UK WINNERS & LOSERS: Glaxo Falls As Another Investigation Begins

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Wednesday.
-------
FTSE 100 - WINNERS
-------
London Stock Exchange Group, up 2.3%. The group's shares have risen after it was added to a "Focus List" by Credit Suisse. Analysts are reportedly encouraged by the possibility of the deal to acquire Russell Investments.

Royal Bank of Scotland Group, up 1.3%. According to media reports on Tuesday, the bank plans to cut up to 400 jobs in its US trading business over the next two years as part of the British lender's efforts to reduce its assets ahead of tough new US regulations. It is said to be paring its US trading operations and cut between 300 and 400 jobs at its Stamford, Connecticut headquarters so as to reduce costs and refocus on its UK home market.

Rolls-Royce Holdings, up 1%. Jeferries has reaffirmed its 1,400.00 pence price target and Buy recommendation on Rolls-Royce Holdings, saying that the aircraft engine and ship propulsion maker "has never been in a better position." Jefferies analyst Sandy Morris expects the group's Defence division to stabilise after 2014, while increased disclosure means that Jefferies has significantly extended its understanding of what drives the movements in the group's TotalCare net asset. Its Civil Aerospace division is perhaps no more than 4% to 6% off the course Jefferies had expected for 2014 to 2016, if adjusted for forex, research and development, and restructuring costs, the analyst added. Ahead of Wednesday's session, Rolls-Royce's shares had declined 22% since the end of 2013.
-------
FTSE 100 - LOSERS
-------
GlaxoSmithKline, down 1.5%. The pharmaceutical giant said late Tuesday that it is under criminal investigation by the UK's Serious Fraud Office, adding to the growing list of countries looking into its past sales techniques. It said it is "committed to operating its business to the highest ethical standards and will continue to cooperate fully with the SFO".

Weir Group, down 0.9%. The engineering company's shares have fallen after it said it no longer intends to pursue a takeover of Metso Oyj, after the Finnish company rejected an improved offer. It said it had made a new all-share offer under which Metso shareholders would have received 0.95 Weir share per Metso share, a 13% increase to the 0.84 exchange ratio that Weir Group initially proposed. The deal represented a total value to Metso shareholders of around EUR35.98 per share, a premium of 58% to Metso's closing share price of EUR22.75 on Monday, the day prior to the submission of Weir's initial proposal to Metso.

Marks & Spencer Group, down 0.6%. The retailer is a big faller after going ex-dividend, meaning new buyers of the stock no longer qualify for the latest dividend payout.
-------
FTSE 250 - WINNERS
-------
De La Rue, up 4.7%. The bank note printer said its restructuring programme was paying off as it reported a rise in pretax profit in its last financial year. A strong performance from its Identity Systems division and higher bank note paper volumes more than offset weakness in its cash processing unit and bank note printing volumes. It posted a pretax profit of GBP59.8 million in the year to March 29, up from GBP43.7 million a year earlier, as revenue rose to GBP513.3 million, from GBP483.7 million.

Serco Group, up 2.8%. The outsourcing company has been selected by Transport Scotland to manage the Caledonia Sleeper service, which is set to be operated separately from FirstGroup's ScotRail franchise. Serco said total revenue over the 15-year franchise period is estimated at up to GBP800 million, of which GBP180 million will be in the form of franchise payments. A gain share agreement is also included to incentivise performance improvements.
-------
FTSE 250 - LOSERS
-------
Aveva Group, down 3.9%. The engineering software and services provider's shares are the biggest fallers in the mid-cap index following some negative price target and broker recommendation revisions, having jumped sharply higher on Tuesday. UBS has downgraded the stock to Neutral, from Buy, lowering its price target to 2,500.00 pence from 2,550.00p, while Liberum Capital has cut it to Sell, from Hold, lowering its price target to 2,000.00p from 2,350.00p. Goldman Sachs, however, has raised its price target to 3,145.00p from 3,000.00p. Aveva's shares rose 8.8% on Tuesday after it said its pretax profit rose in the year to end-March and it increased its dividend by 13%.

AMEC, down 2.8%, Premier Farnell, down 2.8%, Cable & Wireless Communications, down 2.8%, Marston's, down 2.7%, Great Portland Estates, down 1.6%, Spectris, down 1.1%, and Bellway, down 1.1%, are seven more companies that have gone ex-dividend Wednesday.
-------
AIM ALL-SHARE - WINNERS
-------
Rare Earth Minerals, up 32%. The rare minerals investment and development company's shares have risen after it said that Hasting Rare Metals Ltd, the operator of the Yangibana rare earth elements joint venture in Australia, has now drilled the first 29 exploration drill holes at the Yangibana North prospect. Rare Earth Minerals, which has a 30% free carry interest in the project until it reaches a Bankable Feasibility Study, said the planned drilling programme involves drilling up to five holes on nine target sections at the site.

Altitude Group, up 20%. The information and technology services company has expressed confidence in its future in the wake of the strategic shifts it made in 2013, saying it had started its new financial year ahead of expectations. "The group has demonstrated its ability to adapt to significant change in 2013," said Chief Executive Stephen Yapp in a statement. "These changes, together with a good cash position and the continued investment in our people alongside our product and technology offering, will enable the group to innovate and meet our customers' evolving needs."

Central Rand Gold, up 17%. The gold prospecting and mining company said the commission of its Mill 3 was installed on time and on budget, and it is expected to increase total mining capacity by more than 55%. In a separate statement, the group said that the Trans Caledon Tunnel Authority has commenced pumping and treatment operations of its high density sludge plant. It is hoping that the pumping, once at full capacity, will reduce the water levels within the Central Basin, giving it better access to deeper levels of its mining operations.
-------
AIM ALL-SHARE - LOSERS
-------
Hardide, down 14%. The surface coating technology company has reported a wider loss for the first half of its financial year as its deliberate spending on business development and technical staffing pushed up administrative expenses sharply. The company reported a loss of GBP236,000 for the six months to end-March, compared with the GBP102,000 loss it posted a year earlier, as revenue rose slightly to GBP1.3 million, but that was offset by an increase in administrative expenses to GBP1.0 million, from GBP844,000. Nevertheless, the company said it was confident about its full-year outlook thanks to a major supply contract with General Electric Co, and as it increased its number of customer contracts by almost a third from last September.

Minoan Group, off 10%. The travel and leisure company said it has raised GBP687,000 before expenses by placing shares with institutional and other investors, as it looks to pursue acquisitions and support its development. It said it raised the proceeds through a placing of 5.7 million new shares at 12 pence each. Minoan said it intends to use the proceeds to provide general working capital to support its development, including its resort project in Crete, and, together with other resources, make further acquisitions. Minoan's shares are currently quoted at 12.395 pence.
-------
By James Kemp; jameskemp@alliancenews.com; @jamespkemp

Copyright 2014 Alliance News Limited. All Rights Reserved.