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STOCKS NEWS UK-Axis-Shield falls on disappointing outlook

STOCKS NEWS Reuters Results diary Europe Real-time Equity News UK Stocks on the move UK smallcaps UK smallcaps news 11:02GMT 10May2010-Axis-Shield falls on disappointing outlook ------------------------------------------------------------ Shares in Axis-Shield shed more than 20 percent to a new year-low after the medical testing company says revenue for the 18 weeks to April-end was lower than its estimates, and if business continued to be slow throughout 2010, profitability would fall short of its expectations. "The flu season has been relatively weak this year and this appears to have persisted, contributing to weakness in the group's CRP testing volumes," analyst Chris Glasper at Brewin Dolphin says, cutting the stock to "hold" from "buy". For more please click on Reuters messaging rm://aditi.samajpati.reuters.com@reuters.net 09:48GMT 10May2010-Dignity gains after update --------------------------------------------- Shares in Dignity gain more than 4 percent after the British funeral home and crematoria firm issues a first-quarter trading update, with Panmure Gordon repeating its "buy" rating and 872 pence target price. Panmure says in a note the firm continues to deliver a "very solid performance", with revenues some 5 percent ahead of its forecasts and underlying EBIT ahead 2 percent. "With in excess of 40 percent upside to our unchanged target price, the shares remain firmly in Buy territory with Dignity a very good stock to own in uncertain times," the broker says. For the 13 weeks ended March 26, the company posts an operating profit of 20.4 million pounds ($30.2 million), excluding a gain on sale of fixed assets.

Revenue grew 2 percent to 53.9 million pounds. Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net 09:14GMT 10May2010-Interserve rises after update ------------------------------------------------ Shares in Interserve rise 3.6 percent after the British maintenance firm issues a trading update, with KBC Peel Hunt repeating its "buy" rating on the stock. Interserve says fresh Middle East contract wins and good demand for its project services from the UK public and utilities sectors have boosted trading and it sees the full-year in line. But it says conditions in its Specialist Services and Equipment units remain tough, and it expects a more pronounced second half weighting to profits. "Conditions remain mixed but shares are attractive on 8.7 percent forward yield," KBC says in a note. "However, we recognise that the current UK political concerns imply there may be better buying opportunities." Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net 09:09GMT 10May2010-African Eagle up on positive drill results ------------------------------------------------------------- Shares in African Eagle rise 14.3 percent after the exploration and development company reports positive drilling results at its Ngasamo Hill deposit, which it expects to significantly add to the resource base at its Dutwa project in Tanzania. "The final set of assays from the first drill programme at the company's Ngasamo nickel prospect have maintained the positive trend seen in previous batches," says Seymour Pierce, which reiterates its "buy" recommendation. For company statement, please click on Reuters messaging rm://shivani.singh.thomsonreuters.com@reuters.net 08:26GMT 10May2010-Capital Shopping up after demerger ----------------------------------------------------- Shares in shopping mall-oriented real estate investment trust Capital Shopping Centres Group, the renamed Liberty International, add 4.2 percent following the group's completion of the demerger of Capital & Counties, its Central London commercial property arm. Capital Shopping Centres' shares are trading at 363.5 pence each, while Capital & Counties shares change hands at 112 pence in preliminary "when issued" trading. Liberty International shares ended trading at 451-1/2 pence on Friday. Post-demerger, Capital Shopping Centres has a property portfolio worth 5 billion pounds, while Capital & Counties Properties portfolio is 1.24 billion pounds. Liberty International is the first UK REIT to split its business along these lines, after sector leader Land Securities abandoned a similar plan in late 2008 due to turbulent market conditions. Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net 07:56GMT 10May2010-UK small caps up 1.6 pct in early trade ---------------------------------------------------------- The FTSE Small Cap index adds 1.6 percent in early trade, rebounding after sharp falls last week, but underperforms much bigger rallies by the FTSE 100 and FTSE 250 indexes, up 4.5 and 4.9 percent respectively, after global policymakers agree a $1 trillion financial stability package. Rockhopper Exploration is a top small cap riser once again, up 33 percent after the Falkland Islands-focused oil explorer says initial results of logging at its prospective Sea Lion Exploration Well 14/10-2 continue to indicate a good quality reservoir. Rockhopper shares have surged 416 percent in the three sessions since the firm's announcement on May 6 that it had made an oil discovery in the North Falkland basin. Axis-Shield drop 18.1 percent after the medical testing company says revenue for the 18 weeks to April-end was lower than its estimates and that if the business continued to be slow throughout 2010, profitability would fall short of its expectations. Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net 07:23GMT 10May2010-Rockhopper up on further positive well data -------------------------------------------------------------- Shares in Rockhopper Exploration surge 36 percent in early trade after the Falkland Islands-focused firm says initial results of logging on its prospective Sea Lion Exploration Well 14/10-2 continue to indicate a good quality reservoir. The data suggests the oil is movable, the well is free of water contacts and water sands, and there is the possibility of two separate oil columns, it says. Analyst Oriel Securities says the update is "further encouraging news and continues to derisk the discovery", and reiterates its "buy" recommendation. To see Rockhopper's statement please click on Reuters messaging rm://simon.jessop.reuters.com@reuters.net Keywords: MARKETS UK STOCKSNEWS/ Shares in Axis-Shield shed more than 20 percent to hit a new year-low after the medical testing company says revenue for the 18 weeks to April-end was lower than its estimates, and if business continued to be slow throughout 2010, profitability would fall short of its expectations. "The flu season has been relatively weak this year and this appears to have persisted, contributing to weakness in the group's CRP testing volumes," analyst Chris Glasper at Brewin Dolphin says, cutting the stock to "hold" from "buy". For more please click on Reuters messaging rm://aditi.samajpati.reuters.com@reuters.net Keywords: MARKETS EUROPE STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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