|Here's when FTSE 100 bubble will burst - By Alistair Strang | Mon, 27th February 2017 - 09:17
Something a bit scary ended last week. The FTSE trashed the uptrend since the start of December due to whatever was announced at 10am on Friday, and the downward break proved very deliberate.
While the drop even broke (briefly) below our postulated 7,207 target, the market described an amazing recovery which leaves us breathless for what is coming!
As usual, though, we've a problem as the bounce from "bottom" (which it broke briefly) needed better than roughly 7,267.16 to signal future upward oomph can be expected.
However, the FTSE closed the week at 7,243.7 - below the uptrend and in quite dangerous territory, especially as the market has already illustrated weakness below 7,207 is present.
But the market did bounce, fairly convincingly, and after-hours futures witnessed the FTSE reach 7,272 before the futures market closed for the weekend and everyone went to the pub.
Perhaps some optimism is allowed as should the market manage above 7,267 this week, we'd be looking for growth toward an initial 7,324 points with secondary, if bettered, at 7,425 points.
Given recent pitiful market movements, we're perhaps being too gullible dangling such strong incentives, but the index would need to move below last week's low of 7,192 to burst our bubble.
At this point, we'll take the attitude of treating the market as if it were a share and, if it were, we'd strongly suspect it's stuffed.
The FTSE did close below the immediate uptrend and the drop to 7,192 was 15 points below our expectation. And, once again, we've a week starting with a Monday and Mondays often stink.
The scenario now is of movement below 7,192 leading to 7,173 points initially. Secondary, if broken, is at 7,104 points and the risk of taking the FTSE out of the Big Picture mapping which allows of 7,520 as a "top" on this cycle.
Additionally, if the red line on the chart breaks, chart pattern enthusiasts will start shrieking about "Double Tops", and then we will mention 6,975 points, maybe even 6,850 if we lose our sense of humour.|
|The Oil Man: Oil price, Premier, Roxi, Union Jack - By Malcolm Graham-Wood | Mon, 27th February 2017
Still stuck in a narrow trading range, both WTI and Brent rose by 21 cents last week. Friday might have been a lot better if London traders hadn't been suffering from the after effects of the IP dinner, but the boys in long trousers go and do the Scottish Oil Clubs event on Friday as well.
There were bullish remarks by the OPEC Secretary General indicating that compliance is good and he included Russia in that which some observers doubt.
As we enter March on Wednesday we will start getting all the reports from the data collecting agencies who will have varying news on February output, if what we are hearing anecdotally it should be OK at the moment but I am sure that there will be the odd rogue poll.
The rig count on Friday showed an increase of 3 overall and 5 in oil which is hardly going to clear the backlog, elsewhere on Friday the stats showed that money managers were still very long crude oil.
A slight whiff of panic from the market on Friday meant that Prems (PMO) had to knock out a press release saying that all was going fine with the finalising of the refinancing of the debt process.
With formal credit committee approvals needed and of course the amendment of terms for the convertible, many suits are needed to sign off the process. We are told to expect an update "in the next few days" which can't come too soon for everyone involved one way or another.
Roxi (RXP) has announced that it intends to merge its and Baverstock's interests in Eragon which itself holds a 99% interest in the BNG asset. I met with Clive Carver recently and it has been a long planned event in order to "bring our principal asset under direct control" whilst at the same time capitalising the debt by converting the Vertom loan.
As a result of this deal and the issue of shares to Baverstock and Kuat Oraziman these two will own 43.86% of the stock and the company will be effectively debt free and "without the funding restraints of the current structure".
Union Jack Oil
Union Jack (UJO) has announced that it has raised £1.4 million through an oversubscribed placing at 0.135p. The company is fully funded at present for its commitments, this raise is to increase interests in its existing licences and by the sounds of it we should expect something pretty soon. Although the discount is high I have to say that the company appear to be doing the right things at present.|
|Dialight tipped for rapid recovery - By Lee Wild | Mon, 27th February 2017 - 13:25
Dialight tipped for rapid recovery A series of crippling profits warnings blighted chief executive Michael Sutsko's early days in charge at LED lighting specialist Dialight (DIA), but his three-year strategic plan has had early successes and these full-year results are strong. They're so good, in fact, that house broker Investec Securities no longer believes the shares deserve to trade at a discount to peers, triggering a 26% hike in its price target.
"Phase one of the plan, to rebuild our operating model, is largely complete," said a confident Sutsko Monday. "Phase two of the plan - growth initiatives to capture the long-term opportunity in LED lighting - is underway, and on track to deliver against our strategic plan."
These corporate initiatives never come cheap, of course, and Sutsko's masterplan has wiped £16.4 million from Dialight's bottom line. "Operating model changes" include restructuring costs and impairment charges. It also covers over £5 million of redundancy costs as Dialight shifts UK production from Newmarket to US manufacturing partner Sanmina, and scales down its Mexican facility.
The company made a loss before tax of £3.8 million in 2016, similar to the year before. Add back one-offs and it's a different story, however. Dialight doubled underlying operating profit to £13.1 million, giving underlying earnings per share (EPS) of 26.9p.
That's on revenue of £182 million, up 13% which, admittedly, received a significant boost from translation of hefty dollar earnings back into weak pounds - Dialight made 71% of group sales in North America in 2016, up 20% year-on-year. Only 6% of revenue is generated in the UK. Operating profit received a £1.5 million currency boost. Strip out the currency effect and Dialight's top line grew by a more modest 2%.
Dialight said 16 months ago it was targeting annual revenue growth of over 25% by the end of 2018. An operating profit margin at the core lighting division nudging 10% is also well on the way to achieving the 15% target, Sutsko tells Interactive Investor.
Investec analysts Michael Blogg and Chris Dyett is convinced enough with the transformation to restate its earnings recovery profile, although it urges an element of caution given this is still early in the new financial year.
"In view of the excellent execution of the strategy so far, we have eliminated from our valuation the discount (formerly 15%) to peers' average 2017e-19e EV/EBITDA ratios," write the pair. "Our target price rises by 26% [from 850p to 1,070p] on peers' rerating and the increasing cash resources, and we reiterate 'buy'."
That's a sensible move. However, the market has been pricing in better times for a number of months, encouraged by a series of regular confidence-building progress updates.
Indeed, Dialight's share price has already more than doubled to a three-year high since bottoming out at below 400p a year ago, its lowest since summer 2010. The shares now trade on an EV/EBITDA ratio for 2017 of 11.3, dropping to 7.7 for 2018.
And, on Investec's estimates for adjusted EPS of 35.4p this year and 59.7p a year later, the price earnings (PE) ratio is 27 times, dropping to 16 in 2018.
Dialight shares have recently pulled back following a test of technical resistance at around 1,025-1,030p, which is unsurprising. Hit those achievable growth targets and there's good reason to believe in further recovery, though perhaps not at the pace investors have been used to in recent months.|
finishing 15 points higher|
|DIRECTOR DEALINGS: Pressure Technologies Non-Executive Sells Shares
LONDON (Alliance News) - Pressure Technologies PLC Monday said Non-Executive Director Philip Cammerman sold 5,000 shares at a price of 190 pence per share Thursday.
The company said the sale was conducted for tax purposes.
Following the sale, Cammerman has a shareholding of 30,000 shares.
Shares in the high pressure gas cylinders company were down 9.0% at 166.00p Monday.|
|How the UPS are performing during last month|
|How the UPS are performing today|
|How metals are doing: just slightly up but wanting to move higher
Other metal prices|
opening lower now 33 points on the red|
|Stocks May Move Modestly Lower In Early Trading - US Commentary
Stocks may move to the downside in early trading on Monday following the strength seen in the previous week. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 17 points.
Profit taking may lead to weakness on Wall Street following the recent strength in the markets, which has led the Dow to close higher for eleven consecutive sessions.
Nonetheless, trading activity may be somewhat subdued ahead of President Donald Trump's speech to a joint session of Congress on Tuesday.
Traders will be looking for Trump to provide details on his promises of tax reform, deregulation and infrastructure spending.
In economic news, the Commerce Department recently released a report showing a rebound in durable goods orders in the month of January.
The report said durable goods orders jumped by 1.8% in January after falling by a revised 0.8% in December.
Economists had expected orders to climb by 1.7% compared to the 0.4% drop originally reported for the previous month.
Excluding a sharp increase in orders for transportation equipment, durable goods orders edged down by 0.2% in January following a revised 0.9% advance in December.|
|Persimmon lifts FY profit, capital-return plan
Persimmon has cited a strong full-year performance in 2016, with both pretax profit and revenue rising as the company announced a further increase in its capital return plan.
Pretax profit came in at �774.8m, from �629.5m. Revenue was �3.1bn, from �2.9bn.
Chair Nicholas Wrigley said the company continued to perform strongly in 2016, meeting market demand with increased output and delivering disciplined high quality growth.
"The group has now completed the first five years of its long term strategy which remains focused on growing Persimmon into a stronger, larger business while maintaining capital discipline and robust free cash generation," he said.
"The strength of the group's operating model is demonstrated by our ability to grow completion volumes by more than 60% and investing about �2.6bn of cash in land through this period while simultaneously returning over �1.0bn of excess capital to shareholders."
Wrigley added that customer activity in the early weeks of the 2017 spring season was encouraging.
The strong performance of the business has enabled the Capital Return Plan to be increased by 45% to �2.76bn or �9.00 a share in February 2016, together with a further acceleration of the payment schedule.
The Group's continued outperformance in 2016 was enabling a further increase in the Capital Return Plan, with an additional payment of 25p a share, increasing the total value of the plan by about �77m to �9.25 a share.
"This new 25 pence per share payment will be made on Friday 31 March 2017 as a first interim dividend in respect of the financial year ended 31 December 2016."
In addition, directors confirmed the scheduled capital return of 110p a share will be paid on 3 July 2017 as a second interim dividend in respect of the financial year ended 31 December 2016.|
London midday: Stocks pare gains as insurers slump
Stocks in London were little changed by midday on Monday, paring earlier gains as weakness in the insurance sector weighed on the index.
The FTSE 100 was up 0.4% to 7,273.55. The index had been trading a little higher earlier, benefiting from weakness in the pound, which was hit by reports that Scotland could call for another referendum.
Sterling fell 0.4% versus the dollar to 1.2417 and 0.6% against the euro to 1.1730.
Joshua Mahony at IG said: "The pound has seen substantial selling at the open today, following reports that Theresa May will push for the almost certain Scottish referendum to take place post-Brexit. This is all about leverage, with a united Britain representing a stronger hand when it comes to Brexit negotiations.
"At a time when businesses and individuals alike are struggling to prepare for the UK's exit of the EU, there is a good chance they will also have to deal with the breakup of the UK, should the Scottish choose to leave."
In corporate news, insurers were under the cosh after the Ministry of Justice said the discount rate used to calculate lump sum payouts has been cut to -0.75% from the 2.5% rate that was in place since 2001. Direct Line and Admiral were in the red as the change in the rate will mean insurers will have to pay out more to personal injury claimants.
The London Stock Exchange Group dropped after it said on Sunday that it did not think its proposed merger with Deutsche B�rse will be approved by the European Commission, after competition regulators came up with "unexpected" demands last week.
On the upside, housebuilder Persimmon rallied as it reported a rise in 2016 revenue and pre-tax profit and said it remained on track with its growth strategy and aims to further increase its capital return plan to shareholders.
Primark owner Associated British Foods gained after saying it expects "excellent progress" in profits and earnings this year, with growth in all parts of the business in the first half and a further boost from exchange rates.
Distribution and outsourcing company Bunzl advanced as it reported a 12% jump in full-year pre-tax profit to £362.9m, boosted by the post-Brexit vote slump in the pound.
Dechra Pharmaceuticals pushed up as it hiked its dividend by 10% and said profit in the first half grew.
IMI got a boost as Credit Suisse reiterated its 'outperform' rating on the stock and lifted the price target to 1,300p from 1,220p, while Essentra benefited from an upgrade by Deutsche Bank.
Rotork racked up healthy gains after it posted a drop in full-year pre-tax profit and adjusted operating profit as underlying revenue fell, but noted an improvement in the trading environment.
There are no major UK data releases due, but in the US, durable goods orders are at 1330 GMT and pending home sales are at 1500 GMT.
Consumer confidence improved slightly in the UK in February despite increasing worries about inflation, European Commission data revealed, while eurozone economic sentiment remained broadly flat.
The rise in UK consumer confidence was slight, with the confidence index edging up to -4.3 in January after dipping to -5.1 in January from -4.6 in December and September's post-referendum peak of -1.7.
Investors will be looking for more volatility on Tuesday, as eyes turn to US President Trump as he addresses Congress, for hints on his plans to reform the tax code and healthcare system.
FTSE 100 (UKX) 7,253.53 0.14%
FTSE 250 (MCX) 18,614.88 0.14%
techMARK (TASX) 3,364.47 -0.06%
FTSE 100 - Risers
Bunzl (BNZL) 2,218.00p 2.16%
Anglo American (AAL) 1,269.00p 1.32%
Unilever (ULVR) 3,819.50p 1.23%
Convatec Group (CTEC) 234.50p 1.21%
BP (BP.) 451.95p 1.08%
CRH (CRH) 2,694.00p 1.01%
BHP Billiton (BLT) 1,320.00p 0.92%
Royal Dutch Shell 'B' (RDSB) 2,184.50p 0.85%
Smurfit Kappa Group (SKG) 2,137.00p 0.85%
Micro Focus International (MCRO) 2,204.00p 0.82%
FTSE 100 - Fallers
Direct Line Insurance Group (DLG) 335.90p -7.87%
Admiral Group (ADM) 1,815.00p -2.94%
London Stock Exchange Group (LSE) 3,042.00p -2.66%
Royal Bank of Scotland Group (RBS) 234.40p -1.60%
Randgold Resources Ltd. (RRS) 7,560.00p -1.18%
Barratt Developments (BDEV) 507.50p -1.17%
Fresnillo (FRES) 1,508.00p -1.11%
Severn Trent (SVT) 2,319.00p -1.11%
SSE (SSE) 1,530.00p -1.10%
Taylor Wimpey (TW.) 175.20p -1.07%
FTSE 250 - Risers
IMI (IMI) 1,267.00p 4.62%
Dechra Pharmaceuticals (DPH) 1,601.00p 3.96%
National Express Group (NEX) 365.10p 3.75%
Vesuvius (VSVS) 459.00p 3.17%
Evraz (EVR) 235.70p 2.97%
esure Group (ESUR) 213.20p 2.75%
Rotork (ROR) 242.10p 2.67%
Moneysupermarket.com Group (MONY) 347.00p 2.48%
Millennium & Copthorne Hotels (MLC) 443.20p 2.17%
Tullow Oil (TLW) 270.20p 1.92%
FTSE 250 - Fallers
Kaz Minerals (KAZ) 516.50p -5.66%
IP Group (IPO) 160.00p -3.21%
Senior (SNR) 181.40p -2.99%
Inmarsat (ISAT) 681.50p -2.92%
Centamin (DI) (CEY) 172.00p -2.60%
Capital & Counties Properties (CAPC) 290.20p -2.42%
Hill & Smith Holdings (HILS) 1,086.00p -2.16%
Ferrexpo (FXPO) 157.80p -1.87%
CYBG (CYBG) 265.00p -1.82%
Vedanta Resources (VED) 869.50p -1.75%|
|Infrastrata's shares tumble on proposed placing plans
Infrastrata's shares are down almost 20% on news it intends to raise up to £750,000 at 0.5p a share to repay the Baron Oil loan and begin the first phase of Front-End Engineering Design (FEED) for its Islandmagee gas storage project.
The proposed placing would be conducted via an accelerated book build.
In January, Infrastrata entered into a secured loan facility agreement with Baron Oil of up to £300,000 to meet its short term working capital needs, of which £200,000 has been drawn.
Last year, the company selected FEED contractors for the above-ground facilities and the sub-surface elements of its Islandmagee project and associated loan funding from the contractors to partially finance the development of the project.
It added that the first phase of the FEED was known as Concept Evaluation. During this phase the FEED contractors would undertake a value enhancement exercise on the current design basis.
At 11:44 GMT, shares in AIM-listed Infrastrata were down 18.52% to 0.55p each.|
|CEY 171.15p -5.45p -3.09%
more disposal by directors.........
Name Josef El-Raghy
Chairman of Centamin plc
DISPOSAL OF SHARES
£1.79 - 4,040,000
£1.764 - 3,509,372
Date of the transaction
2017:02:23 and 2017:02:24|
|Risers and fallers
TOP 10 RISERS
PMO PREMIER OIL 74.00 +7.25Up +10.86%
MCB MCBRIDE 185.00 +9.50Up +5.41%
IMI IMI 1,268.00 +57.00Up +4.71%
CLIG CITY LON INV 399.00 +17.25Up +4.52%
TOWN TOWN CENTRE 290.00 +12.50Up +4.50%
DPH DECHRA PHARM 1,599.00 +59.00Up +3.83%
NEX NAT.EXPRESS 365.10 +13.20Up +3.75%
IRV INTERSERVE 235.00 +7.25Up +3.18%
BOWL HOLLYWOOD BWL 161.25 +4.75Up +3.04%
ROR ROTORK 242.90 +7.10Up +3.01%
Risers and fallers|
|BROKER RATINGS SUMMARY: Deutsche Bank Lifts Essentra To Buy From Hold
INVESTEC CUTS MONDI TO 'HOLD' ('BUY') - TARGET 1,950 (1,900) PENCE
PANMURE RAISES IAG PRICE TARGET TO 500 (450) PENCE - 'HOLD'
S&P GLOBAL RAISES IAG PRICE TARGET TO 550 (470) PENCE - 'HOLD'
TRADERS: PEEL HUNT CUTS MERLIN ENTERTAINMENTS TO 'HOLD' ('BUY')
TRADERS: CANACCORD RAISES RSA TO 'BUY' ('HOLD') - TARGET 655 (640) PENCE
CITIGROUP RAISES BAE SYSTEMS PRICE TARGET TO 720 (630) PENCE - 'BUY'
UBS RAISES STANDARD LIFE PRICE TARGET TO 320 (310) PENCE - 'SELL'
UBS RAISES LLOYDS PRICE TARGET TO 80 (75) PENCE - 'BUY'
RBC CAPITAL RAISES LLOYDS PRICE TARGET TO 90 (75) PENCE - 'OUTPERFORM'
UBS CUTS HSBC PRICE TARGET TO 630 (680) PENCE - 'NEUTRAL'
DEUTSCHE BANK RAISES STANDARD CHARTERED PRICE TARGET TO 620 (600)P - 'SELL'
S&P GLOBAL RAISES STANDARD CHARTERED PRICE TARGET TO 770 (720) PENCE - 'HOLD'
S&P GLOBAL RAISES RBS PRICE TARGET TO 210 (170) PENCE - 'SELL'
DEUTSCHE BANK RAISES BARRATT DEVELOPMENTS TARGET TO 678 (672) PENCE -'BUY'
GOLDMAN CUTS ROYAL MAIL PRICE TARGET TO 530 (550) PENCE - 'NEUTRAL'
BARCLAYS RAISES AB FOODS PRICE TARGET TO 3,050 (2,800) PENCE - 'EQUAL WEIGHT'
GOLDMAN RAISES PEARSON PRICE TARGET TO 519 (512) PENCE - 'SELL'
GOLDMAN RAISES INTERCONTINENTAL HOTELS TARGET TO 3,970 (3,815) PENCE - 'NEUTRAL'
GOLDMAN CUTS SMITH & NEPHEW TO 'NEUTRAL' ('BUY') - TARGET 1,270 (1,310) PENCE
N+1 Ups Dechra Pharmaceuticals Target To 1,600p From 1,412p, Keeps Buy
LIBERUM RAISES NATIONAL EXPRESS TO 'BUY' ('HOLD') - TARGET 400 (370) PENCE
BARCLAYS CUTS NATIONAL EXPRESS PRICE TARGET TO 385 (395) PENCE - 'OVERWEIGHT'
CITIGROUP RAISES KAZ MINERALS PRICE TARGET TO 670 (520) PENCE - 'BUY'
HSBC CUTS KAZ MINERALS TO 'REDUCE' ('HOLD') - TARGET 400 PENCE
BARCLAYS CUTS RIGHTMOVE PRICE TARGET TO 3,650 (3,700) PENCE - 'UNDERWEIGHT'
DEUTSCHE BANK RAISES RIGHTMOVE PRICE TARGET TO 3,880 (3,720) PENCE - 'HOLD'
JPMORGAN RAISES RIGHTMOVE PRICE TARGET TO 4,260 (4,048) PENCE - 'NEUTRAL'
TRADERS: MORGAN STANLEY CUTS RIGHTMOVE TO 'EQUAL-WEIGHT' ('OVERWEIGHT')
JPMORGAN RAISES IMI PRICE TARGET TO 1,120 (990) PENCE - 'NEUTRAL'
DEUTSCHE BANK RAISES IMI PRICE TARGET TO 1,170 (1,064) PENCE - 'HOLD'
DEUTSCHE BANK RAISES ESSENTRA TO 'BUY' ('HOLD') - TARGET 600 (425) PENCE
RBC CAPITAL CUTS JUPITER FUND MANAGEMENT PRICE TARGET TO 415 (455)P - 'SECTOR PERFORM'
MORGAN STANLEY RAISES RENTOKIL INITIAL PRICE TARGET TO 300 (280) PENCE - 'UNDERWEIGHT'
MS CUTS DRAX GROUP TO 'UNDERWEIGHT' ('EQUAL-WEIGHT') - TARGET 325 (310) PENCE
MAIN MARKET AND AIM
Numis Ups McBride To Buy From Add, Price Target To 211p From 205p
SHORE CAPITAL INITIATES IOMART GROUP WITH 'BUY' - TARGET 300 PENCE
TRADERS: CREDIT SUISSE RAISES STAFFLINE TO 'NEUTRAL' ('UNDERPERFORM')
LIBERUM RAISES MJ GLEESON PRICE TARGET TO 662 (630) PENCE - 'BUY'|
|RPC Group Gets 96% Uptake For Rights Issue To Back Letica Buy (ALLISS)
LONDON (Alliance News) - RPC Group PLC on Monday said there was a 96% uptake of its 1-for-4 rights issue announced earlier this month, receiving valid acceptances for 79.5 million new shares in the company.
On February 9, RPC said it would conduct a fully-underwritten rights issue of 83.0 million shares at 665.00 pence with the hope of raising gross proceeds of GBP552.0 million. The issue price was set at a 37% discount to the middle market closing price of 1,059.00p per RPC share the day before being launched.
The rights issue was launched to partly cover the USD640.0 million acquisition of US plastic packaging company Letica.
RPC Group shares were down 0.1% at 905.50 pence per share on Monday.|
|PMO 73.25p +6.50 (+9.74%)
The bounce is ON and STRONG, spiking up now as order book very strong on bid side
75p on the cards before 10am at this rate
DEPTH 97 v 48|
Botswana Diamonds (BOD), down 10.96% to 1.63p, has raised £525,000 gross via a placing of 35m new shares at 1.5p each.
Union Jack Oil (UJO), down 6.25% to 0.15p, has raised about £1.4m in a placing of 1.03bn new shares at a price of 0.135p each. Proceeds would be used to increase Union Jack's interests in existing licences within its portfolio.
Rotork (ROR), up 4.28% to 245.9p, said its FY pretax profit slipped to £91.1m, from £101.9m, as its revenue for the period and dividend improved alongside a stabilising trading environment in H2.
LGO (LGO), up 4.44% to 0.12p, has confirmed that Rig #18 has been successfully mobilised to the Goudron field where it has been contracted to drill at least two infill wells to the Mayaro Sandstone reservoir.
Senior's (SNR), down 2.51% to 182.3p, FY pretax profit fell in what it said was a challenging year that sparked the streamlining of parts of the business and a cost-reduction programme. Pretax profit was £55.5m, from £63.8m. Total dividend was hiked by 6% to 6.57p a share.
Green Dragon Gas (GDG), down 1.86% to 125p, has confirmed its 11th consecutive increase in 1P and 2P reserve volumes. It had total original gas in place of 27.1 Tcf across all its blocks at end-2016.
Tristel (TSTL), up 1.47% to 172p, said its Fuse disinfectant used in its Stella decontamination tray has been approved as a high-level disinfectant by Australia's Therapeutic Goods Association (TGA).
RPC (RPC), down 0.06% to 906p, has received valid acceptances for 79.5m new shares, or about 96% of the total number offered to qualifying shareholders in its 1:4 rights issue. It announced the rights issue of 82.95m new shares on Feb. 9.
Midatech Pharma (MTPH), down 0.8% to 123.5p, has entered into a senior secured £6m loan deal with Silicon Valley Bank, in-line with its strategy. Among other stocks in the news were Hiscox (HSX), Etalon (ETLN), Dialight (DIA), Totally (TLY), WH Ireland (WHI) and esure (ESUR).|
FTSE 100 up on Bunzl, Convatec as insurers falter
London equities began on a positive note with rises among in-the-news stocks Bunzl, Convatec and Persimmon, along with several miners and oil majors further back, more than offsetting falls among insurers.
Soon after the open, FTSE 100 was up 23.57 points, or 0.33%, to 7267.27, and FTSE 250 was up 45.64, or 0.25%, to 18,634.3. These rises followed on from a lower end to trade last week.
Bunzl (BNZL), up 1.73% to 2208.5p and leading blue chips north, posted double-digit rises in FY adjusted and statutory profits, and has expanded into Singapore with the acquisition of LSH.
It was chased by ConvaTec (CTEC), up 1.75% to 235.75p as it launched the me+ recovery programme for stoma patients. Persimmon (PSN) rose 1.63% to 2058p on an improved FY pretax profit and revenue, and a further increase in its capital return plan.
Also up were banks, leisure stocks, supermarkets and resources. Of the latter, oily Shell was up 0.65% to 2086.5p, with several rising miners guided by Rio Tinto (RIO), up 0.46% to 3330.75p.
At 8.28am, WTI crude was up 0.87% to $54.46/bbl and Brent was up 1.07% to $56.59/bbl. Gold, silver and copper prices were all lower.
Metals diggers lower, however, were led by Glencore (GLEN), down 0.89% to 324.6p, and Randgold (RRS), down 0.62% to 7602.5p. Commercial property tended lower behind Land Securities (LAND), off 0.42% to 1062.5p.
Insurers were in southbound focus behind Direct Line (DLG), down 5.32% to 345.2p. It noted the Lord Chancellor's announcement regarding a change to the discount rate for calculating personal injury damages awards. It would comment on implications later today.
Also lower were Admiral (ADM), Aviva (AV.), RSA Insurance (RSA) and Old Mutual).
Associated British Foods (ABF), down 0.23% to 2605p, expected its H1 adjusted operating profit and adjusted EPS to show excellent progress.
Vodafone (VOD), up 0.35% to 2003.55p, has been declared clear leader in international 4G roaming, a new report by global research firm Ovum shows.
Stellar Diamonds (STEL) fell 22.81% to 5.5p as its shares were restored to trading, having completed a £324,500 placing at 5.5p a share. It provided more details of a £250,000 open offer and a director subscription of £20,000, both at 5.5p a share.
InfraStrata (INFA), down 22.22% to 0.53p, plans to raise up to £750,000 gross via a placing of new shares which would be issued on a non-pre-emptive basis.
Starcom (STAR) dropped 20.83% to 2.38p on news it was anticipating a FY pretax loss of about $1.5m, from a loss of $1.76m, after inventory write-downs of $450,000, but before provisions.
Stratex Int'l (STI) lost 19.48% to 1.55p as it said it has yet to receive cash distribution from Bahar Madencilik, its Turkish partner on the Altintepe Gold Mine. Stratex believed this was contrary to contract and was taking appropriate steps to enforce its rights.|
|PMO 71.25p +4.50p (+6.74%)
That is a very strong bounce for the latest "UPS" with 4M volume, but it was a very large drop lately|