MARKET NEWS: FTSE 100 5915.91 54.91 0.94% FTSE 250 11889.68 53.69 0.45% DJ UK Small-Cap TSM Index 3569.05 +18.84 +0.531% London Stocks Start Strong 0720 GMT [Dow Jones] FTSE 100 starts higher with positive corporate news and stronger commodity prices bolstering the index. Real estate companies are leading the gains after Land Securities reports a 15% increase in full-year pretax profit. Rivals follow suit with British Land up 3.6% and Hammerson rising 3.5%. Basic Resource stocks are also advancing on the increase in commodity prices: Eurasian Natural Resources +3.9% and Kazakhmys +2.7%. On the data front, the minutes of the Bank of England's latest interest rate meeting, along with the UK unemployment rate, are due at 0830 GMT. In the US, the Fed's meeting minutes are due 1800 GMT. TOP STORIES: BP, Conoco Scrap $35 Billion Alaska Natural-Gas Pipeline A BP PLC (BP, BP.LN) and ConocoPhillips (COP) joint venture said Tuesday that it is scrapping a $35 billion Alaska natural gas pipeline project because of weak customer demand and poor project economics. Land Securities' Net Assets Rise, Sees Strength In London LONDON (Dow Jones)--The U.K.'s largest real-estate investment trust Land Securities PLC (LAND.LN) Wednesday posted a 15% increase in full-year pretax profit and announced a rise in its net assets, adding that the company is experiencing a recovery in property markets, especially in London. COMPANIES NEWS: Xstrata Plans To Phase Out Copper Smelting At Australia's Mount Isa SYDNEY (Dow Jones)--Anglo-Swiss mining giant Xstrata PLC's (XTA.LN) Xstrata Mount Isa Mines plans to phase out copper smelting at Mount Isa and refining operations at Townsville by the end of 2016, citing challenging market conditions for those businesses as a result of global overcapacity. Segro Appoints Speedy Hire's Justin Read As Finance Director LONDON (Dow Jones)--Europe's largest industrial landlord Segro PLC (SGRO.LN) said Wednesday it has appointed Justin Read as its finance director, a position he has held at Speedy Hire PLC (SDY.LN) since 2008. ICAP Fiscal Year Profit Up 61% On New Services, Volatility LONDON (Dow Jones)--U.K. interdealer broker ICAP PLC (IAP.LN) Wednesday posted a strong 61% rise in fiscal 2011 net profit with the help of new services and a rise in trading activity due to volatile markets, and said this continuing volatility will help it grow its business in the near term. African Consolidated Resources Finds More Gold At Gadzema LONDON (Dow Jones)--Mining company African Consolidated Resources PLC (AFCR.LN) said Wednesday it has discovered more gold at the Gadzema Gold Project in Zimbabwe, giving it confidence that the project's current resource estimate of 746,000 ounces will be raised. BROKER COMMENTS: Interserve Risks To Downside -Investec 0729 GMT [Dow Jones]--Interserve (IRV.LN) highlights that trading during the year to date is in line with expectations of a stable performance versus 2010, notes Investec. However, the risk is still to the downside, says Investec, given the high construction and public sector content. Keeps its forecast of a decline in profits in 2011, but notes that the company's valuation metrics are undemanding. Has a hold rating, and a 265p target. Shares rise 2.6% to 301p, in a positive market. ICAP Points To Good Start To Current Year -Oriel 0725 GMT [Dow Jones] ICAP's (IAP.LN) outlook statement points to a good start to the current financial year, say analysts at Oriel Securities, noting the company benefits from increased trading activity amid macroeconomic stress and continuing volatility. Says financial results send "a positive signal", with FY revenues up 8%, pretax profit up 4% and dividends up 14% - all at the higher end of range of forecasts. Keeps buy rating and target price of 650p. Shares up 1.1% at 496p. Compass 1H Sales, Net Income Above Forecast 0725 GMT [Dow Jones] Compass Group's (CPG.LN) 1H sales and net income come in above expectations, says Guardian Stockbrokers noting the group maintains earnings forecast for the year and raises its dividend. The 1H update is reassuring, says the brokerage. "These acquisitions are expected to increase activity and lead to earnings upgrades," says Guardian. "We are seeing evidence of organic growth in a tough environment and once we see a pick up in the North American business we look for an upside target of 650p [on the shares]." Shares +0.2% at 580p. UBS Initiates Aer Lingus At Buy 0711 GMT [Dow Jones] UBS initiates Aer Lingus (EIL1.DB) at buy with a target of EUR1.20. Says its valuation of the stock is at the lower end of consensus forecasts. Notes Ireland, subject to economic austerity measures, has seen a decline in airline passenger numbers. Still, "the Irish economy should grow slightly in 2011, which may mean passenger numbers have troughed," it says. "Furthermore, the company's "value carrier" strategy and its greenfield cost-saving initiatives are starting to pay dividends." Shares unchanged at EUR0.84. Amec's New Deal Gives Scale And Presence-Shore 0656 GMT [Dow Jones] Amec's (AMEC.LN) acquisition of MACTEC - a US engineering and environmental services company - gives the company significant scale and presence in the environmental and infrastructure engineering services market, says Shore Capital. MACTEC employs circa 2,600 people across 70 offices which are mainly in the eastern part of the US, and as of December 31, 2010, MACTEC's gross assets were $283 million and its EBIT for the year was $32 million. "We reiterate our buy recommendation on AMEC, believing its strong balance sheet will continue to present opportunities such as this to expand its global reach, acquire and integrate new skills and enhance its earnings," adds Shore. Shares closed Tuesday at 1151p. Citigroup Cuts Enterprise Inns Target Price 0654 GMT [Dow Jones] Citigroup cuts its target price on Enterprise Inns (ETI.LN) to 90p from 109p, with a hold recommendation, following a "disappointing lack of improvement in trading." FY '11 like-for-like sales forecast also falls to show a drop of 3% from the previously expected drop of 2%, resulting in a cut in FY '11 EBIT forecast to GBP356M from GBP367M. Managed operators, such as Mitchells & Butlers (MAB.LN), or special situations, such as Punch Taverns (PUB.LN) represent better sector plays, says Citi. Enterprise shares closed Tuesday at 85.3p. Shire Deal is "Transformational" - Matrix 0652 GMT [Dow Jones] Shire's (SHP.LN) agreement to buy Advanced BioHealing for $750 million is a transformational deal that will allow it to enter new markets, says Navid Malik, an analyst at Matrix. He considers the acquisition will allow the company to expand beyond Advanced BioHealing's core diabetes treatment market and also provides the company with important manufacturing capabilities. Matrix continues to rate Shire stock a buy, but is placing the price target under review. Shares closed at 1900p on Tuesday. Citigroup Lifts ENRC To Buy 0651 GMT [Dow Jones] Citigroup upgrades Eurasian Natural Resources Corporation (ENRC.LN) to buy from hold, saying everything has a price and the company's shares now offer value. Both investor and consensus expectations are low and their appreciation of the risks in the company is now more realistic, says Citi. Still, risks surrounding the sector are high, as prices are still on relative highs and global growth is starting to slow once more, particularly in China, Citi adds. 1000p target. Shares closed Tuesday at 806.5p. Interserve Confirms In Line Trading-Peel Hunt 0650 GMT [Dow Jones] Interserve's (IRV.LN) update confirms the group is trading in line with expectations, says Peel Hunt. Says that cash generation continues to be strong with further reduction in net debt. Adds the shares are trading on 7.5x December 2011 and 4.3x EV/EBITDA. Retains a sell rating on the stock, saying it sees better value elsewhere in the sector until there is a clearer trading picture from the group. Shares closed Tuesday at 294p. Experian FY Prelims A Positive Statement-Peel Hunt 0641 GMT [Dow Jones] Experian's (EXPN.LN) preliminary full year update is a positive statement with all financial objectives for the year met or exceeded, says Peel Hunt. Says the group's management expects another year of good growth, modest margin improvement and strong cash conversion, "although this will be variable quarter-on-quarter as comparatives get tougher." Shares closed Tuesday at 797p. Experian Beats Forecasts -Charles Stanley 0640 GMT [Dow Jones] Experian's (EXPN.LN) full-year earnings exceed market expectations, says Tony Shepard, an analyst with Charles Stanley. He says he expects the shares to rise at the open in view of the company's expectations for growth in the coming year. Adds that the company is now well positioned in South American market following its acquisition of a controlling stake in Colombia's Computec. Charles Stanley maintains its buy rating on the stock and its 800p target. Shares closed at 797p on Tuesday. Morgan Stanley Ups Essar Energy To Equalweight 0637 GMT [Dow Jones] Morgan Stanley upgrades Essar Energy (ESSR.LN) to equalweight from underweight following the news that there are no further delays power projects. However, says the company is still waiting for a decision on the coal blocks that are in 'no-go' areas. "The longer this is left, the longer Essar will have to rely on expensive coal linkages and international coal," it adds. Broker lowers target price slightly to 420p from 425p. Shares closed Tuesday at 425p.

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