Monday 11 June 2012
QUOTE OF THE DAY
If you don't follow the stock market, you are missing some amazing drama
- Mark Cuban
THIS MORNING IN LONDON
FTSE 100
5,487.98
52.90 0.97%
FTSE 250
10,806.92
107.97 1.01%
FTSE 350
2,912.95
28.22 0.98%
FTSE All Share
2,849.34
27.17 0.96%
AIM 100
3,124.04
33.62 1.09%
AIM All Share
689.78
5.39 0.79%
11:41 am
Gains pared after Spanish bank-bailout
- Spain asks for 100bn euros for its banks
- Spanish bond yields still on the up
- Financials across Europe gain
The FTSE 100 was firmly in positive territory by Monday lunchtime, but the index was trading well off its intraday high of 5,532 as investors digested this weekend's request from Spain for a bailout for its troubled banks.
Spain, the fourth EU country to request a bailout, made a formal petition to the Eurogroup on Saturday for up to €100bn in aid to help recapitalise its banks.
Equity markets across Europe rocketed higher early on, though gains were pared in mid-morning trade, perhaps as the news failed to stop a rise in Spanish bond yields - the borrowing rate on a 10-year Spanish note was up 6.8 basis points at 6.284% by midday.
"The Spanish banking crisis along with the Greek elections was seen as a major threat in the Eurozone. With the Greek elections unlikely to be as straightforward, the timing of the bailout couldn't be better for investor sentiment," said analyst Craig Erlam from Alpari.
However, Shavaz Dhalla, a trader from Spreadex, said that investors should still remain cautious: "headline trading is likely to return to the markets this week, which could potentially be partnered with volatility, as the focus moves from Spain back to Greece with the anticipated elections due in Greece this Sunday."
Also helping sentiment today was some economic data from China over the weekend. Both exports and imports outpaced forecasts in May, while industrial output increased by 9.6%, broadly in line with expectations. Fixed-asset investment however, increased by just 20% in the year-to-date, the smallest gains since 2001.
FTSE 100: Banking stocks advance after Spanish bailout
Financial stocks were tracking their European counterparts higher by midday, as the continent's banking industry celebrated Spain's request for aid. Barclays, Lloyds and RBS were among the highest risers, helped by Oriel Securities which kept buy ratings on all three stocks today. HSBC was also gaining, albeit by a lesser amount; Oriel reiterated a reduce recommendation on the shares this morning.
Engineering group GKN was a high riser after its Aerospace division was awarded a contract by US aircraft maker Boeing at the weekend to supply complex machined titanium and aluminium parts and assemblies for the horizontal stabiliser of the 787-9 Dreamliner.
Supermarket giant Tesco edged lower despite some in-line first-quarter figures. UK sales including VAT and petrol grew by 2.1% in the 13 weeks to May 26th, but like-for-like sales (excluding VAT and petrol) fell by 1.5%.
Joining Tesco in the red was a host of defensive stocks as investors fled towards 'riskier' assets. Utilities peers United Utilities, Centrica and National Grid were among the worst performers.
FTSE 250: Aquarius falls after halting operations at Marikana
Aquarius Platinum disappointed after saying that its operations with its Marikana Pooling and Sharing Agreement in South Africa are being put on hold as a result of the ongoing low PGM (platinum group metals) basket price. "Trading conditions in the platinum industry are expected to remain difficult in the short to medium term and these conditions have rendered the operations at the P&SA2 uneconomic," the company said.
Rental equipment firm Ashtead was on the rise ahead of its full-year results next week, with Jefferies saying this morning that it sees upside risk to current-year forecasts. The broker retained its buy recommendation for the stock.
FTSE 100 - Risers
Lloyds Banking Group (LLOY) 29.08p +3.82%
CRH (CRH) 1,154.00p +3.68%
Schroders (SDR) 1,269.00p +3.17%
Schroders (Non-Voting) (SDRC) 1,005.00p +2.97%
GKN (GKN) 187.10p +2.92%
International Consolidated Airlines Group SA (CDI) (IAG) 150.10p +2.74%
Wolseley (WOS) 2,270.00p +2.67%
Vedanta Resources (VED) 960.00p +2.62%
Polymetal International (POLY) 834.50p +2.46%
Antofagasta (ANTO) 1,086.00p +2.45%
FTSE 100 - Fallers
Man Group (EMG) 78.70p -1.44%
United Utilities Group (UU.) 674.00p -0.96%
Hammerson (HMSO) 411.50p -0.96%
Tesco (TSCO) 300.90p -0.63%
National Grid (NG.) 658.50p -0.53%
Vodafone Group (VOD) 170.70p -0.47%
Land Securities Group (LAND) 714.00p -0.42%
British Land Co (BLND) 486.50p -0.39%
Capita (CPI) 647.00p -0.38%
Capital Shopping Centres Group (CSCG) 311.60p -0.38%
FTSE 250 - Risers
Talvivaara Mining Company (TALV) 159.10p +5.78%
Spirent Communications (SPT) 164.60p +3.98%
JD Sports Fashion (JD.) 692.00p +3.44%
Ocado Group (OCDO) 98.15p +3.42%
Filtrona PLC (FLTR) 462.10p +3.26%
Renishaw (RSW) 1,499.00p +3.17%
Redrow (RDW) 115.00p +3.14%
Northgate (NTG) 174.00p +2.96%
Genus (GNS) 1,277.00p +2.82%
Dixons Retail (DXNS) 13.02p +2.76%
FTSE 250 - Fallers
Supergroup (SGP) 285.90p -3.05%
Aquarius Platinum Ltd. (AQP) 71.35p -2.93%
Savills (SVS) 318.70p -2.27%
Centamin (DI) (CEY) 69.85p -1.69%
Premier Farnell (PFL) 158.30p -1.68%
Spirit Pub Company (SPRT) 48.00p -1.54%
Synergy Health (SYR) 874.50p -1.41%
African Barrick Gold (ABG) 393.00p -1.31%
Big Yellow Group (BYG) 282.00p -1.02%
Shaftesbury (SHB) 504.50p -0.98%
ON THE SHARECRAZY BLOG
By Luka Lukic
The Bank of England has done the right thing, for a change, and opted against another dose of quantitative easing. The Bank has already pumped some £325 billion into the economy since it began its QE policy in early 2009, while keeping interest rates at a record low of 0.5% in an attempt to get us to spend rather than save, and yet it seems to have had almost no effect. Indeed, despite all this extra money supposedly floating about the UK has still fallen back into recession.
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:
Rivington Street Holdings
Falkland Oil & Gas
Ferrex
Angelsey
Running trading thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Johan Stenebo
A book review by Aaron Padgham of t1ps.com
Johan Stenebo was a leading director at IKEA for more than two decades during a period in which it rapidly transformed into a leading flatpack retailer, generated billions of pounds of revenue across 38 countries. Working directly beneath Ingvar Kamprad, owner of the Swedish furniture giant, Stenebo was pivotal in the opening and running of the Leeds store, that soon went on to break company records, and was for some time Kamprad's personal assistant. John left the group in early 2009, after disputes with other members of management, and a few months later this book was released.
Click here to view the rest of the article
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