Last checked at LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Wednesday.
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FTSE 100 WINNERS
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Meggitt, up 8.4%. The British engineering and aerospace equipment company saw its shares jump amid speculation of a possible takeover offer from US-based United Technologies. The Daily Mail newspaper said rumours of a possible GBP5 billion bid have been flying around the Farnborough International Airshow, taking place this week. A spokesperson for Meggitt declined comment on the report.
Rio Tinto, up 2.8%. The world's second-biggest iron-ore producer released a strong production update Wednesday, saying that global iron ore production for the second quarter grew by 11% and that it's own production matched that growth. Rio Tinto generates about 90% of its profit from iron-ore.
British Land, up 2.5%. Shares in the real-estate investment trust moved higher after it reported a "strong performance" in the first quarter. The London-based company said it signed 334,000 square feet of retail lettings and renewals during the quarter and completed 112,000 square feet of office lettings and renewals.
ARM Holdings, up 2.4%. Share in the micro-chip maker are being bought by investors after US competitor and the world's biggest chip-maker, Intel, provided a boost to the sector by reporting a 40% increase in earnings in the second quarter compared to the previous year.
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FTSE 100 LOSERS
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Shire, down 1.4%. Shares of the UK drug marker are continuing to consolidate from their all-time high made on Monday after management said it is "willing to recommend" US suitor AddVie's latest takeover offer to shareholders. In the absence of any further update, the shares appear to be tracking AbbVie, which closed down 2.6% in New York on Tuesday, given that part of the current proposal is composed of AbbVie shares. Moreover, there is an increasing risk that the US Congress may crack down on takeover deals that appear to be driven by the tax benefit for a US company of domiciling overseas. US Treasury Secretary Jack Lew has reportedly written to Congress to urge an immediate change in the law. AbbVie has until Friday to come back to Shire with a firm offer.
Imperial Tobacco, down 1.3%. The tobacco stocks remain out of favour after being the worst performing sector on Tuesday on news that Reynolds American Inc will acquire fellow US tobacco company Lorillard Inc for USD27.4 billion. Investors appear to be unsure about Imperial Tobacco's strategy after it said it has entered into a purchase agreement with Reynolds American to acquire a portfolio of US cigarette brands as part of the deal. The deal would include Blu, the e-cigarette brand Lorillard bought in 2012.
Fresnillo, down 1.2%. The precious metals miner said total silver production for its second quarter compared to the previous year was flat at 10.9 million ounces as increased Silverstream production offset lower production elsewhere. Meanwhile its gold production rates continued to be low as a result of explosion permit problems and stoppages earlier in the year.
Royal Mail, down 0.7%. One of the group's subsidiaries, GLS France, is involved in an investigation by the French competition authority into a potential breach of antitrust laws. In a statement, Royal Mail said: "We are currently considering the notice received from the French regulator. Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is possible that it could be material." Accendo Markets head of research Michael Van Dulken said, "while still early days, and linked to a broader investigation into the French postal industry which dates back to 2010, this could weigh on the shares in the short term."
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FTSE 250 WINNERS
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Oxford Instruments, up 4.6%. In a brief statement, the provider of high-technology instruments said that orders were ahead of the same period last year in all its major trading regions of Europe, North America and Asia. Excluding Andor Technology PLC, which it acquired in January for GBP176.0 million, orders were ahead in North America but lagged in Europe and Asia.
Big Yellow, up 3.1%. The self-storage business said its wholly owned stores grew in occupancy during the three months ended June 30 by 125,000 square feet, while move-ins in its like-for-like wholly owned stores were up 6% on the previous year. Big Yellow Group said its total store revenues for its 55 stores open at June 30 was GBP18.6 million for the quarter, which represents a 5% increase on the previous quarter and an 11% increase on the previous year.
Hochschild Mining, up 3.0%. The precious metal miner said it has achieved its USD200 million cash-optimisation programme and is on track to achieve its 2014 silver equivalent production target as first half attributable silver production increased due to higher grades and recoveries. Management said attributable silver equivalent production rate increased 3.4% to 11.9 million ounces for the six months ended June 30 from 11.5 million ounces the previous year, as falls in gold production were significantly offset by a 10% increase in silver production.
Imagination Technologies, up 3.0%. Much like ARM Holdings, Investors are betting that Tuesday's strong results from US chip-maker bode well for the sector as a whole.
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FTSE 250 LOSERS
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Euromoney Institutional Investor, down 1.1%. The financial data company, which generates about two thirds of its revenues and pretax profit in US dollars, reported a 6% decline in third-quarter headline revenue to GBP106.6 million, hit by the appreciation of the pound against the dollar, a trend it said will continue in the final quarter.
Moneysupermarket.com, down 0.4%. Shares of the price comparison website have moved lower after the UK financial regulator, the Financial Conduct Authority, said that price comparison websties in the general insurance sector are failing to meet consumers’ expectations and, in some cases, regulatory standards. In a statement, the FCA said the websites did not always ensure that consumers were given the appropriate information to help them make informed decisions.
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AIM All-Share WINNERS
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Tri-Star Resources, up 13%. The integrated antimony development company said said it has made a new discovery and sees significant upside potential at its Bald Hill antimony deposit in New Brunswick, Canada, following an exploration programme. As part of an exploration programme carried out in May and June on the Bald Hill site, the company found a new area of antimony mineralisation grading 9.04% antimony over a 2.6 metre space 1 kilometre from its main deposit. Antimony is a metal used in electronics and plastics manufacturing.
TyraTech, up 10%. The biotechnology company said it has conditionally raised GBP3.5 million before expenses in a oversubscribed placing and subscription of new shares, funds it said it will use to launch its Vamousse head lice product line with UK and US retailers.
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AIM All-Share LOSERS
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Access Intelligence, down 13%. The software-as-a-service company posted a pretax loss of GBP68,000, widened from GBP30,000 in the previous year, as revenue declined slightly to GBP4.1 million from GBP4.2 million. Recurring revenues rose, offsetting reduced revenues from the company's professional services division as staff were deployed on internal development projects. The company also said it has appointed Joanna Arnold as chief executive.
Octagonal, down 8.0%. The investment company said it has appointed Jason Berry, a former director of Circle Opportunities PLC, as an executive director.
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By Jon Darby; jondarby@alliancenews.com; @jondarby100
Copyright 2014 Alliance News Limited. All Rights Reserved.
23 May 2024 09:47
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