The Markets Figures from the Office for National Statistics showed that UK retail sales rose by 2.9% in September, year-on-year, beating forecasts of 2.4% as consumers stocked up on winter clothing. It was also suggested that the figure was boosted by people deferring their shopping in August until the end of the Olympics. Over in the US, initial jobless figures surged to 388,000 in the week ended 13th October, according to the Labor Department, from near record lows of 342,000 in the prior week. However, it is generally believed that the previous figure was artificially low due to a seasonal anomaly. Meanwhile, China's growth slowed for the seventh consecutive quarter, to 7.4% from 7.6% in the previous quarter, as continued weak demand from Europe damaged exports. At the London close the Dow Jones was up by 8.51 points at 13,565.51 and the Nasdaq was down by 6.45 points at 2,769.17. In London the FTSE 100 rose by 6.14 points to 5,917.05; the FTSE 250 finished 26.92 points ahead at 12,072.80; the FTSE All-Share gained 6.17 points to 3,091.41; and the FTSE AIM Index climbed by 3.06 points to 714.80. Broker Notes N+1 Singer reiterated its "buy" recommendation for Interserve (IRV) with a 400p target price. The broker believes that the construction company has a number of opportunities to expand its Business Employment Services Training business, acquired in May for 17.5 million pounds, particularly in Ireland and Wales. Singer added that the firm now has a net cash position and expects the group to use this to pursue further bolt-on acquisitions. On the broker's forecasts, the shares trade on a prospective earnings multiple of 8.5 times for 2012, falling to 7.9 times in 2013, and offer a dividend yield of 5.3%. Interserve shares inched up by 2.6p to 370.8p. Panmure Gordon maintained its "buy" rating for ASOS (ASC) with a target price of 2,530p. The broker noted that the online fashion retailer is changing its financial year end to August and expects to see EBIT of 45.6 million pounds, up 42.2% on the comparable period. Panmure also noted that the company is seeing growing interest from China and that it has opened an office in New York, with plans for offices in France and Germany by the end of October. The shares grew by 34p to 2,529p. Investec Securities lowered its stance on Lloyds Banking Group (LLOY) from "hold" to "sell" with a 36p target price. The bank's shares have risen 96% since November 2011 and trade on a tangible net asset value multiple of 0.75 times, which the broker noted is a significant premium to its peers. While Investec admitted that the company has made good progress, lowering its loans to deposit ration from 154% to 126% in 18 months, it is still expected to make a loss in its 2012 financial year. Lloyds shares gained 0.47p to 42.61p. Blue-Chips SABMiller (SAB) reported organic lager volumes growth of 4% for the six months ended 30th September, and soft drinks volumes growth of 6%. The brewer also noted that average revenue per hectolitre rose by 3%, which it attributed to price increases as well as a better sales mix. However, the firm's regional growth in Latin America and Africa fell short of consensus forecasts of 6% and 8.5%, respectively, coming in at just 4% and 5.5%. The shares sank by 36.5p to 2,618p. Mining and steel company Evraz (EVR) saw crude steel production fall by 3% quarter-on-quarter in its third quarter as it temporarily shut down production at its Vitkovice factory in the Czech Republic due to low levels of demand. Meanwhile, the group noted that production of coking and steam coal rose by 20% and 27% respectively. The firm expects coking coal production to decline in the fourth quarter due to a 60-day long wall repositioning at its Osinnikovskaya mine, while steam coal production should be flat. Evraz shares advanced by 4.8p to 257.4p. Mid-Caps Booker Group (BOK) announced pre-tax profits of 51 million pounds for the 24 weeks ended 14th September, up 13.3% on 2011's comparable period, on revenue growth of 3.3% to 1.9 billion pounds. The food wholesaler added that its net cash position increased to 69.8 million pounds, from 58.7 million pounds at the same time last year, despite spending 15.8 million pounds for the acquisition of Marko Holding. As a result of the strong performance, the group raised its interim dividend by 15.2% to 0.38p. The shares jumped by 5.4p to 99.75p. Bookmaker Ladbrokes (LAD) reported revenue growth of 3.9% for the three months ended 30th September on the same period in 2011, with UK sales rising by 5.4%. The firm noted continued growth from its machine business, despite reduced demand over the Olympics. The company opened 16 new shops during the period in the UK, while also buying a further 12 and closing 12. The group also achieved digital revenue growth of 6.1%, with sportsbook growth of 21.8% compensating for a 25.7% decline in poker revenues. Ladbrokes shares crept up by 1p to 182.1p. UBM's (UBM) events business achieved revenue growth of 21.7% in the nine months ended 30th September, to 338.9 million pounds, compensating for share declines in the data services and printing divisions. Separately, in order to expand its presence in the Asian market, the firm announced that it has acquired a 70% stake in Turkish baby product tradeshow, EFEM, and will form a joint venture with it called UBM ICC. The shares tumbled by 33.5p to 689p. Small Caps, AIM and PLUS Engineering firm Corac Group (CRA) has successfully completed a test of its prototype Downhole Gas Compressor system in Cumbria. The prototype will now be shipped to the US, where the company's partner will test it on a live well. The news follows on from a recent contract win to supply oxygen tanks to two Barracuda class nuclear submarines. Corac shares soared by 3.625p to 17.625p. PeerTV* (PTV) warned that its Digitek subsidiary suffered from a slowdown in demand in September and that it does not believe it will be able to make up the shortfall in October. Meanwhile, the technology company noted that an unusual number of its ES500 set top boxes were suffering failures, which it attributed to a subcontractor using cheaper resistor components. The group expects to incur a one-off cos of 30,000 dollars (18,586 pounds) as it looks to rectify this problem. PeerTV also announced the raising of 663,500 pounds from a placing at 8.25p per share. The shares gained 0.375p to 7.875p. Steel producer Beacon Hill Resources (BHR) reported that its phase II expansion plan in South Africa, which began in August 2012, is on schedule to be completed by the end of the year and is expected to triple plant capacity to 1.8 million tonnes per annum. The group also noted that it is making good progress towards finalising an allocation on the Sena rail line, and hopes to secure an initial slot by year end. Beacon Hill shares slid by 0.1p to 4p. Sound Oil (SOU) has agreed to sell its 20% stake in the Citarum Production Sharing Contract in Indonesia to Pan Orient Energy for an initial cash consideration of 10 million dollars (6.2 million pounds), contingent on revenues from the first discovery. In addition, Pan Orient has agreed to waive cash calls of 2.4 million dollars (1.5 million pounds) and pay a fur's Stther consideration of 6 million dollars (3.7 million pounds), contingent on revenues from the second discovery. Sound Oil said that it was suffering from operational problems at the site and that the disposal allowed it to realise the projects potential value. The shares swelled by 0.075p to 1.225p. Petroleum explorer Infrastrata (INFA) announced that its 65% owned joint venture, Islandmagee Storage has received planning permission to build its 400 million pound natural gas storage facility at Islandmagee, Northern Ireland. The site will be able to hold 500 million cubic metres of gas and will take seven years to complete. Shares in Infrastrata leapt by 2.15p to 9.4p. PLUS-quoted Judicium (JUD) reported pre-tax profits of 233,653 pounds for the six months ended 30th September, down 12.7% on its performance in the first half of 2011, despite revenues climbing 13.9% to 1.5 million pounds. The legal consultancy noted that it was considering a number of growth opportunities, including the launch of new, complementary support services, or raising funds to acquire targets operating in similar sectors. Alternatively, the firm said that it may commence a share buyback programme. The shares stayed flat at 120p. Brainspark (BSP) shares were readmitted to trading on AIM, having been suspended since June 2012, pending the release of its accounts for the year ended 31st December 2011. The leisure investment company reported pre-tax losses of 6.7 million pounds for the year, an improvement from loses of 8.3 million pounds in 2010 as it saw a significant reduction in the size of impairment charges. The group attributed the long delay in the release of its results to the appointment of new auditors and the process of translating a considerable amount of work from Italian into English. Brainspark shares were unchanged at 4.75p, which puts them at a discount of 79% to net assets per share of 21.7p as at 30th June. * Peer TV is a corporate client of Rivington Street Holdings, the ultimate owner of UK-Analyst. |
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