| The Markets The European equity markets spent much of the day deep in negative territory as rumours spread that Spain would seek funding for its ailing banks this weekend. However, a rapid quash of this speculation by European leaders helped shares across the region to close only marginally lower. A number of audits are being carried out to measure the extent of the bad loans Spanish banks are holding, with the government reiterating that no action would be taken until it became clearer how much money would be needed. In the UK, the Society of Motor Manufacturers and Traders reported new car sales jumped to 162,288 in May, a 7.9% year-on-year rise, which the organisation believes is a sign that confidence is returning. At the London close the Dow Jones was up by 20.05 points at 12,481.01 and the Nasdaq was up by 10.59 points at 2,546.00.
In London the FTSE 100 fell by 12.71 points to 5,435.08; the FTSE 250 finished 46.17 points behind at 10,698.95; the FTSE All-Share lost 7.20 points to 2,822.17; and the FTSE AIM Index declined by 5.57 points to 684.39. 
Broker Notes Investec Securities reiterated its "sell" recommendation for Marks & Spencer (MKS) with a 295p target price. The broker noted concern over the group's 50 basis point loss in womenswear market share, to 10.4%, which was worse than expected. Investec noted that women are the primary household shoppers and warned that the results could be a leading indicator of losses in other sectors. Investec forecasts pre-tax profits of 690.4 million pounds, rising to 754.8 million pounds in 2014. The shares dropped by 5.3p to 335.2p. Shore Capital retained its "sell" stance on Enterprise Inns (ETI), despite the pub chain securing a new 220 million pound banking facility to December 2016. The broker warned that the firm will not be able to generate enough cash to meet its 513 million pound deleveraging requirement by September 2015 and believes that this will have to be achieved through the disposal of some 350 million pounds of assets. Shore added that this could result in underlying earnings falling by some 15%. Enterprise Inns shares rose by 1p to 62p. ADVERTISEMENT Latest small cap tip out now on WatsHot.com
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Just GBP73 for a year's membership by direct debit (GBP87.60 by card/cheque/Paypal) Click here to join WatsHot.com now Canaccord Genuity maintained its "buy" rating for Dialight (DIA) with a 1,200p target price. The broker said that the LED manufacturer's acquisition of lighting controls company Airinet provides it with a complementary service that will create greater energy savings for customers when sold in conjunction with the firm's existing products. On Canaccord's forecasts, the shares trade on a prospective multiple of 27.6 times for the year ending December 2012, falling to 21.6 times in 2013. The shares inched up by 2p to 1,036p. Singer Capital upgraded its recommendation for Synergy Health (SYR) from "fair value" to "buy", with an increased target price of 939p, from 887p. The healthcare company's acquisition of US hospital sterilisation group SRI Surgical Express led the broker to raise its revenue forecasts for the year ending 31st April 2013, to 377.9 million pounds from 313.2 million pounds. Singer also pointed out that on a prospective earning multiple of 13.5 times the shares trade at a discount to peers with a weaker geographic spread. Synergy Health shares advanced by 22.5p to 887p. Blue-Chips Capita (CPI) announced that it is the preferred partner for West Sussex County Council's support services partnership, worth around 154 million pounds over 10 years. The contract will cover a range of administrative rolls, including: payroll, finance, procurement and pensions administration. The deal is expected to be signed by the end of June, with operations commencing in September 2012. Capital shares climbed by 17.5p to 649p. Copper producer Kazakhmys (KAZ) has signed a deal with Russian power company JSC RusHydro to review the development of hydro-electric plants in Kazakhstan which would have a total capacity of 300 megawatts. The move comes as the group looks to move away from reliance on coal powered electricity, which accounts for nearly 90% of all power in Kazakhstan. 30% of the proposed project would be financed by the two companies, with the rest coming from external sources. The shares tumbled by 23p to 705p. Mid-Caps Bellway (BWY) reported a 9% increase, year-on-year, in net reservations to 122 per week, during the 17 weeks ended 31st May 2012, with private weekly sales up 19%. The housebuilder approves of the government's NewBuy mortgage scheme, which it noted accounted for 90 reservations since it was introduced. The group added that it has achieved its target of 5% volume growth for the year and is confident in completing around 300 more units than it did in the year ending 31st July 2011, with average selling prices since 1st February 5% higher than in the prior year, at around 190,400 pounds. The shares gained 26.5p to 770.5p. Oil and gas explorer Exillion Energy (EXI) achieved average daily production of 11,320 barrels per day in May, down from April levels of 11,445 barrels per day. This was attributed to restrictions imposed as it performed work on its intrafield pipeline network in West Siberia. However, as a result of the work, the firm noted that production in the region is currently at around 9,500 barrels per day, compared to average production of 8,579 barrels per day in April. Exillion shares dropped by 2.35p to 96.65p. Ultra Electronics (ULE) won an indefinite delivery, indefinite quantity contract, worth up to 49.2 million dollars (31.9 million pounds) to supply the US Navy with upgraded versions of its submarine sonar transducers. The contract is scheduled for completion in 2017 and is in-line with the defence company's strategy of developing relationships with long standing clients. The shares edged up by 14p to 1,701p. Small Caps, AIM and PLUS Software Radio Technology (SRT) shares advanced 1.625p to 22p on the back of news of a 3.7 million dollar order from an existing customer for the firm's recently launched product, Identifier, a tracking device which enables watercraft of any size and type to be tracked. The contract amounts to a quarter of the revenues posted in the last financial year and thus will provide a significant boost to 2012's top-line growth. Botswana focused base metal miner African Copper (ACU) has secured a 6 million dollar loan from controlling shareholder ZCI Limited, to provide further working capital for its Mowana mine project. Production at the mine was temporary suspended in May following the failure of the Ball Mill pinion shaft and although operations were resumed last week, a significant funding gap was created. With the market relieved that the firm's financial strain had been significantly eased, the shares climbed 0.125p higher to 2.125p. Peel Hotels (PHO) slumped to a 227,800 pound pre-tax loss during the year to 5th February, from a 555,300 pound profit the year before thanks to a 4% decline in revenue to 14.65 million pounds and rise in cost of sales. The firm saw an outflow of almost one million pounds from financial expenses, the majority of which was to pay interest on its 9.7 million pound debt. Peel now has an interest coverage ratio of just 0.4. On a positive note, the group noted the first quarter of the new financial year had seen encouraging sales growth of 5.1%, suggesting it had seen the 'bottom of the cycle'. Peel Hotel shares plummeted 7.5p to 36p. Range Resources (RRL) unveiled a significant increase in proven and probable reserves at the North Chapman Ranch project, Texas, in which it has a holding of between 20% and 25%. Attributable proved oil reserves were 57% higher on December 2011 levels to 1.1 million barrels, while natural gas reserves increased 54% to 11.7 billion cubic feet. Based on futures prices from the New York Mercantile Exchange and with a 10% discount rate, petroleum consultant Forrest Garb values Range Resources' holding at 169 million dollars (109 million pounds). The firm has decided now is the time to sell its holding, allowing it to realise the value of the now derisked project and reinvest in new ventures. Range shares surged 1.35p to 8.7p. Shares in Motive Television (MTV) rose 0.125p to 8p as the broadcasting technology firm announced it has been granted a patent in Spain for the placement of dynamic advertising during the reproduction of audiovisual content. The company now hopes this patent will be extended across the EU and in in the US, and believes the new invention allows Motive to deliver a more effective means of generated advertising revenue for its customers. The Week Ahead Next week we look forward to full year results from commercial property fund manager First Property Group (FPO),fashion retailer Mulberry Group (MUL) and high end technology company Oxford Instruments (OXIG) which is expected to report good progress with its "14 cubed" objective of 14% compound revenue growth by 2014. We will also see finals from Advanced Computer Software (ASW), which broker Singer Capital expects to report revenue growth of 10% to around 98 million pounds, with net debt reduced to 1 million pounds. There will be interims from engineering support services firm Redhall Group (RHL), gas cylinder manufacturer Pressure Technologies (PRES) and property developer Terrace Hill Group (THG). We will also see first quarter results from electronics company Premier Farnell (PFL) which enjoyed strong growth in emerging markets during the previous financial year. There will also be interim management statements from tailor Ted Baker (TED) and pub chain Spirit Pub Company (SPRT). Spread betting company IG Group (IGG) and J Sainsbury (SBRY), which Panmure Gordon expects to report like-for-like sales growth of 2%, will issue trading updates. | 
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