LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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Randgold Resources, up 2.7%. The gold miner said 2015 was "one of the best years in the company's history" despite experiencing a large drop in profit as it continued to battle the downturn in the market. Randgold reported a USD260.8 million pretax profit in 2015, falling from USD353.0 million a year earlier, as revenue experienced slipped slightly USD1.00 billion from USD1.08 billion - but the miner is expecting a ramp up in production and lower cash costs during 2016. Production and costs in the year were in line with expectations and the company upped its dividend for 2015 by 10% to 66.0 cents per share from 60.0 cents per share last year. The strong performance helped lift the shares of peer Fresnillo, up 1.3%.
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FTSE 100 - LOSERS
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ARM Holdings, down 5.8%. The chipmaker traded down after peer Imagination Technologies said conditions in the semiconductor industry have "not improved" since its last update in December. Imagination Tech said that since it reported its first-half results in December, market conditions have not improved, and the slowdown in the semiconductor sector has continued, compounded by uncertainty over future trading prospects in China. Imagination Technologies shares were down 7.2%
Rolls-Royce Holdings, down 3.7%. The engine maker is poised to cut its dividend payment to shareholders for the first time in almost 25 years, the Guardian reported Sunday, following a series of profit warnings in the past two years. The company reports full year results on Friday, and is expected to warn of more struggles ahead after already having outlined extensive cost-cutting plans, job cuts, and the scrapping of two divisions.
HSBC Holdings, down 3.3%. The bank will pay USD470.0 million under a deal with US authorities to settle allegations of past "abusive" mortgage practices, covering loan origination, servicing and foreclosure. The settlement, which was revealed on Friday and agreed with the US Justice Department, the Department of Housing & Urban Development and the Consumer Financial Protection Bureau, along with 49 state attorneys general and the District of Columbia, releases HSBC from civil claims over its past mortgage loan origination, servicing and foreclosure practices.
Inmarsat, down 2.9%. The satellite communications company was downgraded to Underweight from Equal Weight by Barclays. The bank said it believes market expectations are too optimistic as execution and competition risks are not priced in.
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FTSE 250 - WINNERS
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Poundland Group, up 4.6%. Deutsche Bank upgraded the discount retailer to Buy from Hold.
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FTSE 250 - LOSERS
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Ocado Group, down 5.1%. Barclays slashed its price target for the group to 290.00 pence from 420.00p, maintaining its Equal Weight rating. The stock traded at 245.90p on Monday.
John Wood Group, down 6.0%. Goldman Sachs added the oil services company to its 'Conviction Sell List', having previously rated the stock Neutral. Goldman also cut its price target on John Wood shares to 517.6 pence from 639.6p. Nomura lowered its own price target on John Wood to 350p from 435p, maintaining its Reduce advice. The stock was quoted at 593.00p Monday.
Amec Foster Wheeler, down 4.4%. The oil services company was cut to Neutral from Buy by Nomura, while Goldman Sach cut its price target on the stock but retained a Buy rating.
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MAIN MARKET AND AIM - WINNERS
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Spectra Systems, up 24%. The company, which makes high-speed banknote authentication and brand protection technologies, said it is likely to report a 2015 profit "significantly in excess of market expectations". Spectra said this was due to it becoming clear that the margin it had achieved on a hardware sensor contract was higher than predicted, together with an increase in materials sales in late 2015.
Alecto Minerals, up 17%. The company announced a partnership with major miner Randgold Resources to jointly develop Alecto's Kossanto West gold project in western Mali. Under the deal, Randgold will fully fund the costs of the project until a pre-feasibility study has been completed, acquiring a 65% stake in the project to leave Alecto with a 35% participating interest.
Richland Resources, up 15%. The gemstones company said it has seen success during its first full quarter of production, with 720,000 carats of sapphires produced in the three months ended December 31 and 52,266 tonnes of sapphire-bearing alluvials mined and processed. An average grade of 14 carats per tonnes was achieved, the company said, with USD226,180 total revenue achieved from the sale of approximately 203,000 carats of lower quality sapphire and corundum. The average price per carat for lower quality sapphire and corundum was USD1.11.
Speedy Hire, up 5.1%. The tool and equipment hire company said it had strengthened its position in the UK rail sector with the acquisition of OHP for GBP1.5 million along with the assumption of GBP1.7 million net debt. Speedy Hire said a further contingent cash consideration of up to a further GBP0.8 million would be payable, dependent on the future performance of OHP.
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MAIN MARKET AND AIM - LOSERS
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Trinity Exploration & Production, off 15%. The company said it agreed a further extension to the moratorium on repayments relating to its outstanding debt balance of USD13.0 million with its lender Citibank. It is no fewer than Trinity's 20th extension, which runs until February 19. The company said that it is continuing talks with the lender to secure a further extension of its credit facilities, and added that it expects for there to be continued support, particularly following the announcement of the sale of substantially all of its onshore assets for USD20.8 million.
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By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
Copyright 2016 Alliance News Limited. All Rights Reserved.
5 Nov 2015 12:10
