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London afternoon: Gloomy mood continues

Fri, 22nd Oct 2010 15:25

Blue chips are stuck in the red as Wall Street failed to arouse much enthusiasm and miners continue to wallow in negative territory as dollar strength trims commodity prices.US company earnings have been largely well-received, but talks about currency tensions at this weekend's G20 meeting in Korea are making traders cautious.Lonmin, Eurasian Natural Resources Corp, Vedanta and Anglo American are lower, but much of the attention is focused on IPOs.AIA, the Asian arm of the American insurance giant AIG, is raising $20.5bn from the float, which it priced at HK$19.68, at the top of the indicated range. The price values AIA at $30.5bn - exactly matching the price Prudential eventually baulked at paying earlier this year after months of shilly-shallying.Meanwhile online betting firm Betfair has priced its London float at 1,300p, valuing it at a more modest £1.39bn.Legal & General is red-faced as it revealed its third quarter results more than two weeks early after sending them to analysts last night by mistake. Included were figures revealing total worldwide new business on an annual premium equivalent (APE) basis of £466m in the three months to 30 September, taking the nine-month number to £1.35bn, up 27% on 2009. Elsewhere, BSkyB is higher after it added more customers than expected in the first quarter, boosting revenue by 15% and profit by 25%, but there's no word on News Corp's bid to take over the satellite broadcaster. Net customer growth of 96,000 in the three months to 30 September took the total to 9.96m, while a 12% increase in net product growth of 989,000 was a record. African Barrick Gold's profit fell 8% during the third quarter and revenue dipped 1%. Net income dropped to $40m during the three months to 30 September from $43m a year ago and sales of $209m compare with $211m in 2009. The company, which recently slashed production forecasts at its Buzwagi operation following a huge fuel theft, blamed the quarterly drop in revenue on a drop in ounces sold, though this was partially offset by 29% increase in the average realised gold price to $1,233 an ounce.Home credit group Provident Financial played down the possible impact of the government's welfare and spending cuts even though its core customer base are low to middle income earners. Events and publishing group UBM's trading environment is improving steadily with revenue for the nine months up 3.9% to £643m (Sept 2009: £619m) and underlying revenue up 2.1%.Internet gambling firm PartyGaming, which is merging with rival bwin Interactive Entertainment, raised revenue by 9% in the third quarter and has named Simon Duffy as chairman of the enlarged group.
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23 Jul 2009 15:06

FTSE 250 movers: Yell up 20% after revenue hike

Weakness in the pound has given investors in directories group Yell something to shout about. The shares are up 20% after revenue in the three months to 30 June rose 1.5% to £475.3m from £468.4m a year earlier. On a constant currency basis, however, revenue dipped 10.4%. Shares in Tate & Lyle bou

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23 Jul 2009 13:46

London afternoon: Footsie regains 4,500

The Footsie's eight day winning streak looks set to become nine days as the blue chip index hit 4,500 again amid more gains for US stocks. On the positive side, miners Fresnillo, Kazakhmys, Vedanta Resources, Rio Tinto, BHP Billiton, ENRC, Xstrata and Lonmin are all among the top ten risers on hope

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23 Jul 2009 13:11

Broker tips: Compass, Yell, PartyGaming

The share price of caterer Compass Group was looking decidedly soggy Thursday morning after a disappointing interim management statement but broker Charles Stanley reckons the share price fall makes the case for purchasing the shares even more compelling. "The share price has reacted adversely to t

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23 Jul 2009 11:54

London midday: OfWat report dilutes equity strength

The Footsie's eight day winning streak is in danger of coming to an end today as utility companies weigh down the blue-chip index after water regulator Ofwat outlined proposals for lower water bills. The water regulator's draft proposals would see the average annual water bill fall by £14 to £330 b

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23 Jul 2009 11:33

Broker snap:Bingo buy a winner for Party

Partygaming's acquisition of online bingo specialist Cashcade has got the thumbs up from brokers but it may be bad news for rival online gaming firm 888. "The deal is negative for 888, as Cashcade is a major client for 888's software and 888 potentially loses this relationship," notes Nick Batram o

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23 Jul 2009 09:03

PartyGaming snaps up bingo operator

Online gaming titan PartyGaming has beefed up its bingo offering with the acquisition of Cashcade, owner of some of the UK’s leading bingo web sites. PartyGaming is initially paying £71.9m in cash for Cashcade, with a possible further £24m due depending on the future profit performance of Cashcade.

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21 Jul 2009 16:44

London close: Rally continues

Footsie finished just shy of the 4,500 mark after another day of gains as the rally continues. Wm Morrison led the way after saying it is confident full year results will be ahead of its earlier expectations due to continuing customer growth and the successful implementation of its cost cutting pla

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21 Jul 2009 14:11

London afternoon: Advance gathers speed

London kicked on over the lunchtime session, with risers outnumbering fallers by four to one among FTSE 100 constituents. Wm Morrison leads the way after saying it is confident full year results will be ahead of its earlier expectations due to continuing customer growth and the successful implement

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21 Jul 2009 11:57

London midday: Morrisons leads advance

Retail stocks dominate proceedings in London following trading updates from Morrisons and Next. Wm Morrison leads the risers in the FTSE 100 after saying it is confident full year results will be ahead of its earlier expectations due to continuing customer growth and the successful implementation o

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21 Jul 2009 10:43

FTSE 250 movers: William Hill hit by joint venture concerns

Shares in William Hill are lower after the bookmaker said its joint venture with online gaming technology firm Playtech, William Hill Online (WHO), is 'making good progress during an extensive integration period and in difficult trading conditions'. Playtech was less sanguine, saying WHO 'is making

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9 Jul 2009 16:33

London close: Modest gains as US struggles

Equities held onto gains despite a lacklustre final session as Wall St struggled to make headway. Mining stocks continue to dominate the list of risers. Silver miner Fresnillo is the best performer after being upgraded to "buy" by Citigroup. In contrast the US bank had downgraded gold miner Rand

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9 Jul 2009 14:46

London afternoon: Rally gathers pace

Equities pushed higher over the lunch-time session, boosted by expectations of a firm start on Wall Street. Mining stocks continue to dominate the list of risers. Silver miner Fresnillo is the best performer after being upgraded to "buy" by Citigroup. In contrast the US bank had downgraded gold min

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9 Jul 2009 12:17

London midday: Mining stocks in the driving seat

Mining stocks are behind the wheel once again and today they are driving the market higher. Silver miner Fresnillo is the best performer after being upgraded to "buy" by Citigroup. In contrast the US bank had downgraded gold miner Randgold Resources to "hold" from "buy". Elsewhere in the sector An

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9 Jul 2009 08:33

London open: Miners provide early boost

Miners are giving London's blue chips a lift in early dealings ahead of the Bank of England's decision on interest rates and the quantitative easing programme later today. Fresnillo is the best performer, up more than 5%, closely followed by Kazakhmys, Anglo American, Vedanta Resources, Antofagasta

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9 Jul 2009 07:44

London pre-open: London gets pep from Wall St. rally

The late rally yesterday on Wall Street has put traders in a positive frame of mind ahead of the Bank of England's decision today on interest rates and the quantitative easing programme. City sources predict the FTSE 100 will open around 21 points up from the previous close of 4,140. Fund manager

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