ACT.L Share News (ACT)

LONDON (Alliance News) - Shares have opened higher in London Tuesday, with the FTSE 100 index led by resources companies and by supermarket chain J Sainsbury.

The index earlier had been called to open lower, then flat, as the day's prognosis improved. Energy-related stocks had been amongst the worst performers in the FTSE 100 on Monday.

Sainsbury's shares are up 1.5% at the open, despite reporting a drop in sales in the fourth quarter of its financial year. The grocer said total retail sales were down 0.3% excluding fuel in the 10 weeks to March 14, and down 2.7% including fuel.

While Tullow Oil, BG Group, BP and BHP Billiton, among other oil firms and miners, lead FTSE 100 gainers, miner Antofagasta is the biggest early faller in the blue-chip index, down 2.1%.

Antofagasta reported lower 2014 earnings, as expected, as revenue was hit by a drop in copper prices, and it cautioned that copper prices are set to remain volatile this year and it's keeping its dividend policy under review while it tries to resolve issues at the Los Pelambres mine in Chile.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.6% at 6,842.13
FTSE 250: up 0.2% at 17,238.10
AIM ALL-SHARE: up 0.2% at 717.33
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Hang Seng: closed down 0.2% at 23,901.49
Nikkei 225: closed up 1.0% at 19,437.00
DJIA: closed up 1.3% at 17,977.42
S&P 500: closed up 1.4% at 2,081.19
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GBP-USD: down at USD1.4805
EUR-USD: up at USD1.0603

Crude oil prices tumbled to their lowest in six years in US trading Monday amid speculation that stockpiles will continue to build in the US and elsewhere. A strong dollar as well as higher production from Libya and Iran are also weighing on crude prices. Iran is making progress in talks with on its nuclear program, according to reports. Iran is expected to boost output if sanctions are lifted. US crude futures settled down 96 cents at USD43.88, having touched a 2009 low below USD43 earlier in the session.

GOLD: down at USD1,154.48 per ounce
OIL (Brent): down at USD53.65 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times in GMT)

10:00 EU Consumer Price Index
10:00 EU Employment Change
10:00 Germany ZEW Survey
10:00 EU ZEW Survey
12:30 US Housing Starts and Building Permits
12:30 Canada Manufacturing Shipments
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The Bank of Japan kept its massive stimulus unchanged and cautioned that inflation may slow to about zero percent. In a statement, the BoJ announced that the policy board headed by Governor Haruhiko Kuroda decided by an 8-1 majority vote to maintain the size of quantitative and qualitative easing. The bank will continue to raise the monetary base at an annual pace of about JPY80 trillion. The BoJ maintained its overall economic assessment by repeating that the Japanese economy has continued its moderate recovery trend.
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The House of Lords European Union Committee called for a ministerial conference of North Sea countries to ensure a "holistic approach is developed to managing the environmental challenges and economic opportunities of the North Sea." The Committee, which scrutinises the UK government’s policies and actions in respect of the European Union, said the conference "must deliver the urgently needed strategic and political vision to sustain the North Sea and secure it for future generations." The call for a wider cross-border approach to boosting investment in the North Sea comes after the Oil and Gas Authority, UK Chancellor of the Exchequer George Osborne, and industry body Oil and Gas UK all separately said measures to support the North Sea oil and gas industry were required in the aftermath of the recent sharp drop in oil prices.
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The foreign ministers of Germany, France and Britain stressed their determination to work for a deal on Tehran's nuclear programme, following talks in Brussels with their Iranian counterpart Mohammad Javad Zarif. Negotiations to curb Tehran's ability to develop a nuclear weapon have entered a crucial phase, with Iran and six world powers stepping up the diplomatic pace this week to reach a framework deal by the end of March. The agreement foresees allowing Iran to enrich uranium as reactor fuel only under tight international controls. In return, economically stifling sanctions on Tehran will be lifted.
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The president of the European Parliament, Martin Schulz, welcomed the participation of EU countries in a new China-based development bank for Asia. "I think participation is good. The more countries take part, the better," the German politician told reporters during a visit to Beijing. Last week, Britain said it would seek to be a founding member of the Asian Infrastructure Investment Bank, designed to fund projects such as new roads and telecommunications networks in the region. France, Germany and Italy have also agreed to join the bank, according to European officials quoted by the Financial Times. The US has expressed concern over the transparency of the China-led AIIB, which is seen as a rival to the US-based World Bank or the Asian Development Bank, which is dominated by Japan.
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Polling stations opened across Israel on Tuesday as nearly 5.9 million eligible voters were called to elect a new parliament. The more than 10,000 polling stations were due to close at 10 pm local time, with exit polls expected to be published soon after. Of the 25 parties and lists running in the election, about 11 are expected to make it past the 3.25% threshold and send lawmakers to the Knesset. The Zionist Camp, a centre-left alliance led by Labour Party leader Isaac Herzog and former justice minister Tzipi Livni, has been leading the polls ahead of Prime Minister Benjamin Netanyahu's right-wing Likud.
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Brazil President Dilma Rousseff signalled her readiness for dialogue and said she would release an anti-corruption plan in the coming days. Revelations about growing corruption, added to growing economic problems, sent 1.7 million protesting Brazilians into the streets over the weekend, many calling for her to step down. "The government hears the protests in the streets and will continue to do so. I am open for dialogue," the left-wing politician said in an address in Brasilia broadcast on television.
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BROKER RATING CHANGES
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Liberum Raises Bovis Homes To Buy From Hold, Price Target Upped To 1,105p From 1,046p
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CITIGROUP RAISES LONMIN TO 'BUY' ('NEUTRAL') - TARGET 145 (187) PENCE
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TRADERS: PANMURE INITIATES EKF DIAGNOSTICS WITH 'BUY' - TARGET 39P
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TRADERS: JPMORGAN INITIATES HSS HIRE GROUP WITH 'OVERWEIGHT' - TARGET 250P
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Cantor Fitzgerald Cuts Haydale Graphene To Hold From Buy, Price Target 150p
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COMPANIES - FTSE 100
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J Sainsbury reported a drop in sales in the fourth quarter of its financial year, despite price reductions and a volume increase across the business. The supermarket chain said total retail sales were down 0.3% excluding fuel in the 10 weeks to March 14, and down 2.7% including fuel. Like-for-like sales were down 1.9% excluding fuel, and down 3.9% including fuel for the fourth quarter. These results come despite a price reduction in over 1,100 products following a GBP150 million price investment in November, although the supermarket says it has seen volume growth across the food business and an average uplift of over 3% on the price-reduced products.
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Antofagasta reported lower 2014 earnings, as expected, as revenue was hit by a drop in copper prices, and it cautioned that copper prices are set to remain volatile this year and it's keeping its dividend policy under review while it tries to resolve issues at the Los Pelambres mine in Chile. The miner reported a pretax profit of USD1.57 billion for 2014, down from USD2.08 billion in 2013, as revenue declined to USD5.29 billion, from USD5.97 billion, largely on the back of an 8.5% decline in realised copper prices as well as a small decline in sales volumes. It said it will pay a final dividend for 2014 of 9.8 cents a share, bringing the total dividend to 21.5 cents, down sharply from 95.0 cents in 2013.
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Sky said it has invested a further USD5 million in start-up internet TV company 1Mainstream, continuing a string of investments the British pay-TV operator has been making in companies it hopes are developing the technologies of the future. Sky had already invested USD2 million in 1Mainstream, and its USD5 million top-up is in the form of convertible debt security. 1Mainstream plans to create a new subsidiary in which Sky will be a shareholder to focus on new product concepts.
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Severn Trent said it has already locked-in GBP200 million of the savings it has to make over the next five years, and has also made a GBP190 million investment in renewable energy to help power its operations. The company recently agreed with the UK water regulator Ofwat that it will make GBP372 million of efficiency savings between 2015 and 2020, and said Tuesday that it has already locked-in GBP100 million of savings by renegotiating supplier contracts, and GBP100 million from the structural organisation it announced last month.
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RSA Insurance Group is considering offloading its business in Latin America in what would mark the biggest asset disposal yet under Chief Executive Stephen Hester as he pushes on with a wide-ranging restructuring of the company, the Financial Times reported. The FTSE 100-listed insurer has hired Goldman Sachs to handle a proposed sale of the business, which accounted for around a tenth of its total premium income in 2014, the FT said, citing sources familiar with the matter.
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Mining giant BHP Billiton's board recommended shareholders approve the proposed demerger of South32 at the shareholder meetings to be held on May 6. South32 intends to distribute a minimum of 40% of underlying earnings as dividends to its shareholders following each six month reporting period, beginning from the period ending December 31. The total one-off costs of implementing the demerger are estimated to be approximately USD738 million or USD641 million after tax. BHP Billiton said it intends to streamline its organisational model and expects this to generate functional cost savings of approximately USD100 million per annum on a pretax basis, with 90% of this saving to be achieved by the end of the 2017 financial year.
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COMPANIES - FTSE 250
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IG Group Holdings said the Swiss National Bank's surprise move to remove the ceiling for the Swiss franc against the euro caused a drop in its third-quarter net trading revenue, and warned that the majority of clients that owe it GBP18.4 million over the resulting jump in the franc may not be able to clear their debt. In a statement, the derivatives trading platform provider said that net trading revenue fell to GBP91.8 million in the three months ended February 28, compared with GBP96.7 million in the corresponding period last year.
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Kier Group said it has been named on all three lots under the Southern Construction Framework and said it has won two contracts worth GBP130 million at the King's Cross development in north London. The FTSE 250-listed construction and property group said it has been selected for all three lots on the Southern Construction Framework, a four-year framework with an expected value of more than GBP2 billion. In addition, Kier has expanded its work pipeline for the Argent development at King's Cross after being appointed preferred bidder on two contracts worth a total of GBP130 million.
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Online takeaway platform Just Eat reported strong growth in profit and revenue in 2014, as order volumes grew by half on the back of increased numbers of active users, particularly those using mobile devices to do their ordering, and it said the strong trading momentum has continued into 2015. The company, which listed last April, reported a pretax profit of GBP57.4 million in 2014, up from GBP10.2 million in 2013, as it booked GBP37.8 million in gains for changes in control at its French and Brazilian operations.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Trinity Mirror is in talks about buying the Daily Express and has been given access to the newspaper group's accounts, The Times reported citing people with knowledge of the situation. The Times quotes one person as saying talks are at an early, information-sharing stage, but also quotes another saying that negotiations are advanced and Daily Express owner Richard Desmond could bank as much as GBP100 million if the sale goes ahead. The price and a GBP85 million pension deficit remain sticking points, the newspaper says.
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Marketing services company St Ives said it has struck a deal to buy Solstice Consulting LLC for an initial GBP24.7 million in cash and shares. St Ives will pay a total of USD24.7 million for the Chicago-based digital consultancy, comprising GBP20 million in cash and approximately 2.6 million shares in St Ives for the remaining GBP4.7 million. A further GBP25.3 million may be payable, split between 80% in cash and 20% in St Ives shares, dependent on the profit performance of Solstice in 2015, 2016 and 2017.
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French Connection Group reported a narrowed loss for its last financial year as it continued to close unprofitable stores, cut costs and boost its wholesale and licensing operations, but it cautioned trading for its retail operations remains challenging and it is "planning accordingly". It reported a pretax loss of GBP1.6 million for the year to January 31, compared with a GBP6.0 million loss a year earlier, as it cut operating expenses by over GBP10 million and the net loss on store disposals and closures halved.
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COMPANIES - UK OTHER
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Bookmaker Gala Coral Group is understood to be preparing for an initial public offering following the General Election, the Financial Times reported. The company is planning the flotation for October, dependent on market conditions, the FT said, citing a person familiar with the matter. The person also said Goldman Sachs and Morgan Stanley are advising the company's owners on the planned float, though the pair have not yet been formally appointed to run an initial public offering.
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COMPANIES - INTERNATIONAL
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German airline Deutsche Lufthansa's pilots, belonging to the Vereinigung Cockpit union, have called for a strike on Wednesday, to protest against their dispute over early retirement benefits. These pilots will not attend to short and mid-haul flights on the day at Lufthansa's passenger airline, whereas the company's budget airlines Germanwings and Eurowings will fly as usual.
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Apple plans to launch an online television service this fall and is in talks with programmers to offer a slimmed-down bundle of about 25 channels, the Wall Street Journal reported, citing people familiar with the matter. The 25 channels would be anchored by broadcasters such as ABC, CBS Corp and Fox, and would work across all devices powered by Apple's iOS operating system, including iPhones, iPads and Apple TV set-top boxes.
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Tuesday's Scheduled AGMs/EGMs

Actual Experience
BlackRock Commodities Income Investment Trust
Brunner Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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