PCF.L Share News (PCF)

LONDON (Alliance News) - The FTSE 100 has shrugged off the uncertainty ahead of the British General Election to mark a new record intraday high Wednesday, with miners benefiting from the expectation of further stimulus from the People's Bank of China, and oil related stocks trading strongly on the back of a rise in oil prices.

Brent oil rose beyond the USD60 a barrel mark for the first time in over a month, continuing its upward momentum from Tuesday night, and that has given a boost to oil-related stocks.

The impact of the slide in prices on the oil sector over the last 10 months was laid bare by Hunting, which makes components for well drilling and intervention. It said operating profit in the first quarter of 2015 was down 60% on the year, and the outlook for the rest of 2015 as well as 2016 is unclear. It has responded by reducing headcount by about 20% since the start of this year. Still, even Hunting's shares have risen as analysts had expected the steep profit decline.

While the iron ore and base metals mining sector is getting a boost from hopes of further economic stimulus in China, precious metals miner Fresnillo is also amongst the best-performing stocks in the FTSE 100 after it said gold and silver production increased sharply in the first quarter, putting it on track to achieve its 2015 production guidance.

The Mexico-based precious metal miner said silver production in the three months to end-March was 12.4 million ounces, up 18.9% on the year as increased processed ore volume and higher ore grade at the Saucito mine more than offset lower production at the Fresnillo mine. Gold production in the quarter was 182,000 ounces, up 62.4% on the year as the Herradura mine, which had been hit by a temporary explosives permit suspension a year earlier, was fully operational.

The European Central Bank is not expected to change its key interest rates or stimulus programme later Wednesday, but will likely be questioned about a slowdown in its bond buying in the second month of the expanded programme. Markets will want to know whether that's down to the Easter break, or whether it's already running out of eligible bonds to buy.

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Markets: UK equities have reversed a lower opening to trade higher, with miners benefiting from the expectation of further stimulus from the People's Bank of China, and oil related stocks trading strongly on the back of a rise in oil prices. The FTSE 100 hit a new record intraday high of 7,111.72 earlier in the session.

US stock futures point to a higher open on Wall Street. The DJIA, S&P 500 and Nasdaq 100 are all currently set to open up 0.2%.

FTSE 100: up 0.3% at 7,098.33
FTSE 250: up 0.2% at 17,898.02
AIM ALL-SHARE: up 0.4% at 744.79
GBP: down at USD1.4744
EUR: down at USD1.0591
GOLD: down at USD1,191.46 an ounce
OIL (Brent): up at USD60.33 a barrel
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Other Top Corporate News
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Old Mutual said Chief Executive Julian Roberts is to stand down after seven years in the role, with the head of Standard Bank Group's wealth, insurance and non-bank financial services to take over in the fourth quarter of 2015. Roberts was appointed as chief executive in September 2008 after leading the group's Skandia business. He is being replaced by Bruce Hemphill, who took up his role at Standard Bank in February 2014 after joining the Johannesburg-based bank in 2013.
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AstraZeneca said the US Food and Drug Administration has granted Orphan Drug Designation for tremelimumab for the treatment of malignant mesothelioma, while the vast majority of an FDA committee had decided that a study into saxagliptin in patients with type 2 diabetes showed an acceptable cardiovascular risk profile. The US Orphan Drug Act provides for granting special status to a drug or biological product to treat a rare disease or condition, meaning the drug developer qualifies for development incentives such as tax credits for clinical testing.
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Burberry Group reported growth in revenue for the second half of its financial year and said it is facing "strong demand" for its core heritage trench coats and scarves. The fashion retailer said underlying revenue for the six months to March 31 was up 9% on the same period last year at GBP1.42 billion from GBP1.30 billion. Underlying retail revenue was up 13% at GBP1.06 billion from GBP928 million in the previous year. It said there was double-digit sales growth in the Americas and Europe, Middle East, India and Africa, with strong performances in the UK, France and Italy from both domestic and travelling luxury customers.
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Bunzl said revenue rose 6% in the first quarter of 2015 from a year earlier, buoyed mainly by acquisitions as it also said it has bought a personal protection equipment company in Turkey. The acquisitive distribution and outsourcing company said underlying revenue was up 2% in the three months to end-March, with the remainder of the revenue growth coming from acquisitions.
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German telecom firm Drillisch announced it has signed sale and purchase agreement with Dixons Carphone on the acquisition of The Phone House Deutschland. The transaction is anticipated to take place by the end of May at the latest. Drillisch specified that the purchase price has two components. The first component, which is due at closing, is foreseen to be paid in the form of new Drillisch shares and is expected to represent about 3% of the outstanding shares of Drillisch AG at closing. The second component consists of future excess cash flows of The Phone House.
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JD Sports Fashion reported growth in profit in its recent financial year, boosted by strong sales in sports fashion, and despite a difficult second half following a "very mild autumn and winter". The sportswear retailer reported an 18% rise in pretax profit for the year ended January 31 to GBP90.5 million from GBP76.8 million the year before. Revenue increased 25% to GBP1.5 billion from GBP1.2 billion, while like-for-like sports fashion sales grew 13% on the prior year. It will pay a total dividend of 7.050 pence per share, up 4.1% from 6.775p a year earlier.
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Pets at Home Group said it has signed a five-year, GBP260 million revolving credit facility to refinance its current debt. The FTSE 250-listed pet products and services company said the new facility replaces its existing GBP325 million of drawn facilities which carried a rate of LIBOR +1.9%. The new facility carries a rate of LIBOR +1.5%.
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Jupiter Fund Management reported an increase in assets under management during the first quarter, bolstered by positive market movements and net inflows to its mutual funds. The asset manager said that assets under management increased to GBP34.76 billion from GBP31.90 billion during the first three months of 2015. Net inflows of GBP872 million and a positive market movement of GBP1.99 billion were largely due to the showing of its mutual funds.
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Private equity company 3i Group is understood to be considering plans to sell its stake in independent building materials company MKM Building Supplies amid pledges in both the Conservative and Labour manifestos to boost housebuilding, Sky News reported. Sources told Sky that 3i is planning to sell its 40% stake in MKM, with a number of advisers already sounded out to handle the sale, which one source speculated could raise around GBP200 million.
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Funds run by US investor Wilbur Ross and Stanhope Investments are looking to sell off a big stake in Virgin Money, the Financial Times reported. According to the report, which cited people familiar with the situation, Ross and Stanhope Investments had been seeking to sell 45 million shares but the size of the offer increased to 60 million shares. The report said that the sale is likely to be priced at 400 pence per share.
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AIM Movers
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Omega Diagnostics Group shares are up after it said its results for its recently-ended financial year will be in line with market expectations, with revenue at GBP12.1 million, up from GBP11.6 million a year earlier on the back of a 15% rise in revenue from its food intolerance business. Adjusted pretax profit will be GBP1.4 million, up from GBP1.1 million a year earlier, slightly ahead of its expectations. Private & Commercial Finance Group is up after it said that it expects results for its recently-ended financial year to be ahead of market expectations. It said that net business originations amounted to GBP56.0 million in the year ended March 31, compared with GBP50.8 million in the prior year. Edenville Energy is another gainer after it said it is now finalising the compilation of the necessary documents and data for a mining licence application for its Rukwa coal to power project in Western Tanzania and expects to submit the application in the second quarter of 2015. Corero Network Security is up after it said it has integrated its services with US network infrastructure company Verisign's OpenHybrid security platform. Asian Citrus Holdings is down after it identified the presence of Huanglongbing, or citrus greening disease, at its Xinfeng Plantation in China and said the infection rate means the company's 2015 winter harvest will be severely impacted. DJI Holdings is another faller after it said it expects its results for 2014 to be below market expectations due to delays related to the suspension of online lottery sales in China and due to delayed commission payments.
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Other Top Economics And General
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The Conservative Party received a mixed reaction from the business community to its manifesto on Wednesday, with concerns raised over its plans to extend the Right to Buy scheme and on its immigration policies, as the Liberal Democrats and the UK Independence Party both prepared to table their own manifestos. The Tories key policy point in its manifesto launch on Tuesday was the extension of the Right to Buy scheme for housing association tenants, but businesses were broadly sceptical about the plans amid concerns that increased sales of limited stocks of cheaper rented homes will not help the country to address its acute housing shortage.
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Polling ahead of the General Election remained mixed on Wednesday, as the latest YouGov poll showed Labour restoring a two-point lead but the latest TNS poll showed the Conservatives surging into the lead and a forecast that the Tories will be the largest party but that no majority will be secured by either side. The daily YouGov/The Sun poll on Wednesday has Labour at 35%, a one-point improvement on Tuesday's poll and restoring a two-point lead for the party over the Tories, who sit at 33%. The only other change in the poll was for the Green Party, which lost a point following the launch of its manifesto on Tuesday.
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China's gross domestic product expanded 7.0% on year in the first quarter of 2015, the National Bureau of Statistics said. The headline figure was in line with expectations while slowing from 7.3% in the previous three months. On an annualized quarterly basis, GDP gained 1.3%, below expectations for 1.4% growth and down from 1.5% in the fourth quarter.
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Germany's consumer prices increased for the second straight month in March as initially estimated, final data from the statistical office Destatis showed. Consumer prices rose 0.3% in March from last year, following a 0.1% increase in February. The annual increase matched the preliminary estimate published on March 30. In January, consumer prices slid 0.4%, which was the first fall since September 2009.
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French consumer prices declined for the third straight month in March, data from the statistical office Insee showed. Consumer prices fell 0.1% year-on-year in March, slower than February's 0.3% decrease. This was the third consecutive fall. Economists had forecast prices to remain flat in March. Month-on-month, consumer prices rose 0.7%, in line with expectations.
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Japan's industrial production declined by less than estimated in February, final data from the Ministry of Economy, Trade and Industry showed. Industrial output dropped 3.1% month-on-month in February instead of a 3.4% fall estimated initially. On a yearly basis, production was down 2%.
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The European Central Bank is likely to be in a self-congratulatory mood when it meets Wednesday with signs that its new monetary stimulus plan is helping to spur economic growth and ease the threat of deflation in the eurozone. But looming large over the ECB's 25-head governing council meeting is the risk of a period of political and financial turmoil taking hold in the 19-member currency bloc as a result of the standoff between Greece and its eurozone partners over Athens' bid to renegotiate its bailout deal. Analysts are not expecting ECB to make any major announcements on Wednesday with the bank forecast to leave its benchmark refinancing rate on hold at its historic low of 0.05%.
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A measure that would allow the US Congress to weigh in on a deal over Iran's nuclear programme cleared its first legislative hurdle after lawmakers reached a compromise that the White House finds acceptable. The Senate Foreign Relations Committee unanimously approved an amended version of the Iran Nuclear Agreement Review Act of 2015 that would allow Congress to review a deal before any US sanctions on Iran are lifted. The measure would require Obama to submit the text of the agreement to Congress and prohibit the suspension of sanctions while legislators weigh the deal. The bill now advances to consideration by the full Senate.
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The Islamic State extremist group made major advances inside one of Iraq's largest oil refinery complexes and killed the commander of its garrison. The jihadists seized petrol and crude oil tanks, a security official, speaking on condition of anonymity, told dpa. The Baiji refinery, about 200 kilometres north of Baghdad, accounts for almost a third of Iraq's refinery capacity. It has been out of action since last year, when it was the scene of intense fighting.
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Afternoon Watchlist (all times in BST)

12:45 EU ECB Interest Rate Decision
13:30 EU ECB Press Conference
13:30 US NY Empire State Manufacturing Index 7
14:00 US Fed's Bullard speech
14:15 US Industrial Production
15:00 US NAHB Housing Market Index
15:30 US EIA Crude Oil Stocks change
19:00 US Fed's Beige Book
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Thursday's UK Corporate Events

Persimmon - Interim Management Statement
WH Smith - Half Year Results
Mothercare - Q4 Trading Statement
Debenhams - Half Year Results
e2v technologies - Trading Statement
Energy Assets - Trading Update
SABMiller - Q4 Trading Statement
Diageo - Interim Management Statement
Polymetal International - Q1 Production Results
Ferrexpo - Interim Management Statement
Unilever - Q1 Results
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Thursday's Key Economic Events (all times in BST)

00:01 UK RICS Housing Price Balance
00:50 Japan Foreign bond/stocks investment
09:00 Italy Trade Balance
13:30 US Housing Starts
13:30 US Jobless Claims
15:00 US Philadelphia Fed Manufacturing Survey
15:30 US EIA Natural Gas Storage change
18:00 US Fed's Lockhart speech
18:10 US FOMC Member Mester speech
18:30 US Federal Reserve Bank of Boston President Rosengren Speech
20:00 US Fed's Stanley Fischer speech
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