Monks Inv Share News (MNKS)

LONDON (Alliance News) - Share prices in London are mostly lower at the open Tuesday, as falling commodities prices continue to weigh on investor sentiment, particularly for large and mid-caps.

The UK government has sold a 5.4% stake in Royal Bank of Scotland Group for GBP2.08 billion, taking the milestone first step on the way to returning the bank to full private ownership six years after its GBP45.5 billion bailout during the global financial crisis.

HM Treasury has sold 630 million ordinary shares at 330 pence each to institutional investors, leaving it with an overall 72.9% stake in RBS. It now controls 51.5% of the voting rights in the bank, compared with 61.3% before the sale. It said late on Monday it had expected to sell about 600 million ordinary shares. The stock is down 1.6% at 332.40p early Tuesday.

Confirming the sale on Tuesday, Chancellor George Osborne said that selling RBS will promote financial stability, improve competition in the bank sector and support the wider UK economy.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.5% at 6,653.21
FTSE 250: down 0.2% at 17,641.75
AIM ALL-SHARE: up 0.1% at 752.49
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Hang Seng: down 0.2% at 24,365.55
Nikkei 225: closed down 0.1% at 20,520.36
DJIA: closed down 0.5% at 17,598.20
S&P 500: closed down 0.3% at 2,098.04
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GBP: up at USD1.5594
EUR: up at USD1.0963

GOLD: up at USD1,089.18 per ounce
OIL (Brent): up at USD49.96 a barrel, having hit low of USD49.35

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times in BST)

10:00 EU Producer Price Index
13:55 US Redbook index
14:30 Canada RBC Manufacturing PMI
14:45 US ISM New York index
15:00 US IBD/TIPP Economic Optimism
15:00 US Factory Orders
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UK house price growth accelerated as expected in July, after easing in the previous two months, data from the Nationwide Building Society showed. House prices rose 3.5% year-over-year in July, in line with expectations, faster than previous month's 3.3% climb. On a monthly basis, the house price index increased 0.4% in July, reversing a 0.2% fall registered in June. The figure was also matched with consensus estimate. "After moderating over the past twelve months, there are tentative signs that annual house price growth may be stabilising close to the pace of earnings growth, which has historically been around 4%, " Robert Gardner, Nationwide's chief economist, said.
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Ireland's manufacturing sector continued to expand at a solid pace in July, as growth of output, new orders and employment accelerated, survey figures from Markit Economics showed. The seasonally adjusted Investec purchasing managers' index rose to 56.7 in July from 54.6 in the previous month. Any reading above 50 indicates expansion in the sector. The index remained above-50 for the twenty-sixth month running in July.
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President Barack Obama launched the first-ever climate rules for US power plants, calling for sweeping reductions in carbon emissions and provoking protests from the mining industry and Congress. The new rules dictate an overall reduction in heat-trapping gasses of 32% below 2005 levels by 2030. "We're the first generation to feel the impact of climate change and the last generation that can do something about it," Obama said at a White House gathering of supporters. Electricity generation contributes about one-third of US output of the greenhouse emissions that are blamed for global warming.
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BROKER RATING CHANGES
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MERRILL LYNCH REINITIATES IAG WITH 'UNDERPERFORM' - PRICE TARGET 500 PENCE
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TRADERS: MERRILL LYNCH RESUMES IMPERIAL TOBACCO WITH 'BUY'
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TRADERS: CANACCORD RAISES SEGRO TO 'BUY' ('HOLD') - TARGET 512 (442) PENCE
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TRADERS: NUMIS CUTS MORGAN SINDALL TO 'ADD' ('BUY')
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TRADERS: LIBERUM RAISES PENDRAGON TO 'BUY' ('HOLD')
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COMPANIES - FTSE 100
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Standard Life said it expects a lower contribution to its results for 2015 from annuity new business in the wake of changes to UK pensions rules that mean retirees are no longer required to purchase them. The Edinburgh-based investments and savings company said it expects annuity new business to fall by about GBP10 million to GBP15 million in 2015. The news came as Standard Life reported assets under administration of GBP302.1 billion on the basis of continuing operations at the end of June, up from GBP296.6 billion six months earlier, driven by demand for investment products and services, as well as the GBP390 million acquisition of Ignis Asset Management in 2014. Standard Life increased its interim dividend by 7.5% to 6.02 pence.
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Direct Line Insurance Group improved its guidance for a key measure of underwriting profitability in 2015, as it recorded higher-than-expected reserve releases from prior years in the first half and reported improved profit figures. The motor and home insurer said it expects its combined operating ratio for 2015 to be in the range of 92% to 94%, an improvement on the previous guidance of 94% to 96%, assuming a "normal annual level" of home claims from major weather events of about GBP80 million. Pretax profit from continuing operations increased to GBP315.0 million in the half, compared with GBP211.7 million in the prior year period. Direct Line increased its interim dividend by 4.5% to 4.6 pence per share.
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Aerospace engineering company Meggitt said its pretax profit jumped in the first half of 2015 as revenue increased, though the company's order intake was weaker in the period. The group said its pretax profit for the half to the end of June was up to GBP115.8 million from GBP98.2 million, driven by a 10% rise in revenue in the half to GBP793.7 million from GBP718.9 million. The group said it would pay an interim dividend of 4.60 pence per share, up from 4.25p a year earlier.
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Builders' merchant and home improvement retailer Travis Perkins hiked its interim dividend by 20% on the back of a rise in profit driven by stronger revenue and robust like-for-like sales growth. The company, which runs the Wickes DIY chain along with plumbing and heating and contract merchanting businesses, said its pretax profit for the six months to the end of June was GBP158.6 million, up from GBP153.7 million a year earlier. Travis said it will pay an interim dividend of 14.75 pence per share, up 20% year-on-year on the back of the strong result and its confidence on its outlook for the second half.
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Mexico-focused precious metals miner Fresnillo said its gold and silver production both rose in the first half, but its pretax profit plunged as the prices for its metals dropped heavily. The company said its pretax profit for the six months to the end of June was USD136.1 million, sharply down from the USD208.2 million it posted a year earlier. The group's silver production in the half was up by 11% to 23.8 million ounces from 21.5 million ounces a year earlier, while gold production increased to 364,020 ounces from 265,670 ounces, up 37%. But Fresnillo said its realised price for silver fell by 18% in the half, while its realised price for gold was down 7.4%. On the back of the fall in pretax profit, Fresnillo said it will pay an interim dividend of 2.1 US cents, less than half the 5 cents it paid out a year earlier.
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US activist hedge fund ValueAct has emerged as a shareholder in engineering company Smiths Group, just days after it was revealed the fund had become the largest shareholder in Rolls-Royce Holdings, the Financial Times reports. ValueAct's holding in Smiths, which makes products including airport scanners and medical devices, is below the 5% threshold required for disclosure to the London Stock Exchange, the FT said.
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COMPANIES - FTSE 250
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Just Eat reported growth in profit in the first half of 2015 and said it expects revenue for the full year to be higher than originally anticipated due to additional orders delivered by extra investment. The online takeaway company reported growth in pretax profit in the six months ended June 30 to GBP14.0 million from GBP8.6 million in the first half of 2014, as revenue rose to GBP107.8 million from GBP69.8 million.
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Rotork said its pretax profit and revenue both declined in the first half as the group continues to suffer the effects of the downturn in the oil and gas industry, and said it has struck a deal to acquire a unit of fellow UK-listed engineer Spirax-Sarco Engineering. Rotork said its pretax profit was down to GBP56.3 million from GBP61.5 million in the first half. Revenue declined to GBP274.2 million from GBP278.5 million, and order intake sunk 9.5% to GBP274 million from GBP302.7 million. Rotork increased its interim dividend payout by 1.6% to 1.95 pence per share.
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Housebuilding and construction group Galliford Try said it has been appointed by developer ACDL to deliver the first phase of the new Arena Central scheme in central Birmingham.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Construction and regeneration company Morgan Sindall Group said its revenue rose in the first half of 2015, but it swung to a pretax loss thanks to provisions it booked against onerous legacy contracts in its construction arm. The company said its pretax loss in the first half was GBP27.2 million, compared to a GBP13 million profit a year earlier, as it booked a GBP39.4 million provision against troublesome contracts in its UK construction arm. That offset a rise in revenue in the half, up to GBP1.15 billion from GBP998.5 million, along with hikes in other costs the group booked in the period. Morgan Sindall said it will pay an interim dividend of 12 pence per share, flat year-on-year.
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Optimal Payments late Monday said it has received "change of control" approval from the UK regulator for its reverse takeover of payments rival Skrill. The decision by the UK's Financial Conduct Authority means that Optimal Payments now expects the deal to complete on August 10. Optimal will seek to leave AIM for the London Main Market once the GBP1.1 billion deal completes.
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COMPANIES - INTERNATIONAL
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American International Group reported a decline in second-quarter profit, hurt by weakness at its insurance business, debt-related losses and lower gains from the sale of investments, while the prior year had disinvestment gains. However, AIG's earnings easily topped Wall Street estimates, helped by contributions from aircraft leasing giant AerCap as well as investments in a Chinese insurance company. AIG said it will buyback an additional USD5 billion of its common shares, and announced a 124% increase in quarterly dividend to USD0.28 per share. New York-based AIG reported second-quarter net income of USD1.8 billion, compared with USD3.1 billion a year ago.
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French insurer AXA reported that net income for the half year declined 7% to EUR3.08 billion from the prior-year period. It grew 2% in constant currency. Excluding items, adjusted earnings rose 12% to EUR3.49 billion and underlying earnings were also up 12% at EUR3.10 billion, benefiting from a positive Forex impact. For the first half, the group's total revenues grew 10% to EUR54.52 billion from EUR49.71 billion last year, driven by growth in all business lines. Revenues improved 2% on a comparable basis.
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Credit Agricole Group reported that its net income group share for the second-quarter 2015 increased to EUR1.50 billion from EUR785 million in the prior year. Gross operating income improved 19% year-over-year to EUR3.451 billion. Quarterly revenue grew 9.0% to EUR8.257 billion from last year.
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US federal prosecutors are investigating billions of dollars of trades German lender Deutsche Bank made on behalf of Russian clients as recently as this year, Bloomberg reported citing people familiar with the matter. The Justice Department's criminal probe focuses on so-called mirror trades, these people said. Such trades may have allowed Russian clients to move funds out of the country without properly alerting authorities, the report said.
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Tuesday's Scheduled AGMs/EGMs

Pires Investments
Immunodiagnostic Systems
Monks Investment Trust
Paragon Diamonds
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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