- Ludowici issues overshadow impressive 2011 for Weir.
The Footsie lacked direction in the opening hour on Wednesday as investors hold out for the result of the European Central Bank's (ECB's) second longer term refinancing operation, to be announced later today. ITV and IAG led the risers early on, while Weir and a host of ex-div stocks weighed on the market.
Consensus expectations are for bank bids for the ECB's long-term refinancing operation (LTRO) worth €470bn in liquidity, with some analysts suggesting that anything over €400bn could elicit a positive reaction from equity markets.
At 09:45, Bank of England (BoE) Governor Mervyn King, Deputy Governors Charles Bean and Paul Tucker and external MPC member Adam Posen will appear before the Treasury Committee. In a speech last night the BoE Deputy Governor for Financial Stability, Tucker, said that easing regulatory constraints on banks in order to encourage lending and assist the economic recovery would be counterproductive.
Consultancy GfK's monthly index of consumer confidence remained at the -29 point level during the month of February, a seven month high. Consensus estimates has been for a small increase to -27.
ITV, IAG JUMP AFTER FULL-YEAR RESULTS
Terrestrial broadcaster ITV jumped over 7% after it shrugged off concerns about a subdued advertising market to achieve top-line growth and forecast-beating profits. External revenues were up 4% in 2010 to £2,140m from £2,064m in 2010, with the improvement driven by non-advertising revenues (NAR). Total non-net advertising revenues (non-NAR) jumped 11% to £922m from £829m in 2010, mainly due to revenue growth from the UK and international studios businesses.
British Airways and Iberia owner International Consolidated Airlines Group (IAG) reported a five-fold increase in pre-tax profit in the year ended December 31st, from €84m to €503m, respite a 29.7% increase in fuel costs.
Meanwhile, Asia-focused banking colossus Standard Chartered notched up its ninth successive year of record income and profit in 2011 and reckons it is in good shape to face whatever 2012 throws at it. The stock, along with banking peers Lloyds and HSBC, was making gains in early trading.
Leading the downside was Essar Energy, two days after reporting a sharp drop in full-year pre-tax profits.
Engineering giant Weir hit its 2014 profit targets early, after seeing adjusted pre-tax profits rise by a third in 2011, helped by record performances in its Minerals and Oil and Gas divisions. However, despite the strong performance, shares were down 3.5%, owing to the group's ongoing battles in its bidding war with Danish rival FLSmidth over the takeover of Australian mining equipment supplier Ludowici.
BHP Billiton and Diageo were among the fallers on the FTSE 100 after going trading without the right to its latest dividend. Meanwhile, Kier, Hays and easyJet were falling after going ex-dividend on the FTSE 250.
FTSE 250: INTERSERVE, NATIONAL EXPRESS IN DEMAND
Support services and construction group Interserve managed to increase profit despite tough conditions in construction markets in 2011. Gross revenue, which includes the company's share of associates and joint ventures, rose 0.2% to £2,430m in 2011 from £3,215m the year before.
National Express reported record annual profit and hiked its dividend after a stellar performance from its UK coach and US school bus operations. Pre-tax profit rose to £180.2m in the year ended 31 December 2011 from £97.3m the year before after growth in every division.
House builder Taylor Wimpey fell after reporting revenues and profits that came in shy of expectations.
FTSE 100 - Risers
ITV (ITV) 86.30p +7.20%
International Consolidated Airlines Group SA (IAG) 168.00p +2.94%
GKN (GKN) 225.40p +1.44%
Polymetal International (POLY) 1,083.00p +1.31%
Lloyds Banking Group (LLOY) 35.23p +1.13%
HSBC Holdings (HSBA) 565.50p +1.11%
Standard Chartered (STAN) 1,639.00p +1.05%
Schroders (SDR) 1,594.00p +1.01%
Serco Group (SRP) 553.50p +1.00%
Aviva (AV.) 373.30p +0.84%
FTSE 100 - Fallers
Essar Energy (ESSR) 108.70p -4.14%
Weir Group (WEIR) 2,129.00p -3.45%
BHP Billiton (BLT) 2,088.50p -1.46%
CRH (CRH) 1,323.00p -1.42%
Diageo (DGE) 1,488.50p -1.26%
WPP (WPP) 806.00p -1.10%
Ashmore Group (ASHM) 391.70p -0.96%
Rio Tinto (RIO) 3,695.00p -0.95%
Vodafone Group (VOD) 171.05p -0.75%
Bunzl (BNZL) 939.00p -0.58%
FTSE 250 - Risers
Interserve (IRV) 305.00p +4.45%
National Express Group (NEX) 228.40p +3.25%
Bodycote (BOY) 410.00p +2.50%
Cable & Wireless Worldwide (CW.) 27.90p +2.39%
International Personal Finance (IPF) 227.90p +1.65%
(ShareCast News) - Anglo-Australian miner BHP Billiton and its Brazilian iron-ore joint venture with Vale SA, Samarco Mineracao, have set a 30 June deadline with federal prosecutors in Brazil to settle a $47.5bn claim related to a dam failure in November 2015 which killed 19 people. [19 Jan '17 07:16]
(ShareCast News) - HSBC revised its target prices higher for the largest of the diversified miners, telling clients it now expected a decline in commodity prices to be less pronounced that it had previously foreseen. [16 Jan '17 13:54]
(ShareCast News) - Taking a more cautious view of the metals and mining sector into early 2017, JP Morgan Cazenove said it felt bulk commodities such as coal and iron ore would suffer, while precious metals offered scope for recovery. [14 Dec '16 09:44]
(ShareCast News) - Miners were higher, boosted by news that Chinese authorities would reduce polluting steel-scrap processing in 2017 and ahead of options declarations on the LME, on Wednesday. [7 Dec '16 15:42]
(ShareCast News) - Credit Suisse upgraded Rio Tinto to 'outperform' from 'neutral' and raised its price target to 3600p from 2750p, while simultaneously bumping down BHP Billiton to 'neutral' from 'outperform' with its price target raised to 1380p from 1300p. [7 Dec '16 08:59]
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