Sell-off talk puts bounce into JJB

IT all started to go wrong for

Fearing it would distract management from its core sports retailing business, investors left in their droves. The shares dived from 410p to 150p and only began to show a return to form earlier this year when a miffed Whelan, who owns 40%, revealed plans to take the company private.

Independent directors put the kibosh on that last month, kicking his proposed £517m or 220p-a- share offer firmly into touch.

Sellers were again all over the stock like a rash but buyers reappeared on Thursday on the back of a bullish note from Investec. The close was 13 1/2p better at 203p. The broker upgraded from hold to buy following a preresults meeting with management.

It believes there is a strong possibility TJ Hughes will be sold in the short term for about £65m. That would wipe out debt and excess cash could be returned to shareholders. There is also potential for gross margins to be up to 1.5% higher in the second half, given high levels of markdown last year and better buying of promotional lines.

A 3 3/4p fall to 264 3/4p in J Sainsbury prompted renewed gossip that Sir Peter Davis's days as chief executive are numbered. The supermarket has been overtaken by arch-rival Asda in the supermarket league and has had its bid for 171 Somerfield stores referred to the Competition Commission. Sector number one Tesco eased 1 3/4p to 215 1/4p.

News that the US economy expanded at a 2.4% annual rate in the second quarter, poweredby consumer purchases and the biggest jump in defence spending since 1951, sent Wall Street soaring points in the early stages. London was seemingly unimpressed and the FTSE 100 closed just 15.8 points up at 4157.0. Sterling eased to $1.6088, while the euro traded lower at 69.8p and $1.1233.

A long list of company news kept dealers on their toes. ICI was easily the best performer, closing 31p higher at 171 1/4p following better-than-expected figures.

Drugs giant GlaxoSmithKline cheapened 9p to 1192p. Apotex Corporation received US Food and Drug Administration approval to market a generic version of GSK's antidepressant Paxil. Apotex is the US subsidiary of the largest Canadian- owned manufacturer of prescription drugs in Canada. The company expects to launch 'by early 2005 at the latest'. GSK followers expected a much earlier date for launch.

Bears scrambled to close their short trading positions and Capital Radio rebounded 19p to 494p following much better than expected RAJAR second-quarter audience figures. They showed that 95.8 Capital FM has reclaimed its number one spot with more listeners than any other station in London. Some 2.6m tune in each week, a 9% increase on the firstquarter. Its share rose from 8.1% to 8.9%. Chrysalis, which owns Heart FM radio, fell 1 1/2p to 208 1/2p. It is to sell its TV business for £50.8m cash and plans to return £8.4m to shareholders via a special dividend of 5p a share.

Punters saddled up at racecourse owner Arena Leisure and the shares galloped 2 1/2p ahead to 22 1/4p. Whispers suggest that it has received planning permission to develop the UK's first racecourse and casino, or Racino, on Wolverhampton racecourse. This will be done with joint venture partner Gala Group, one of the UK's largest gaming companies. Arena will build Racino and Gala will fit it out and operate it under a 25-year lease. It is expected to open in autumn 2004.

Aim-listed betInternet, the global online gaming company, jumped 3 3/8p to 9 1/8p. The number of customer accounts soared 140% to 57,000 last year and pre-tax loss was reduced to £130,000 from £1.98m. Bets made through its Isle of Man hub exceeded £1.2m a week for the first time.

Following a Nigel Wray recommendation on the tips.com website, London Bridge Software rose 8p to 56 1/2p. Software provider Raft International surged 7p to 23p on a bid approach.

Builder Heywood Williams collapsed 18p to 128 1/2p on a shock profit warning. Because scheduled improvements in its UK operations are not materialising and US markets remain depressed, it expects a £1.7m pre-tax loss in the first half compared with a £10m profit last time.