LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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International Consolidates Airlines Group, up 1.8% at 562.08 pence. Liberum raises its price target on the British Airways parent by 25% to 875p from 700p. Liberum analyst Gerald Khoo said he sees "considerable scope for a re-rating" in the shares. The analyst said there is "a growing disconnect between the fundamentals and valuation of IAG" as "a record performance has been met by a de-rating of the shares". In February, IAG reported a more than doubling in profit in 2015, as revenue grew despite taking a small hit to sales in the fourth quarter following the terrorist attacks in Paris.
Centrica, up 1.7%. The British Gas parent is in early talks over a tie-up with the oil and gas production arm of Engie, the French state-backed energy giant, the Sunday Times reported without saying where it got the information. The report said that Centrica is "understood" to have hired investment bank JP Morgan for advice. Engie and Centrica co-own Cygnus, one of the largest gas fields in the North Sea. "A combination with Engie’s oil and gas arm, perhaps under a new joint venture vehicle, would allow both companies to reduce costs by cutting overlap and extracting better terms from suppliers. It is unclear whether a deal will be struck," the report said.
Anglo American, up 1.5%. The miner has agreed to sell its 70% stake in the Foxleigh metallurgical coal mine in Queensland, Australia. No financial details on the sale were disclosed, but Anglo said it has sold the stake to a consortium led by Taurus Fund Management. Foxleigh is an open-cut coal mine which produces high-quality pulverised coal injection coal, Anglo said. It is located in the Bowen Basin in Queensland and delivered 1.86 million tonnes of production attributable to Anglo in 2015.
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FTSE 100 - LOSERS
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Mondi, down 2.7%. The Anglo-South African paper and packaging company said Russian authorities have started an investigation into its Russian business. Mondi said the Federal Antimonopoly Service of the Russian Federation said last week it had initiated an investigation into Mondi Syktyvkar for violating anti-monopoly laws in regards to pricing of offset paper. On Friday, the Federal Antimonopoly Service said it had opened a case against Mondi's unit in the country. It said it had established the cost of offset paper for domestic customers had increased around 50%, which did not match the change in the cost of producing and selling the goods.
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FTSE 250 - WINNERS
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Brewin Dolphin Holdings, up 1.6%. N+1 Singer upgraded the wealth manager to Buy from Hold.
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MAIN MARKET AND AIM - WINNERS
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Landore Resources, up 189%. The miner said it has made a significant gold discovery at the Junior Lake project in Ontario, Canada. Landore said follow-up drilling on the BAM East gold prospect at the project has established the presence of a significant gold discovery at the site, with gold mineralisation open along the east and west of the site. Intersections of up to 5.74 grams per tonne of gold were seen in the drill holes, Landore said, adding current drilling indicates mineralisation may be increasing with depth.
LiDCO Group, up 12%. The medical monitoring products maker said the US Food & Drug Administration granted 510k market clearance for its latest product, the LiDCOunity, a hemodynamic monitor that combines the company's technology into one platform. The company said the approval was "key" to ensure it is able to offer its latest technology to surgeons and anaesthetists.
Chemring Group, up 8.9%. The defence contractor said the implementation of its ammunition contract with a customer in the Middle East has started, with a letter of credit in place and an advance payment now received. Chemring said in-house and supply-chain production has started on the contract, with initial revenue to be recognised in the second quarter of its current financial year to the end of October. Chemring expects the deal to make a significant contribution to its results in the 2016 financial year.
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MAIN MARKET AND AIM - LOSERS
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Caza Oil & Gas, off 49% at 0.291p. The oil and gas company said has received a proposal from its majority shareholder to take the company private and cancel its listing on AIM. Caza said Talara Opportunities V LP, which already owns 95% of Caza's shares, has made a proposed to take the company private at a cash price of USD0.00481 per share, equivalent to about 0.34 pence. The price is around 12% higher than the valuation placed on the company by an independent committee of Caza directors, Caza said. Caza will hold a meeting on the proposals on April 29 and expects its AIM listing to be cancelled by May 10. The company also intends to voluntarily de-list from the Toronto Stock Exchange.
Sepura, down 28%. The critical communications provider said its earnings before interest, tax, depreciation and amortisation in its recently ended financial year will be lower than expected. The company said said its adjusted Ebitda for the year ended April 1 will be between EUR16 million and EUR20 million, missing expectations for the year. It said this was due to two significant orders being delayed into the first quarter of the new financial year, as well as a EUR2.6 million hit from adverse foreign exchange rates.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
Copyright 2016 Alliance News Limited. All Rights Reserved.
17 Feb 2015 09:03