| The Markets The UK manufacturing sector contracted at its fastest rate in more than three years in July as the UK purchasing managers' index slumped to 45.4 from 48.4 the month before. The survey suggested that the weakening Eurozone was much to blame for the sector's worrying performance as manufacturers saw export orders from the UK's largest export partner fall sharply. Meanwhile the Nationwide building society confirmed that house prices continued to fall in July, dropping 0.7% versus June and 2.6% when compared to July 2011. Nationwide attributed the fourth fall in five months to the continued effects of the recession, with the average house now costing 164,389 pounds. Most Britons will have quickly brushed off this bearish news however and focused their attention on Team GB's chances in the men's Olympic cycling time trial. By 4 o'clock we had watched Bradley Wiggins and his sideburns storm to the gold medal, and 'Wiggomania' capture the nation. It even looks as though David and Boris took the opportunity to celebrate the moment. At the London close the Dow Jones was up by 33.94 points at 13,042.62 and the Nasdaq was up by 0.47 points at 2,643.00.
In London the FTSE 100 rose by 77.54 points to 5,712.82; the FTSE 250 finished 49.50 points ahead at 11,186.19; the FTSE All-Share gained 35.19 points to 2,962.46; and the FTSE AIM Index rose by 1.19 points to 669.43. 
Broker Notes Shore Capital retained its "buy" stance on Unilever (ULVR) stating that the consumer goods company continued to outperform, driven by strong trading in emerging markets. The broker also noted that the group was able to offset some weakness in Europe through cost savings. Shore added that the shares trade on a relatively high prospective earnings multiple of 18.9 times for 2012, which could lead to reduced investor interest in the short term, but maintained that the firm's market leading position in emerging markets will drive long term growth. Unilever shares inched up by 19p to 2,310p. 
Panmure Gordon reiterated its "buy" recommendation for Hutchison China Meditech (HCM) with a 600p target price. The pharmaceutical company reported 25% revenue growth in its first half to 102.9 million dollars (65.7 million pounds), slightly ahead of the broker's forecast of 101.8 million dollars (65.0 million pounds). Panmure added that the group's prescription business grew by 30%, despite price cuts imposed by the Chinese government. The shares grew by 15p to 395p. Canaccord Genuity maintained its "buy" rating for Weatherly International (WTI) with an 11p target price. The copper miner is looking to reduce capital requirements and operating costs for its Tschdi site in Namibia, but the broker still believes that development will begin in 2013. Canaccord added that the group is planning to ramp up production at its Matchless operation over 2013, with the goal of doubling ore throughput. Shares in Weatherly tumbled by 0.25p to 2.875p. Blue-Chips Shares in Next (NXT) jumped by 208p to 3,427p after it reported a 4.5% rise in sales, year-on-year, for the 26 weeks ended 28th July, almost entirely due to 13.3% growth in online sales. As a result, the fashion retailer upgraded its full-year pre-tax profit target, from between 560 and 610 million pounds to between 575 and 620 million pounds. The group also reiterated its commitment to repurchase around 200 million pounds worth of shares during the year, noting that it has already bought back 3.9 million shares for 112 million pounds. 
Standard Chartered (STAN) achieved pre-tax profits of 3.9 billion dollars (2.5 billion pounds) for the six months ended 30th June, up 9% on 2011's performance and beating market consensus forecasts by 3%. The bank noted that it maintained a liquid portfolio, with a loans-to-deposits ration of 77.6%, and a diversified geographical presence. The group also said that it is on track to achieve its goal of double digit revenue growth for the full year. Daniel Stewart reiterated its "buy" recommendation, noting that the shares trade on a prospective earnings multiple of 10.3 times for the 2012 financial year and offer a dividend yield of 3.7%. The shares advanced by 3.4p to 245.3p. Packaging manufacturer Rexam (REX) announced a mixed set or results for its first half ended 30th June, with a 6.6% rise in underlying operating profits from its beverage cans division to 226 million pounds counteracted by a 25% fall in healthcare profits to 27 million pounds. The group attributed the fall to the expiration of a drug patent, as well as lower prescription volumes. Meanwhile, the drinks cans business continued to enjoy strong growth in North America, with volume growing 13% against a flat market. Shares in Rexam edged up by 1.9p to 436.4p. Mid-Caps Rightmove (RMV) reported pre-tax profits of 38.9 million pounds for the six months ended 30th June, up 35.3% on 2011's comparable period, with revenues rising 23% to 57.9 million pounds. The property website saw traffic on its site rise over 30%, driven by access from mobile phones which rose 100%. Additionally, revenues from advertisers rose 20%, on average, with more property developers and estate agents purchasing multiple products. The shares soared by 153p to 1,645p. 
Homebuilder Taylor Wimpey (TW.) announced a 1p rise in tangible net asset value per share to 58p as at 1st July, with the group completing 5,083 UK homes in the first six months of the year, compared to 4,707 in the first half of 2011. The company also noted improved selling prices, rising 4.8% to 176 million pounds. However, the firm said that the Spanish market remained difficult, due to restriction on mortgages, adding that it completed just 13 homes in the country, compared to 30 in the prior year. Shares in Taylor Wimpey climbed by 2.2p to 46.35p. Avocet Mining (AVM) suffered a dramatic fall in pre-tax profits to 2.5 million dollars (1.6 million pounds) for the quarter ended 30th June, down from 20.8 million dollars (13.3 million pounds) in the first quarter. The gold miner saw production fall 14% to 32,917 ounces, while also facing higher operating costs and weaker realised gold prices. As a result of the poor performance, the firm said that it will not pay a dividend this year and the group's chief executive, Brett Richards, stepped down to be replaced by David Cather. The shares leapt by 9.6p to 84.6p. Small Caps, AIM and PLUS Sound Oil (SOU) has appointed Italian engineering company CSTI as engineering contractor for the Rapagnano gas field, securing in the process more than half the capital required to develop the prospect. CSTI will provide Sound Oil with 500,000 euros to pay for facilities equipment and related services and will receive 52% of the net cash flows from the project for a period of 30 months from first gas. Sound Oil will retain 100% ownership of the Rapagnano concession and should gas production not start for any reason, the business has no corporate liability to repay CSTI. Sound Oil shares climbed 0.0375p to 0.5575p. Following Gallagher Holdings' recent acquisition of ordinary shares in Abbey (ABBY) - which increased its stake in the residential property construction company to 51.6% - Gallagher has made an unconditional mandatory 530p offer for the remaining shares in the company. The board of Ireland-based Abbey said it was considering the terms of the offer - the price representing a premium of 12% to the pre-announcement share price - and in the mean time recommends that shareholders 'take no action'. Abbey shares surged 57p to 525p. Shares in Zoltav Resources (ZOL) plummeted 0.675p to 2.925p as the directors of the Russia-focused oil and gas development company said they know of no reason behind the recent increase in the company's share price. Reportedly, all material information known by the board has been already released to the market, meaning the recent surge in Zoltav shares, from 2p last week to 3.5p at Tuesday's close, appears to be fuelled only by speculation. 
Kalimantan Gold (KLG) has appointed Franzis Xavier De Souza, a highly regarded finance professional, as an independent non-executive director of the company. Mr De Souza's business experience includes equity structured sales and trading, mergers and acquisitions, corporate business development and project evaluation in mineral commodities. He is also a founder and director of Otsana Capital, a private boutique advisory firm specialising in mergers and acquisitions and capital raising. As a junior exploration company likely in need of further funding to progress its gold and copper projects, this addition to the board has been well received by Kalimantan investors. Kalimantan shares climbed 0.375p to 6.625p. Care Capital Group (CARE) shares inched 0.275p higher to 0.9p as the healthcare investment firm raised 520,000 pounds via the issue of shares at 1p, a premium of 11% to the pre-announcement share price. The proceeds were raised from institutional investors as well as from chief executive Mike Sinclair and will be used to develop the group's businesses in the cancer diagnostic and treatment market. Coastal Energy Company (CEO) unveiled the results of a third party evaluation of its reserves in Thailand, highlights of which included a 30% increase in offshore proved reserves to 81 million barrels of oil and a 50% rise in offshore proved plus probable reserves to 127.7 million barrels of oil. "We are extremely pleased with the results of the interim reserves evaluation" commented president and chief executive Randy Bartley, adding the analysis has helped the company to "better formulate [its] field wide development plan." Coastal Energy shares jumped 55p to 985p. | 
No comments:
Post a Comment