| The Markets Figures from Markit indicated that the Purchasing Manager Index for services fell to 52.2 in September, down from 53.7 in the previous month and below forecasts of 53. A score of above 50 indicates growth and the news would suggest that the UK is approaching stagnation. Meanwhile, the European Commission has suggested a new plan to reorganise how companies and people can move and work across the economic union, in a proposal known as the Single Market Act II. The suggestions include making it easier for businesses to operate across borders and obtain credit in foreign countries within the area. Over in the US, ADP figures for September showed that employment numbers rose by 162,000, beating consensus forecasts for a rise of 140,000. The rise was driven by hirings at small companies, while larger firms remained cautious in the uncertain economic environment. At the London close the Dow Jones was up by 34.41 points at 13,516.77 and the Nasdaq was up by 16.31 points at 2,815.60. In London the FTSE 100 rose by 16.36 points to 5,825.81; the FTSE 250 finished 21.68 points behind at 11,872.73; the FTSE All-Share gained 6.53 points to 3,041.11; and the FTSE AIM Index declined by 1.50 points to 707.96. 
Broker Notes Panmure Gordon downgraded its stance on AstraZeneca (AZN) from "buy" to "hold" with a reduced target price of 3,000p, from 3,100p. The pharmaceutical giant announced that it has suspended its share buy-back programme, which the broker believes heralds the announcement of an acquisition. However, Panmure said that any purchase would most likely be dilutive. The broker added that there may be further management changes on the way, increasing investment risk. The shares inched up by 14.5p to 2,908p.  Canaccord Genuity reiterated its "buy" recommendation for EKF Diagnostics (EKF) with a 42p target price. The broker said that the blood analysis technology developer has increased its focus on high margin products and expects it to break even in the second half of 2012. Canaccord added that the risks associated with the group have reduced following the launch of its HemoPoint and QuoLab products in the US, with sales ahead of the broker's expectations. Canaccord believes that the current price only accounts for the firm's core range and does not include the value of its new launches. EKF shares advanced by 0.375p to 32.25p. Shore Capital retained its "sell" rating for Capita (CPI) following the outsourcing group losing the Disclosure and Barring Service contract from the Home Office. The broker estimated that this contract was worth around 60 million pounds per annum in revenues to the group and the loss led the broker to lower its growth rate forecast by 50 basis points for 2013. On Shore's revised forecasts, the shares trade on a prospective earnings multiple of 11.5 times for 2013, falling to 10.6 times in 2014. The shares lost 13.5p to 762p. Blue-Chips Pre-tax profits at Tesco (TSCO) fell by 11.6% in the 26 weeks ended 25th August to 1.7 billion pounds, despite revenues rising by 1.4% to 36 billion pounds. The supermarket giant began its 1 billion pound UK restructuring plan, which it noted is already improving sales performance. The group added that the majority of its Asia and European operations were able to either gain or maintain their market share during the period, despite the difficult trading climate and that it reduced its losses in the US to 72 million pounds at constant exchange rates. The shares dropped by 8.75p to 327.95p. 
Meanwhile, peer J Sainsbury (SBRY) reported second quarter sales growth of 4.3%, claiming to have outperformed the wider market. The supermarket chain said that its "Taste the Difference" range enjoyed double-digit growth and greater penetration across all its own label brands. The firm opened five new supermarkets and 28 convenience stores during the period, increasing its floor space by 267,000 square feet, noted that online sales rose by more than 20%. Shares in Sainsbury grew by 5.7p to 352.5p. Xstrata (XTA) increased the total mineral resource estimate at its El Pachon project in Argentina by 20% to 3.3 billion tonnes, at a grade of 0.47% copper, as well as silver and molybdenum by-products. The site is now estimated to contain 15 million tonnes of copper, 16% more than figures suggested in December 2011. The miner believes that, when commissioned,the site will initially be capable of producing 400,000 tonnes of copper per annum. The shares crept up by 1.8p to 968.4p Mid-Caps Shares in FirstGroup (FGP) crashed by 50.6p to 193.4p after it announced that the awarding of the InterCity West Coast franchise has been cancelled after the Department for Transport discovered "significant technical flaws" in the way the process was conducted. Two independent inquiries have been launched to investigate the issues. The public transport company claimed that it made its bid in good faith, adhering to the guidelines. 
Dunelm Group (DNLM) reported revenues of 151.8 million pounds for the 13 weeks ended 29th September - up 13.8% on 2011's comparable period - and improved its gross margin by around 40 basis points. The homewares retailer opened four new stores during the quarter, bringing the total to 118 across the UK, and plans to open a further 10. The company added that it had net cleared funds of 95.4 million pounds as at 29th September and that it plans to return 65.8 million pounds to shareholders, equating to 32.5p per share. The shares climbed by 25p to 680p. Budget airline easyJet (EZJ) upgraded its full year pre-tax profit expectations to between 310 and 320 million pounds, from previous forecasts of between 280 and 300 million pounds as it benefited from strong demand following the conclusion of the London Olympics. The group noted that passenger numbers in September rose by 5.2% year-on-year to 5.45 million pounds, while costs remained in-line with expectations. The shares ascended by 21p to 615p. Small Caps, AIM and PLUS 1Spatial* (SPA) shares surged by 1.375p to 3.875p after the firm reported that it has secured a five year contract to provide software services to a US government bureau. While the size of the deal was not disclosed, the business technology developer noted that the deal will have a material impact on its results for the current financial year and provides it with strong revenue visibility. Agricultural company Agriterra (AGTA) has agreed to sell its 20% legacy interest in an oil exploration block in Ethiopia for an initial cash consideration of 40 million dollars (24.8 million pounds) and a further 10 million dollars (6.2 million pounds) if a commercial discovery is made. The firm will use the proceeds will be used to fund its growth plan in Mozambique to increase its beef herd from 4,000 to 10,000 by 2015. The group also plans to build a 4,000 head per month capacity abattoir and increase its cocoa operations in Sierra Leone. Meanwhile, the firm noted that it is still awaiting the 11 million pound payment relating to the disposal of its South Sudan legacy oil asset. The shares crashed by 1.23p to 3.77p. Sticking with the Africa theme, African Copper (ACU) warned that ZCI Limited, which has an 84.9% stake in the company, announced plans to dispose of its holding. The miner added that this process is likely to have a significant effect on the share price and advised investors to remain cautious when trading its stock. Shares in African Copper fell by 0.125p to 1.875p. 
XCAP Securities (XCAP) has agreed to buy fund manager EPIC Investment Partners, which will be satisfied through the issue of 439.2 million new shares at 0.35p each. The target has assets under management of 250 million pounds and focuses on fixed income and equities. Separately, the financial services firm reported that it will raise 2.4 million pounds through a placing with new and existing investors, including with investors based in Hong Kong. The group believes that this will help complement its strategy of expanding its presence in the Asian market. The shares leapt by 0.15p to 0.625p. Datacentre business Teliti International (TEL) warned that it has only managed to bill 14.9 million Malaysian ringgits (3.0 million pounds) of an expected 40 million ringgits (8.1 million pounds) of contracted revenues for its Services division in its second half. The firm attributed the majority of the shortfall to support and maintenance contracts which it initially planned to bill in advance, but will now be paid for in monthly installments. Additionally, the group noted at one customer cancelled a 6.1 million ringgit (1.2 million pounds) contract. The shares sank by 4.5p to 39p. Fiji based explorer Vatukoula Gold Mines (VGM) announced that it it has secured 7.1 million pounds worth of funding from Shengen Xintai Mine Industry Group. The funds will come in the form of a convertible loan of 3.2 million pounds and the issued of 13.8 million shares at 51.65p each, a premium of 29.1% on Tuesday 2nd October's closing price. The firm noted that the loan will be automatically converted on completion of the placing. Vatukoula shares rose by 2p to 42p. * 1Spatial is a corporate client of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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