27th Nov 2015 08:36
LONDON (Alliance News) - Share prices have opened lower in London Friday following a sharp fall in Shanghai, on another quiet day in the economic calendar.
The FTSE 100 index traded down 0.5% at 6,361.80 points, the FTSE 250 was down 0.3% at 17,165.64 and the AIM ALL-Share was flat at 729.98. In Europe, the French CAC 40 was down 0.7% and the German DAX 30 was down 0.4%.
Asian stocks ended lower Friday. The Nikkei 225 index in Tokyo closed down just 0.3%, but the Shanghai Composite ended off 5.5% and the Hang Seng in Hong Kong down 1.9%.
In China, stocks saw a sharp decline as the country's securities regulator urged domestic brokerages to cease financing clients' stocks purchases through over-the-counter swap contracts, in order to lessen leveraged financing risk in its stock markets after the summer stock rout.
The news weighed on Asian-focused banks Standard Chartered, down 1.5% and HSBC Holdings, down 1.4%. In the FTSE 250, Fidelity China Special Situations was down 2.3%.
Meanwhile, Japan's core inflation continued to remain negative in October, weighed down by lower energy prices, raising concerns about the nation's ability to achieve its inflation target. Official data also showed that the unemployment rate dropped to a 20-year low, but household spending and income declined from the prior year.
In London, broker rating changes were moving stocks in the FTSE 250. Zoopla Property was up 1.0% after Exane BNP raised the property portal company to Neutral from Underperform. Bookmaker Betfair Group added 1.4% after Deutsche upgraded it to Buy from Neutral. But drinks company Britvic was down 1.6% after HSBC cut it to Hold from Buy.
Pennon Group traded up 4.7%, making it the best performer in the FTSE 250. The water company said its profit and earnings both improved in the first half thanks to energy recovery facilities in its Viridor business and a better-than-expected contribution from recently-acquired Bournemouth Water.
Pennon, which owns South West Water and waste management business Viridor, along with the recently-acquired Bournemouth Water unit, said its pretax profit for the six months to the end of September was GBP106.8 million, up from GBP100.0 million a year earlier.
Private equity investor SVG Capital was also one of the best midcap performers up 2.7% after it said there is a need for "discipline and caution" amid a tough macro environment.
"The company's strong balance sheet positions us well to cover our liabilities, take advantage of any investment opportunities as they arise, as well to mitigate any short-term volatility," Chief Executive Lynn Fordham said in a statement.
Fordham's comments came as the company said it has reaped the benefits of a strategy implemented in 2012, with investments made following that year showing a total return of 7% in the quarter and 10% over the nine months to October 31.
LMS Capital shares were up 7.5% after it said it plans on returning GBP40.0 million to shareholders through a tender offer and repurchase of up to 29.98% of its shares.
The tender offer would be the fourth since LMS Capital's realisation strategy was approved in November 2011. It would increased the amount returned to shareholders since that strategy began to GBP155.0 million.
In the AIM All-Share index, Infrastrata shares were up 12%. The oil exploration and gas storage company said it has completed its 2015 work programme on the Islandmagee gas storage project, allowing it to start the process of attracting investors to the project.
The company said drilling work on the project has been finalised, meaning all five stages of the GBP3.8 million work programme have been completed on time and one budget. It said the overall results from the programme were positive and backed the objective of confirming the feasibility of developing an underground gas storage facility at the location.
Still in the economic calendar, the second estimate of UK third quarter GDP is scheduled for 0930 GMT alongside total business investment. The GDP figure is expected to reaffirm the first estimate of 0.5% quarter-on-quarter growth and 2.3% annual growth.
Later in the morning there are eurozone consumer and business confidence index readings at 1000 GMT, before the EU financial stability review at 1100 GMT and German Gfk consumer confidence survey at 1200 GMT.
By Neil Thakrar; [email protected]; @NeilThakrar1
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Related Shares:
Fidelity China Special Situations PLCBritvicHSBC HoldingsStandard CharteredINFA.LPennonLms CapitalZPLA.LBET.L