Monday 3 September 2012
QUOTE OF THE DAY
"For I don't care too much for money, for money can't buy me love"
- The Beatles
THIS MORNING IN LONDON
FTSE 100
5,746.46
34.98 0.61%
FTSE 250
11,488.05
77.86 0.68%
FTSE 350
3,056.10
18.88 0.62%
FTSE All Share
2,990.69
18.06 0.62%
AIM 100
3,078.29
9.86 0.32%
AIM All Share
683.13
2.28 0.33%
12:18 pm
THOUGHT FOR THE DAY
Hello Share Fans,
I said that shares would rise last week. They did not. Which shows how foolish it is to make predictions of this nature. The Big City grinds more slowly than most of us think. So I will annoy you by saying that my prediction was right, but was late in arrival.
Therefore, I will cheekily extend the forecast and say that shares will probably rise this week, instead. There is a reason why shares should take off this time. It is traditionally the time of year when the big traders re-start work in earnest, after the long summer hols.
NEW ON THE BLOG - 2 NEW ARTICLES FROM TOM WINNIFRITH
by Tom Winnifrith
I saw an advert for Christmas goods yesterday – that is 1st September. It strikes me that Christmas is still rather a long way away. Do I win a prize for the earliest Christmas spot of the year? Or did someone pick up on something in August?
Meanwhile I see that the gap left by the imminent retirement of Louise Mensch MP for the “thickest Tory politician” is rapidly being filled by Tory Party chairwoman Baroness Warsi...
Click here to view the rest of the article
I see that twitter has delayed its planned IPO . Well there is a surprise. After the debacle of the Facebook (FB) flotation I cannot think that investor appetite for new media stock is exactly enormous. My other reason for showing lack of surprise is that I think that Twitter really does not wish to undergo the sort of metrics scrutiny of its user base that Facebook has suffered...
Click here to view the rest of the article
TIP OF THE DAY
A report by Growth Equities & Company Research
TMT Investments has made three exciting investments, totalling $975,000, in the space of a month.
The investments consist of a $325,000 unsecured convertible promissory note in web-based sales customer relationship management ( CRM ) and sales pipeline management software firm Pipedrive, a 3% stake in web-based personal loyalty programs software group UsingMiles for $250,000 and a $400,000 unsecured convertible promissory note in Virool, the world's first viral video Ad network that allows companies to distribute video content through a series of online publishers.
With the group also announcing half-year results – which are typical of an early-stage venture capitalist – we remain of the belief that it has the long-term potential to generate an attractive rate of return for shareholders.
THIS MORNING IN LONDON
Stimulus hopes increase ahead of ECB meeting
- ECB to meet on Thursday, all eyes on Draghi
- Chinese data disappoints, prompts expectations for stimulus
- Glencore/Xstrata merger at risk ahead of vote
UK stocks were making strong gains on Monday morning with miners leading the way as investors showed optimism that central bankers will act to boost the global economy over the coming weeks.
According to a monthly survey by HSBC, the China manufacturing purchasing managers' index (PMI) dropped from 49.3 in July to 47.6 in August, its lowest reading since March 2009. The news follows the official PMI data from last week which fell to a nine-month low of 49.2. Any figure below 50 indicates a contraction.
"However, like all negative data releases from China over the past few weeks, the report raised the calls for more easing measures by the country's central bank who admittedly have plenty of room to act in order to stimulate growth," said Ishaq Siddiqi, a market strategist from ETX Capital.
The UK's own manufacturing data beat expectations last in August, though it still posted its fourth straight month of contraction. The manufacturing PMI rose to 49.5, from 45.2 in July, a four-month high and better than the 46 reading expected by analysts.
Nevertheless, the focus of the markets this week will undoubtedly be on the European Central Bank (ECB) monetary policy meeting on Thursday at which President Mario Draghi is widely expected to unveil plans for buying sovereign debt in order to bring down bond yields in peripheral nations.
Following on from last week's climax of the Federal Reserve Chairman Ben Bernanke's closely watched speech at the Jackson Hole symposium, markets widely believe that further quantitative easing (QE) is now on the cards for the central bank's next meeting on September 13th and 14th.
However, investors will be keeping a close eye on payrolls and manufacturing data due out this week as any decent figures could ease the Fed's concerns about the economy, delaying (or even preventing) any action. Markets in the US will be closed today due to the Labour Day holiday.
FTSE 100: Miners rise but Glencore bucks the trend
Hopes that Chinese policy makers will act to prevent a significant slowdown in the world's second-largest economy were driving gains in the mining sector today: Fresnillo, Vedanta, Kazakhmys, Antofagasta, Evraz, BHP Billiton, Rio Tinto, Randgold Resources and Anglo American were among the best performers.
However, Glencore was bucking the trend on the back of rumours that it will be sticking to its original offer for mining group Xstrata in spite of growing opposition to the terms. Qatar Holdings, which owns around 12% of the group, confirmed last week that it would vote against the merger at the shareholder meeting on Friday.
Oil giant Shell was in demand after announcing the sale of some of its Nigerian assets for $102m. The company says the divestment of its 30% interest in Oil Mining Lease 40 in the Niger Delta is part of a strategy to "refocus its onshore interests".
Chip group ARM Holdings was a heavy faller on the FTSE 100 after Deutsche Bank downgraded its recommendation to 'sell'. Supermarket firm Morrisons was in the red after Nomura cut its rating to 'neutral'.
FTSE 250: Talvivaara jumps after reassuring investors
Finnish zinc and nickel mining company Talvivaara was a high riser after it denied it will be cutting jobs as part of a cost savings plan. Rumours had been circulating that the low price of nickel would force a reduction in headcount.
Africa-focused oil group Ophir Energy rose after significantly upping estimates of potential resources at one of its sites in Tanzania.
Home Retail was making gains after Investec upgraded its rating on the stock from 'sell' to 'buy', saying that shares should react positively "to evidence of more resilient trading at Argos" after the group's second-quarter trading update next week.
FTSE 100 - Risers
Fresnillo (FRES) 1,636.00p +4.80%
Vedanta Resources (VED) 901.00p +3.86%
Kazakhmys (KAZ) 609.50p +2.78%
Antofagasta (ANTO) 1,135.00p +2.53%
Rio Tinto (RIO) 2,794.00p +2.14%
Evraz (EVR) 229.70p +2.09%
Randgold Resources Ltd. (RRS) 6,450.00p +2.06%
Sage Group (SGE) 302.20p +2.03%
BHP Billiton (BLT) 1,872.00p +1.96%
Wolseley (WOS) 2,589.00p +1.85%
FTSE 100 - Fallers
Admiral Group (ADM) 1,141.00p -3.79%
ARM Holdings (ARM) 560.50p -2.35%
Glencore International (GLEN) 381.60p -0.90%
Morrison (Wm) Supermarkets (MRW) 277.80p -0.79%
Royal Bank of Scotland Group (RBS) 224.90p -0.62%
Ashmore Group (ASHM) 327.40p -0.49%
ICAP (IAP) 316.20p -0.47%
Kingfisher (KGF) 274.40p -0.44%
AstraZeneca (AZN) 2,923.50p -0.44%
Whitbread (WTB) 2,124.00p -0.28%
FTSE 250 - Risers
Talvivaara Mining Company (TALV) 133.30p +6.30%
Ophir Energy (OPHR) 591.50p +4.78%
Hochschild Mining (HOC) 452.40p +4.60%
Centamin (DI) (CEY) 83.10p +4.53%
Bovis Homes Group (BVS) 492.50p +4.08%
Dixons Retail (DXNS) 18.26p +4.05%
Taylor Wimpey (TW.) 53.15p +3.71%
Paragon Group Of Companies (PAG) 196.00p +3.65%
Barratt Developments (BDEV) 155.40p +3.60%
Persimmon (PSN) 721.50p +3.37%
FTSE 250 - Fallers
Cape (CIU) 234.40p -3.30%
Bumi (BUMI) 308.30p -3.05%
Ferrexpo (FXPO) 157.20p -2.78%
Henderson Group (HGG) 103.40p -2.54%
CSR (CSR) 317.40p -2.52%
ITE Group (ITE) 198.40p -2.17%
Ruspetro (RPO) 124.10p -2.13%
PayPoint (PAY) 704.00p -1.81%
Menzies(John) (MNZS) 619.00p -1.75%
BH Global Ltd. USD Shares (BHGU) 11.35 -1.65%
WHAT THE BROKERS SAY
Galvan Research and Trading has recommended to buy shares of insurance giant Prudential, saying that the stock's recent underperformance is 'unwarranted'.
Investec has upgraded its rating for Argos and Homebase owner Home Retail Group, saying that the firm's second-quarter trading statement next week could see a pick up in sentiment.
Nomura has downgraded its rating for supermarket group Morrisons after analysing the recent Kantar grocery survey.
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:
KOFAX (KFX) - Formerly DICOM
Pennant International Group (PEN)
OPHIR ENERGY(OPHR)-London IPO raises $375M.
lnd,LANDORE RESOURCES, Potential To MULTIBAG??????
Vertu A Good Motor?
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.
Click here to view the rest of the article
Regards,
ShareCrazy
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