Wednesday 7 November 2012
QUOTE OF THE DAY
What's worth doing is worth doing for money
- Gordon Gecko
THIS MORNING IN LONDON
FTSE 100
5,904.87
19.97 0.34%
FTSE 250
12,111.50
29.95 0.25%
FTSE 350
3,151.04
10.28 0.33%
FTSE All Share
3,084.67
10.15 0.33%
AIM 100
3,124.01
-8.78 -0.28%
AIM All Share
699.03
-0.42 -0.06%
11:49 am
Footsie at eight-month high after Obama re-election
- Footsie rises to eight-month high in intraday trade
- Obama re-election sparks rise in metals prices
- Randgold bucks the trend after disappointing Q3
Investors were in a bullish mood on Wednesday morning, celebrating the news that Barack Obama has been re-elected for another four years as President of the United States of America.
Mining stocks were providing a boost on the FTSE 100 today, tracking commodities prices higher as the dollar declined after Obama's win. Obama being re-elected has sparked speculation that easy-money policy could continue under his leadership, causing the greenback to fall early on and dollar-denominated metal prices to rise as a result.
The Footsie's intraday high for the morning session was 5,921, its highest level since March 19th when it reached 5,961.
Andrew Edwards, the Chief Executive Officer at ETX Capital, said: "With uncertainty removed over the leadership of the US economy from financial markets following the re-election of President Barack Obama, we expect a mild-rally heading into the holiday season with investors ramping up risk appetite.
"The better mood is not only reflected by European and Asian markets registering modest gains Wednesday but by the drop in the VIX 'fear gauge' and a healthy pick-up in US equity futures and commodity prices, a typical relief reaction following the build up to the elections."
The focus for Obama will now likely turn to the 'fiscal cliff' in January, when over $600bn in spending cuts and tax increases are scheduled to come into effect. Failure to address this is expected to see the US economic slip back into recession.
While the aftermath of the elections takes centre stage today, markets will also be looking out for the outcome of the Greek parliamentary vote, which is expected to be revealed late this evening.
FTSE 100: Polymetal rises as gold prices gain
Polymetal topped the risers list this morning as gold prices neared a two-week high on the back of the Obama re-election. The precious metal was up at $1,729 per ounce this morning, its highest level since October 23rd.
Sector peer Vedanta was also higher after all the key numbers headed in the right direction in the first half. Profit before tax in the six months to the end of September rose to $1,059.4m from $916.2m the year before, on revenue that rose 14% to $7,451.9m from $6,552.6m.
However, bucking the trend was Randgold Resources after a disappointing third-quarter result. The gold miner reported the production fell back from the preceding quarter's record levels as the company suffered grid power supply problems at its Tongon mine and processed lower grades at Gounkoto.
Luxury brand Burberry gained after reporting a first-half adjusted profit before tax of £173m, up 6% year-on-year and ahead of the £167m consensus estimate. Seymour Pierce said that these figures suggest that there is upside risk to full-year consensus estimates.
Publishing group Pearson was higher on speculation that it exploring a sale of the Financial Times for over £1bn.
International services giant Serco was up, shrugging off a downgrade by Invesec to 'sell', after buying out its 15-year joint venture partner in Australian defence and marine services business DMS Maritime Pty Ltd for £68m.
Insurer Old Mutual was higher after reporting a slight rise in funds under management in the third quarter.
FTSE 250: Spirax-Sarco jumps; RPS tanks
Engineering group Spirax Sarco jumped after saying that organic sales increased 6% in the four months to the end of October, ahead of the rate of growth reported in the first half.
Natural resources, land and property consultancy RPS dropped despite saying it was on track to hit full-year targets. The firm noted that trading conditions in its Built and Natural Environment division were mixed, causing Panmure Gordon to pare it price target for the shares this morning.
Online gaming software company Playtech was in demand after delivering impressive revenue growth in the third quarter while saying that this trend has continued into the fourth quarter.
Industrial conveyor belt maker Fenner was higher after reporting a stellar increase in profit and revenue for the year and lifted its dividend payment by 31%.
FTSE 100 - Risers
Polymetal International (POLY) 1,142.00p +2.79%
Serco Group (SRP) 586.50p +2.09%
Schroders (SDR) 1,615.00p +2.02%
Hargreaves Lansdown (HL.) 781.00p +1.89%
Aberdeen Asset Management (ADN) 341.80p +1.64%
Melrose (MRO) 256.10p +1.63%
Pearson (PSON) 1,260.00p +1.61%
Smith & Nephew (SN.) 655.00p +1.55%
Wolseley (WOS) 2,804.00p +1.37%
Intertek Group (ITRK) 2,905.00p +1.33%
FTSE 100 - Fallers
Randgold Resources Ltd. (RRS) 7,105.00p -4.31%
Marks & Spencer Group (MKS) 392.70p -1.50%
Pennon Group (PNN) 703.50p -1.40%
Admiral Group (ADM) 1,043.00p -0.95%
International Consolidated Airlines Group SA (CDI) (IAG) 173.40p -0.91%
BG Group (BG.) 1,087.50p -0.87%
Glencore International (GLEN) 344.40p -0.83%
Xstrata (XTA) 987.50p -0.80%
CRH (CRH) 1,195.00p -0.75%
Eurasian Natural Resources Corp. (ENRC) 314.90p -0.63%
FTSE 250 - Risers
Spirax-Sarco Engineering (SPX) 2,163.00p +9.19%
Fenner (FENR) 363.20p +3.77%
NMC Health (NMC) 189.60p +3.27%
Playtech Ltd. (PTEC) 424.40p +3.26%
Soco International (SIA) 371.60p +3.14%
Henderson Group (HGG) 116.00p +2.65%
Ruspetro (RPO) 103.70p +2.37%
Ferrexpo (FXPO) 225.70p +2.36%
Moneysupermarket.com Group (MONY) 145.30p +2.32%
SIG (SHI) 110.40p +2.32%
FTSE 250 - Fallers
Kenmare Resources (KMR) 36.91p -5.41%
RPS Group (RPS) 226.30p -5.00%
FirstGroup (FGP) 196.00p -4.53%
Ocado Group (OCDO) 60.70p -3.11%
Talvivaara Mining Company (TALV) 125.00p -2.42%
IP Group (IPO) 114.40p -2.22%
Dixons Retail (DXNS) 24.27p -2.14%
Ashmore Group (ASHM) 363.20p -1.76%
Genus (GNS) 1,451.00p -1.76%
Home Retail Group (HOME) 114.20p -1.72%
TODAY'S TIP ON SHARECRAZY
Hambledon Mining - Partial cash offer at 2p per share
A report from GECR
- Hambledon Mining, the Kazakhstan-based gold miner, announced a recommended partial offer for up to 60% of its shares on 2nd November 2012.
- The group's Independent Directors have reached an agreement with African Resources Limited, whereby African Resources will purchase up to 60%, but not less than 50.1%, of Hambledon's entire issued and to be issued share capital in cash at 2p per share.
- We understand that African Resources has access to operational and financial resources such that it could greatly assist Hambledon's growth plans in the medium and long term.
- Hambledon's Independent Directors, having been advised by the group's NOMAD, SP Angel, have agreed to recommend unanimously that shareholders both vote 'for' the partial offer to take place, and accept it.
- We have removed our target price and recommendation pending the offer outcome.
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:
Wincanton
Goldplat
Hambledon
Leni Gas & Oil
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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