Thursday 23 August 2012
QUOTE OF THE DAY
"I have enough money to last me the rest of my life, unless I buy something."
-Jackie Mason
THIS MORNING IN LONDON
FTSE 100
5,776.20
2.00 0.03%
FTSE 250
11,483.57
-10.78 -0.09%
FTSE 350
3,073.66
0.55 0.02%
FTSE All Share
3,003.55
0.60 0.02%
AIM 100
3,091.96
11.33 0.37%
AIM All Share
683.78
2.22 0.33%
13:50 pm
THOUGHT FOR THE DAY
Hello Share Busters,
It’s getting a bit too predictable, ain’t it, gang? The Footsie crawls up in value ever so slowly and then it comes down with a bang when some more nasty stuff about Europe comes in.
This time it’s Greece. But it could be Spain, Italy, Ireland or whatever. Greece is not doing so well at getting its debt down as the Euro Mandarins expected. This is not good, but it is to be expected.
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NEW ON THE BLOG
by Tom Winnifrith
Whether house prices are increasing too rapidly or falling, there are always calls for the Government to do something. If they are going up to fast, house builders and the Guardian call for more homes to be built. If they are falling rapidly then the daily mail calls for tax breaks for “hard pressed homeowners.” We never hear calls from the Guardian to knock down empty homes of house prices are falling or from the Mail to provide tax breaks for builders to build more of they are rising...
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TIP OF THE DAY
A report by Growth Equities & Company Research
office2office (o2o) is a leading supplier of office products and services in the UK.
Major Contract Wins – The group has won a number of important contracts over the past 18 months that could generate revenues of over £60 million per annum when fully implemented.
Significant Growth Opportunities – We believe o2o has significant scope for revenue growth, both by expanding existing contracts and through new contract wins.
Impressive Dividend – o2o currently offers a dividend yield of 7.8%, which is supported by a strong historical free cash flow…
Click here to download the full report…
THIS MORNING IN LONDON
Miners gain on QE hopes, Randgold jumps
- QE hopes drive stocks early on
- Gains pared after Eurozone data
- Randgold leads miners higher
The Footsie was teetering around the 5,800 level by Thursday lunchtime as earlier optimism surrounding a potential policy easing in the US was tempered by some weak manufacturing data from the Eurozone.
"European financial markets are posting decent gains today in response to yesterday’s dovish Fed meeting minutes, however we have seen a slight pullback since the market open as data from the Eurozone slapped investors back into a rather more sober mood," said market strategist Ishaq Siddiqi from ETX Capital.
The minutes of the Federal Open Market Committee (FOMC) meeting said that "many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery"
"Europe’s political leaders in general, and Angela Merkel in particular, must be thankful for the cover provided by the Fed’s latest conversion to QE as they enter yet another fraught set of negotiations with the Greeks," said chief strategist Michael Derks from FxPro.
Eurogroup President Jean-Claude Juncker made clear that “the ball is in Greece’s court” following his meeting with the country's Prime Minister Antonis Samaras yesterday. While the Greek PM requested a two-year extension on the deadline to implement austerity measures, the head of the Eurozone's finance ministers said that the Troika’s visit to Athens in September will give the Hellenic Republic “one last chance” to meet its commitments.
Germany's Finance Minister Wolfgang Schaeuble was cited this morning as saying that giving Greece more time is tantamount to handing the country more money. In his opinion the Eurozone has gone to the limit on Greece.
The Markit preliminary composite purchasing managers' index (PMI) for the Eurozone rose from 46.5 to 46.6 in August, showing that activity in the single-currency region had contracted for a seventh straight month. Meanwhile, the HSBC China manufacturing PMI fell from 49.3 to 47.8 in August, a nine-month low.
FTSE 100: Randgold welcomes political progress in Mali
Randgold was a high riser today after releasing a statement to welcome the appointment of a new interim government in Mali which "represents a further step towards the full normalisation of the country following the coup attempt earlier this year." Chief Executive Mark Bristow said: "We have often said that we have confidence in the ability of Mali's people to resolve their differences in a constructive manner and, while there is still some way to go, this confidence remains unshaken. In the meantime, we continue to stay in touch with all parties and to monitor the situation closely,"
Miners on the whole were making gains today on the hopes that policy-makers in the US will boost the world's largest economy. Antofagasta, Fresnillo and Xstrata were in demand, while Anglo American was higher on reports that it is close to an agreement to end a 10-month dispute over a massive copper mine in Chile.
Even Kazakhmys was in the blue despite announcing that both revenues and earnings dropped in the first half. Cash costs increased significantly during the period, leading the group to increase its cash cost guidance for the full year.
Engineering group IMI fell after saying that the first-half revenue growth of 6% would likely slow in the second half mainly due to the weakening economic conditions in Europe.
Sales and underlying earnings came in slightly ahead of market expectations at drinks brands leviathan Diageo, helping shares higher this morning. Sector peer SABMiller was lower after Nomura downgraded the stock from 'neutral' to 'reduce', saying that the shares are trading at a 9% premium to the "beer average".
FTSE 250: WH Smith jumps after results upgrade, share buy-back; Petropavlovsk sinks
Newsagent chain WH Smith jumped after saying it expects results for the year to the end of August will be at the top end of market expectations as the group's Travel business improves margins. The group also revealed a £50m share purchase programme for 2013.
Heading the other way was gold producer Petropavlovsk whose bottom line lost its lustre in the first half of the year as interest payments bit and the group took a bath on its gold option contracts.
FTSE 100 - Risers
Randgold Resources Ltd. (RRS) 6,390.00p +3.99%
Fresnillo (FRES) 1,567.00p +2.69%
Antofagasta (ANTO) 1,150.00p +2.68%
Wolseley (WOS) 2,570.00p +2.55%
Tullow Oil (TLW) 1,410.00p +2.25%
Anglo American (AAL) 1,951.50p +2.17%
Xstrata (XTA) 936.30p +2.15%
Johnson Matthey (JMAT) 2,392.00p +1.79%
Evraz (EVR) 259.90p +1.72%
Vedanta Resources (VED) 945.50p +1.50%
FTSE 100 - Fallers
IMI (IMI) 854.00p -3.34%
British Land Co (BLND) 539.00p -1.01%
Morrison (Wm) Supermarkets (MRW) 276.30p -0.97%
National Grid (NG.) 687.00p -0.94%
Land Securities Group (LAND) 798.50p -0.81%
SABMiller (SAB) 2,765.00p -0.72%
Capita (CPI) 725.50p -0.68%
Serco Group (SRP) 569.00p -0.52%
Royal Bank of Scotland Group (RBS) 234.40p -0.51%
GKN (GKN) 224.10p -0.44%
FTSE 250 - Risers
Aquarius Platinum Ltd. (AQP) 40.95p +5.00%
WH Smith (SMWH) 609.50p +4.73%
Ferrexpo (FXPO) 196.40p +3.86%
SIG (SHI) 97.60p +3.66%
Man Group (EMG) 79.35p +3.32%
Soco International (SIA) 345.00p +2.68%
Stobart Group Ltd. (STOB) 125.30p +2.62%
Renishaw (RSW) 1,567.00p +2.15%
Lonmin (LMI) 625.50p +2.04%
Afren (AFR) 133.60p +1.98%
FTSE 250 - Fallers
Petropavlovsk (POG) 392.00p -16.40%
AZ Electronic Materials SA (DI) (AZEM) 295.60p -2.76%
NMC Health (NMC) 191.00p -2.75%
Taylor Wimpey (TW.) 50.60p -1.84%
Chemring Group (CHG) 370.90p -1.77%
FirstGroup (FGP) 241.00p -1.75%
Home Retail Group (HOME) 93.70p -1.47%
Wetherspoon (J.D.) (JDW) 460.20p -1.35%
Kier Group (KIE) 1,304.00p -1.29%
Bank of Georgia Holdings (BGEO) 1,166.00p -1.27%
WHAT THE BROKERS SAY
Jefferies has raised its target price for Holiday Inn and Crowne Plaza owner InterContinental Hotels from 1,350p to 1,500p, but has retained its 'hold' recommendation for the shares due to the lack of perceived potential upside to the stock.
Investec has put its target price under review for newsagents chain WH Smith following the group's pre-closing trading update on Thursday, saying that the shares merit a higher rating.
Nomura has downgraded its rating for drinks giant SABMiller from 'neutral' to 'reduce' with the shares now trading at a nine per cent premium to the 'beer average'.
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:
Randgold Resources
BORDERS & SOUTHERN PETROLEUM ( BOR )
Anglo Pacific.
LIDCO GROUP (LID)
EXILLON ENERGY (EXI)
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Rodney Hobson
A book review by Luka Lukic of t1ps.com
In this book Rodney Hobson aims to provide a straight forward introduction into the world of portfolio management and best practices to employ when selecting what you want to invest in. Thankfully it doesn't pretend to offer a guaranteed, one size fits all, scheme to become a millionaire, but instead attempts to compel the reader to assess what they wants to get out of their investment and then provides guidance to that end.
The book aims to explain the different behaviours of the various market sectors, and the importance of not only holding a range of shares, but diversifying them throughout the sectors to ensure a proper hedge. It also walks the reader logically through a range of factors than can, and most likely will, affect the share price and gives case studies to demonstrate the impact on real companies.
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Regards,
ShareCrazy
UK House Prices set to slump by 30% (at least)
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