|
From UK-Analyst.com: Friday 14th December 2012
The Markets According to the Eurozone Purchasing Managers Index, decline in the Eurozone's manufacturing sector has slowed. Figures from research group Markit showed the index at 46.3 in December from 46.2 in November - with a figure below 50 illustrating contraction. The slightly improved figure was boosted by an upturn in the German service sector. Chris Williamson, chief economist at Markit said "The euro-zone downturn showed further signs of easing in December, adding to hopes that the outlook for next year is brightening." In the UK, Standard and Poor's (S&P) became the last of the three major rating agencies to put the UK's AAA rating on "negative outlook", with fears of the "fiscal cliff" on the horizon. S&P said, "The outlook revision reflects our view that we could lower ratings on the UK within the next two years if fiscal performance weakens beyond our current expectations." In Japan, sentiment among businesses worsened in the three months ended December as the Bank of Japan's Manufacturing index dropped to -12 from -3. Japanese manufacturers have been hit by slowing export demand and subdued domestic consumption and news comes after figures earlier in the week suggested the world's third largest economy was in recession. Hiroshi Miyazaki, chief economist at Shinkin Asset Management in Tokyo said "We can see sentiment worsening across the board, whether in manufacturing or services." At the London close the Dow Jones was down by 2.72 points at 13,168.00 and the Nasdaq fell by 20.95 points to 2,633.06. In London the FTSE 100 decreased by 7.85 points to 5,921.76; the FTSE 250 finished 32.67 points up at 12,244,24; the FTSE All-Share lost 2.16 points to 3.098.41; and the FTSE AIM Index crept up by 1.47 to 688.12.  Broker Notes Seymour Pierce reiterated its "buy" recommendation on furniture specialist Laura Ashley (ALY), increasing its target price from 28p to 32p. This comes on the back of a trading update which was marginally ahead of the broker's expectations, with the broker being particularly impressed with the 4.9% increase in like-for-like sales in the 19 weeks prior to 8th December. The broker goes on to express its belief that the 22.6% growth in internet sales over the same period is a good indicator of future growth. The shares slipped by 0.25p to 27p. N+1 Singer maintained its "buy" recommendation on RWS Holdings (RWS) with a target price of 600p. The broker is impressed with the firm's balance sheet, which shows 25 million pounds in net cash, as well as the 14% increase in dividends for the year to September. The broker also believes that the company has enhanced itself into a strong market leading position through significant client wins. The shares gained 19.25p to 555.25p. Shore Capital stuck to its "buy" recommendation on OPG Power Ventures (OPG) on the back of encouraging first half results. The broker cites progress on infrastructure surrounding its projects, increasing revenues and the ability to refinance debt on further infrastructure completion as compelling positives on the investment case. The broker expects an earnings multiple of 5.7 times for 2015, which it uses to further justify its "buy" recommendation. The shares lost 0.5p to 51.5p. 
Blue-Chips Security company G4S (GFS) confirmed it has agreed to acquire South African cash security group Deposita Systems. Upon completion G4S will own 87% of the shares in Deposita and pay a total consideration of 8.2 million pounds. Deposita was founded in 2004 and has since expanded throughout the country, currently employing 165 staff. The acquisition fits in with the firm's strategy of strengthening its position in the South African retail cash technology market, a market which the company expects to grow rapidly over the next 3 years. The shares were down by 0.1p at 252.5p. 
Mid Caps Bwin.party digital (BPTY), the online gaming company, has entered into an agreement with Belcasinos, the largest casino operator in Belgium, to offer online sports betting, poker and casino games using the company's leading brands to consumers in Belgium. The news comes weeks after its co-CEO Jim Ryan was quizzed by Belgian authorities over the company's activities in the country. The deal gives Bwin access to licenses that will allow the company to operate websites which are expected to generate 700,000 euros a month. The shares were up by 3p at 114p. Troubled gold miner Centamin (CEY) confirmed that the fuel supply to its Sukari gold mine has been resumed and that no retrospective payment is due. This comes after news that the Egyptian General Petroleum Corporation (EGPC) cut off the supply to the mine, demanding 65 million dollars was due in "unpaid" energy bills. These fears were quashed as fuel supplier Chevron received notification from the EGPC these "unpaid" payments were in fact not due and that fuel can be restored to the site. Operations and gold exports remain suspended. The shares rose by 6.94p to 34.64p. 
Small Caps & AIM Multimedia company Ten Alps (TAL) revealed a 17.8% slide in revenues to 17.1 million pounds and a double in operating losses to 1.52 million pounds for the six month period ended 30th September. This widening of losses was driven by a re-structuring charge of 0.13 million pounds and an amortisation and impairment charge on intangibles of 0.56 million pounds. As a result of the deteriorating results the company will continue its focus on restructuring the business and substantially cutting its cost base. The shares remained flat at 2.75p. Carbon fibre manufacturer Surface Transforms (SCE) announced a 19.1% increase in turnover to 405,000 pounds but a 4.4% fall in EBITDA to 192,000 pounds for the six months ended 30th November, driven by tough market conditions. The firm revealed that it plans to raise up to 1 million pounds worth of new equity in order to undertake a number of projects which would help to drive down costs, in an attempt to compete on price with larger firms. The shares fell by 1p to 10p. Oil and gas exploration company GeoPark Holdings (GPK) reported the successful drilling, testing and start of production of a new oil well in the Tua oil field on the Llanos 34 block in Colombia. The company, which has operations in Chile, Colombia and Argentina has a 45% working interest in the block in question. The estimated flow rate is 1,127 barrels of oil per day and the project represents the second oil field discovery by the firm this year in Colombia. The shares shares increased by 12.5p to 657.5p.
Flourmin (FLOR), which has a portfolio of fluorspor interests in South Africa and Tunisia, announced that following its decision to place the Witkop mine on care and maintenance, it has now completed the statutory period for consultation with the mine's union representatives and has reached an agreed settlement in respect to the redundancy of employees. The company acknowledges that it has been a difficult time for everyone following the decision to dispose of employees and commits on continuing to work with local leaders to help mitigate the impact on the local community. The shares grew by 1p to 16p. Turbotec Products (TRBO), the manufacturer of high performance heat exchangers, reported a 9.4% drop in revenues to 10.6 million dollars (6.6 million pounds) for the 6 months ended 30th September. This was driven by a reduction in sales volume for which the company blamed a continuing weak economy and tight credit market. The company reported a pre-tax loss of 0.04 million dollars (0.02 million dollars), a swing from a profit position of 0.43 million dollars (0.03 million pounds), driven by increased competition and reduced demand which eroded margins significantly. The shares remained flat at 19.25p. Rockhopper Exploration (RKH), the oil and gas exploration company based in the Falkland Basin, revealed a 26 million dollar reduction in losses to 6 million dollars for the six months to September, which was due to a reduction in exploration and evaluation expenses following the end of the drilling and seismic campaigns. A further highlight of the period was a 1 million dollar (0.62 million pounds) increase in administrative expenses largely due to the recruitment of senior management to support further development studies. The shares dropped by 2p to 158p.
| 
No comments:
Post a Comment