Last checked at LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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Standard Chartered, up 6.2%, Royal Bank of Scotland Group, up 2.4%, and HSBC, up 2.2%. Banks were performing well Thursday after the US Federal Reserve raised its interest rate for the first time in nearly a decade and indicated gradual further increases as economic conditions improve. The Federal Open Market Committee was unanimous in its decision late Wednesday to raise the target for Fed Funds rates by 25 basis points to 0.25% to 0.50% from 0% to 0.25%. Looking further out, the Fed sees only "gradual" rate hikes in 2016, according to its so-called 'dot plot' of FOMC member forecasts. From there, the policy makers expect even slower rate hikes in 2017-2018. Higher interest rates can benefit banks' net interest margins, a key driver driver of profit.
Capita, up 2.6%. Deutsche Bank upgraded the blue-chip outsourcer to Buy from Hold, saying its returns will be more attractive relative to its peers in 2016. Late Wednesday, Capita announced that its offer for Xchanging had lapsed, as it failed to reach the required level of acceptances in the face of a higher offer from Computer Sciences Corp.
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FTSE 100 - LOSERS
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House-builders Berkeley Group, down 2.6%, Taylor Wimpey, down 1.0%, and Barratt Developments, down 0.7%. Following the decision from the Fed, attention has moved back to the UK economy and the possible timing of a UK rate rise, CMC Markets Chief analyst Michael Hewson said. Now that the Fed has moved, this gives the Bank of England the opportunity to perform another about turn in the New Year, Hewson said.
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FTSE 250 - WINNERS
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Entertainment One, up 6.3%. The entertainment company said it has created a new partnership, forming a new film, television and digital content creation company, Amblin Partners, in association with Steven Speilberg and others. This extends the company's existing output agreement with studio DreamWorks pictures. Under the agreement Entertainment One will directly distribute Amblin Partner's films, and it will hold a small equity stake in Amblin Partners.
Domino's Pizza, up 4.8% to 1,037.00 pence. Berenberg raised its rating on Domino's Pizza to Buy from Hold, with a price target of 1,200p. Berenberg cited continuing sales momentum in the UK, positive developments in Germany and a recent pullback in Domino's Pizza shares. Domino's on Tuesday said it has formed a joint venture to acquire Joey's Pizza, the largest pizza delivery operator in Germany, for up to EUR79.0 million.
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FTSE 250 - LOSERS
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Elementis, down 7.1%. The speciality chemicals company warned its earnings per share for 2015 is now projected to be at the lower end of market expectations as challenging markets continued. However, the company said it still expects its year-end net cash balance to be higher than the previous year balance of USD64.2 million. Elementis said its operating profit in 2015 has benefited from around USD5 million in one-off gains related to legal settlements and property easements which will not be repeated in 2016.
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MAIN MARKET AND AIM - WINNERS
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Proxama, up 52%. The mobile payments company said it had won a new USD1 million contract with an undisclosed US financial services company and forecast a big jump in revenue for 2015 on a stronger second half of the year. Proxama said that both its digital payments and proximity marketing divisions had seen a stronger second half, resulting in revenue of over GBP3 million for its full year. For 2014 the company reported revenue of just GBP650,978.
Pathfinder Minerals, up 36%. Shares in the company soared after UK tax authority HRMC waived a GBP1.1 million VAT bill that had been owed by the company.
Hardide, up 29%. The surface coating technology company's Hardide-A coating has met Airbus Group's technical performance requirements as a potential alternative to hard-chrome plating, meaning it is now able to be used for some Airbus aircraft components. Hardide's alternative comes ahead of a looming ban on hard chrome plating, to be enforced by 2017 under the EU REACH regulation unless otherwise authorised by the EU Commission.
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MAIN MARKET AND AIM - LOSERS
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Concha, down 66%. Shares in the company plummeted after it announced it had opted to terminate talks for a potential investment. After further talks with the target investee company, it was agreed that it was in both parties interests to terminate talks immediately. Concha's board said it was "disappointed" not to have been able to complete the investment, but it is confident this was in the best interest of shareholders.
Adgorithms, down 12%. The digital marketer warned that its margin was lower than anticipated in the final quarter of the year which will "be reflected" in its full year earnings. The company said revenue for the full year remains on track, but said its earnings before interest, tax, depreciation and amortisation will reflect its Ebitda margin in the fourth quarter being below expectations.
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By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
30 Jul 2015 10:33
