LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Monday.
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FTSE 100 - LOSERS
Barratt Developments, down 2.1%. Following the quarterly FTSE review on March 4, Monday is the first day of trading in a new index for the stocks that moved. Traditionally, stocks that move up an index tend to underperform immediately after joining the new index, while stocks that move down tend to outperform. Barratt Developments, which was moved up from the FTSE 250, is an example of this as it is among the heaviest blue-chip fallers Monday. Barratt also Monday was downgraded to Neutral by Davy Research.
William Hill, down 1.8%. The betting company's shares have been hit after Barclays lowered its price target to 370.00 pence from 393.00p. However, the firm's shares have been in free-fall since Wednesday last week after UK Chancellor George Osborne announced that the government will raise duty on gambling machines to 25%, from the current 20%, from March 1, 2015. The group's shares have now shed approximately 12% since the close of the UK equity market on Tuesday last week.
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FTSE 250 - WINNERS
Kentz Corporation, up 7%. The major oil and gas engineering company said pretax profit increased 4.7% to USD109.7 million in 2013 from USD104.8 million the previous year, as revenue increased 6.4% to USD1.66 billion from USD1.56 billion in 2012. It also said that it forecasts 2014 performance ahead of previous expectations, with all three of its business units to perform strongly during the period.
Centamin, up 6.4%. The metals and minerals producer is a big riser despite saying that its pretax profit fell 7.4% in 2013. However, excluding exceptional items, the company would have posted a pretax profit increase of 1.4% to USD235.0 million from USD231.7 million in 2012. It also said its revenues increased 18% to USD503.8 million from USD426.1 million the previous year, as production increases offset lower gold prices during the period.
Phoenix Group Holdings, up 2.3%. The company has confirmed that it is in advanced talks with FTSE 100-listed insurer Standard Life over a potential deal to sell one of its core businesses Ignis Asset Management Ltd.
Inmarsat, up 1.2%. The satellite communications company has launched its new satellite phone. The IsatPhone 2 has the longest battery life in the industry, can receive incoming call alerts even with the antenna stowed, and registers quickly with the satellite network, the company claims.
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FTSE 250 - LOSERS
Diploma, down 8.8%. The group said it had been hit hard by the recent rise in sterling as well as the fall in the Canadian and Australian dollar, meaning its key profit measure will only be flat this year. It said its revenues in the six months to the end of March are expected to be up by about 7% on the year excluding the impact of acquisitions and at constant currencies. However, half-year revenues will be up only 5% including currency movements and acquisitions, while its adjusted pretax profit is expected to be flat on the year.
Carphone Warehouse Group, down 3.6%. The mobile phone retailer and Electronics retailer Dixons have announced that the Takeover Panel deadline for a possible merger has been extended to May 19. An original deadline to the merger talks had been set for Monday, but the companies have now said they have agreed that they require more time to evaluate a potential merger of the two businesses. Dixons shares are quoted down 1.3%.
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AIM - WINNERS
Ormonde Mining, up 8.2%. The tungsten mining exploration and development company said it has entered into a binding tungsten offtake agreement, from its Barruecopardo project in Spain, with Noble Resources International Pte. It said its wholly owned subsidiary SaloroSLU, which holds the rights to the Barruecopardo Tungsten Project in Salamanca, entered the deal for Noble to purchase 100% of the tungsten concentrate produced from the open pit mine on site. The deal is for its initial five years of operation and based upon anticipated tungsten production from the open pit and if the current tungsten price of roughly USD370 per metric tonne unit was applied, the deal would equate to revenues in excess of USD350 million over the five-year period.
Plant Health Care, up 6.8%. The agricultural biochemistry firm is a big winner despite saying that its losses widened in the 2013 full-year. The company posted pretax losses of USD6.9 million for 2013, compared with a loss of USD6.5 million, even through revenue rose 21% to USD7.5 million, from USD6.2 million a year earlier, after being hit by GBP2.1 million in restructuring costs.
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AIM - LOSERS
Amur Minerals, off 17%. The nickel-copper sulphide mineral exploration-and-development company has seen its shares drop after it announced that it has completed construction of its 2014 winter ice road from the Baikal-Amur rail siding to its Kun-Manie project.
IBEX Global Solutions, down 13%. The contact centre and business outsourcing provider said its losses widened in the first-half of the year, despite significant revenue growth, and is now expecting earnings and revenues for the full-year to be below expectations due to investments. It said that in the first-half of the year it invested in infrastructure and workforce capacity to support additional growth from its existing client base in anticipation of servicing several specific client contracts, including three new new facilities in the US and the Philippines, coupled with expansion of a current facility in Metro Manila. However it said that due to changes in timing related to certain programme launches, it now expects these contracts to generate revenue in the first-half of the next fiscal year, rather than this year as previously anticipated, which will hit its earnings expectations for the current financial year.
Allergy Therapeutics, down 12%. The speciality pharmaceutical company is a big loser despite the group posting a rise in pretax profit in the half-year to the end of December. It posted a pretax profit of GBP6.5 million, up from GBP5.1 million in the previous year, as revenue rose to GBP27.2 million from GBP25.7 million in the previous year and sales costs dropped to GBP6.4 million from GBP7.0 million. Allergy also increased its overall market share in European markets by 12% compared to the previous year, it said.
LED International Holdings, down 11%. The provider of LED lighting in China reported a loss of HKD6.1 million for the six months to the end of December 2013, compared with the HKD5.7 million loss it posted a year earlier. The wider loss was mainly due to a big fall in "other income" in the profit and loss account. The company didn't explain the drop.
Ferrex, down 10%. The iron ore and manganese development company said it has agreed to issue GBP1.7 million worth of shares in order to continue the development of its African iron ore and manganese assets, as well as for working capital purposes. It has agreed to issue 92.5 million shares at 1.8 pence each. Ferrex shares are quoted at 1.751 pence.
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By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
17 Jul 2014 06:46
