LONDON (Alliance News) - London equities opened higher Wednesday, with Glencore leading blue-chip gainers after it announced it has raised USD2.50 billion from placing new shares with institutional investors and the company's own senior management.
The multi-commodity miner and trader had late Tuesday announced its intention to raise USD2.50 billion, or USD1.60 billion through the placing of 1.31 billion shares. On Wednesday, Glencore confirmed the price per share was 125.0 pence.
Shares in Glencore closed up 0.1% at 128.05 pence on Tuesday and traded up 3.4% at 132.35 pence at the open Wednesday.
Inmarsat was one of the few fallers in the blue-chip index, down 0.9%, after Berenberg downgraded it to Sell from Hold. The bank said the satellite communications company appears to be facing considerable competition and regulatory obstacles which its current share price does not reflect.
In the FTSE 250, Entertainment One was the top gainer after Marwyn Value Investors Ltd said it has struck a deal with Canada Pension Plan Investment Board to sell its remaining stake in the media company. Marwyn will sell its 17.9% stake in Entertainment One for GBP142.4 million via the Marwyn Value Investors LP fund, in a disposal that will raise GBP103.4 million for the investor. The 52.9 million shares were sold at 269.00 pence per share.
Entertainment One shares were up 4.9% at the open at 282.157 pence following the news, while, Marwyn Value Investors shares were up 4.4% at 223.49p.
JD Sports Fashion reported growth in profit in the first half of its financial year, boosted by strong sales growth in sports fashion, and said that trading so far in the second half as been positive.
The retailer, which also sells outdoor clothing, reported a rise in pretax profit in the 26 weeks ended August 1 of GBP44.7 million from GBP23.7 million in the same period the year before, as revenue grew 21% to GBP809.9 million from GBP670.3 million.
JD said that its sales were driven by a continued strong performance from its sports fashion segment, which saw like-for-like sales growth above 10%, and that it also experienced an "encouraging" reduction in losses in its outdoor clothing business.
The company's shares traded up 2.6%.
Meanwhile, Imagination Technologies Group was the worst performer in the FTSE All-Share, down 11%. The chipmaker said its first half revenue will come in lower than previously expected and said it is not sure this will be made up in the second, even as it expressed a degree of confidence in its medium-term outlook.
It said the semiconductor sector had a weak quarter to the end of June, though expectations are for an improvement in the second half of 2015. Part of this has been driven by a sharp slowdown in emerging markets growth in the period, particularly in China, Imagination said.
In the AIM All-Share index, Alkane Energy shares surged 41% to 35.35p. Balfour Beatty Infrastructure Partners LP, a fund in which Balfour Beatty invests, said it has agreed a deal to acquire Alkane Energy in a deal valuing the energy company at GBP61.4 million.
Balfour Beatty Infrastructure Partners, a mid-market infrastructure investment firm which operates independently of Balfour Beatty, said it has agreed to pay 36 pence per share for AIM-listed Alkane Energy, a 44% premium to the closing price Tuesday.
At the open, the FTSE 100 index was up 0.9% at 6,191.70, the FTSE 250 was up 0.7% at 17,082.20, and the AIM All-Share was up 0.2% at 738.42.
European stocks also were higher, with the CAC 40 index in Paris up 1.1% and the DAX 30 in Frankfurt up 1.2%.
Stocks in Asia were also rallying, with the Nikkei 225 index in Tokyo closing up 0.8%, the Hang Seng up 2.6% and the Shanghai Composite reversing earlier losses to trade up 4.9%.
The domestic focus in the economic calendar will be on the UK jobs report at 0930 BST, which is expected to show the unemployment rate remained at 5.6% in the three months to July, matching the reading for the three months to June. The claimant count is forecast to fall by 5,000 in August, slightly more than the 4,900 fall seen in July. Meanwhile, the growth in average earnings excluding bonuses is expected to rise 2.9% in the three months to July, while including bonuses is estimated to rise 2.5%, both accelerating by 10 basis points from the previous period.
Later in the day, Bank of England Governor Mark Carney along with other members of the Monetary Policy Committee will be speaking at the Treasury Select Committee hearing at 1415 BST.
The Eurozone consumer price index is at 1000 BST and is expected to confirm the preliminary reading of 0.2% year-on-year growth in August, which also matches the growth seen in August. The index is expected to come in flat on a monthly basis.
Elsewhere in the economic calendar, US inflation data are at 1430 BST and US Energy Information Administration crude oil stocks are at 1530 BST.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
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