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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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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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