13th May 2016 09:38
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Fresnillo, up 2.1% and Randgold Resources, up 0.4%. The miners were up on the higher gold price, the precious metal is quoted at 1,274.40 per ounce compared to USD1,268.22 London equities close on Thursday.
National Grid, up 2.5%. Berenberg raised its price target on the electricity network operator to 997p from 970p, saying National Grid is stock to keep in the portfolio and hold for the long term. National Grid shares were trading at 1,005.00 pence. "We are continuously kicking ourselves for not embracing the seemingly limited valuation upside in the shares in light of the group’s dependable earnings stream and an attractive dividend policy," the German bank said. National Grid reports full year earnings next Thursday.
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FTSE 100 - LOSERS
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Inmarsat, down 6.7%. The UK satellite communications company's shares were hit after French satellite operator Eutelsat on Thursday said its revenue growth in the third quarter was below expectations and now expects full year to be broadly flat. Key factors impacting the guidance cut included pricing pressure and lack of growth in data services, as well as a far weaker-than-expected 65% renewal rate with the US government in the February and March. "With Inmarsat citing timing of revenue ramp rather than structural issues for its recent guidance cut, we see increased risk to both the 2018 and five-year guidance," Berenberg said.
Coca-Cola HBC AG, down 6.3%. The soft drinks bottler reported volumes were broadly stable in the first quarter, with good growth in emerging markets offsetting a weaker performance in developing and emerging countries, but its shares were sold as net sales revenue declined. The company said total volumes grew 0.1% in the quarter to the end of March, with developing markets volumes up 1.9% and emerging markets growing 1.3% year-on-year, offsetting a 2.7% decline in established markets volumes. Net sales revenue, however, declined 2.7% in the quarter, primarily driven by currency weakness. In constant currencies, net sales revenue increased 2.0%, the company said, with the reported revenue fall driven by weakness in the Swiss franc, the Polish zloty and Hungarian forint.
RSA Insurance Group, down 2.3%. The insurer was downgraded to Underperform from Neutral by Macquarie, according to traders.
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FTSE 250 - LOSERS
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Micro Focus International, down 3.3% at 1,512.00p. Investment vehicle Wizard sold the majority of its stake in the software company via a placing, raising GBP362.0 million in the process, Numis Securities said. Wizard sold 24.1 million Micro Focus shares, 11% of the company's equity, in the placing at 1,505.00 pence per share. Following the sale, which was run by Numis together with Credit Suisse Securities (Europe), Wizard will hold a 2.6% stake in Micro Focus.
Smiths Group, down 2.1%. Jefferies cut the engineer to Hold from Buy, according to traders.
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MAIN MARKET AND AIM - WINNERS
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Serabi Gold, up 18%. The gold miner reported first quarter profit that was five times higher than the immediately previous quarter, as an increase in production was reinforced by the strong rally in gold prices since the start of 2016. Serabi said it generated a pretax profit of USD1.5 million in the first three months of the year, multiplying from the USD285,221 profit made in the last three months of 2015 and the USD191,398 booked a year earlier. A rise in production to 9,771 ounces of gold and a significant rise in gold prices to USD1,165 helped to push Serabi's revenue up to USD11.7 million - a large rise from the previous quarter and from a year earlier.
Arian Silver, up 9.1%. The silver miner said it has started metallurgical test work at the Noche Buena tailings project in Mexico. Last week, Arian said it had secured the exclusive right to evaluate the Noche Buena tailings project via a deal with Tierra Nuevo Mining, the owner of the project. "We have now initiated our metallurgical sampling programme on the tailings at Noche Buena. Bulk samples are currently being arranged for transportation to Denver, and preliminary results are expected within the next few weeks," said Arian Chief Executive Jim Williams.
32Red, up 6.2%. The gaming company said it has signed a shirt sponsorship deal with Leeds United Football Club and said trading in the first 19 weeks of the year had been stronger year-on-year. 32Red said it has signed a three-year agreement to sponsor Leeds starting with the 2016-17 season. No financial details on the deal were disclosed. The company also said like-for-like net gaming revenue in the 19 weeks to May 11 grew 39% year-on-year. Including the contribution from Roxy Palace, the online casino gaming company that 32Red bought last year, net gaming revenue grew 71%. 32Red said it was pleased with its strong trading momentum and is confident on meeting its expectations for 2016.
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MAIN MARKET AND AIM - LOSERS
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Aureus Mining, down 16%. The miner said it was "working hard" to recommence processing activities of its plant at the New Liberty gold mine in Liberia, but said mining activities were continuing at the site with preparations for the forthcoming wet season. Aureus was forced to suspend plant operations at its New Liberty gold mine earlier this month after problems with a circuit and heavy rainfall caused a "small overflow" from its tailings facility. Operations will not restart until authorities have approved the remediation work and rectified the issue, the company said at the time. "The company is working hard, in consultation with stakeholders and its consultants, to develop a start-up plan to recommence processing as soon as possible," Aureus said on Friday.
Circle Oil, down 4.4%. The oil and gas company said the company's cashflows and financial position remains "under significant pressure" and reiterated its need for more sustainable payments from Egypt's state-owned oil company. The company produces gas and condensate in Egypt which is sold to state-owned Egyptian General Petroleum Corp, but Circle Oil has been working on the commercial terms of those payments since last year and has failed to strike a deal as of yet. Due to the "uncertainty and irregularity" of the payments from Egypt, Circle Oil is having to extract funds from its Moroccan operations and rely on its lenders providing further repayment extensions.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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