LONDON (Alliance News) - The following stocks were the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - LOSERS
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China-exposed stocks were trading lower throughout the morning following a bloodbath in Shanghai on the first day of trading in 2016. Trading in Chinese shares was suspended after the Shanghai Composite index plunged 6.9%, causing authorities to invoke the circuit-breaker rule. The slump came after a report showing China's manufacturing sector continued to contract in December on weak orders and a renewed fall in output. The data hit London-listed miners the hardest, with Anglo American down 8.5%, Glencore down 6.9%, Antofagasta down 4.9%, BHP Billiton down 3.8% and Rio Tinto down 3.3%. Standard Chartered, an emerging markets-focused bank, was down 5.0%, while Prudential, a life insurer expanding in Asia, was down 3.6%. Burberry Group, a luxury goods for which mainland China and Hong Kong are key markets, was down 3.2%.
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FTSE 250 - WINNERS
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Grainger, up 2.8%. The residential landlord said it has agreed with Turbo Group Holdings to sell its Equity Release division for a total consideration of GBP325.0 million, including debt. Grainger said the sale of its retirement products unit to Turbo, owned by Patron Capital Partners and Electra Private Equity, will allow it to focus on its residential lettings business, following the sale of its wholly-owned and joint venture assets in Germany. The sale consideration will include GBP175.0 million in cash and the transfer of GBP150.0 million in debt to the buyer and will cut Grainger's net debt position by an estimated GBP325.0 million.
Cairn Energy, up 2.4%. The oil company said it received positive results from tests carried out on the SNE-2 appraisal well offshore Senegal as the company moves onto its third and final well on the field before updating its resource estimates. Cairn said drill-stem testing was carried out on the SNE-2 well over a 12.0 metre interval which produced a stabilised but constrained flow rate of 8,000 barrels of oil per day of high quality pay. The company said the result confirmed the "high deliverability" of the main reservoir in the well.
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FTSE 250 - LOSERS
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Fidelity China Special Situations, down 4.8%. The China-focused investment fund was down in line with all the blue-chip fallers due to the plunge in the Shanghai Composite, caused by the deteriorating manufacturing sector in China.
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MAIN MARKET AND AIM - WINNERS
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Vast Resources, up 20%. The miner said it has entered into a subscription agreement with Crede CG III under which it will raise GBP5.0 million. Vast, which owns mining projects in Romania and Zimbabwe, will issue four tranches of 156.3 million shares at 0.8 pence per share to Crede to raise the funding. Each of the issues will occur at 90-day intervals, with each tranche to raise GBP1.25 million apiece. Vast said the funding will be used for working capital purposes as it continues work on developing its producing mining assets.
Bagir Group, up 20%. The formalwear tailor said it has successfully amended its debt repayment schedule with its banks, which have also agreed to waive the testing of the company's financial covenants until the second half of 2016. Leumi Bank and Discount Bank have agreed to amend the tailor's repayment schedule, which will see the company pay back its USD11.2 million loan back over the next five years rather than the next two years. Following the waivers, the covenants will be tested every six months, but Bagir Group said a revised set of covenants have been agreed on "more favourable terms" to the company than previously agreed.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
22 Jul 2014 11:34
