4th Jul 2016 09:21
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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Fresnillo, up 7.0%, Randgold Resources, up 3.8%. The two miners were benefiting once more from the rise in the gold price, trading at USD1,38.76 mid-morning on Monday against USD1,337.16 at the London equities close Friday. Other miners were also among the best performers as they benefited from a generally risk-on sentiment amongst investors, spurred by the potential for monetary easing in the UK following the Brexit vote and by Chancellor of the Exchequer George Osborne pledging to cut corporation tax to boost the UK's competitiveness. Antofagasta was up 3.5%, Glencore up 2.7%, BHP Billiton up 2.9% and Anglo American up 2.5%.
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FTSE 100 - LOSERS
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Taylor Wimpey, down 4.8%, Persimmon, down 4.3%, Barratt Developments, down 3.7%, Berkeley Group Holdings, down 3.8%. Housebuilders were trading lower after a survey from Markit Economics showed construction activity in the UK in June hit a seven-year low. The construction Purchasing Managers' Index fell to 46.0 in June from 51.2 in May. This was far below the 50.5 expected by economists. Any reading above 50 indicates expansion, while a score below 50 suggests contraction in the sector. The fall has been widely-linked to a slowdown in activity caused by uncertainty ahead of the UK's referendum on its European Union membership, which took place on June 23.
Marks & Spencer Group, down 4.3%. The clothing, homewares and food retailer was downgraded by both Deutsche Bank and Investec ahead of its trading update on Thursday. Investec, which downgraded M&S to Hold from Buy, said it anticipates a weak first-quarter performance from the retailer and said it remains too early to quantify the potential impact of a Brexit on M&S profit in the future from a slower demand perspective. Though M&S is better-positioned than prior to the 2008 financial crisis, Investec said it is difficult to see any profit growth within a weaker trading environment.
British Land Co, down 3.4%, Land Securities Group, down 3.2%, Hammerson, down 2.4%, Intu Properties, down 2.1%. Broker Liberum downgraded its ratings on all four of the blue-chip property developers, saying the risks around commercial property have increased following the UK's vote to leave the EU. For the four, greater occupier uncertainty in London City offices and the retail sector prompted the downgrades, as this part of the property market is likely to suffer the most damage from the vote.
International Consolidated Airlines Group, down 1.9%. The British Airways owner was trading lower after an investigation was launched in Spain into its Vueling low-cost carrier, following chaos caused by the company at Barcelona airport over the weekend. The Spanish Transport Ministry said Vueling's management has been summoned to an emergency meeting in Madrid on Monday where they would be expected to deliver "explanations and immediate corrective measures," the statement said. After days of "operational problems," a further 13 flights were cancelled by the Catalan airline by midday Sunday without any reason being given, La Vanguardia newspaper reported online.
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FTSE 250 - WINNERS
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Hochschild Mining, up 2.8%, Acacia Mining, up 2.3%, KAZ Minerals, up 2.3%, Centamin, up 1.8%, Evraz, up 1.6%. In line with the moves seen in the blue-chip index, mid-cap miners were benefiting from the higher gold price and the risk-on sentiment in markets.
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FTSE 250 - LOSERS
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Clarkson, down 17%. The shipping services provider warned profit in 2016 will be "materially lower" year-on-year as it continues to face challenges in its key markets. Clarkson said the recent recovery in the oil price has driven the return of some activity in the company's offshore broking division, but it will take some time before a meaningful recovery is seen in the oil and gas industry. Clarkson said overall transactions in its broking arm have increased, but the fall seen in freight rates and asset values has hit its revenue. This, combined with quiet capital markets and weak investor confidence, has reduced activity in its financial division.
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MoneySupermarket.com Group, down 10%. Barclays downgraded its rating on the price comparison site to Equal Weight from Overweight, saying the "layers of uncertainty" on the investment case for the company have been building in the past nine months, notably from increased competition in the price comparison space. Add to this new concerns raised by the UK's decision to vote to leave the EU, and Barclays said it no longer has confidence on the positive momentum of the group's earnings.
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MAIN MARKET AND AIM - WINNERS
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Rose Petroleum, up 20%. The oil and gas explorer said its subsidiary in Cuba has been selected to exclusively proceed into the next stage of negotiations as the firm looks to secure opportunities to manufacture items for the construction industry in the country. The company, which is involved in both oil and gas alongside mining, said subsidiary Rose Gypsum has been participating in a "competitive and exhaustive tender process" to manufacture calcined gypsum, interior panels and ceiling panels and other gypsum based materials for the construction industry in Cuba. Rose Gypsum has been exclusively chosen to move to the next stage of the process, which will involve "detailed negotiations", Rose said.
DDD Group, up 17%. The imaging and 3D services company DDD Group said its GenMe unit has signed an affiliate distribution deal for its TriDef SmartCam software with an unnamed supplier of PCs and PC accessories. Under the agreement, the affiliate will pre-load the TriDef SmartCam software on its range of gaming notebooks and PCs.
LightwaveRF, up 14%. The internet of things platform provider said it has signed a distribution agreement in the UK with ERA Home Security. Under the agreement, ERA, owned by door and window components supplier Tyman, will become LightwaveRF's distributor for key DIY retail accounts in the UK, including Kingfisher Group, which owns B&Q, and electronics retailer Maplin. The agreement has been signed with initial agreed orders in place of GBP250,000, LightwaveRF said.
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MAIN MARKET AND AIM - LOSERS
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ECR Minerals, down 29%. The miner has issued 3.50 billion new shares in the business for a price of 0.01 pence each, compared to its closing share price last Friday of 0.016 pence. ECR share were trading at 0.01p on Monday. This will raise GBP350,000 to be used to repay funds owned by the company under its convertible loan facility with YA II PN Ltd, formerly known as YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors Global LP. The shares issued represent 29.2% of the enlarged issued share capital of the business - which now stands at 11.98 billion shares.
Gulf Keystone Petroleum, down 14%. After the close on Friday, Gulf Keystone said the standstill agreement with its note and bondholders has not been extended and it remains in talks on restructuring its debt. Gulf Keystone said the standstill agreement on the coupon payments due to the note and bondholders has not been extended, having expired on Friday. The company said it is now in talks on the terms of an agreement with certain restricted members" of the ad hoc committee of bondholders and other stakeholders and said the restructuring talks are ongoing. Gulf Keystone add that, at this stage, it does not intend to make the April 2016 coupon payment due to its lenders.
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By Sam Unsted; [email protected]; @SamUAtAlliance
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