11th Apr 2016 09:58
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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Standard Chartered, up 1.4%. The emerging markets-focused bank is looking to sell at least USD4.4 billion of assets in Asia, Bloomberg reported on Monday, citing people with knowledge of the matter. The London-based bank is in talks with potential buyers for about USD1.4 billion of stressed loans extended to Indian companies, the Bloomberg report said, with a sale underway of around USD3 billion of assets in the rest of Asia.
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FTSE 100 - LOSERS
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Direct Line Insurance Group, down 1.7%. Barclays downgraded the home and motor insurer to EqualWeight from Overweight. Direct Line has been one of the best-performing insurance stocks since its initial public offering in 2012, Barclays said, with the stock more than doubling from its 170p IPO price and returning two-thirds of the IPO price as dividends. "However, we believe the stock is now fairly valued as we lower our estimates for the loss of its Nationwide and Sainsbury's contracts," Barclays said in a note.
Next, down 1.3% at 5,450.00 pence. Exane BNP decreased its price target on the retailer to 5,400p from 6,300p.
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FTSE 250 - WINNERS
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Cranswick, up 5.3%. The company said it bought CCL Holdings Ltd and its East Anglia, England-based Crown Chicken Ltd poultry producing subsidiary from the Thacker family and management for GBP40 million. N+1 Singer upgraded the pork producer to Buy From Hold and increased its price target on the stock to 2,400p From 2,050p. Investec increased its price target to 2,500p from 2,350p and maintained a Buy on the stock. Cranwick expects the acquisition to be "modestly earnings enhancing" in the current year.
SEGRO, up 2.5%. The property developer was upgraded to Buy from Neutral by Goldman Sachs.
Vedanta Resources, up 0.7%. The miner said the majority of its commodity portfolio experienced a rise in production in the recently ended financial year, with its zinc operations outside of India and its oil and gas division the only units to experience falls in the year. Vedanta said average working interest production of oil and gas in the financial year to the end of March fell 3% to 128,191 barrels of oil equivalent per day from 132,663 barrels of oil per day in the previous year. From its Zinc India operations, production of refined zinc rose 3% in the year to 759,000 tonnes from 734,000 tonnes, refined lead production rose 14% to 145,000 tonnes from 127,000 tonnes and silver production was up a hefty 30% to 13.7 million ounces from 10.5 million ounces.
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FTSE 250 - LOSERS
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Aggreko, down 3.4% at 1,009.00p. The mature power rental market is likely to put pressure on Aggreko's pricing and margins, said UBS, as it cut the temporary power company to Sell from Neutral and decreased its price target on the stock to 800p from 1,050p.
Restaurant Group, down 2.3% at 357.448p. N+1 cut its price target to 335.00p from 450.00p, and reiterated its Sell rating, saying the restaurant operator has "deep and structural" problems.
Ashmore Group, down 1.5%. The emerging markets money manager was cut to Hold from Buy by Jefferies.
Synthomer, down 2.3%. Jefferies downgraded the speciality chemicals company to Hold from Buy.
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MAIN MARKET AND AIM - WINNERS
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Iofina, up by more than double at 10.50p. The iodine producer said production rose on a like-for-like basis during the first quarter of the year while costs were "significantly lower", allowing the company to reaffirm its first-half production guidance. Production of crystalline iodine totaled 124.6 million tonnes in the first quarter of 2016, derived from its five IOsorb plants. However the company had six plants a year earlier which meant production was higher at 127.8 million tonnes the corresponding quarter a year earlier. Excluding that plant which is now closed, production in the first quarter of 2015 amounted to 122.4 million tonnes. Iofina reaffirmed its production guidance for the first half of 2016 as it continues to work toward a production target of 250.0 to 270.0 million tonnes of crystalline iodine.
Orsu Metals, up 52%. The miner said it plans to cancel its listing on AIM later this year to reduce its corporate costs, and that it struck a deal to potentially sell its stakes in two copper projects in Kazakhstan. A deal was struck to sell its 94.8% stake in the Karchinga copper project in eastern Kazakhstan for an initial consideration of USD7.8 million and a deferred consideration of up to USD2.0 million. Orsu said it has also conditionally agreed to sell its effective 51% stake in the Kogodai copper project in Kazakhstan for USD10,000. Orsu said it also plans to cancel its listing on AIM as of May 11, in order to reduce its costs, stating it plans to maintain its listing on the Toronto Stock Exchange Main Board.
Graphene Nanochem, up 27%. The nanochemicals and advanced materials company said it secured a two-year payment moratorium on its short-term debt and striking a deal to repay a substantial chunk of its longer-term debt by selling non-core assets. Graphene NanoChem said its primary financier, Malaysia Debt Ventures Berhad, agreed to restructure the company's short-term debt, totaling GBP16.0 million, to allow the company to become a "leaner and stronger" nanotechnology company. The company was supposed to have paid that debt in full back in November last year.
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MAIN MARKET AND AIM - LOSERS
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Carr's Group, down 3.8%. Shore Capital downgraded its rating on the agriculture, food and engineering company to Hold from Buy. The broker cited a continuation of difficult market conditions heading into 2017 as its main cause for concern. On Monday, Carr's said pretax profit fell to GBP10.5 million in the first-half ended February 27, from GBP10.6 million the corresponding half a year earlier, as its agriculture business in the UK suffered from low milk and livestock prices, and increased its interim dividend to 0.95p from 0.925p. The company said it is on track to meet expectations for its full financial year despite those challenges looking set to continue in 2016 and 2017.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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