LONDON (Alliance News) - The following stocks are the leading risers and fallers on the main London indices midday Thursday.
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FTSE 100 - Winners
Morrison, up 3.4%. Having already gained 17% in the last 3 months, the UK's fourth biggest supermarket chain leads the gainers on the FTSE 100. Although interim results Thursday showed profits were down from the same period last year, Jefferies says a reduction in capital expenditure going forward indicates an improving outlook.
AMEC, up 2.5%. The engineering company is gaining on the management announcement that it has no intention of making an offer for Kentz Corporation. On August 19, AMEC announced a possible conditional cash offer for Kentz in the range of 565-580 pence per Kentz share. AMEC noted that it was then required, by not later than September 16, to either announce a firm intention to make an offer for Kentz or announce that it does not intend to make an offer for Kentz. Kentz, however, had rejected the offer, saying that it undervalued the company. Amec also just narrowly missed a re-indexing at the quarterly index review last night. The company will now be the smallest by market capitalisation on the FTSE 100 when the index changes go through.
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FTSE 100 - Losers
Aggreko Plc, down 3.3%. Deutsche Bank lowered its target price for the power generation company Thursday to 1,870p from 2,100p. The stock leads the FTSE 100 fallers following the cut, although the new target price still suggests a 13% to Wednesday's closing price.
Melrose Industries, down 3.2%. The investment company was downgraded by Citi Thursday to Neutral, from Buy. Citi's price target of 305p suggests a potential downside to the stock of 2.5% from Wednesdays closing price.
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FTSE 250 - Winners
Home Retail Group, up 2.8%. The company said on Thursday that it saw continued sales growth in internet and mobile commerce sales, with Argos sales up 2.7% in the second quarter and Homebase trading well through its peak summer period. The companies share price has risen more than 20% so far this week and now sits at the top of the FTSE 250 gainers.
Dunelm, up 1.7%. The homewares and soft furnishings retailer posted 12% higher pre-tax profit of 108.1 million pounds for the full year, versus the prior year's 96.25 million pounds. Further, the board recommended a 15% increase in the final dividend to 11.5 pence per share, bringing the total ordinary dividends for the year to 16.0 pence. Also, the firm announced a special dividend of 25 pence per share, returning a further 50.7 million pounds of excess cash to shareholders.
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FTSE 250 - Losers
Dialight, down 17%. The LED lighting producer issued a profit warning Thursday, saying profitability in the current financial year was only likely to be in line with last year's result because contracts for its obstruction-system business were unlikely to land in time to boost profits this year. The company said it had announced one contract for the business that makes light systems for tall structures including communication towers and wind turbines, and had made good progress on getting other significant contracts, but not in time to lift profits this year.
Kentz Corporation, down 11%. Moving in the opposite direction to AMEC on news that a potential takeover offer will not be made. Kentz share price jumped 30% on open on August 19 when AMEC announced a possible conditional cash offer for Kentz. Investors are now clearly taking Thursday's announcement that AMEC has no intention of making an offer as negative for Kentz.
Mitchells and Butlers, down 4.7%. JPMorgan downgraded the pub-and-restaurant group Thursday to Underweight from Neutral. The target price of 410p suggests an 11% potential downside to Wednesday's closing price.
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AIM - Winners
Richland Resources, up 33%. The gemstone producer announced Thursday that it has entered into a long-term supply agreement with Chinese jewellery giant Chow Tai Seng to supply ethically produced and polished tanzanite.
Amphion Innovations, up 30%. Amphion Innovations PLC Thursday said Kromek Group, the x-ray imaging and radiation detection products company in which it holds a 13.3% equity stake, intends to float on AIM. Amphion Innovations, which invests in medical and technology businesses, said it thinks the listing will provide Kromek with the funds it needs to accelerate growth.
Thalassa Holdings, up 26%. Thalassa Holdings said Thursday that, providing trading remained in line with its expectations, it was confident that it would "significantly exceed market expectations" for the full year ended December 31. In a statement, Thalassa said that it had made "significant progress in fulfilling obligations under customer contracts", and as a result was "increasingly optimistic in the company's ability to convert a record level of enquiries into increased revenue in 2014 and beyond". Stockbrokers WH Ireland raised its share price target by 68%, to 310p.
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AIM - Losers
Noricum Gold, down 11%. Shares are trading lower despite a release from management Thursday confirming positive results following successful completion of the first phase of its systematic soil sampling and geo-chemistry program at the Schonberg Gold and Precious Metals Project.
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By Jon Darby; jondarby@alliancenews.com; @jondarby100
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