Wednesday 27 June 2012
QUOTE OF THE DAY
To find out who rules over you, simple determine who you're not allowed to criticise
- Voltaire
THIS MORNING IN LONDON
FTSE 100
5,468.65
21.69 0.40%
FTSE 250
10,661.66
-3.71 -0.03%
FTSE 350
2,898.86
9.88 0.34%
FTSE All Share
2,835.91
9.51 0.34%
AIM 100
2,936.29
-3.68 -0.13%
AIM All Share
660.72
-0.89 -0.13%
11:46 am
Investors braced for EU summit
- Markets still nervous ahead of summit
- Chinese stimulus fuels stocks
- Shire and banks lead Footsie higher
UK stocks rose on Wednesday as investors hoped that the upcoming EU summit in Brussels will answer some of the uncertainties that continue to cloud the global economic outlook.
The summit will last for two days and leaders are expected to discuss specific steps towards a cross-border banking union, closer fiscal integration and the possibility of a debt redemption fund. "The problem with the EU meeting is that although expectations are very low for a positive outcome investors are increasingly running out of patience which is putting additional pressure on politicians," said Markus Huber from ETX Capital.
German Chancellor Angela Merkel has reiterated her staunch opposition to the idea of jointly-issued debt known as 'eurobonds'. However, she is thought to be considering allowing the permanent European Stability Mechanism (ESM) rescue fund to lend directly to bank bailout funds.
Speculation of additional stimulus measures in China lifted sentiment this morning after the China Securities Journal said that the world's largest economy could introduce "more proactive" policies. "Policies to stabilise foreign trade, expand infrastructure investment, fine-tune monetary policies and structurally reduce taxes may be introduced," said Matthew Nelson from Spreadex.
In other news, an Italian debt auction of EURO9bn in six-month bills saw average yields shoot up from 2.1% at the previous sale in May to 2.96%. The demand was unchanged from the last auction.
FTSE 100: Shire continues to rebound; banks on the up
Pharmaceutical giant Shire continued to rebound following its sell-off on Monday when it revealed that the US FDA had approved a generic version of its ADHD drug. Panmure Gordon, Berenberg and Societe Generale all upgraded their ratings on the stock on Tuesday, while there were also rumours of "revived bid hopes" in the UK press.
Banks were among the best performing stocks early on following slight falls the day before. Royal Bank of Scotland was a high riser, rebounding after its recent technical issues at Natwest. Lloyds and Barclays were also higher.
Emerging markets-focused lender Standard Chartered rose after saying that the robust income growth seen in the first quarter continued into the second, although FX movements are still limiting the increase.
Commodities marketer and producer Glencore International fell after confirming rumours that it is looking into shaking up management incentive arrangements as part of its multi-billion dollar merger with mining giant Xstrata. Xstrata shareholder Qatar Holdings has come out and demanded a higher exchange ratio.
British Sky Broadcasting was on the rise after News Corp said that it was considering splitting the company into two; there were rumours that Rupert Murdoch could again look into buying the satellite broadcaster.
ICAP, Next and Compass Group were heavy fallers after going ex-dividend - from today, investors will not be able to get their hands on the companies' latest dividend payouts.
FTSE 250: Yule Catto plummets on "challenging conditions"
Specialist chemicals maker Yule Catto tanked after saying that the challenging trading conditions outlined in its May update have continued through the rest of the first half. Demand at its Europe and North America business segment, remains subdued, as it battles against deteriorating business confidence as economic uncertainty continues.
Online gaming company bwin.party fell after saying a potential buyer for its Ongame poker network has pulled out of discussions.
FTSE 100 - Risers
Shire Plc (SHP) 1,845.00p +2.61%
Lloyds Banking Group (LLOY) 30.74p +2.14%
Associated British Foods (ABF) 1,263.00p +2.10%
SABMiller (SAB) 2,514.00p +1.95%
BT Group (BT.A) 204.50p +1.89%
Aberdeen Asset Management (ADN) 254.50p +1.84%
Barclays (BARC) 195.80p +1.77%
ARM Holdings (ARM) 491.80p +1.70%
CRH (CRH) 1,104.00p +1.66%
Royal Bank of Scotland Group (RBS) 231.40p +1.62%
FTSE 100 - Fallers
Evraz (EVR) 239.70p -6.48%
ICAP (IAP) 343.50p -4.50%
Glencore International (GLEN) 292.35p -3.42%
Polymetal International (POLY) 904.50p -2.85%
Eurasian Natural Resources Corp. (ENRC) 391.90p -2.02%
Tate & Lyle (TATE) 636.00p -1.47%
Croda International (CRDA) 2,152.00p -1.42%
Vedanta Resources (VED) 869.00p -1.42%
Petrofac Ltd. (PFC) 1,327.00p -1.41%
Next (NXT) 3,150.00p -1.41%
FTSE 250 - Risers
New World Resources A Shares (NWR) 307.10p +4.24%
Bank of Georgia Holdings (BGEO) 1,045.00p +3.16%
Phoenix Group Holdings (DI) (PHNX) 471.90p +2.59%
Shanks Group (SKS) 77.75p +2.57%
TalkTalk Telecom Group (TALK) 189.50p +2.43%
St James's Place (STJ) 329.90p +2.33%
Rightmove (RMV) 1,540.00p +2.26%
Euromoney Institutional Investor (ERM) 729.00p +2.03%
Shaftesbury (SHB) 510.00p +2.00%
Ashtead Group (AHT) 256.50p +1.87%
FTSE 250 - Fallers
Yule Catto & Co (YULC) 140.70p -20.46%
Homeserve (HSV) 150.30p -5.94%
Elementis (ELM) 185.10p -4.73%
Petropavlovsk (POG) 437.50p -4.35%
Bwin.party Digital Entertainment (BPTY) 114.70p -3.94%
Cookson Group (CKSN) 560.50p -3.61%
Brown (N.) Group (BWNG) 242.90p -3.53%
KCOM Group (KCOM) 70.05p -3.31%
Bodycote (BOY) 311.70p -2.47%
Kenmare Resources (KMR) 37.55p -2.44%
ON THE SHARECRAZY BLOG
By Lucian Miers, the Bard of the Boleyn
On June 8th I predicted the demise of Adventis by the end of the month. On the 13th the company announced that the shares were worthless and today they have been suspended as the accounts will not be ready by the month end deadline.
This is my fifth zero of the year after Dongfang, DTZ, Colliers and Game Group, and involved by far the least work. While I spent ages pouring over the first four, this one was handed to me on a plate by a bulletin board poster and illustrates perfectly the use of this much derided forum to the investor.
Click here to read the read of the article
TIP OF THE DAY
from top chartist Zak Mir of Zaks-TA.com
International Consolidated Airlines (IAG) The recovery in the shares of International Consolidated Airlines has been so great in percentage terms of late from below 140p that it is not difficult to imagine that there has been a mega squeeze of the shorts. The likelihood from this point though is that in the wake of a knockback from old April support at 161p we could suffer a test for support at the black 200 period moving average of 146p. But only sustained price action under this feature suggests that for the near term at least the worst is not over.
Click here to read the read of the article
WHAT THE BROKERS SAY
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
International Power Shares
Mobilewave
Domino Printing
AMC Shipping
Running trading thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Simon Lack
A book review by Luka Lukic of t1ps.com
Hedge funds have always been the talk of the town. Every year we read about the billions paid to top 10 hedge fund managers and investors rush to give their money to them in the hopes of exceptional return. However, in this brutally honest book, industry insider Simon Lack looks to strip away the facade and reveal the cold truth about the profits hedge funds actually make. In the first sentence of the book he writes: "If all the money that's ever been invested in hedge funds had been put in treasury bills instead, the results would have been twice as good." A staggering statement which leads us to question why they have been placed on a pedestal.
Click here to view the rest of the article
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