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Friday, September 28, 2012

Back to square one for the Footsie - The ShareCrazy Morning Market View

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Friday 28 September 2012
QUOTE OF THE DAY

It is better to spend money like there's no tomorrow than to spend tonight like there's no money
- PJ O'Rourke


THIS MORNING IN LONDON

FTSE 100

5,783.19

3.77   0.07%

FTSE 250

11,772.20

17.80   0.15%

FTSE 350

3,082.99

2.36   0.08%



FTSE All Share

3,018.33

2.50   0.08%

AIM 100

3,194.71

8.49   0.27%

AIM All Share

704.50

1.73   0.25%


11:56 am
Back to square one

It is more or less back to square one for Footsie after a bright start.

Setiment was boosted early on by consumer confidence data that was not as bad as feared.

Consultancy GfK's consumer confidence gauge for the month of September rose by 1 point in September, to -28. The consensus estimate was for a retreat to -30.

The increase in the index comes after it was unchanged for four consecutive months and could mark the start of an improvement in consumer confidence after an extended period of weakness, comment analysts at Barclays Research.

The UK's index of services came in at a 1.1% month-on-month rate of change for July (Consensus: 1.5%). On a three month basis the gauge rose by 0.1%, ONS says, as expected.

LSE caught out by regulatory change of direction

Shares in bourses operator London Stock Exchange (LSE) were bashed after it warned that proposed European regulatory changes will cut net treasury income over next financial year.

Recommendations published by the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) look set to change the rules of the game, and differ considerably from the initial proposals published in March 2012.

"If adopted in their current form, the recommendations will have some implications for LSE's existing wholly owned subsidiary CCP, CC&G," it added.

The move could significantly reduce net interest income from its Italian clearing house, which currently accounts for over 15% of total group revenue.

Nick Buckles, Group Chief Executive Officer (CEO) of security firm G4S, is to keep his job after dodging the blame in the group's internal report into the Olympics staffing fiasco.

David Taylor-Smith, Chief Operating Officer and Regional Chief Executive Officer of UK and Africa, and Ian Horseman Sewell, Managing Director, G4S Global Events, have been thrown under the bus, however, leading to a shake-up in the management structure of G4S.

Car insurer Admiral is lower after the Office of Fair Trading referred the private motor insurance market to the Competition Commission, as it is concerned that the market is not working well for motorists.

Electronics components distributor Electrocomponents is under the cosh after it issued a profit warning. First half performance is now expected to be lower than anticipated, although the group expect profits in the second half to benefit from a combination of a return to sales growth and actions to improve operating margins.

Pubs owner Mitchells and Butlers said like-for-like (LFL) sales increased 3% in the nine weeks to September 15th as the Olympic and Paralympic Games had little impact on overall sales. Total LFL sales for the 51 weeks to September rose 2.1% with food sales up 2.9% and drink sales up 1.4%.

Multi-national design and engineering consultancy Hyder said it now expects first half pre-tax profit to be well ahead of previous forecasts, buoyed by the timing of performance bonuses earned in Australia.

Package tour operator Thomas Cook issued the comforting news that it continues to expect full year results will be in line with market expectations, which were set by the group's interim management statement in August. The group has enjoyed a late surge in bookings from Brits anxious to escape the soggy summer.

Vodafone has seen its price target slashed at Goldman Sachs, to 227p from 233p. Analysts at HSBC have upgraded their view on shares of Tesco to overweight.

Other markets

As might be deduced from the buoyancy of mining stocks, metals prices are heading higher on the futures markets.

Gold for December delivery is up $1.10 to $1,781.60 an ounce while copper for December delivery is currently priced at $377.70 a pound, up $1.30 on the day.

Brent crude is also heading north, with the November contract 59 cents dearer at $112.60.

The yield on the benchmark 10-year gilt down to 1.69% from 1.73% overnight, as gilt prices edge up.

FTSE 100 - Risers
Fresnillo (FRES) 1,832.00p +3.04%
Antofagasta (ANTO) 1,271.00p +2.01%
Pennon Group (PNN) 731.00p +1.74%
Wolseley (WOS) 2,676.00p +1.56%
Polymetal International (POLY) 1,075.00p +1.42%
G4S (GFS) 267.00p +1.25%
Vedanta Resources (VED) 1,031.00p +1.18%
Experian (EXPN) 1,043.00p +1.16%
Croda International (CRDA) 2,433.00p +1.16%
Severn Trent (SVT) 1,693.00p +1.14%

FTSE 100 - Fallers
Compass Group (CPG) 690.50p -1.99%
Admiral Group (ADM) 1,065.00p -1.84%
Melrose (MRO) 241.90p -1.55%
Anglo American (AAL) 1,821.00p -1.43%
RSA Insurance Group (RSA) 110.60p -1.25%
Tesco (TSCO) 332.00p -1.06%
Standard Chartered (STAN) 1,407.50p -0.95%
GKN (GKN) 215.20p -0.92%
International Consolidated Airlines Group SA (CDI) (IAG) 150.20p -0.86%
National Grid (NG.) 687.50p -0.79%

FTSE 250 - Risers
Bumi (BUMI) 152.70p +3.81%
NMC Health (NMC) 194.40p +3.40%
JD Sports Fashion (JD.) 720.50p +2.78%
Redrow (RDW) 159.00p +2.65%
Telecity Group (TCY) 898.00p +2.57%
Savills (SVS) 405.60p +2.40%
Afren (AFR) 139.20p +2.13%
Dixons Retail (DXNS) 19.79p +2.01%
Aveva Group (AVV) 1,978.00p +2.01%
Micro Focus International (MCRO) 589.00p +1.90%

FTSE 250 - Fallers
Electrocomponents (ECM) 200.20p -8.88%
London Stock Exchange Group (LSE) 941.00p -8.20%
New World Resources A Shares (NWR) 265.30p -2.68%
Imagination Technologies Group (IMG) 476.30p -2.38%
Kenmare Resources (KMR) 39.52p -1.94%
Henderson Group (HGG) 106.60p -1.84%
Berkeley Group Holdings (The) (BKG) 1,395.00p -1.83%
FirstGroup (FGP) 246.60p -1.83%
ICAP (IAP) 324.10p -1.79%
Premier Farnell (PFL) 172.50p -1.77%


THE LATEST ON THE CRAZY BOARD

The top 5 hot company threads on the Bulletin Board:

Falkland Oil & Gas

Black Mountain

GAL

Imagination Technology

The Running Trading Thread

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BOOK OF THE WEEK

How Markets Fail: The Logic of Economic Calamities

By John Cassidy

A book review by Ross Jones

I am very interested in behavioural economics and have therefore read quite a few books covering similar subjects to what John Cassidy, a writer for the New Yorker, looks to address in his book How Markets Fail: The Logic of Economic Calamities. However, none of the other books I have read come close to the excellent way in which Cassidy analyses the roots, the progression and the ultimate outcome of the US credit bubble. Unlike other books, Cassidy does not just focus on the events which unfolded immediately before the collapse, but traces the origins of economic thought and ideas right back to Adam Smith's 18th century invisible hand teachings, and analyses exactly why and more importantly, how, the credit bubble occurred and subsequently popped.

Click here to view the rest of the article

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ShareCrazy Poll
At what price will GOLD be at the end of 2012?
Below $1,400
$1,400 - $1,599
$1,600 - $1,799
$1,800 - $1,999
Above $2,000

 
 
 
 



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