logo-loader

GlaxoSmithKline, Aggreko, Experian, TUI Travel and G4S rise to keep FTSE 100 positive

Last updated: 01:25 19 Mar 2010 AEDT, First published: 02:25 19 Mar 2010 AEDT

no_picture_pai

Overview: contrary to pre-trade projections, the FTSE 100 was flat in late afternoon just before the close despite an expected decline as today’s economic updates in both the US and the UK turned out to be positive. UK unemployment fell by 33,000, while the jobless rate declined to 7.8% to post the first quarterly decline in nearly two years.US jobless claims data showed a decline of 5,000 to 457,000, while a drop to 455,000 was expected. Meanwhile, US inflation stayed unchanged in February following a 0.2% increase in the previous month.

Pharmaceutical company GlaxoSmithKline (LSE: GSK) emerged atop the leaderboard with a 3.3% advance. Credit information group Experian (LSE: EXPN) and oil and gas producer BG Group (LSE: BG) followed with gains of 2%. Other notable risers included tour company TUI Travel (LSE: TT), temporary power provider Aggreko (LSE: AGK) and security services group G4S (LSE: GFS), which all tacked on slightly more than 1.5%.

Part-nationalised banks RBS (LSE: RBS) and Lloyds (LSE: LLOY) were at the bottom of the index with losses of 3% and 2%. Miner Vedanta Resources (LSE: VED) also shed 2%. Insurance focused investor Resolution (LSE: RSL), software developer Autonomy Corporation (LSE: AU) and plumbing and heating equipment manufacturer Wolseley (LSE: WOS) all lost 1.2%.

US stocks were off to a positive start as the Dow Jones Industrial Average rose 0.25%, the broader S&P 500 index was flat and the technology heavy NASDAQ composite posted a small gain.

Commodities

Oil prices retreated after making gains yesterday as the US dollar gained ground on the euro.

Yesterday’s inventories update from the EIA (Energy Information Administration) showed an increase of just 1 million barrels in crude inventories for the previous week, while distillates including heating oil and gasoline stocks were down 1.5 million barrels and 1.7 million barrels respectively.

On Tuesday, API (American petroleum Institute) said crude inventories increased by 0.4 million barrels, while distillate and gasoline stockpiles dropped 3.7 million barrels and 0.7 million barrels.

The updates signalled lower demand for crude as stockpiles kept rising, though oil was supported by OPEC’s (Organisation of Petroleum Exporting Countries) decision to leave its production quotas for this year unchanged. The Fed’s decision to leave its interest rates unchanged for an “extended period” also had a positive impact on crude prices.

Today’s slight declines were due to gains in the US dollar against the euro, which was pushed down by comments from a Greek official, who said that the debt laden country could turn to support to the International Monetary Fund as it was unlikely that it would receive aid from fellow euro zone countries. A Stronger American currency makes dollar-denominated commodities such as crude more expensive for holders of other currencies.

May Brent Crude slid to US$81.63/barrel, while US light, sweet crude was down to US$82.51/barrel.

Blue chips oil and gas producers didn’t show much movement today. BG Group (LSE: BG) was in the lead with a 2% gain. Cairn Energy (LSE: CNE) added 1.2%, while BP (LSE: BP) was up 1%, while fellow supermajor Shell (LSE: RDSB) was flat, as was another FTSE 100 constituent Tullow Oil (LSE: TLW).

Oil and gas engineering firms Amec (LSE: AMEC) and Petrofac (LSE: PFC) declined marginally.

Midcaps were mixed. Melrose Resources (LSE: MRS) and Dana Petroleum (LSE: DNX) gained less than 1%, while Heritage Oil (LSE: HOIL) and Soco International (LSE: SIA) posted small losses. Dragon Oil (LSE: DGO), JKX Oil & Gas (LSE: JKX) and Premier Oil (SLE: PMO) were flat. Salamander Energy (LSE: SMDR) slid to the bottom of the pile with a 6% loss on today’s announcement of a bond issue.

Services companies did well as Wood Group (LSE: WG) gained 1.7% after securing a contract from BP, while Wellstream Holdings (LSE: WSM) rallied 6% after announcing its full year results.

Energy investor Xtract Energy (AIM: XTR) rallied 14%, while Mongolia-focused Petro Matad (AIM: MATD) and Iraq operating Irish oil company Petrel Resources (AIM: PET) followed with gains of 8%, US focused oil and gas junior Caza Oil & Gas (AIM: CAZA) added 7% and oil and gas company with assets in Iraq, Syria and Gulf of Mexico, Gulfsands Petroleum (AIM: GPX) advanced 6%.

Gold steady at $1,125 as US dollar pares gains

Spot gold prices once again were steady around US$1,125/oz after showing yet more volatility yesterday, when the yellow metal slipped below US$1,120/oz after almost reaching US$1,135/oz, largely in response to movements in the currency markets.

Gold fell after the euro weakened against the US dollar on comments from a Greek official, who said that the country was unlikely to receive aid from fellow euro zone members and could turn to the International Monetary Fund for help.

The American currency rose on the comments to push down gold, which is seen as a riskier alternative and usually moves inversely to the US dollar.

The US dollar has been under pressure after the Federal Reserve decided to leave its interest rates unchanged and showed further weakness after today's economic updates were released.

Silver followed gold, sliding to US$17.45/oz, while platinum held steady at US$1,629/oz.

Major miners were mixed today. Platinum producer Lonmin (LSE: LMI) was flat, while fellow FTSE 100 constituents were in decline as gold miner Randgold Resources (LSE: RRS) posted a marginal loss, while silver and gold miner Fresnillo (LSE: FRES) dropped 1.2%.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) was unmoved.

Aquarius Platinum (LSE: AQP) was the top performing midcaps with a small gain. Gold miner Petropavlovsk (LSE: POG) made little headway, while silver producer Hochschild Mining (LSE: HOC) declined marginally.

London listed Australian gold producer Leyshon Resources (AIM: LRL) led the juniors with a 10% rally. Uzbekistan focused gold miner Oxus Gold (AIM: OXS) and Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) followed, climbing 8% and 4% respectively.

Commodity asset development company Mercator Gold (AIM: MCR) slipped 4.5%.

Miners retreat as copper falls

Base metals were mixed as while copper fell to US$3.38/lb, nickel climbed to US$10.15/lb, while zinc inched lower to US$1.04/lb.

Most base metal miners were in decline. Vedanta Resources (LSE: VED) and Antofagasta (LSE: ANTO) dropped 2% and 1.5% respectively, while Eurasian Natural Resources (LSE: ENRC) and Kazakhmys (LSE: KAZ) lost nearly 1%. Rio Tinto (LSE: RIO) declined marginally and Rio Tinto (LSE: RIO) was flat, as was the world’s largest miner BHP Billiton (LSE: BLT).

Zinc mining and recycling specialist ZincOX (AIM: ZOX) and South American focused junior miner Herencia Resources (AIM: HER), which today reported gold assay results from its Paguanta project in Chile, were the top performing juniors with gains of 11% and 9% respectively.

Tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) slipped 5.5%.

Banks, insurance, private equity

Banking stocks were in decline today. Part-nationalised Royal Bank of Scotland (LSE: RBS) and Lloyds (LSE: LLOY) led the retreat with losses of 3% and 2% respectively. Barclays (LSE: BARC) and HSBC (LSE: HSBA) were down 1.6% and 1.2%, while Standard Chartered (LSE: STAN) declined marginally.

Insurers showed little movement today. Admiral Group (LSE: ADM), Aviva (LSE: AV), Legal & General (LSE: LGEN), Prudential (LSE: PRU) and RSA Insurance Group (LSE: RSA) added less than 1%, while Old Mutual (LSE: OML) and Standard Life (LSE: SL) were flat.

Private equity group 3i (LSE: III) posted a small gain.

Small Cap Movers

Other notable movers among the small caps included developer of vision based industrial systems Seeing Machines Limited (AIM: SEE), which extended yesterday’s gains with a 6% climb.

Large and Mid Cap News

Turbines and aircraft engines maker Rolls-Royce PLC (LSE: RR) said it won its second contract in two years from Gas Authority India Limited (GAIL) to supply power systems for a major gas pipeline project. The new contract is valued at US$90 million.

Aviva (LSE: AV) is set to enter the Indonesian insurance market through a joint venture with PT Asuransi Wahana Tata. Through the deal, Aviva is acquiring a 60% share in the company’s Indonesian unit, PT Asuransi Winterthur Life Indonesia (WLI). The FTSE100 constituent said the acquisition is consistent with Aviva's long term strategy to build a presence in key markets in South East Asia.

Wood Group (LSE: WG) said it has been reappointed by oil and gas supermajor BP (LSE: BP) to provide engineering, modifications and maintenance to its Sullom Voe Terminal (SVT) in the Shetlands, securing a three year deal worth £25 million.

Salamander Energy (LSE: SMDR) treated investors to a flurry of statement this morning, annioouncing it raised US$100m through a convertible bond and the expansion of its operation in Vietnam operations. The FTSE 250 constituent also reported full year results for the year ended 31 December 2009, which revealed a 42% increase in production, a 56% increase in revenue to US$157.1m and pretax losses narroeing substantially to US$3m from US$75.5m).

Small Cap News

Chaarat Gold Holdings Ltd (AIM: CGH) said it was notified that on 17 March 2010, finance director Linda Naylor bought 35,500 ordinary shares in the company at  55.375 pence each. She now has a beneficial interest in 78,000 shares representing approximately 0.07 percent of Chaarat's issued share capital.

Berkeley Resources (ASX:BKY, AIM:BKY) has received drill results from exploration at the Águila and Alameda areas and final results from the program at the Alameda South deposit at the Salamanca Uranium Project in Spain.

In its interim results statement, African Diamonds (AIM: AFD) said the pace of development at the AK6 diamond mine in Borswana is accelerating, with the mine expected to come on stream in 2011 and within previously set cost parameters.

London Mining (AIM: LOND) said its full year loss narrowed to US$28.6 million in 2009 from US$36.8 million in 2008, helped by the first net earnings of US$6 million booked from its Chinese joint venture China Global Mining Resources (CGMR), which has produced 136,500 tonnes of iron ore attributable to the company since the US$44.5 million acquisition last April.

ReNeuron Group (AIM: RENE) has signed two further clinical grade stem cell manufacturing contracts with Angel Biotechnology Holdings (AIM: ABH) in support of ReNeuron's recently approved first-in-man clinical trial with its ReN001 therapy for stroke patients.

EMED Mining (AIM: EMED) said its addtional listing on the ASX (Australian Stock Exchange) planned for the second half of the year is on track, following consultations with the exchange, its advisers and institutional mining-specialist investors.

Herencia Resources (AIM: HER) has decided to assay all samples from the current 2010 diamond drill program at its Paguanta project in Chile for gold in addition to assaying for base metals.  After the majority of holes within the existing resource envelope intersected gold mineralisation, the company is seeing growing potential for gold credits to enhance future project economics.

Metminco (ASX: MNC) has announced its intention to list on London’s AIM market, after it exercised its option to acquire a controlling interest in un-listed Hampton Mining, whose main asset is the Los Calatos copper-molybdenum porphyry deposit in southern Peru. The company has simultaneously undertaken a capital raising in support of the UK listing and the acquisition.

ZincOx Resources (AIM: ZOX) informed investors that, on the 16 March 2010, it  received notice of requisition for a general meeting from two of its shareholders which together hold 5% of its issued share capital.

In its preliminary full-year results statement, Biocompatibles International (LSE: BII) said it has continued to make very good progress in 2009 in terms of its financial performance and progress with its strategic goals. In the twelve months ended 31 December 2009, the group demonstrated a substantial improvement in its sales performance, delivering revenue growth of 50%, ahead of the company’s expectations.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

13 hours, 8 minutes ago