.5%. It all left dealers underwhelmed. The FTSE 100 traded between 27 points up and 37 down before closing 8.1 easier at 3555.4.

Wobbly Wall Street fell ahead of last night's press conference by President Bush on the Iraq situation and today's report by UN weapons inspector Hans Blix. Disappointing US weekly jobless claims data - up 12,000 at 430,000 in the week ended 1 March - did not bode well for today's crucial non-farm payroll (employment) numbers. Sterling held at $1.60, as did the euro at 68.5p and $1.0993.

Life assurer Old Mutual lost 6 1/4p to 74 1/4p. Market-makers took evasive action after hearing that it wants to raise £36m in a placing arranged by Merrill Lynch International. In this market? At what price?

Thirsty punters chased Whitbread a further 12 1/2p higher to 540 1/2p. With Hugh Osmond gunning for Six Continents (3p cheaper at 604 1/2p), they are convinced the Travel Inn and David Lloyd leisure sports club group will be the next targets for a break-up bid.

Confirmation that Irish horse racing magnates John Magnier and JP McManus have increased their holding in Manchester United from 8.6% to 10.4%, or 26.9m shares, left the world's richest football club at 129p, down 3p. Now the club's biggest shareholders via their joint vehicle Cubic Expression, the Irishmen repeated that the stake was purely 'an investment'.

Hoping it will enjoy a lucrative Cheltenham Racing festival next week, bookmaker William Hill cantered 5 3/4p forward to 220 1/4p.

Wholesale broking company ICAP rose 18 1/2p to 887 1/2p on talk of an imminent bullish pre-close trading statement. Aim-listed Bristol & West, the bridging loan expert, gained 3/4p to 7 1/4p after saying trading in the current year is on course to meet expectations for profits and dividends.

Electronic equipment group Volex blew a fuse, closing 32 1/2p down at 72 1/2p, following a profits warning. There has been a greater-than-expected decline in its traditional markets, particularly telecoms and data.

Revived bid gossip lifted engineer Morgan Crucible 1 1/2p to 39 1/2p. Senior advanced 2 1/4p to 24p on recovery hopes after results.