LONDON (Alliance News) - UK stock indices are posting broad gains midday Friday, with investors seemingly putting fears of a Greek default behind them for now and as US indices look to continue their positive momentum from Thursday.
The FTSE 100 trades up 0.5% at 6,739.81, the FTSE 250 is up 0.3% at 17,733.46 and the AIM All-Share trades up 0.3% at 766.58.
European stocks are also performing well despite the worrying Greek backdrop, with the French CAC 40 trading up 1.3% and the German DAX 30 up 1.1%.
In New York on Thursday, stocks moved sharply higher with the DJIA and S&P 500 both closing up 1.0%. The tech-heavy Nasdaq Composite ended up 1.3% at 5,132.9488, a new record close for the index, while hitting a record intraday high of 5,143.316.
The rally on Wall Street came as traders continued to react positively to the largely doveish Federal Reserve monetary policy announcement on Wednesday and the weaker-than-expected US inflation numbers on Thursday. Futures currently indicate US stock indices for a modestly higher open Friday, with the DJIA, S&P 500 and Nasdaq 100 all pointed up 0.1%.
Concerns about a Grexit from the eurozone, and even the EU, refuse to go away. The country is edging closer to default as it struggles to secure a deal with its international creditors to unlock access EUR7.2 billion remaining in its international bailout.
The meeting of eurozone finance ministers on Thursday ended with no deal for Greece. As a result, eurozone leaders will hold an emergency summit on Monday to discuss the situation in Greece.
"We are headed into one of the most uncertain weekends for a long time and yet looking at the markets you'd swear everything is hunky dory," says Craig Erlam, senior market analyst at Oanda.
"While the [International Monetary Fund] has claimed that no grace period will be afforded to Greece, I'm sure if a deal is reached before then they would accept a late payment and not deem them to have defaulted. But a lot needs to be done before that can even be considered and progress is simply not being made," Erlam adds.
While the euro has weakened somewhat against the dollar Friday, now trading at USD1.1308, London Capital Group market analyst Ipek Ozkardeskaya believes the euro should now be somewhat insulated to a Greek default.
"Greek tears attract no more sympathy, and the euro complex trades regardless of Greek default risks. The euro's sensitivity to Greece decreases, a potential Grexit shock should have limited impact on euro," Ozkardeskaya says.
On the London Stock Exchange, Colt Group is by far the best performer with its shares surging 21% to 190.026 pence after Fidelity made an 190p per share offer for the remaining shares in the telecommunications and IT firm that it does not already own, valuing Colt at around GBP1.72 billion. FMR and FIL, together known as Fidelity, said this offer price will not be increased. FMR already has a 62.43% shareholding in Colt.
However, the independent directors Colt said the offer "undervalues" the company, and made no recommendation as to whether or not shareholders should accept the offer. The offer price is at a 21% premium to Colt's closing price of 157 pence Thursday.
Card Factory is the worst performer in the mid-cap FTSE 250 index, down 9.1% at 326.80p. The greeting card retailer said some of its directors and members of its senior management team have sold 14.8 million shares in the company at 330p each, representing approximately 4.3% of its issued share capital. At that price, the sale was worth GBP48.8 million. The selling shareholders, which included Chief Executive Richard Hayes and Chief Financial Officer Darren Bryant, continue to have an interest in 49.1 million shares between them, representing 14.4% of the issued share capital.
Styles & Wood Group is the best AIM All-Share performer, with shares rising 40%. The company revealed a refinancing of its outstanding convertible preference shares, with a Henderson Global Investors fund and an investor backed by the big five FTSE 100 banks taking shares in the company after buying its outstanding convertible preference shares from a subsidiary owned by Royal Bank of Scotland.
The refinancing strengthens the company's balance sheet, gives it a better capital structure and increases net assets by GBP3.6 billion, according to Styles & Wood, which said the move will cut cash outflows by GBP5.2 million and enable it to consider acquisitions.
Meanwhile, shares in Auhua Clean Energy have slipped 33% after it said its pretax profit and revenue fell in 2014 compared to 2013, and it has raised GBP1.7 million through its previously announced discounted share placing and subscription. The placing comprised of 9.0 million shares, and the subscription 29.3 million shares, both at the price of 4.5 pence each. The company currently trades at 5.35p.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
UK earnings, trading statements calendar - next 7 days
Wednesday 21 September | |
Alphawave IP Group PLC | Half Year Results |
City Pub Group PLC | Half Year Results |
Dianomi PLC | Half Year Results |
Eagle Eye Solutions Group PLC | Full Year Results |
Frontier Developments PLC | Full Year Results |
Galliford Try Holdings PLC | Full Year Results |
Hostmore PLC | Half Year Results |
Ingenta PLC | Half Year Results |
Keywords Studios PLC | Half Year Results |
LBG Media PLC | Half Year Results |
MyHealthChecked PLC | Half Year Results |
Pendragon PLC | Half Year Results |
Pennant International Group PLC | Half Year Results |
Petershill Partners PLC | Half Year Results |
S4 Capital PLC | Half Year Results |
Strix Group PLC | Half Year Results |
Supermarket Income REIT PLC | Full Year Results |
Surgical Innovations Group PLC | Half Year Results |
Ten Entertainment Group PLC | Half Year Results |
Warpaint London PLC | Half Year Results |
Thursday 22 September | |
Aquis Exchange PLC | Half Year Results |
Biome Technologies PLC | Half Year Results |
Brave Bison Group PLC | Half Year Results |
Ceres Power Holdings PLC | Half Year Results |
Computacenter PLC | Full Year Results |
CVS Group PLC | Full Year Results |
Distribution Finance Capital Holdings PLC | Half Year Results |
Ebiquity PLC | Half Year Results |
Fonix Mobile PLC | Full Year Results |
Forward Partners Group PLC | Half Year Results |
Halma PLC | Trading Statement |
Hansard Global PLC | Full Year Results |
JD Sports Fashion PLC | Half Year Results |
Judges Scientific PLC | Half Year Results |
Learning Technologies Group PLC | Half Year Results |
Life Science REIT PLC | Half Year Results |
Osirium Technologies PLC | Half Year Results |
Pantheon Infrastructure PLC | Half Year Results |
PensionBee Group PLC | Half Year Results |
Playtech PLC | Half Year Results |
Polymetal International PLC | Half Year Results |
PZ Cussons PLC | Full Year Results |
Safestyle UK PLC | Half Year Results |
Time Finance PLC | Full Year Results |
Wilmington PLC | Full Year Results |
Friday 23 September | |
Biffa PLC | Trading Statement |
European Opportunities Trust PLC | Full Year Results |
Investec PLC | Trading Statement |
Smiths Group PLC | Full Year Results |
TheWorks.co.uk PLC | Full Year Results |
Monday 26 September | |
Atome Energy PLC | Half Year Results |
Chapel Down Group PLC | Half Year Results |
Concurrent Technologies PLC | Half Year Results |
CPPGroup PLC | Half Year Results |
Devolver Digital Inc | Half Year Results |
Dillistone Group PLC | Half Year Results |
Finsbury Food Group PLC | Full Year Results |
Frenkel Topping Group PLC | Half Year Results |
Immotion Group PLC | Half Year Results |
Likewise Group PLC | Half Year Results |
Microlise Group PLC | Half Year Results |
Next Fifteen Communications PLC | Half Year Results |
SpaceandPeople PLC | Half Year Results |
XLMedia PLC | Half Year Results |
Xpediator PLC | Half Year Results |
Tuesday 27 September | |
AG Barr PLC | Half Year Results |
Animalcare Group PLC | Half Year Results |
Billington Holdings PLC | Half Year Results |
Boku Inc | Half Year Results |
Card Factory PLC | Half Year Results |
Close Brothers Group PLC | Full Year Results |
Diaceutics PLC | Half Year Results |
Digitalbox PLC | Half Year Results |
ECSC Group PLC | Half Year Results |
Ergomed PLC | Half Year Results |
Ferguson PLC | Q4 Results and Full Year Results |
FireAngel Safety Technology Group PLC | Half Year Results |
GENinCode PLC | Half Year Results |
Instem PLC | Half Year Results |
LifeSafe Holdings PLC | Half Year Results |
Medica Group PLC | Half Year Results |
Mission Group PLC | Half Year Results |
Mortgage Advice Bureau PLC | Half Year Results |
NAHL Group PLC | Half Year Results |
Next Fifteen Communications Group PLC | Half Year Results |
Origin Enterprises PLC | Full Year Results |
United Utilities Group PLC | Trading Statement |
Personal Group Holdings PLC | Half Year Results |
S&U PLC | Half Year Results |
Saga PLC | Half Year Results |
Serica Energy PLC | Half Year Results |
SSP Group PLC | Trading Statement |
tinyBuild Inc | Half Year Results |
Transense Technologies PLC | Full Year Results |
Yu Group PLC | Half Year Results |
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