Thursday 8 November 2012
QUOTE OF THE DAY
Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver
- Ayn Rand
THIS MORNING IN LONDON
FTSE 100
5,805.20
13.57 0.23%
FTSE 250
11,959.65
-1.67 -0.01%
FTSE 350
3,099.68
6.22 0.20%
FTSE All Share
3,034.99
6.02 0.20%
AIM 100
3,112.01
12.33 0.40%
AIM All Share
696.46
1.30 0.19%
11:49 am
Bank of England holds rates as stocks rebound
- BoE holds rates and QE
- Stocks rebound after heavy sell-off
- G4S drops after losing prison contract
Easing concerns about Greece saw the FTSE 100 rebound slightly on Thursday morning following a steep sell-off the day before.
The Bank of England's Monetary Policy Committee announced at noon that it had voted to maintains the Bank Rate at 0.5% and maintain its asset purchase programme at £375bn.
The Footsie lost nearly 1.6% yesterday despite a strong start after Barack Obama was re-elected President of the US. Stocks sank in afternoon trade after the European Commission cut its forecasts for Eurozone growth and industrial output in Germany worsened.
Market strategist Ishaq Siddiqi from ETX Capital said: "Obama's victory provided some much needed clarity over who will be running the US for the next four years but fears about the inability of US lawmakers to tackle the fiscal cliff combined with a deteriorating economic outlook for Germany slapped sentiment with pessimism over the global economy."
Markets are also looking ahead to the European Central Bank (ECB) decision later this afternoon.
ETX Capital's Siddiqi said: "ECB chief [Mario] Draghi will need to discuss potential rate cuts in order to lift the mood somewhat today but may stay tight-lipped and throw out familiar rhetoric over the central bank's commitment to back the euro and provide financial support for countries if they fix up their finances and comply with ECB conditions."
As for Greece, 153 policymakers last night voted in favour of the country's proposed austerity measures, just above the 151 votes needed. "The vote came at a political cost, with the vote taking place against a backdrop of tear gas and unrest in the capital and prompted 18 policymakers to abstain from voting," explains market analyst Michael Hewson from CMC Markets.
Next on Athens's agenda will be the parliamentary vote on next year's budget on Sunday, which will unlock the next round of the EU bailout if passed.
FTSE 100: Burberry and Randgold rebound; G4S drops
Burberry and Randgold, two of the worst performers from yesterday's session after reporting results, were among the highest risers today. Burberry was being helped higher by Barclays Capital, which raised its target price on the stock from 1,100p to 1,200p and maintained its 'overweight' rating.
Also in demand was insurance group Aviva after saying that it nearing the sale of its US life and annuities business, as it reported a slight rise in net asset value.
Experian gained after hiking its dividend and reporting strong revenue grout in the first half. The company also announced an efficiency programme designed to save the firm $75m a year.
Asset manager Schroders rose after reporting a slight gain in assets under management in the third quarter to £202.8bn, up from £194.6bn at the end of June.
Meanwhile, security group G4S was leading the fallers on reports that it has lost the contract to operate the Wolds prison as the jail returns to public-sector management next year.
IAG was lower after saying that is thinking about making an offer to take over Spanish airline Vueling, buying up the remaining stake that it does not already own.
Sweeteners firm Tate & Lyle also declined despite beating consensus estimates in the first half on the group level. Jefferies highlighted that Speciality Food Ingredients profits were slightly below its forecasts "but underlying trends remain robust which support a strong H2 performance".
Mining group ENRC fell after saying that revenue declined in the first nine months of 2012 due to lower selling prices for its principal commodities.
FTSE 250: Balfour Beatty plummets after profit warning; Chemring extends losses
Construction group Balfour Beatty sank after saying in its third-quarter trading update that profitability this year will be "slightly lower than expected at the time of the half-year results". However, this will be slightly offset by a lower tax rate.
Shares in defence contractor Chemring continued to fall after The Carlyle Group announced last night that it will not be making an offer for the company. Credit Suisse reiterated its 'neutral' rating on the stock today, saying: "We see slim chance of other bids in the short term."
Chemicals group Yule Catto surged after saying that it is trading in line with expectations and is going to change its name to Synthomer.
BTG, the specialist healthcare company, rose after saying that it is likely to meet or beat consensus forecasts and is on the hunt for further acquisitions.
FTSE 100 - Risers
Burberry Group (BRBY) 1,225.00p +2.17%
Randgold Resources Ltd. (RRS) 7,085.00p +1.94%
Johnson Matthey (JMAT) 2,298.00p +1.55%
Tullow Oil (TLW) 1,413.00p +1.44%
BT Group (BT.A) 226.70p +1.30%
Croda International (CRDA) 2,209.00p +1.28%
Compass Group (CPG) 698.00p +1.23%
Tesco (TSCO) 326.00p +1.15%
ARM Holdings (ARM) 712.50p +1.06%
British American Tobacco (BATS) 3,166.00p +1.00%
FTSE 100 - Fallers
G4S (GFS) 257.20p -3.89%
Eurasian Natural Resources Corp. (ENRC) 294.80p -3.34%
Land Securities Group (LAND) 799.00p -1.48%
Tate & Lyle (TATE) 725.50p -1.16%
SSE (SSE) 1,416.00p -1.12%
Pennon Group (PNN) 685.00p -1.08%
WPP (WPP) 807.50p -0.98%
Serco Group (SRP) 563.00p -0.97%
Lloyds Banking Group (LLOY) 44.12p -0.81%
Sage Group (SGE) 312.50p -0.76%
FTSE 250 - Risers
Yule Catto & Co (YULC) 169.60p +9.56%
BTG (BTG) 352.70p +7.66%
Cable & Wireless Communications (CWC) 37.80p +5.20%
Ruspetro (RPO) 105.00p +5.00%
Spirent Communications (SPT) 145.50p +4.53%
JD Sports Fashion (JD.) 768.00p +4.07%
Supergroup (SGP) 680.00p +3.11%
Jardine Lloyd Thompson Group (JLT) 757.00p +2.99%
Imagination Technologies Group (IMG) 492.40p +2.80%
Wetherspoon (J.D.) (JDW) 524.00p +2.24%
FTSE 250 - Fallers
Balfour Beatty (BBY) 260.20p -14.97%
Chemring Group (CHG) 244.90p -5.08%
New World Resources A Shares (NWR) 258.60p -5.03%
Interserve (IRV) 370.30p -5.00%
Dialight (DIA) 1,124.00p -4.91%
FirstGroup (FGP) 187.00p -4.05%
Genus (GNS) 1,399.00p -3.52%
Rank Group (RNK) 149.00p -3.43%
Carillion (CLLN) 300.90p -2.94%
Howden Joinery Group (HWDN) 161.80p -2.53%&
TODAY'S TIP ON SHARECRAZY
Strategic Equity Capital - Continued benchmark outperformance
A report from GECR
- Strategic Equity Capital, the specialist smaller companies investment trust, published a Q3 interim management statement on 2nd November 2012.
- This highlighted that SEC had outperformed its benchmark, the FTSE Smaller Companies (Ex Investment Trusts) index, by 1.7 percentage points (pp) - the 11th quarter of outperformance in the last 12 quarters.
- Its underlying holdings remain attractive with a weighted average p/cashflow and net debt/EBITDA of 8.5x and 0.5x, respectively.
- SEC also received £3m of distributions from its investment in Strategic Recovery Fund II, which increased the 30th Sept 2012 end cash position to c.13%.
- Additionally, the 2012 final dividend grew 241% to 1.5p/share.
- With the shares trading at 93.50p and a NAV of 112.86p, our stance remains buy.
Click here to view the full article
WHAT THE BROKERS SAY
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Imagination Technologies
Fenner
Wincanton
Goldplat
The Running Trading Thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Nassim Taleb
A book review by Ross Jones
The majority of us want to push for more in our lives and it is my belief that without the drive and ambition to succeed in your job, and your everyday life, things would be pretty boring. But that then sparks the question; what makes some people more successful than others? The typical answer would be skill, talent, effort and dedication, but Nassim Taleb suggests it is something altogether more unpredictable. The author of the fantastic The Black Swan argues that success, and even life, is all about luck. Taleb proposes that it is only because we fail to truly grasp the role of probability in our lives that we continue to put our respective successes down to skill and talent, as opposed to chance.
Click here to view the rest of the article
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