Image Scan Holdings Share News (IGE)

LONDON (Alliance News) - London's stock markets have Tuesday taken back all of the losses they made yesterday, after Russian President Vladimir Putin said the country would only send troops in to Ukraine as a last resort.

The less threatening tone from Russia has led to a global equities rally, while gold and oil prices have fallen sharply from the highs they hit Monday, even though there is unlikely to be a speedy resolution to the crisis.

Putin said there was no need yet to send troops into Ukraine, but reserved the right to do so to protect Russians in the east of its neighbour. He denied that Russian troops were on the ground in Crimea, saying those surrounding Ukrainian army bases and installations on the peninsula were pre-Russian "self-defence" forces.

The Russian President also called the ousting of former Ukraine President Viktor Yanukovych an anti-constitutional coup and said the threat of economic sanctions on Russia by the likes of the US and EU was unhelpful.

The US has offered Ukraine USD1 billion in energy aid in the form of loan guarantees to protect the most vulnerable Ukrainians from lower energy subsidies, after Russian gas monopoly Gazprom said it will raise prices for Ukraine at the start of next month and demanded Ukraine pay its gas debts.

Earlier, Putin had ordered the Russian military to end exercises near the border with Ukraine on time, his spokesman said. About 150,000 soldiers taking part in the drills involving airplanes, tanks and ships will return to their bases on March 7, Russian Defence Minister Sergei Shoigu told the Interfax news agency.

The Moscow stock exchange rose after the decision, which appears to be designed to allay fears of war in the region.

Wall Street is also set to open higher Tuesday, according to the stock futures markets.

Over in Asia, North Korea has launched seven short-range projectiles, South Korea said Tuesday.
The projectiles were fired from a multiple rocket launchers on the south-east coast of the country and flew between 55 and 155 kilometres into the open sea, a spokesman for the Defence Ministry in Seoul said.

South Korea says the recent rocket launches are a response by the North to annual spring military manoeuvres by the US and South Korea.

--------

FTSE 100: Up 1.4% at 6,804.70
FTSE 250: Up 1.7% at 16,648.87
AIM ALL-SHARE: Up 0.5% at 886.51
GBP-USD: 1.6689
EUR-USD: 1.3754
GOLD: USD1,333.95 an ounce
OIL (Brent): USD109.63 a barrel

--------

KEY UK CORPORATE NEWS:

FTSE 100: Ashtead Group pretax profit rose strongly in its fiscal third quarter, driven by organic growth and acquisitions. Meggitt profits declined due to the widely-flagged downturn in its defence markets, although the drop was small as its civil aerospace and energy markets performed well. Glencore Xstrata reported higher profits and revenues, driven by higher production and as it hit its target for cost savings from its merger. Fresnillo pretax profit fell 65% in 2013, hit by explosion permit problems at mines in Mexico, lower metal prices, and a revaluation of the company's Silverstream asset. The Indian defence ministry has asked for an official probe into sales in the country by Rolls-Royce Holding, the Financial Times reported late Monday. Standard Chartered is nearing deals to sell about a half-dozen units in Europe, Asia and the Middle East, the Wall Street Journal said, citing people familiar with the deals.

FTSE 250: Perform Group outlined a new cost-savings plan as it saw pretax profit drop, hit by acquisition costs and a higher cost base in what it called a "disappointing" 2013. However, it shares have jumped as analysts predict better things will come. Pace has raised its full-year dividend as pretax profit and revenues rose in 2013, driven by a strong performance in its PayTV hardware division, and it forecast further revenue growth for 2014. IP Group said pretax profits rose 78% in 2013, boosted by strong returns from its portfolio. The companies demerged from Cookson Group have reported similar fortunes: Alent and Vesuvius both raised their dividends despite relying on lower charges and cost cutting to offset falling revenues. Alent's weakness is in its consumer electronics markets, Vesuvius' weakness is more general, while both companies are warning about the impact of sterling's recent strength on results this year. Moneysupermarket.com has declared a special dividend and raised its normal dividend as it reported a 37% increase in 2013 pretax profits, buoyed by strong performances from its travel and home services product areas. Devro reported a marginal increase in revenues for 2013 thanks to price increases, but its profits were hit by slowing demand in some of its key markets, manufacturing issues in the US, and a sharp rise in raw material costs. Tullett Prebon swung to a 2013 pretax profit after last year's result was hit by massive writedowns on its North American business, but profits fell excluding those writedowns as markets remained subdued and regulatory changes caused its customers uncertainty. Regus revenues were buoyed by the addition of MWB, but costs for the acquisition of that business as well as heavy investment in Regus' existing portfolio weighed on its profits. Hansteen Holdings has refinanced two loans secured against its German portfolio with two new loans totalling EUR343 million. James Fisher & Sons profits fell slightly in 2013 after 2012 was lifted by the proceeds of asset sales, but revenues were up strongly thanks to strong growth in its marine support business and its specialist technical arm. Serco Group reported a sharp drop in 2013 pretax profit due to its well-publicised issues with certain UK government contracts and the reputational damage that inflicted, and reiterated that its outlook for 2014 remains challenging too, particularly due to issues with an Australian immigration contract. Rotork raised its dividend after reporting higher revenues and profits for 2013, driven by acquisitions and further expansion of its product portfolio. It reported record order intake, although also warned that some of its markets face challenging economic conditions in 2014 and the recent strength if sterling could weigh on results. It also made a further acquisition, buying valve positioners and accessories company Young Tech Co Ltd in a GBP64 million deal. Ophir Energy has entered into an agreement with WHL Energy Ltd to acquire a 75% operated interest in two blocks off the coast of the Seychelles. Jardine Lloyd Thompson reported marginally higher 2013 pretax profit, after its risk and insurance division drove strong growth in revenues but this was partially offset by higher costs. Chief Executive Dominic Burke is to take a two-month break later this year after eight years at the helm.

AIM: Verdes Management is back and its shares have soared after Coms PLC Chief Executive David Breith personally stepped in to save the company, buying a 24.9% stake which will be diluted to 22.24% after it also raised GBP750,000 from an institutional investor in a placing. Crucially, it has also amended the terms of its loan agreements. Ultrasis is up after it won a three-year UK public sector contract which it estimates to have a potential value in excess of GBP8.0 million. It said that the detailed terms of the contract are confidential due to its nature, but it expects it to involve the assessment of over 80,000 people over the three year period. Rose Petroleum is doing well after its AVEN Associates LLC subaidiary entered a joint venture with Lowell Copper Ltd for its Porphyry Copper Project in the US. Lowell will spend USD250,000 to fund initial exploration at the site in return for a 25% stake of the four-year joint venture. The company said Lowell will have an option to increase its interest to 52% by funding an additional USD2.5 million, after which point it will have the option increase to 70% by investing a further USD3.5 million. Image Scan Holdings is a big decliner after it said late Monday that Chief Executive Officer Louise George had not been re-appointed to the board at its annual general meeting. Additionally, Chairman Brian Emslie and non-executive director announced their intention to resign from June 2. Abcam is also down even though revenue rose 8% to GBP62 million in its fiscal first-half, in-line with expectations, pushing up its pretax profit, and it raised its dividend to 2.13 pence, from 1.94 pence. However, analysts' expect exchange rate changes to hit its 2015 full year by as much as 8%. Numis Securities had downgraded the stock to Hold from Add due the the forecast FX impact, reducing its price target to 510p, from 560p.

--------

AFTERNOON WATCHLIST: US Redbook Index, US ISM New York Index

--------

Wednesday's Key UK Corporate Events

Standard Chartered Full Year Results
Pacific Horizon Full Year Results
Admiral Group Full Year Results
Dignity Full Year Results
Legal and General Group Full Year Results
BBA Aviation Full Year Results
Carillion Full Year Results
4Imprint Group Full Year Results
Michael Page International Full Year Results
SOCO International Full Year Results
Lookers Full Year Results
Mithras Investment Trust Full Year Results
Sportech Full Year Results
Novae Group Full Year Results
Capital & Regional Full Year Results
Melrose Industries Full Year Results
Irish Coninental Group Full Year Results

-------

Wednesday's Key Economic Events

01:45 China HSBC China Services PMI
05:00 Russia Purchasing Manager Index Services
08:43 Italy Markit Services PMI
08:48 France Markit Services PMI
08:53 Germany Markit Services PMI
08:58 EU Markit Services PMI
08:58 EU Markit PMI Composite
09:28 UK Markit Services PMI
10:00 EU Gross Domestic Product
10:00 UK Inflation Report Hearings
10:00 EU Retail Sales
12:00 US MBA Mortgage Applications
13:15 US ADP Employment Change
15:00 US ISM Non-Manufacturing PMI
15:30 US EIA Crude Oil Stocks change
19:00 US Fed's Beige Book

-------

By Steve McGrath; steve.mcgrath@alliancenews.com; @stevemcgrath1

Copyright © 2014 Alliance News Limited. All Rights Reserved.