11th Aug 2015 10:30
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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Randgold Resources, up 3.3%, Fresnillo, up 2.9%. The miners were given a boost by the gold price rising 0.6% to a three-week high.
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FTSE 100 - LOSERS
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Burberry Group, down 2.7%. The luxury goods company was pulled lower by the Chinese central bank's decision to devalue the yuan. In an unexpected move to boost exports and make the exchange rate more market determined, the People's Bank of China on Tuesday lowered the yuan's fixing against the US dollar by 1.9% from the previous day. China is a key market for Burberry and it has already been hit by concerns of a slowdown in spending in the country. The devaluation of the currency will reduce its local revenue in sterling terms and has increased investor jitters about Burberry's exposure to the market.
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FTSE 250 - WINNERS
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Synthomer, up 2.7%. The specialty chemicals company said its pretax profit rose in the first half thanks to margin improvements in its North American business and a good operating performance in Asia which offset continued sluggishness in Europe and a hit the group is taking from the weak euro. Synthomer said its pretax profit for the half was GBP36.8 million, up from GBP29.9 million a year earlier, despite its total sales falling to GBP468.7 million from GBP510.1 million, held back by euro weakness as volumes rose by 6.8%.
Centamin, up 4.0%. Tracking the gains made by its blue-chip rivals, shares in the gold miner were up on the back of the rise in the gold price.
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FTSE 250 - LOSERS
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SIG, down 3.7%. The building products company said its pretax profit was higher in the first half of 2015 than a year earlier thanks to lower exceptional costs, but revenue for the group was pulled lower both by a weakening euro and by challenging market conditions in mainland Europe, while the group said margins pressures are likely to offset some of the benefits from its cost-cutting programme.
Card Factory, down 2.9%. The cards and gifts retailer posted growth in sales in the first half of its financial year, driven by a rise in like-for-like sales and new store rollouts, and said it is confident for the full year. Card Factory said total sales in the six months ended July 31 rose 8%, although this was slower than the 8.9% growth it reported in the same period the prior year. Like-for-like store sales increased 2.7%, against a 2.6% comparative.
Just Retirement, down 2.0%, after having initially risen. The specialist annuity provider said it will merge with Partnership Assurance Group in an all-share deal to create a life insurance company with a market capitalisation of almost GBP1.66 billion and new business sales of GBP1.80 billion. If the merger is allowed by authorities, the group wants to develop and roll-out new products to target customers under the new pensions freedoms given to them by the UK government. The companies expect to be able to save at least GBP40 million before tax per year by merging, with the full run-rate to be achieved in 2018. Shares in Partnership, with about two-thirds the market cap of Just Retirement, were up 3.6% on the news.
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AIM ALL-SHARE - WINNERS
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Hargreaves Services, up 8.4%. The company, which supplies solid fuel and bulk material logistics services, said its pretax profit and revenue both dropped heavily in the financial year to the end of May as the group completed its restructuring, but it said it would hike its dividend by 18% in line with its new payout policy. Hargreaves said its pretax profit was down just over half, its revenue was down 24% and its outlook is clouded by continued weakness in coal markets. But it said it would pay a higher dividend due to its higher dividend payout ratio and strong cash generation.
Stratex International, up 8.2%. The miner said mineralisation has been confirmed at the Dalafin gold project in Senegal. Stratex said sheeted tourmaline-quartz veins and quartz-tourmaline breccias have been confirmed at the site. It is considering whether to undertake follow-up trenching at the project in the fourth quarter of 2015, with drilling to potentially start next year.
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AIM ALL-SHARE - LOSERS
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North River Resources, down 24%. The miner said it has proposed a USD4 million financing package to be used to back the development of its Namib lead-zinc project in Namibia. North River said the entire USD4 million financing will be underwritten by major shareholders Greenstone Resources and will be split between the issue of convertible loan notes and a placing and open offer.
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By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BurberrySIGCentamin PLCSynthomerRandgold ResourcesHargreaves ServStratex InternationalFresnilloCard FactoryNRRP.LJRG.L