21st Dec 2015 11:00
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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Blue-chip miners propped up the FTSE 100 on Monday morning, as a rally in base metal prices saw them lead gainers in the index, but analysts at Liberum expect pressure to remain on the sector going into the new year. Glencore was trading up 8.1%, Anglo American up 6.8% and Rio Tinto up 3.9%. BHP Billiton shares were up 3.7% despite a press report saying that BHP is likely to become the latest big miner to cut its dividend.
ITV, up 3.2%. Executives from US media giant Comcast are believed to be considering a GBP11.0 billion bid for British broadcaster ITV, the Mail on Sunday reported. Talks have been held between ITV and Comcast’s TV and film arm NBCUniversal, the newspaper report said without citing its source. ITV and NBCUniversal both declined to comment to the Mail on Sunday, it said.
Carnival, up 1.7%. Shares in the cruise operator extended gains after the company reported on Friday that pretax profit grew by 47% to USD1.79 billion in the year ended November 30, as lower costs offset a dip in revenue caused by exchange rates. Carnival said it expects a bigger increase in 2016. Carnival shares added 2.7% on Friday and are up 28% so far in 2015.
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FTSE 100 - LOSERS
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Associated British Foods, down 1.8% at 3,267.00p. RBC Capital downgraded the owner of discount fashion retailer Primark and of British Sugar to Underperform from Sector Perform, while lowering its price target on the stock to 3,000p from 3,700p.
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FTSE 250 - WINNERS
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Tullow Oil, up 3.9% at 161.10p. RBC Capital upgraded the oil company to Outperform from Sector perform, while cutting its price target on the stock to 260 pence from 400p. RBC said it expects Tullow to extend its asset-backed debt facilities in the first half of 2016, which should enable investors to re-focus on the potential of those assets.
IP Group, up 1.9%. The company, which works with universities to develop and commercialise intellectual property, highlighted the initial public offering on AIM of one of its portfolio companies, Diurnal Group, as it will result in a GBP14.6 million unrealised fair value gain for the investor. Diurnal, a spin-out company from the University of Sheffield, is focused on patient needs in chronic endocrine hormonal diseases.
Precious metal miners were amongst the best mid-cap performers as the price of gold continued to make gains. At mid-morning Monday, the metal traded at USD1,072.11 an ounce compared to USD1,065.60 an ounce at the London equities close on Friday. Centamin was up 3.3%, Acacia Mining up 4.7%, and Polymetal up 3.7%.
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MAIN MARKET AND AIM - WINNERS
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Weatherly International, up 38%. The copper mining company, which operates in Namibia, said the deferral in commencing repayments of debt under its Tranche B facility with Orion Mine Finance (Master) Fund I LP has been made formal. The first repayment under the facility is now due in May 2016, Weatherly International said, followed by quarterly repayments until February 29, 2020. In addition, the amended agreement with Orion provides a further Tranche D facility of USD4.0 million to the AIM-listed copper mining company operating in Namibia in southern Africa.
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MAIN MARKET AND AIM - LOSERS
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Gable, down 26%. The European non-life insurer agreed funding arrangements so its Gable Insurance subsidiary meets the initial capital requirements under new Solvency II insurance rules governing capital set to come into force across the EU from January 1, 2016. The funding arrangements comprise a combination of quota share reinsurance and the issue of a new convertible loan note instrument under which Gable has raised about GBP4.0 million. The quota share arrangement is designed to take at least GBP15.0 million of gross written premium off the 2015 Gable Insurance income statement together with associated insurance profit.
CH Bailey, down 14%. The company said losses widened in the first half of its financial year, as revenue fell due to tough hospitality trading conditions in Africa and the disposal of its hotel in Malta. Pretax losses widened to GBP718,432 in the six months ended September 30, from GBP29,884 for the corresponding half the prior year, as revenue fell 13% to GBP2.4 million. Losses included a foreign currency swing of GBP471,271, as a forex loss of GBP248,755 compared against a gain of GBP222,516 the prior year period.
AfriAg, down 21%. The agricultural investment business was hit after David Lenigas stepped down as chairman. He will be replaced by Hamish Harris. Lenigas, who recently set up Leni Gas Cuba to make investments in the Caribbean island nation which has re-established ties with the US, stepped down from his leading role at a string of AIM-listed companies, leaving Rare Earth Minerals, down 6.7%; Evocutis, untraded; Bacanora Minerals, down 2.4%; and Inspirit Energy, flat; as well as AfriAg.
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By Samuel Agini; [email protected]; @samuelagini
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