Tuesday 20 November 2012
QUOTE OF THE DAY
Save a little money each month and at the end of the year you'll be surprised at how little you have
- Ernest Haskins
THIS MORNING IN LONDON
FTSE 100
5,725.97
-11.69 -0.20%
FTSE 250
11,785.98
41.19 0.35%
FTSE 350
3,057.02
-3.97 -0.13%
FTSE All Share
2,993.44
-3.88 -0.13%
AIM 100
3,066.27
2.60 0.08%
AIM All Share
685.55
-0.59 -0.09%
11:56 am
Markets cautious ahead of Eurogroup meeting on Greece
Following on from a 2.36 per cent surge yesterday, the FTSE 100 pulled back on Tuesday morning with concerns about the Eurozone being reignited ahead of an extraordinary Eurogroup meeting on Greece scheduled for this evening.
Eurozone finance ministers are meeting today in Brussels to discuss whether of not to release the next tranche of aid for Greece. However, Marianne Kothe, spokesperson for Germany's Finance Ministry, told the German press yesterday that a decision on the next part of the bailout should not be expected today.
"Given the Greeks have passed the required austerity measures and 2013 budget, some thought this a foregone conclusion. However the delay of this decision put doubt into some minds," said research analyst Joshua Mahony from Alpari.
"Expectation is that the issue will finally be resolved today, however noises coming out of the Eurozone indicate further concessions are being sought by the creditors," he said.
Meanwhile, investors are losing options to safeguard their funds in the highest investment-grade assets after Moody's decided to strip France of its triple-A rating. The US rating agency has downgraded France by one notch to 'Aa1' while keeping a negative outlook, which signals that the country is susceptible to future downgrades.
"The first driver underlying Moody's one-notch downgrade of France's sovereign rating is the risk to economic growth, and therefore to the government's finances, posed by the country's persistent structural economic challenges," Moody's said.
Elsewhere in the Eurozone, the Spanish Treasury tapped the market for €4.938bn in short-term debt this morning, well ahead of the €4.5bn maximum target set. Yields were more or less unchanged from the last auction.
FTSE 100: Banks fall on FSA worries
Banking stocks including RBS, Barclays, HSBC and Lloyds were out of favour this morning after Andrew Bailey, the head of banking supervision at the FSA, said that banks should face the threat of being broken up if they do not comply with proposals to ring-fence retail and riskier operations.
Commodities giant Glencore was in demand after over 99% of shareholders voted in approval of its merger with Xstrata. The Xstrata shareholder vote is expected later today.
Real estate investment trust British Land rose after seeing a solid increase in underlying profits in the first half, as it continued to outperform its benchmark of property returns, the IPD. Meanwhile, the firm announced that its Chairman of six years, Chris Gibson-Smith, would be stepping down at the end of 2012.
Analysts at Barclays have raised their view of hotels giant Intercontinental Hotels to 'overweight', prompting shares to gain this morning.
FTSE 250: Lonmin jumps 11% after shareholders back fundraising
Platinum miner Lonmin was a high riser after shareholders yesterday voted in favour of a $817m rights issue to repair its balance sheet
easyJet was flying high after delivering forecast-beating record profits boosted by higher margins and increased passenger numbers.
LED manufacturer Dialight surged after saying that it has received a major order from an unnamed US power plant operator for over 1,000 LED lighting fixtures.
Strong growth internationally saw home emergency repairs group HomeServe achieve a decent increase in revenue and profit in the first half despite a slight fall in customer numbers over the period, pushing shares higher this morning.
FTSE 100 - Risers
InterContinental Hotels Group (IHG) 1,625.00p +2.20%
Xstrata (XTA) 974.60p +1.86%
International Consolidated Airlines Group SA (CDI) (IAG) 166.30p +1.77%
Petrofac Ltd. (PFC) 1,575.00p +1.42%
Wood Group (John) (WG.) 803.50p +1.39%
Associated British Foods (ABF) 1,452.00p +1.26%
GKN (GKN) 210.30p +1.25%
Aggreko (AGK) 2,146.00p +1.23%
Antofagasta (ANTO) 1,241.00p +1.22%
Prudential (PRU) 881.00p +1.21%
FTSE 100 - Fallers
ARM Holdings (ARM) 733.00p -1.87%
Anglo American (AAL) 1,682.00p -1.67%
Old Mutual (OML) 168.30p -1.58%
Royal Bank of Scotland Group (RBS) 282.90p -1.53%
Meggitt (MGGT) 375.20p -1.47%
RSA Insurance Group (RSA) 110.60p -1.43%
HSBC Holdings (HSBA) 610.50p -1.26%
Legal & General Group (LGEN) 141.50p -1.19%
Barclays (BARC) 246.80p -1.18%
National Grid (NG.) 691.00p -1.14%
FTSE 250 - Risers
Lonmin (LMI) 305.00p +11.34%
Dialight (DIA) 1,129.00p +6.01%
easyJet (EZJ) 689.50p +5.67%
Homeserve (HSV) 232.80p +4.39%
Supergroup (SGP) 640.50p +3.72%
Greene King (GNK) 609.00p +2.87%
Anite (AIE) 133.60p +2.77%
COLT Group SA (COLT) 105.30p +2.73%
Rotork (ROR) 2,433.00p +2.70%
Ocado Group (OCDO) 77.00p +2.67%
FTSE 250 - Fallers
Essar Energy (ESSR) 122.00p -3.25%
Paragon Group Of Companies (PAG) 242.00p -3.20%
Bank of Georgia Holdings (BGEO) 1,081.00p -3.05%
Daejan Holdings (DJAN) 2,798.00p -2.27%
Premier Oil (PMO) 329.50p -2.02%
TR Property Inv Trust Sigma Shares (TRYS) 78.40p -2.00%
London Stock Exchange Group (LSE) 967.50p -1.98%
Hansteen Holdings (HSTN) 75.15p -1.83%
Big Yellow Group (BYG) 325.00p -1.81%
NMC Health (NMC) 176.30p -1.67%
TODAY'S TIP ON SHARECRAZY
Office2Office - Growth in difficult conditions
A report by GECR
- office2office, the leading supplier of office supplies and business services in the UK, has announced an interim management statement for the period between 1st July 2012 and 15th November 2012.
- This highlighted that group revenue exceeded the comparable period last year, and noted the effect that significant recent contract wins will have on 2013 revenues - a contribution in excess of £20m.
- While 2012 results are expected to be in line with last year, we believe the recent growth in multiple areas of the business bodes well for the group in 2013 onwards.
- With the shares trading at 121p, we maintain our stance of buy and our 219p target price.
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:
Enterprise Inns
EasyJet
Fenner
Sports Direct
The Running Trading Thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK
By Niall Ferguson
A book review by James Faulkner of WatsHot.com
One could be forgiven for lifting an eyebrow at the title of Niall Ferguson's book (and television series) exploring the development of global finance - surely a more apposite title given the current climate would be The Descent of Money, or something along those lines? But the really great thing about historians is that they take a much more eclectic and measured view of present circumstances than most of us can afford by the very nature of our own professions and preoccupations. The recent G20 Summit in London demonstrated how angry many people are at their own financial plight, the apparent greed of bankers and financiers, and the great gulf between the haves, the have-nots and the 'have-yachts' as Ferguson puts it. Yet Ferguson shows us that the problems of today aren't products of the financial system itself, rather they are the products of our own tendency to lurch from irrational exuberance to excessive pessimism.
Click here to view the rest of the article
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