Last checked at LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Monday.
-------
FTSE 100 - WINNERS
-------
Tesco, up 2.8%. Shares in the company have jumped following the surprise announcement that Chief Executive Officer Philip Clarke will step down on October 1, to be replaced by Dave Lewis, who is currently president of Unilever's Personal Care unit, as well as a non-executive director of British Sky Broadcasting. Tesco also warned that its sales and trading profit for the first half are "somewhat below expectations". However, investors and analysts have expressed little surprise at the profit warning, given the well-documented price pressure in the UK supermarket sector at the moment, and instead are hopeful that the incoming CEO can turn things around.
Babcock International Group, up 0.8%. The engineering support services company said that trading across its business has started well in its new financial year and that its 2015 financial-year results will be in line with its expectations after recording high activity levels since the beginning of the year. It said it remains positive for prospects in its key markets as they continue to offer "significant" medium and long-term growth opportunities and that the strong progress made since the start of the year is set to continue.
Anglo American, up 0.6%. The company's subsidiary Anglo American Platinum has unveiled plans to sell off major platinum mines in South Africa, as part of its ongoing platinum review, while recording a loss for the first half of 2014. The company said the decision has been made to exit its Union and Rustenberg mines, along with its Pandora joint venture operation through sales or public market exits. It is also contemplating an exit from its Bokoni joint venture operations. Additionally, Anglo American has revealed that Anglo American Platinum will contribute an underlying loss of USD1 million for the six months to end-June, which is adjusted to remove special items and re-measurements, and any related tax and non-controlling interests. In the prior year period, Anglo American Platinum contributed an underlying profit of USD92 million to Anglo American results. Anglo American Platinum also Monday reported IFRS headline earnings of USD14 million, compared to USD140 million a year ago.
-------
FTSE 100 - LOSERS
-------
WM Morrison Supermarkets, down 2.1%, and J Sainsbury, down 1.2%. The supermarket chains are two of the heaviest fallers in the FTSE 100 after Tesco said that current trading conditions are "more challenging" than it had anticipated in early June, and warned that first-half sales and trading profit are "somewhat below expectations."
British Sky Broadcasting Group, down 2.1%. BSkyB's shares rose more than 4% last week after it sold its 6.4% interest in FTSE 100-listed ITV to John Malone's Liberty Global and amid growing M&A speculation within the media sector. Also, according to a Bloomberg report Monday, Fox may sell its Sky Italia unit and its 57% interest in Sky Deutschland AG to BSkyB in the next two weeks in order to raise cash to improve its takeover bid for Time Warner. Separately Monday, BSkyB said it acquired a 70% interest in independent production company Love Productions, for an undisclosed amount. Love Productions is known for producing shows such as "The Great British Bake-Off" and "Benefits Street".
Barratt Developments, down 1.9%, and Persimmon, down 1.7%. The housebuilders are under pressure following the release of the latest Rightmove UK house price index, which fell for the first time this year in July. The index fell by 0.8% in the month, following a 0.1% gain in June, as the tighter mortgage lending rules recently introduced by the Bank of England to calm the rampant UK housing market appear to be having some effect. The Rightmove survey showed prices up 6.5% on a yearly basis, down from 7.7% in June.
Imperial Tobacco, down 1.6%, and British American Tobacco, down 0.9%. The tobacco companies are among the heaviest losers in the blue-chip index following weekend reports that RJ Reynolds Tobacco Co, a subsidiary of US tobacco giant Reynolds American Inc, has been hit with a potential USD23.6 billion fine following a lawsuit filed by the wife of a smoker who died of lung cancer. BAT owns 42% of Reynolds.
-------
FTSE 250 - WINNERS
-------
F&C Commercial Property Trust, up 0.5%. The trust said it has acquired a long leasehold in Unit 1, The Hive, Liverpool International Business Park, for GBP11.9 million, reflecting a 6.45% net initial yield. It said that the new production and distribution warehouse is let to Johnson Controls Automotive (UK) Ltd for a term of 15 years at a passing rent of GBP812,050 a year. The lease is subject to a tenant's break in year 10 and is drawn on full repairing and insuring terms. A rent free period has been granted, expiring on October 6 this year.
-------
FTSE 250 - LOSERS
-------
Exova Group, down 1.9%. The company said it is to acquire Metallurgical Services Private Ltd, an India-based metallurgical, mechanical, corrosion and testing services provider. Metallurgical Services will become part of the laboratory-based testing and advisory services provider's Rest of World region and Oil & Gas and Industrials business cluster following the acquisition. No financial terms of the deal were disclosed.
-------
AIM ALL-SHARE - WINNERS
-------
Oilex, up 26%. The oil and gas exploration and development company said that following successful mill-out operations, the Cambay-77H well has started controlled flow back of fracking fluids with oil and condensate being recovered to surface. It said the hydrocarbon flow is now being separated for sale along with associated reservoir gas, with gas associated with the well flow-back currently being flared to ensure safety of well-site personnel. The company said that following carefully monitored well flow-back operations, the well continues to show the characteristics of a high performance multi-stage fracked horizontal well. It said the recovery of roughly API 50 light crude during the flow-back operations indicated higher-than-expected liquid hydrocarbon production from the gas-rich site.
FinnAust Mining, up 24%. The Finnish metals miner said it has found a new high-grade multi-metals region at its Hammaslahti target in Finland following drilling at the site. It said its Hole R325 found a sulphide zone of 5.6 metres with 3.2% copper, 2.7% zinc, 0.7% lead, 71 grams per tonne of silver and 0.76 grams per tonne of gold from 196.80 metres in depth. The company said the lower grade part of the mineralised region was seen in three drill holes 100 metres north of the R325 well, and it is carrying out follow up drilling in hopes of extending the known mineralised zone to the south and north.
Sefton Resources, up 14%. The oil and gas explorer said it has settled a range of fees and expenses through share issuances as part of its ongoing plan to refinance and jump start its operations following a disastrous 2013. It said it issued 32.2 million shares on Monday to settle outstanding accounts payable, employee compensation and directors fees for a total amount of USD88,045. The company said the shares were issued at 0.1592 pence per share, calculated on the average closing price for the period June 30 to July 16. Shares in the company are quoted at 0.21 pence.
Kodal Minerals, up 7.3%. The mineral development and exploration company said it has been granted three new exploration licences in western Norway, linked to the historic Grimeli copper mine. It said the new licences cover a 30 square kilometre area including two previously producing copper mines known as the Grimeli mine and the smaller Vågendal mine.
Stratex International, up 7.1%. The exploration and development company said it has conditionally agreed to acquire up to 33.4% of African gold exploration company Goldstone Resources Ltd for GBP1.3 million. It said it will subscribe for 20.8 million shares at 0.6 pence per share, which represents a discount of 4.7% from Goldstone's Friday closing price of 0.63 pence. The company will also have matching warrants, exercisable for 18 months at 0.7 pence, which would bring its total holding up to 50.1%. As a result of the deal, Stratex will have two out of five board seats and the right to nominate a new, independent non-executive director.
-------
AIM ALL-SHARE - LOSERS
-------
Uranium Resources, off 17%. The uranium exploration and development company said it has decided to delay any further drilling at its Mtonya uranium project in Tanzania until market fundamentals improve. It said that until the market for uranium improves, the true potential of the project is not being recognised by the wider market.
Hume Capital Securities, down 12%. Fellow AIM-listed broker European Wealth Group has revealed that its European Wealth Management Group subsidiary has appointed Adam Suggett as a financial controller, poaching him from Hume.
All Leisure Group, down 7.3%. The company said that Chris Gadsby has decided to step down from his role as group finance director. Gadsby will be leaving the business after its financial year-end in December. The search for his successor will now commence in order to facilitate a thorough handover before his departure, said All Leisure. Kevan Witts has been appointed as interim group finance director; he joins the company August 11.
-------
By James Kemp; jameskemp@alliancenews.com; @jamespkemp
Copyright 2014 Alliance News Limited. All Rights Reserved.
7 Apr 2016 08:12
