Thursday 19 July 2012
QUOTE OF THE DAY
The only reason a great many American families don't own an elephant is that they have never been offered an elephant for a dollar down and easy weekly payments
- Alfred E Neuman
THIS MORNING IN LONDON
FTSE 100
5,706.89
21.12 0.37%
FTSE 250
11,196.02
110.34 1.00%
FTSE 350
3,027.59
13.63 0.45%
FTSE All Share
2,960.45
13.30 0.45%
AIM 100
3,112.80
16.05 0.52%
AIM All Share
687.43
2.72 0.40%
11:51 am
Markets celebrate global corporate earnings
- Corporate earnings lift sentiment
- UK June retail sales meet forecasts as prices drop
- Kingfisher falls after rain dampens sales
European stock markets were firmly in the blue on Thursday morning on the back a barrage of upbeat quarterly earnings reports from blue chips across the globe.
"A combination between a quiet Eurozone and better than expected corporate earnings are really lifting sentiment," said analyst Craig Erlam from Alpari. Heavyweight companies from across the globe have boosted the mood with their earnings today, including eBay, Nokia, AkzoNobel, Sandvik and Novartis. Morgan Stanley, Microsoft and Google are expected to release their results later today.
UK retail sales volumes increased by 0.1% month-on-month (1.6% year-on-year) during the month of June, according to the latest data available from the Office for National Statistics (ONS). The consensus estimate had been for a rise of 0.6% month-on-month (2.4% year-on-year).
Meanwhile, investors will be digesting last night's release of the Federal Reserve's Beige Bookwhich said that the US economic grew at a "modest to moderate" pace over the last month. Stocks closed higher yesterday after Fed Chairman Ben Bernanke said that he does not expect the US economy to slip back into recession.
Analyst Cooper Howes from Barclays Capital said:"The Fed will not feel compelled to act (or not act) on this report alone, and the decision of whether or not to pursue further monetary stimulus will depend on developments in the economic data and financial markets between now and the [next] meeting."
FTSE 100: Rainfall dampens growth at Kingfisher
Kingfisher, Europe's largest home improvement retailer, was among the worst performers after sales were hit by the extraordinary bad weather in the second quarter, though trading in the UK and Ireland was resilient.
Engineering groups IMI, GKN and Weir was high risers after Swedish peer Sandvik released better-than-expected second-quarter results. Meanwhile, Croda International gained on the back of positive read-across from AkzoNobel.
Natural gas group BG was under the weather after Credit Suisse downgraded the stock to 'neutral' and cut its target price from 1,660p to 1,500p. Mining firm Vedanta dropped after HSBC slashed its target from 1,320p to 1,000p, though it maintained its 'overweight' rating.
Banking group Lloyds was higher after it agreed with the Co-op to sell hundreds of its branches for an initial consideration of £350m, and up to an additional £400m in present value.
FTSE 250: Board changes move stocks
Halfords advanced after saying that Chief Executive David Wild is on his bike leaving the non-executive Chairman Dennis Millard in charge of the shop while the struggling seller of bikes and car parts looks for a replacement. The group also reported that LFL sales gained 0.9% in the five weeks to June 29th.
Oilfield services firm Wood Group rose after saying that Chairman Sir Ian Wood is to retire in November and will be succeeded by the group's CEO, Allister Langlands.
In contrast, West Africa-focused gold miner Avocet Mining fell after it revealed that CEO Brett Richards is to resign and will be replaced by the group's Chief Operating Officer (COO).
Digging deeper at the Simrit-2 exploration well in the Kurdistan region of Iraq has paid off for oil exploration firm Afren as the well's total net oil pay has increased to 460 metres. Shares jumped 7%.
Elsewhere, AIM-listed sports retailer JJB dropped after saying that it is having to slow down its refurbishment programme as poor sales mean the group will need an injection of cash from its backers earlier than planned.
FTSE 100 - Risers
Burberry Group (BRBY) 1,277.00p +3.65%
Petrofac Ltd. (PFC) 1,495.00p +2.05%
Royal Bank of Scotland Group (RBS) 208.30p +1.96%
IMI (IMI) 806.00p +1.90%
Antofagasta (ANTO) 1,092.00p +1.87%
International Consolidated Airlines Group SA (CDI) (IAG) 159.10p +1.79%
ICAP (IAP) 316.60p +1.77%
Smiths Group (SMIN) 1,093.00p +1.77%
Experian (EXPN) 965.00p +1.69%
ARM Holdings (ARM) 485.70p +1.59%
FTSE 100 - Fallers
BG Group (BG.) 1,290.00p -2.09%
National Grid (NG.) 661.50p -1.34%
Kingfisher (KGF) 271.70p -1.27%
United Utilities Group (UU.) 687.50p -1.22%
Aberdeen Asset Management (ADN) 257.90p -1.00%
CRH (CRH) 1,201.00p -0.99%
Imperial Tobacco Group (IMT) 2,510.00p -0.95%
Fresnillo (FRES) 1,417.00p -0.91%
Randgold Resources Ltd. (RRS) 5,675.00p -0.61%
Centrica (CNA) 320.50p -0.53%
FTSE 250 - Risers
Halfords Group (HFD) 210.20p +6.48%
Afren (AFR) 126.30p +6.22%
Paragon Group Of Companies (PAG) 183.90p +5.69%
Elementis (ELM) 195.90p +4.42%
Fenner (FENR) 351.80p +4.24%
TUI Travel (TT.) 176.30p +4.01%
Regus (RGU) 88.00p +3.83%
Electrocomponents (ECM) 219.30p +3.69%
Howden Joinery Group (HWDN) 131.70p +3.54%
Cookson Group (CKSN) 628.50p +3.46%
FTSE 250 - Fallers
TalkTalk Telecom Group (TALK) 182.20p -4.00%
Ashtead Group (AHT) 257.00p -2.69%
Ultra Electronics Holdings (ULE) 1,558.00p -2.44%
Avocet Mining (AVM) 67.60p -2.31%
Lancashire Holdings (LRE) 780.50p -1.20%
Bank of Georgia Holdings (BGEO) 1,119.00p -0.89%
easyJet (EZJ) 558.50p -0.80%
Galliford Try (GFRD) 644.00p -0.77%
Gem Diamonds Ltd. (DI) (GEMD) 211.60p -0.70%
British Assets Trust (BSET) 118.10p -0.67%
ON THE SHARECRAZY BLOG
Even the most deluded of Euro-loon now concedes that Greece is bust. It is a theme I have covered once or twice in recent weeks as your man on the spot. It is a hard job having to report on the economic crises, live from various beaches, heaving with bikini clad Swedish blondes across the Med but someone has to do it and but I have manned up to take on the mantle for a couple of months and so far I am bearing up. Gosh, the heat, the swimming pools, the blue sea, the "views" on the beach, the great sea food and salads. It is a dreadful burden. By the way how is the rain back in Blighty?
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WHAT THE BROKERS SAY
Hiscox: RBC Capital Markets upgrades to sector performer, target lifted from 410p to 460p.
Wood Group: UBS raises target from 810p to 850p, buy rating unchanged; Credit Suisse reiterates outperform rating and 925p target.
Click here for the rest of the broker recommendations
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Rockhopper
Falkland Oil & Gas
Bloomsbury Publishing
IP Group
Running trading thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Wilhelm Hankel and Robert Isaak
A book review by Emanuil Halicioglu of Growth Equities & Company Research
Democratic capitalism, one of the greatest civilising forces known to man, has been pushed to the edge of a precipice. A brave new world economy, one not in thrall to a runaway interbank credit system, is struggling to be born, and only the actions of world policymakers, working in concert to make the hard choices, can bring it into being.
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