Wednesday 13 June 2012
QUOTE OF THE DAY
American companies make three times as much profits from their investment in one E.U. country, Ireland, than they do from all their investments in China
- John Bruton
THIS MORNING IN LONDON
FTSE 100
5,475.31
1.57 0.03%
FTSE 250
10,530.03
-31.13 -0.29%
FTSE 350
2,897.12
-0.41 -0.01%
FTSE All Share
2,833.85
-0.19 -0.01%
AIM 100
3,085.04
20.47 0.67%
AIM All Share
682.80
2.64 0.39%
11:48 am
London rises on Wall Street tailwinds
Taking their lead from US and Asian markets, London's leading stocks have opened on the front foot.
Wall Street rebounded strongly yesterday on hopes that the US Federal reserve might do a bit more to stimulate the US economy. Federal Reserve Bank of Chicago President Charles Evans, speaking in an interview with a news agency, indicated he was in favour of measures to kick-start jobs growth.
Back in Blighty, Footsie's advance is being driven by financial stocks such as Resolution, Barclays, Royal Bank of Scotland and Legal & General, and miners such as ENRC and Antofagasta.
One blue-chip that is not heading higher is supermarket group Sainsbury. The keenly awaited trading update proved a bit anti-climactic with like-for-like (LFL) sales growth below expectations. LFL sales in the 12 weeks to June 9th were up 1.4% on the corresponding period of last year, below market expectations of growth of between 1.6% and 2.0%. Total sales for what is the first quarter of the supermarket chain's first quarter were up 3.6% year-on-year, or 3.8% excluding fuel.
Elsewhere in the retail sector, JD Sports is wanted after reporting a pick-up in LFL sales growth. The designer label sportswear retailer said LFL sales in the 19 weeks to June 9th were up 1.5% on the corresponding period of the previous year, which represents an improvement in the growth rate of 1.2% previously reported for the nine weeks to the end of March.
Scottish oil and gas giant Cairn Energy is to make an agreed takeover of North Sea oil producer Nautical Petroleum. Cairn is offering 450p per share in a deal which values Nautical at around GBP414m. The terms represent a 51.1% premium to the closing price of Nautical on the trading day prior to the announcement of the bid.
In other bid news, pharmaceuticals firm Proximagen has shot up after succumbing to a takeover offer from US firm Upsher-Smith Laboratories (USL). USL is offering 320p in cash per Proximagen plus either a further 192p in cash or an equivalent amount in loan notes. The terms value Proximagen at around GBP357m.
The bid is good news for intellectual property development firm IP Group, which has a 7.6% stake in Proximagen.
Ahead of its annual general meeting (AGM) later today in Dublin advertising and media conglomerate WPP has announced yet another acquisition. The group has bought a majority stake in Mumbai based Hungama Digital Services for an undisclosed sum.
Of more interest to the market, however, is the vote at the AGM on executive remuneration. Shareholders are angry about plans for its Chief Executive, Sir Martin Sorrell, to get a 30% pay rise to GBP1.3m, as well as increases in his bonus arrangements that could see him pocket an extra GBP6.5m a year.
If the vote at the AGM goes against the company it will mark a record sixth revolt against executive pay in one year as the so-called 'shareholder spring' continues. However, the vote will not be binding and every public utterance by Sorrell indicates he is unlikely to be shamed into forgoing any bonuses.
FTSE 100 - Risers
Resolution Ltd. (RSL) 201.60p +3.23%
Eurasian Natural Resources Corp. (ENRC) 410.40p +1.84%
Barclays (BARC) 192.70p +1.55%
Royal Bank of Scotland Group (RBS) 225.40p +1.53%
Tate & Lyle (TATE) 656.00p +1.31%
Legal & General Group (LGEN) 117.30p +1.30%
International Consolidated Airlines Group SA (CDI) (IAG) 144.80p +1.26%
SSE (SSE) 1,377.00p +1.25%
Antofagasta (ANTO) 1,066.00p +1.23%
Aberdeen Asset Management (ADN) 251.40p +1.17%
FTSE 100 - Fallers
Sainsbury (J) (SBRY) 283.90p -2.47%
Intertek Group (ITRK) 2,634.00p -1.27%
Morrison (Wm) Supermarkets (MRW) 276.80p -1.21%
Centrica (CNA) 316.80p -0.75%
National Grid (NG.) 654.50p -0.46%
Capita (CPI) 653.00p -0.38%
British Land Co (BLND) 476.60p -0.36%
Land Securities Group (LAND) 712.50p -0.35%
IMI (IMI) 866.50p -0.34%
Hammerson (HMSO) 407.90p -0.32%
FTSE 250 - Risers
Bumi (BUMI) 344.60p +4.42%
EnQuest (ENQ) 124.50p +4.27%
Fidessa Group (FDSA) 1,505.00p +3.15%
Premier Oil (PMO) 358.30p +2.87%
New World Resources A Shares (NWR) 303.30p +2.85%
Centamin (DI) (CEY) 72.25p +2.85%
Talvivaara Mining Company (TALV) 148.10p +2.49%
Regus (RGU) 86.95p +2.41%
Atkins (WS) (ATK) 696.00p +2.35%
Brewin Dolphin Holdings (BRW) 141.10p +2.32%
FTSE 250 - Fallers
London & Stamford Property (LSP) 106.00p -2.93%
Big Yellow Group (BYG) 277.70p -1.28%
Edinburgh Inv Trust (EDIN) 479.90p -1.15%
Shaftesbury (SHB) 489.70p -1.07%
FTSE TechMARK - Risers
Kewill (KWL) 107.50p +12.57%
Sepura (SEPU) 69.00p +4.94%
Emblaze Ltd. (BLZ) 47.00p +3.87%
CML Microsystems (CML) 280.00p +2.94%
FTSE TechMARK - Fallers
E2V Technologies (E2V) 137.00p -0.72%
Dialight (DIA) 1,030.00p -0.68%
TIP OF THE DAY
from top chartist Zak Mir of Zaks-TA.com
Glencore (GLEN) The mark up for the stock market this morning on the Spanish bailout is led by mining stocks and financials, something which helps out Glencore given the way that the stock has already made decent progress from a May 331p bear trap rebound and accompanying bullish RSI divergence from a higher June (to date) support zone. The likelihood now is that while there is no end of day close back below the green 10 day moving average at 354p the "minimum" upside here should be towards the March 381p support zone over the next 1-2 weeks.
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
Central Rand Gold
Xcite Energy
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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