LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
FTSE 100 - WINNERS
Anglo American, up 6.5%. The Anglo-South African miner said its Rustenberg Platinum Mines Ltd arm has entered into a deal to sell the Rustenberg mine and concentrating operations in South Africa to Sibanye Gold Ltd. Anglo said it has sold the stake for at least ZAR4.5 billion, or about GBP215.6 million at current exchange rates. The miner's share price rise also was benefiting from expectations that further stimulus measures will be launched in China, which helped miners up across the board. Joining Anglo, Glencore shares were up 4.4%, BHP Billiton was up 4.1% and Rio Tinto was up 3.5%.
Hargreaves Lansdown, up 4.8%. The fund supermarket reported a 6% drop in pretax profit as margins came under pressure, with the fall attributed to the fund supermarket's move to cut charges for clients, lower interest margins on client cash and lacklustre stock markets, but hiked its dividend to 33 pence per share from 32 pence. Net revenue, a closely watched measure of year-on-year comparative performance, increased by 0.8% to GBP294.2 million from GBP291.9 million. The increase in net revenue was due to a rise in assets under administration to GBP55.2 billion from GBP46.9 billion over the year, net new business inflows of GBP6.1 billion, 84,000 new active clients and transaction volumes.
FTSE 100 - LOSERS
GlaxoSmithKline, down 1.3%. The drugmaker and partner Theravance Inc late on Tuesday announced the initial results from the Study to Understand Mortality and MorbidITy, or SUMMIT, trials conducted on the Relvar/Breo Ellipta drugs for the treatment of chronic obstructive pulmonary disease (COPD). Glaxo said the risk of dying taking the drug dose was 12.2% lower than on placebo over the study period, which is not statistically significant and therefore meant the drug did not meet its primary endpoint. The treatment also missed two secondary endpoint goals.
FTSE 250 - WINNERS
Foxtons Group, up 3.5%. The London-focused estate agent was upgraded to Neutral from Sell by Goldman Sachs in a wide-ranging note on the housebuilding and property industry published by the investment bank. Housebuilder Crest Nicholson Holdings also benefited from the note, with Goldman upgrading the company to a Conviction Buy from Neutral and raising its price target to 790 pence from 590 pence. Crest Nicholson was up 3.3%.
FTSE 250 - LOSERS
Entertainment One, down 4.1%. The media company said it traded in line with its expectations in its first quarter, seeing revenue rise 1% on a reported basis, driven by a strong performance in its Television segment that offset a weaker performance in Film. The company said its full-year underlying earnings continue to be in line with its expectations, although it cautioned that its reported revenues and earnings remain subject to continued pressure from the appreciation of sterling.
Virgin Money Holdings, down 4.0%. American investor Wilbur Ross is understood to have launched a sale of shares in the bank, Reuters reported. WL Ross & Co was said to be selling up to 45 million shares in Virgin Money via accelerated bookbuild, representing approximately 10% of Virgin's shares. WL Ross's representative on the Virgin Money board, James Lockhart, is to stand down on completion of the sale, the report said.
MAIN MARKET AND AIM - WINNERS
Trackm8 Holdings, up 4.9%. The telematics company said trading has started well in its current financial year and said its order book has improved year-on-year. Executive Chairman John Watkins, speaking ahead of the annual general meeting, said the company's orders in the first five months of its financial year to March 2016 were up 19% year-on-year, following a solid trading performance. Organic growth in the first five months has been strong and early sales of DCS cameras, following the acquisition of the company in June, have been in line with expectations.
MAIN MARKET AND AIM - LOSERS
Monitise, down 25%. The payments services company said Elizabeth Buse has resigned to return to the US just months after the former Visa executive was named its sole chief executive, as Monitise also reported a significantly larger loss in its recently completed financial year. Monitise said it made a GBP227.4 million pretax loss in the year ended June 30. That widened from the GBP63.4 million pretax loss reported for the prior financial year, as Monitise recognised GBP94.3 million in impairments. Monitise said it does not expect revenue growth in the new financial year. However, the company expects operating costs to continue to fall, primarily due to cuts to the workforce, lower IT costs, exiting non-core geographies, and "property rationalisation".
Goals Soccer Centres, down 21%. The five-a-side football centre operator reported growth in profit in the first half of 2015, but revised its guidance for the full year as it faced tough trading conditions in the UK which it said have continued into the second half of the year. UK sales declined 1% due to adverse weather conditions, while US sales demonstrated strong growth of 22%. Goals added that sales for the first nine weeks of the second half remained challenging in the UK, with like-for-like sales over the summer holiday period declining by 10% as it faced a tough comparable period last year which included the football World Cup and due to a significant increase in both league and casual teams cancelling over the holiday period.
Reach4Entertainment, down 12%. The company, which provides advertising, marketing and other services for the theatrical, film and live entertainment industries, reported a fall in pretax profit for the first half of 2015 as the theatre market returned to a more "normal" level after an "exceptional" 2014, and said it is trading in line with its expectations for the full year. For the half year to end-June the company posted a pretax profit of GBP52,000, down from GBP709,000 a year before, as a rise in revenue to GBP42.5 million from GBP41.5 million was offset by a rise in administrative costs, and exceptional costs of GBP264,000 related to one-off property expenses, redundancy costs and charges associated to the company's refinancing.
By Sam Unsted; firstname.lastname@example.org; @SamUAtAlliance
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