More pain for media shares

LONDON - It was another gloomy day on the stock markets for advertising shares in London, as Reuters reported its first loss in almost 20 years, and New York opened to another shaky start.

WPP Group, owner of J Walter Thompson and the Burson-Marsteller PR network, saw another significant fall, down by 2.6% this afternoon to 446.5p, while Aegis Group, which owns the Carat media-buying network, fell by 4.6% to trade at 83.5p.

Even Cordiant Communications, usually the subject of takeover speculation once its share price reaches the low-70s mark, was only up by 0.7%, or 0.5p, trading at 74p.

Media shares were also down. Reuters, which today posted its first loss since it floated in 1984, saw its shares fall by 1.2% to 295.5p. Trinity Mirror, which has failed to make significant gains in circulation with its policy of slashing the cover price of the Daily Mirror, was down by 2.4% to trade at 360p. Pearson, owner of the Financial Times, was also down by 2.4% to trade at 537.5p this afternoon.

With the Dow Jones and Nasdaq indices both falling in New York when the market opened this morning, the US advertising companies also saw across-the-board declines. Grey Global was down by 0.57%, trading at $695, while the Interpublic Group of Companies fell by 0.65% to trade at $19.75.

Only Omnicom Group, owner of DDB Worldwide, managed to buck the trend, seeing its share price, already damaged by claims of irregular accounting practices, rise by 0.98% to $48.45.

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