| The Markets European equity markets closed lower following rating agency Moody's decision to downgrading Spain's credit rating to one notch above 'junk'. This prompted the nation's 10 year borrowing cost to surge to a Euro-era record of 7%, a figure widely regarded across the financial world as being unsustainable. In the UK, the government unveiled the latest development in its banking reform white paper, which confirmed that it would follow the Independent Commission on Banking's recommendation of ring-fencing retail banking operations from riskier operations such as investment banking. At the London close the Dow Jones was up by 107.85 points at 12,604.23 and the Nasdaq was up by 14.34 points at 2,541.78.
In London the FTSE 100 fell by 16.76 points to 5,467.05; the FTSE 250 finished 36.04 points ahead at 10,574.63; the FTSE All-Share lost 4.03 points to 2,833.63; and the FTSE AIM Index declined by 7.84 points to 670.28. 
Broker Notes Panmure Gordon reiterated its "buy" recommendation for Vertu Motors (VTU) with a target price of 50p. The broker is impressed with the car dealer's acquisition strategy and believes that the difficult market conditions for smaller competitors will provide the firm with a number of attractive targets during the year. Panmure added that the group is developing its aftersales business, providing it with greater revenue visibility. The broker also pointed to the firm's developing online business, with its Bristol Street Motors website now being the third most visited care dealer website in the UK. Shares in Vertu were unchanged at 27.5p. Daniel Stewart retained its "buy" rating for Playtech (PTEC) with a 490p target price. The gambling software developer has announced plans to move from the AIM market on to the main market of the London Stock Exchange and the broker noted that, with a market cap of nearly 1 billion pounds, it will become one of the top FTSE 250 companies. Daniel Stewart believes that this will improve awareness and make the stock more attractive to investors. The shares inched down by 1.5p to 333p. ADVERTISEMENT Latest small cap tip out next week on WatsHot.com
Get two new meticulously-researched small cap tips each month
Plus frequent updates and a daily column from editor James Faulkner
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 kept its "buy" recommendation for Yule Catto (YULC) with a 294p target price. The specialty chemicals manufacturer's shares have underperformed its peer group, which the broker believes is unfounded given a strong first quarter performance. Canaccord expects the integration of the PolymerLatex business, acquired in 2011, to result in supernormal growth as it helps accelerate international expansion. On the broker's forecasts, the shares trade on a prospective earnings multiple of 7 times for the 2013 financial year, compared to peer Elementis' (ELM) multiple of 12.9 times. Yule Catto shares jumped by 8.6p to 183.7p. Shore Capital maintained its "sell" rating for Go-Ahead Group (GOG), raising concern over the possible impact of subsidy cuts across UK buses on the public transport provider. The broker expects the firm to announce price increases of between 5% and 8% in the fourth quarter, although noted that this may be difficult to implement in the North East due to the weak economic backdrop. Additionally, Shore pointed out that the group will not be able to raise London bus prices, which is likely to result in a decline in 2013 profits. The shares gained 22p to 1,146p. Blue-Chips In-line with its strategy of developing its presence in the renewable energy market, SSE (SSE) announced that it completed the commissioning of the 367.2 megawatt capacity Walney Offshore Windfarm in the Irish sea, in which it has a 25.1% stake. The 1 billion pound farm is the largest of its kind in the world, with 102 turbines, and is capable of delivering 1 gigawatt hour of electricity per day. The shares crept up by 2p to 1,390p. ICAP (ICP) has increased the purchase price for the PLUS stock exchange to 500,000 pounds, from the initial nominal price of one pound, in order to appease frustrated PLUS Markets Group (PMK) shareholders. Having made this concession, the interdealer broker warned investors that the Financial Services Authority will "revoke the exchange's recognition" if they do not accept the deal. ICAP shares edged up by 1.1p to 250.2p, while those of PLUS Markets soared by 0.05p to 0.38p. Mining group Fresnillo (FRES) reported that a prefeasibility study determined that its Juanicipio property in Mexico has a useful mine life of around 15 years and is capable of producing 10.3 million pounds of silver and 29,200 ounces of gold per annum. The firm values the project at a net present value of 1.2 billion dollars (0.77 billion pounds), assuming a price of 23.39 dollars (15.08 pounds) per ounce of silver. The shares fell by 35p to 1,452p. Mid-Caps Shares in Petropavlovsk (POG) leapt by 59p to 469.9p after the firm raised its gold production target for the year ending 31st December 2012 by 20,000 ounces to 700,000 ounces. The mining group noted that it successfully completed the commissioning of new processing lines ahead of schedule, adding 40% to plant capacity at its flagship Pioneer site, to 6.4 million tonnes per annum, and doubling capacity at Albyn to 3.6 million tonnes. The company added that gold sales increased by 12% in the first five months of 2012, year-on-year, with a 15% rise in price. Computacenter (CCC) said that revenue growth from 18th April 2012 to date is likely to have risen to around 15%, compared to 11% growth in the first quarter as it secured a number of new contracts. However, the group warned that it will need to increase capital investment by an additional 7 million pounds in 2012, in order to maintain growth, and also noted that a weak euro will also reduce profits by a further 3 million pounds. The shares fell by 43.7p to 313p. WH Smith (SMWH) reported that revenues for the 15 weeks ended 9th June 2012 fell by 1% on last year's comparable period, attributable to a 3% fall in sales from its High Street division. The Travel division achieved 1% growth, with improved margins, adding that new store openings were performing well. The group continued with its share buyback scheme, having returned 36 million of the planned 50 million pounds to investors. WH Smith shares advanced by 12.9p to 484.6p. Small Caps, AIM and PLUS Troubled UK coal producer ATH Resources (ATH) confirmed that coal prices have continued to fall further this year and are now down 28% since the beginning to the group's financial year to 1st October. As such the firm's trading performance for the year will be materially impacted. Despite the recent renegotiation of two legacy contracts, which have financially benefited ATH, the continued weakness in coal prices has all but disintegrated its margins. ATH is now lodging an application for a judicial review of the government's carbon credit reduction commitment scheme, but will be forced to purchase 2.2 million pounds of carbon credits over the next two years if this appeal is unsuccessful. ATH Resources shares plummeted 4.5p, or 47% to 5p. Oxford Advanced Surfaces Group (OXA) has signed a nine-month agreement with a major manufacturing company to fund the development of its commercial anti-reflective coating for electronic displays. As part of the agreement, the undisclosed company will have an option to license the technology from Oxford in order to commercialise the coating to sell to its global customer base. The firm added that it has developed the technology to cut reflection to 0.5%, well below the industry standard of 1%, giving it confidence that with this increase in efficiency it will be at the forefront of the market. The group's shares surged 1.625p to 10p. ReNeuron Group (RENE) announced that the six disabled stroke patients that have so far been administered its REN001 stem cell therapy drug have shown no adverse immune-related responses. Reductions in neurological impairments meanwhile have been observed in the patients when compared to pre-treatment performance. The results leave the firm on track to submit an application for a phase II clinical study during 2013. ReNeuron shares slipped 0.575p to 2.6p. Lighthouse Group's (LGT) subsidiary Lighthouse Financial Advice has signed a three year contract to provide financial planning consultation to members of British Airways Club, adding another major organisation to its partner portfolio. The deal will provide the firm with the opportunity to provide advice on investments, pensions and tax to circa 40,000 current and former British Airways staff members. Lighthouse shares climbed 0.375p to 5.25p. Africa-focused resource investment company Obtala Resources (OBT) provided an update on activities on its agriculture and forestry concessions, in particular announcing the delivery of railways sleepers to a client were now in progress. The group is now generating a strong revenue base in Mozambique following orders for sawn hardwood from across the globe, which have encouraged it to open additional saw mills. In Tanzania, the groundnut harvest is now underway, and will generate revenue of up to 4,000 dollars per hectare. Obtala shares crept 0.25p higher to 21.5p. Finally, news of a 3.4 million pound contract to supply security equipment to the Post Office sent shares in Newmark Security (NWT) 0.075p higher to 0.875p. The firm has been supplying the Post Office with security products since 2004, with this order seeing it provide time delayed safes as part of client's new investment programme. | 
No comments:
Post a Comment