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London close: Late rally fizzles

Tue, 18th Sep 2012 16:50

A late rally which briefly looked like it might see Footsie venture into positive territory for the first time all day was nipped in the bud right at the death.Equities had a dull but fretful day, which started with concerns over China becoming involved in a trade war with the US and a military war with Japan, and ended with investors partly comforted about developments in Spain, where this morning's government debt auction went about as well as could be expected. With Spain feeling increased pressure to request assistance, the Treasury was able to issue 12 and 18-month bills for €4.6bn, more than the top end of the €3.5 - €4.5bn target.18-month bills were issued for €1.02bn (maturity: February 21, 2014) at a yield of 3.072%, lower than the previous 3.335%. 12-month bills were issued for €3.56bn (maturity: September 20, 2013) at a yield of 2.835%, lower than the previous 3.07%.In the UK, inflation data was in line with forecasts. The Consumer Prices Index (CPI) measure of inflation dropped to 2.5% in August, down from 2.6% in July, helped by falls in the price of clothing and footwear, furniture and household equipment, and domestic gas. The consensus estimate had been for a rise of 2.5%. Sportswear firms in focusSports fashion-wear firm JD Sports is having a few teething problems with the integration of the Black's Leisure store portfolio it acquired a while back. The firm said Blacks had made an initial loss of £10m, as expected, due to a critical lack of stock and unsustainable cost base. The retailer's stricken rival, JJB Sports, shot up on reports that a new potential bidder may have thrown its hat into the ring for the company which put itself up for sale last month.According to Sky News, privately owned Stafford Group, which owns a sporting chain in Ireland, is interested in acquiring JJB.Elsewhere on the high street, department store group Debenhams saw like-for-like (LFL) sales rise 3.7% in the final 10 weeks of its financial year, which ran to September 1st. For the full-year, LFL sales were up 1.6%. Despite the sales figures being better than expected, the company did not increase profit guidance for the year, which may account for why the shares closed little changed.Results from house-building and construction firm Galliford Try were well received. The group saw profits soar last year, paving the way for its full-year dividend pay-out to almost double, from 16p to 30p.Financial and legal training provider Wilmington moved to the head of the class after reporting increased profits as it successfully chased higher margin work over the 12 months to the end of June. Broker actionBroker downgrades put insurance titan Aviva on the skids, pushing the stock's dividend yield beyond seven per cent; BofA Merrill Lynch has downgraded Aviva to 'under-perform', although the target price has been raised to 360p from 330p, while Deutsche bank has moved to a 'hold' recommendation and edged up the target price from 360p to 375p.Imperial Tobacco and British American Tobacco did well after Nomura lifted its price targets on both this morning. Berenberg has initiated coverage of household goods colossus Unilever at buy. Mixed fortunes for extractorsGold exploration company Condor is celebrating a mineral resource of 2.41m ounces of gold equivalent at its wholly-owned La India Project in Nicaragua, with gold up 46 per cent to 2.375m oz, well ahead of the year-end target of 2.0m gold.The industrial dispute at Lonmin's South African operations drags on but there have been developments. Lonmin workers have been offered an additional one-time payment in exchange for them returning to work at the platinum mining company on Wednesday. A letter written by Lonmin directors to its workers is believed to have offered a 1,500 rand ($182, 140 euro) bonus in addition to an offer for an increased monthly wage of 1,875 rand ($227). The bonus will only be given if workers return on Wednesday.Things are not going so well for Royal Dutch Shell. After announcing delays to its offshore exploration programme in Alaska on Monday, reports on Tuesday suggest Royal Dutch Shell is also struggling with production targets in Iraq.Other marketsOil prices remain on the slide, despite the White House quashing rumours that strategic oil reserves may be released. The most active futures contract for Brent crude was off 30 cents to $113.47 a barrel.Gold for December delivery rose $2.10 to $1,772.70 an ounce, reversing losses seen in the morning.Investors nibbled away at gilts after the inflation data, with the benchmark 10-year gilt's yield easing 5/100 of a percentage point at 1.88%.FTSE 100 - RisersBritish American Tobacco (BATS) 3,243.00p +2.82%United Utilities Group (UU.) 707.50p +2.76%Diageo (DGE) 1,718.00p +2.05%Imperial Tobacco Group (IMT) 2,362.00p +1.90%Bunzl (BNZL) 1,103.00p +1.38%Reckitt Benckiser Group (RB.) 3,627.00p +1.31%Severn Trent (SVT) 1,708.00p +1.07%Vodafone Group (VOD) 175.40p +1.01%National Grid (NG.) 685.50p +0.96%Pennon Group (PNN) 739.50p +0.75%FTSE 100 - FallersAviva (AV.) 344.90p -3.98%GKN (GKN) 228.30p -3.63%ICAP (IAP) 338.10p -3.48%IMI (IMI) 931.50p -3.17%BP (BP.) 438.95p -2.78%Royal Bank of Scotland Group (RBS) 267.10p -2.66%Lloyds Banking Group (LLOY) 38.85p -2.50%Kazakhmys (KAZ) 742.00p -2.43%Prudential (PRU) 821.50p -2.32%Tullow Oil (TLW) 1,411.00p -2.29%FTSE 250 - RisersDechra Pharmaceuticals (DPH) 592.50p +4.13%Galliford Try (GFRD) 690.00p +2.68%Genus (GNS) 1,432.00p +2.29%PayPoint (PAY) 746.50p +2.26%Centamin (DI) (CEY) 90.65p +2.20%Carpetright (CPR) 672.00p +1.97%Talvivaara Mining Company (TALV) 170.90p +1.73%BH Global Ltd. USD Shares (BHGU) 11.7 +1.39%COLT Group SA (COLT) 122.40p +1.24%BH Global Ltd. GBP Shares (BHGG) 1,170.00p +1.04%FTSE 250 - FallersImagination Technologies Group (IMG) 534.00p -6.07%Laird (LRD) 229.80p -5.78%Homeserve (HSV) 227.90p -5.59%Victrex (VCT) 1,371.00p -5.38%Ocado Group (OCDO) 69.70p -5.30%Inchcape (INCH) 376.80p -4.44%Electrocomponents (ECM) 226.50p -4.31%Paragon Group Of Companies (PAG) 208.20p -4.19%Ferrexpo (FXPO) 215.30p -4.01%Aquarius Platinum Ltd. (AQP) 50.90p -3.96%FTSE TechMARK - RisersAEA Technology Group (AAT) 0.090p +20.00%Gresham Computing (GHT) 71.50p +8.33%Skyepharma (SKP) 100.00p +5.26%FTSE TechMARK - FallersPace (PIC) 159.25p -4.21%Emblaze Ltd. (BLZ) 46.00p -3.66%Promethean World (PRW) 23.00p -2.13%E2V Technologies (E2V) 135.00p -2.00%Phoenix IT Group (PNX) 147.00p -2.00%JH
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2 Jan 2011 16:43

Sunday newspaper round-up: JJB Sports, Royal Mail, Bank bonuses...

JJB Sports is drawing up plans to tap shareholders for a second injection of cash as struggling retailers prepare for a tough year on the high street. The troubled sportswear chain is expected to ask investors to contribute up to £50m in the next few months on top of the £31.5m pledged in an emerge

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1 Jan 2011 12:12

The turkeys of 2010

With apologies to those of you who, after a week of seasonal indulgence, are sick of the sound of the word 'turkey', never mind the taste of it, here is an overview of the 'Turkeys of 2010', the stocks you did not want to be holding last year. Among FTSE All-Share constituents care home operator So

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24 Dec 2010 12:55

London close: Footsie finishes above 6,000

A late spurt by Footsie in the truncated afternoon trading session did the headline writers a favour and pushed the blue-chip index above the 6,000 level. Trading volumes were low, and corporate news was as thin as the veneer of snow still covering large parts of Britain. Struggling sportswear r

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24 Dec 2010 08:37

London open: JJB backers rally round

Trading is every bit as quiet as might be expected on the day before Christmas, with the blue-chip index marginally easier, disappointing those hoping for a move above the 6,000 level. Struggling sportswear retailer JJB Sports has done its best to inject a bit of excitement into proceedings with de

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24 Dec 2010 07:36

London pre-open: Stocks little changed

London looks set for a quiet half-day of trading ahead of the Christmas break, with the Footsie remaining hesitant about bursting through the 6,000 barrier. City traders expect the blue-chip index to open up a couple of points from last night's close of 5,996. Trading at JJB Sports has remained tou

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24 Dec 2010 07:02

JJB appoints restructuring specialist as chairman

Struggling sportswear chain JJB Sports has gained some breathing space with its major shareholders and its bank helping out with financial aid. The company is proposing to raise at least £31.5m through a share placing and open offer of shares at 5p each. The fund raising has the support of the com

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24 Dec 2010 06:35

Friday newspaper round-up: JJB Sports, Euro crisis, John Lewis...

JJB Sports, the beleaguered sports retailer, is poised to announce a £30m fund-raising and the departure of its chairman, to safeguard its future. It is thought that big shareholders, including Harris Associates and the foundation of Bill Gates, are backing the call. John Clare, the chairman, will

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3 Dec 2010 06:38

Friday newspaper round-up: Euro crisis, BT, Gold...

The European Central Bank launched its most aggressive intervention in government bond markets for seven months after Jean-Claude Trichet, president, unveiled a determined - but carefully calibrated - response to the eurozone crisis, the FT reports. Traders said the ECB was on Thursday buying Portu

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2 Dec 2010 16:33

London close: Market jumps 125 points

Blue chips staged an impressive late rally to finish more than 100 points higher for the second day running. There was no big bond repurchase programme today from the European Central Bank, but a decision to extend the current one for three months was enough to get buyers in a lather again. "We ex

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2 Dec 2010 14:28

London afternoon: ECB inaction deflates market

The absence of any mention of plans to launch a bond purchase in the European Central Bank (ECB) press conference this afternoon has taken some of the glow off equities. "We expect the governments to follow what they are committed to, they all have their adjustment and stabilisation programmes," E

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2 Dec 2010 13:25

Snowy weather hits retailers

The current spell of wintery weather has already begun taking its toll on businesses. The sportswear and equipment retailer JJB Sports and the department store group John Lewis have both complained that the wintery conditions have been keeping shoppers away. While bad weather does not usually have

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2 Dec 2010 12:47

Broker tips: Sage, Alliance Pharma, JJB Sports

Sage's subscription revenue growth has led Nomura to expect solid execution next year from the blue chip accountancy software firm. Sage reported "robust subscription revenues growing at 3%" in the second half versus the broker's expectation of 1%. Nomura notes that a growth of around 4% is achieva

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2 Dec 2010 12:02

London midday: Shares stay strong as updates impress

Company announcements have mostly been well-received today, helping to keep the leading share index in positive territory. All eyes will be on European Central Bank President (ECB) Jean-Claude Trichet at this afternoon's press conference following the interest rate decision for the eurozone, which

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2 Dec 2010 11:37

Broker snap: JJB Sports snowed under by debt

Panmure Gordon is reviewing forecasts for JJB Sports following the group's downbeat trading update and outlook statement Thursday. "Continued difficult trading conditions" have prompted the sports retailer to report that it will likely breach certain financial covenants when they are next tested in

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2 Dec 2010 08:25

London open: More gains for FTSE 100

Shares have got off to a good start as traders continue to hope for action on the eurozone debt crisis. All eyes will be on European Central Bank President Jean-Claude Trichet at this afternoon's press conference following the interest rate decision for the eurozone. Company updates have also bee

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