Market report: Tuesday close

REUTERS was one of the biggest blue-chip losers today and word is the news agency and financial services information provider may have further to fall.

The argument for a recovery in its fortunes has driven the shares up from a low of 95 1/2p last year to 338 3/4p today, down 14p. The bears' case has been given credence by US securities house Morgan Stanley which reckons the rise has been overdone.

It has downgraded from overweight to equal weight, cut its 12-month target from 420p to 390p and warned clients the shares will look expensive for another two years.

This comes after it slashed its forecast of pre-tax profits from £408m to £353m, while trimming its 2006 estimate by 2% to £446m.

Reuters shares fell 30p last week alone, with the chartists saying they are a sell.

Share prices generally drifted lower with Wall Street expected to open lower this afternoon following its extended weekend break. London's FTSE 100 index fell

Vodafone drifted 1 1/4p to 117 3/4p with US securities house Goldman Sachs complaining the bears are 'kicking Vodafone's tyres'.

But outside of Japan, the mobile phone operator's performance remains strong. It says the City is focusing too much on Tokyo and not enough on strong growth in Europe. Goldman rates BT, down 2 1/2p at 195p, underperform.

Speculative buying has fuelled Abbey Nationalin recent weeks, but that has not impressed broker UBS which has downgraded from buy to reduce, while retaining a 430p target. Abbey, down 3 1/2p at 484 1/4p, has denied plans to sell its closed with-profits funds.

UBS remains neutral on another mortgage lender, Northern Rock, 9 1/2p cheaper at 694p but has cut its target from 840p to 800p.

Computercenter fell 8 3/4p to 358 1/4p after a presentation for institutional investors. Alternative Investment Market-listed 3DM Worldwide returned from suspension steady at 64 1/2p.

Plant Healthcare made its debut on AIM following a placing at 52 1/2p. It traded at 56p.

Plant hire group Ashtead cheered everybody after returning to the black with pre-tax profits of £7.6m, way and above the £1m pencilled in by the market.

Much of the improvement came from its US division which helped produce profits of £3m in the last quarter alone. Broker Investec expects the share price, up 6 1/2p at 34 1/4p, to hit 56p.

Recruitment consultant Michael Page fell 8 3/4p to 171p after reporting a 14% rise in first-half revenue to £100m. The UK was up 21% but was offset by a poor return in Europe, its second-biggest market.

Retailer Kingfisher rose 3 1/4p to 287 1/2p after Merrill Lynch repeated its buy rating saying trading at French division Castorama has been strong.

Woolworths, which was split from Kingfisher, was 1/4p lower at 44 but UBS says the shares are still a buy and has raised its forecast from 51p to 54p.

AGA Foodservices rose 10p to 233p after saying it expects interim pre-tax profits to be ahead of the £14.8m in the corresponding period last year.

Miners were marked higher after positive comments on the sector from broker Merrill Lynch and rival Investec Securities. Investec's favourite play remains Rio Tinto , up 1p at 1322p. Xstrata slipped 6p to 719p, with BHP Billiton 2 1/2p lower at 479p and Anglo American 21p lower at 1090p.

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