Oriental buzz helps build analyst support for WPP

LONDON - Advertising giant WPP enjoyed one of the biggest share price rises in London's FTSE 100 index yesterday after upbeat remarks from analysts.

Shares in the group, headed by chief executive Sir Martin Sorrell, climbed 18p during the day to 690.5p, a rise of 2.68%, following advice from Deutsche Bank to clients to build positions ahead of first-quarter figures, due on April 21.

WPP was further boosted by a report from ZenithOptimedia, the media buying and planning group, projecting 6% market growth internationally in 2006.

Publicity around the World Cup in Germany as well as market expansion in rapidly advancing economies such as Brazil and China were cited as reasons for predicted growth.

WPP acquired a majority share in promotional and merchandising firm Always in Shanghai in March, which added to its expanding interests in the Chinese market.

The purchase followed a slew of business ventures in China by WPP that include South China Market Research, Oracle, Newsun International and Media Care Communications among others.

Global finance experts Lehman Brothers estimates WPP draws about 12% of its revenues from Asia and that its agencies there have stronger market positions than many of its rivals.

EMI Group gained 2.8% to 257p amid the possibility of a merger with Warner Music Group, and Pearson, the Financial Times owner, climbed 2.36% to 781p. 

Today, however, WPP's gloss wore off slightly and its share price fell 1.16% to 682.5p.

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