Gilts

The yield on ten-year gilts slipped below 4 per cent for the first time since January 2006, and December long-gilt futures hit a new contract high, rising £1.59 to £116.88, as investors flocked to safe-haven paper. A grim Federal Reserve report sparked worries. The ten-year gilt yield was down seven basis points at 3.968 per cent.

Rumour of the day

Concateno, the maker of drug-testing kit, which has hired UBS to study bid approaches received in July, was flat at 92p amid rumours that it is still in talks with trade buyers and private equity. Inverness Medical, its supplier, and Philips, are thought to be two suitors. Strong interest was reported in Concateno’s roadside drug test at a trade fair in Düsseldorf yesterday.

Deal of the day

Richard Scholes, director of paving slab maker Marshalls, bought 2,500 shares at 71.97p after its recent profit warning over delayed orders from industrial and commercial clients. His purchase, which follows those by two other directors earlier in the week, did not prevent the shares losing another 6¼p to 68½p. They were 260p at the start of the year.

Bet of the day

When stock markets are in disarray, it is unusual for a tobacco titan to lose significant value. However, since April 2008 Imperial Tobacco, down 52p at £15.27, has lost 31 per cent. Next Tuesday, Gareth Davis, chief executive, unveils annual results. Will they be better than expected? Cantor Index offers a December-based contract spread of £15.10-£15.17.

Tiddler to watch

Afren gained 2½p to 32¼p after it sold a 20 per cent stake in its Keta block off Ghana to Mitsui in return for it financing drilling at its Cuda well in the area, which began this week. It estimates that there are between 325 million and 642 million barrels of oil in the well. Tristone Capital has a “buy” note with a 130p price target.

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