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London midday: Miners lead the fallers

Mon, 24th Sep 2012 12:15

Today's morning session has started the week off in much the same way as the weather has: gloomily. Investor sentiment has been knocked by renewed concerns over the single currency region following France and Germany's failure to agree a schedule for initiating shared oversight of the region's banking sector. Miners were leading the fallers by lunchtime, following a call from analysts at JP Morgan to take profits in the sector because stalling economic growth in the US and more significantly in China, are expected to offset the US Fed´s third round of asset purchases. Furthermore, JP Morgan analysts have specifically recommended avoiding shares of Khazakmys and Anglo American.It was announced this morning that Business Secretary Vince Cable is soon to unveil the creation of a one billion pound business bank to help increase lending to companies. He will tell the Liberal Democrat party conference in Brighton that the bank would "get behind" good businesses and be up and running in 18 months. The government will put up £1.0bn and hopes this will be matched by private sector investment. Meanwhile, a survey has revealed that Britons are now even more concerned about inflation, according to Markit, a survey conductor, with repondents saying they expect living costs to rise sharply. Around 66% of those surveyed said their day-to-day living costs have risen since August, matching what was seen in the monthly index which measures inflation perceptions, which showed the strongest month-on-month increase since November 2010. 40% of respondents said they expected their financial situation to get worse over the next year. Bumi plummetsMining giant Bumi was also weighing on the sector after it said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29% interest, with particular focus on that firm's development funds. "The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at December 31st 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said. Fund manager Aberdeen Asset Management saw its assets under management (AuM) edge up in the first two months of the second half of the year. AuM at the end of August stood at £184.3bn, up from £182.7bn at the end of June. Gross new business during July and August totalled £6.1bn, but overall the group saw a net outflow of £0.1bn. Shares in JJB Sports were suspended this morning as the firm headed towards administration. The retailer had been searching for a buyer after it failed to raise the funds it needed to attempt a turnaround of the business. Dairy Crest warned of lower first half profits, as challenging conditions continue, but said profit expectations for the full year ending March 31st 2013 remain unchanged. Profit before tax and exceptional items slipped to £14.9m in the six months ended July 28th, from £16.2m in the corresponding period of last year at Irn-Bru maker AG Barr. The company took a £1m hit from adverse currency movements, although around £0.6m of this is expected to unwind in the second half of the year. On a constant currency basis, first half profit before tax was £0.3m behind the similar period in the prior year. Sales in the first seven weeks of the second half have shown double digit percentage growth.Analysts at Bank of America Merrill Lynch have downgraded their view on shares of Anglo American to "neutral" from "buy". Other markets The price of oil has turned south, with the most actively trade futures contract for Brent crude off $1.24 at $91.65 a barrel.The yield on the benchmark 10-year gilt is 1.73%, down from 1.84% earlier this morning. FTSE 100 - RisersGlaxoSmithKline (GSK) 1,445.00p +0.56%Shire Plc (SHP) 1,821.00p +0.39%Smith & Nephew (SN.) 688.50p +0.36%Sainsbury (J) (SBRY) 346.00p +0.32%AstraZeneca (AZN) 2,951.50p +0.32%Rexam (REX) 437.40p +0.23%Severn Trent (SVT) 1,734.00p +0.12%Associated British Foods (ABF) 1,293.00p +0.08%InterContinental Hotels Group (IHG) 1,641.00p +0.06%FTSE 100 - FallersEurasian Natural Resources Corp. (ENRC) 326.40p -5.25%Evraz (EVR) 259.40p -4.60%Anglo American (AAL) 1,864.50p -3.79%Fresnillo (FRES) 1,766.00p -3.66%Vedanta Resources (VED) 1,049.00p -3.41%GKN (GKN) 219.10p -3.05%Sage Group (SGE) 315.30p -2.92%Kazakhmys (KAZ) 708.00p -2.88%Glencore International (GLEN) 352.00p -2.76%Antofagasta (ANTO) 1,244.00p -2.51%FTSE 250 - RisersPetra Diamonds Ltd.(DI) (PDL) 116.60p +6.29%QinetiQ Group (QQ.) 180.90p +5.30%Computacenter (CCC) 379.90p +3.46%Pace (PIC) 168.70p +2.09%SIG (SHI) 104.70p +2.05%Cairn Energy (CNE) 289.30p +1.94%Shanks Group (SKS) 90.20p +1.81%Stobart Group Ltd. (STOB) 116.50p +1.75%PayPoint (PAY) 738.00p +1.72%Brown (N.) Group (BWNG) 271.90p +1.68%FTSE 250 - FallersBumi (BUMI) 137.40p -29.86%Talvivaara Mining Company (TALV) 154.00p -6.44%Ferrexpo (FXPO) 205.10p -4.83%Petropavlovsk (POG) 420.30p -4.39%Centamin (DI) (CEY) 91.95p -3.92%Imagination Technologies Group (IMG) 513.50p -3.39%Lonmin (LMI) 577.50p -2.78%Grainger (GRI) 108.40p -2.69%Dixons Retail (DXNS) 19.14p -2.65%Smith (DS) (SMDS) 187.40p -2.65%FTSE TechMARK - RisersOxford Biomedica (OXB) 2.50p +3.73%BATM Advanced Communications Ltd. (BVC) 17.00p +3.03%Wolfson Microelectronics (WLF) 211.00p +2.30%Filtronic (FTC) 44.00p +1.73%XP Power Ltd. (DI) (XPP) 1,020.00p +0.79%Consort Medical (CSRT) 731.50p +0.21%FTSE TechMARK - FallersAntisoma (ASM) 1.53p -5.26%Ricardo (RCDO) 380.00p -2.81%Gresham Computing (GHT) 70.00p -2.78%Vectura Group (VEC) 82.00p -2.38%Vislink (VLK) 31.00p -1.59%Xaar (XAR) 245.00p -1.21%E2V Technologies (E2V) 135.00p -0.55%Microgen (MCGN) 133.00p -0.19%Optos (OPTS) 178.75p -0.14%NCC Group (NCC) 920.00p -0.05%NR
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3 Mar 2011 16:39

London close: Shares soar on Libya deal hopes

Reports that the Libyan situation might be resolved through mediation rather than violence sent UK shares sharply higher. The Arab League is said to be considering a proposal to end the fighting in Libya sending oil prices higher. Heavy oil users such as airline International Consolidated Airlines

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3 Mar 2011 14:13

London afternoon: Footsie cruises towards 6,000

Footsie has 6,000 within its sights once more as stocks bounce back strongly on hopes that the Libyan situation might be resolved. Reports that the Arab League is considering a proposal to end the fighting in Libya have boosted sentiment, and has sent the price of oil into reverse. Heavy oil users

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3 Mar 2011 11:09

JJB Sports asks landlords to halve rents

JJB Sports is offering its landlords as much as £7.5m if they agree to a series of proposals that might save the hard-up sports retailer from going bust. Under the terms of a proposed company voluntary arrangement (CVA), 43 stores will shut by 24 April 2012, while a further 46 shops could close dur

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24 Feb 2011 06:27

Thursday newspaper round-up: Lloyds, RBS, JJB, $220-a-barrel oil

Qatar, the natural gas-rich Middle Eastern state which owns stakes in Barclays and Sainsbury's, could invest in Lloyds and Royal Bank of Scotland, the banking groups part-nationalised at the height of the financial crisis. The Treasury owns about 83% of RBS and about 40% of Lloyds, with the stakes m

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11 Feb 2011 16:51

London close: Shares applaud Mubarak exit

Shares rallied sharply in the afternoon following strong confidence figures from the US, but it was the announcement that Egyptian president Hosni Mubarak is stepping down that really stirred up excitement. One stock in particular reacted strongly to the announcement. Shares in gold miner Centamin

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11 Feb 2011 16:11

Sector movers: Rio Tinto extends gains

Mining stocks are doing well with giant Rio Tinto among the risers after it revealed record full-year profits yesterday, as well as a $5bn share buy-back and a 20% increase in the dividend. Today, the stock was given a lift by comments by Credit Suisse, which said that the buy-back is a good sign t

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11 Feb 2011 14:11

London afternoon: L&G leads modest advance

Leading shares are mixed but with a slightly firmer bias after rising over the lunchtime session. Insurer Legal & General (L&G) leads the advance on the back of a positive broker note from Nomura Securities. "We highlight our preference for L&G over Prudential (Reduce), given that we expect Pru to

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11 Feb 2011 13:47

JJB wants new CVA deal with landlords

Struggling sportswear group JJB Sports has warned it could go bust unless landlords agree to cut rents on 95 stores it has earmarked for possible closure. JJB's plan comes just two years after it did a similar deal, called a company voluntary agreement or CVA, on 140 stores. The voluntary agreemen

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2 Feb 2011 16:39

London close: FTSE 100 back at 6,000

Strength in the mining sector on the back of higher metals prices and well-received updates drove the FTSE 100 back to 6,000 points. Both factors benefited miner Eurasian National Resources (ENRC). Production matched estimates in the fourth quarter of 2010, while the ferroalloys unit produced a bit

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2 Feb 2011 15:07

London afternoon: Tobacco giant leads way

A limp start on Wall Street isn't helping London, but the leading index remains within reach of 6,000, supported by a strong mining sector and big gains at cigarette maker Imperial Tobacco. Resource plays still dominate the leaderboard. Eurasian National Resources (ENRC) is better on news productio

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2 Feb 2011 12:09

London midday: Miners underpin FTSE 100 gains

Strong gains in the mining sector are helping to keep the top share index close to the 6,000 point mark. Results are also driving shares forward. The best performing miner in the FTSE 100, Eurasian National Resources (ENRC), said production was in line with expectations in the fourth quarter of 201

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2 Feb 2011 08:26

London open: Miners push Footsie above 6,000

Mining stocks are driving London higher in the early going as the price of copper rose to record levels in New York and London, following unexpectedly good US manufacturing figures yesterday. The giants of the mining sector, BHP Billiton and Rio Tinto, are both sporting solid gains, as are Lonmin,

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2 Feb 2011 07:35

London pre-open: Footsie has 6,000 in its sights

After Wall Street's surge yesterday traders are realistically contemplating the Footsie rising above 6,000 again, though it will have to add to expected early gains, as the blue chip index is forecast to open at around 5,980, up 22 points from last night's close. Tobacco company Imperial Tobacco ha

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2 Feb 2011 07:11

JD pounces as JJB raises £30m

JD Sports has confirmed speculation it has made an offer for struggling rival JJB Sports, though adds discussion are at a very early stage. "There can be no certainty that an offer will be made by JD Sports Fashion for JJB Sports, nor as to the terms on which any offer might be made," it said. "

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26 Jan 2011 13:08

Yellow card for JJB Sports

The Financial Services Authority (FSA) has confirmed it is to fine sportswear retailer JJB Sports £455,000 for misleading the market over the cost of two acquisitions in 2007 and 2008. JJB will pay the fine in six monthly instalments. The FSA's investigation into the company's stock exchange annou

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