Yesterday's trading in London

IF you're a sports fan, it's no contest. You have to subscribe to Sky TV. What other channel covered England's first Test match cricket series victory in the West Indies for 36 years?

Its Premiership football coverage remains second to none and, as far as every sports buff is concerned, the near-£500 a year it costs to access Sky's premium services is money well spent.

BSkyB has fallen 6% since the start of the year on worries about the thirdquarter results on 12 May. A recent survey suggested that it may only have added a net 45,000 subscribers in the quarter, which is about half the run rate needed to achieve its 8m subscriber target by the end of 2005.

The stock rallied 14 1/2p to 675 1/2p as broker JP Morgan yesterday upgraded to overweight from neutral. It reassured investors that worries about subscriber growth have been overdone. It is confident that Sky will manage to hit its 8m target on time. New deals with cable operators should encourage sales of Sky premium channels.

Morgan believes that Freeview and Top-Up TV, the pay-TV service launched on Freeview on 31 March, do not pose a threat to Sky, but demonstrate demand for low-cost, multichannel TV.

Interest in other blue chips was at a low ebb as fund managers kept their powder dry ahead of today's decision on UK interest rates. Economists are divided on whether the Bank of England will raise rates from the current 4%. The approaching long Easter holiday weekend also stifled investment enterprise.

The Footsie lost a 27-point gain to finish 4.1 points lower at 4468.7. Wall Street slumped 99 points initially following a profit warning from disk drive maker Seagate and after Alcoa, the world's biggest maker of aluminium, reported disappointing first-quarter figures.

Sterling firmed to $1.8428, while the euro improved to 66.1p and $1.2188.

Boots closed a healthier 17p up at 641 1/2p. Investec turned positive following an upbeat conference call with management. Other retailers drifted lower on fears that a rise in interest rates will curb consumer spending.

Currys-to-PC-World group Dixons lost 7 1/4p to 146p, Kingfisher 9 1/2p to 279p and Next 35p to 1362p. Retailer HMV slipped 11p to 203 1/4p on talk of a pending bearish circular.

Drinks group Diageo fizzed 16 1/2p to 734 1/2p after a Cazenove recommendation and target price of 820p. ABN Amro advised a switch out of Scottish & Newcastle, 1 1/2p off at 411 1/2p.

As JD Wetherspoon, one of Britain's biggest pub chains, backed calls for a total smoking ban in all public houses by 2006, tobacco stocks succumbed to persistent selling. Remember, Ireland has forced smokers to stub out cigarettes in all bars and restaurants.

Imperial, the world's fourth-largest cigarette firm, fell 60p to 1160p. Gallaher lost 19 1/2p to 632p and Bats 19 1/2p to 804 1/2p.

Aim-quoted recruitment company Hot Group held at 21p following acquisition news. It has bought ASA Ltd and Mark Education in cash-and-share deals worth £9.7m, financed by a placing and open offer of 52.6m shares at 19p per share, underwritten by Numis.

Engineering machinery group Tandem, the former Comeleon, jumped 1/2p to 16p on news of an order worth £1.63m for the defence sector.

Aim newcomer Titan Europe, the large steel wheel maker, advanced from the placing price of 125p to close 11 1/2p up at the day's best of 136 1/2p.

Suspended at 1.15p, up 0.20p, Setstone is one to watch. SHG Golden & Silver Ltd, which owns mineral resources in Kyrgyzstan, is being reversed into the company and dealers expect plenty of upside.

Cluff Mining buckled at 91 1/2p, down 12p. A placing of 18.5m shares at 70p raised £12.1m which will help to fund further exploration on South African projects and begin the pre-feasibility study at Sheba's Ridge.

Premiership football club Aston Villa improved 2p to 287 1/2p on hearing that property entrepreneur Jack Petchey has increased his stake from 16.64% to 17.17% via Trefick, his Isle of Man investment vehicle. Villa recently rejected a bid from a consortium led by former Manchester City full-back Ray Ransom.

THE ban on drivers using mobile phones in transit put Armour Group in the fast lane. It is the UK leader in telemute leads, used by the main mobile networks when installing hands-free car kits. More than 2m kits have been fitted, helping interim pretax profits to jump to £1.3m from £368,000, on turnover up from £6.9m to £13.8m. Analysts forecast £3.1m for the full year. Shares eased 1/2p to 80p. Cheap.