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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Glencore, up 4.4%. The multi-commodities miner and trading company was trading higher after it took substantial steps to improve its financial position, including dividend suspensions and a capital raising, which were cheered by investors, while it also said production at the Katanga mine in Democratic Republic of Congo and Mopani mine in Zambia. As a result of continued concerns on its debt pile and the ongoing issues facing commodities markets, the group said it will take measures worth up to USD10.2 billion to preserve its capital and reduce debt, it said. The news sent shares in other mining companies trading higher as well, with Antofagasta up 7.8%, Fresnillo up 2.0%, Anglo American up 1.6%, BHP Billiton up 1.5% and Rio Tinto up 1.3%.
Pearson, up 2.5%. The education and publishing company was upgraded to Add from Reduce by Investec due to underperformance in its share price in recent weeks.
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FTSE 100 - LOSERS
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Associated British Foods, down 2.7%. The consumer goods company, which owns discount fashion retailer Primark and British Sugar, said its expectations remain unchanged for a decline in adjusted operating profit in its current financial year. It said that a rise in operating profit at constant currency in grocery, agriculture, ingredients and retail will be offset by a decline in the sugar business, which along with changes in foreign exchange rates will lead to an overall fall in adjusted operating profit for the full year.
Tesco, down 0.6%. The retailer said it has struck a deal to sell its Homeplus business in South Korea to a consortium led by private equity group MBK Partners for GBP4.24 billion. Tesco said it has sold the company to the MBK-led consortium, which also includes Canada Pension Plan Investment Board, Public Sector Pension Investment Board and Temasek Holdings, following an auction process which has been running for the past few months and which attracted the attention of a number of prominent private equity suitors. Tesco said it will get a total of GBP4.0 billion in cash before tax and other transaction costs from the sale and said the deal will allow it to significantly reduce its GBP4.23 billion debt pile.
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FTSE 250 - WINNERS
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Kaz Minerals, up 7.5%, Centamin, up 2.4%, Acacia Mining, up 2.3%. Miners were tracking the gains by their larger peers in the FTSE 100 following the debt reduction plans outlined by Glencore which helped the sector higher in early trade.
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FTSE 250 - LOSERS
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JD Wetherspoon, down 2.7%. The pub operator, which will report full-year results on Friday, was downgraded to Sell from Hold by broker Goodbody following a strong run in its share price.
Redefine International, down 2.1%. The real estate investors said it has reached a conditional deal to acquire the AUK Portfolio from Aegon UK Property Fund for GBP437.2 million. It said it will acquire the portfolio through its Redefine AUK subsidiary. The portfolio includes 19 properties in the UK, mostly in London and the South East, valued at a total of GBP439.9 million, with six single-let and the rest multi-let. In addition, Redefine said it has struck a GBP52.5 million deal to acquire Banbury Cross Retail Park in Oxfordshire.
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MAIN MARKET AND AIM - WINNERS
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Lekoil, up 16%. The Nigeria and West Africa-focused oil and gas company said it has started oil production from the Otakikpo Marginal Field in the OML 11 licence in the Niger Delta. The first oil flowed from the well on Friday, with production testing then carried out over the weekend. The The Otakikpo-002 well produced from only the first of four planned production strings, and flowed oil at various choke sizes for over 24 hours at a peak rate of 5,703 barrels of oil per day, Lekoil said, significant ahead of its expectations.
Global Invacom Group, up 10%. The satellite communications company and satellite operator Avanti Communications Group are among the consortium partners on an end-to-end satellite communications service which will be presented at the IBC 2015 event in Amsterdam. The pair are working with Microsoft and the European Space Agency on a service which will integrated satellite broadcast television and broadband. Avanti shares are down 0.5%.
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MAIN MARKET AND AIM - LOSERS
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Madagascar Oil, down 18%. The oil company said that an information memorandum has been finalised and a technical data room has been opened with the view to attract a strategic partner to assist the company with the funding and delivery of the initial phases of its Tsimiroro development. The company said that despite adverse market conditions, it has received interest from a number of credible parties, expecting the process to run through to the end of 2015, and with the target of finalising any transaction by the end of the first quarter of 2016.
PHSC, down 8.9%. The consultancy and security services company said it saw a fall in earnings before interest, tax, depreciation and amortisation for the four months to end-July as a result of the conclusion of two large contracts leading to an expected reduction in sales. "Management are continuing to focus on replenishing the order book, and filling the spare capacity caused by some large orders having been completed," said Chief Executive Officer Stephen King in the statement. "Good progress has been made, and we have a number of promising opportunities in the pipeline."
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
27 Apr 2015 05:13