| From UK-Analyst.com: Tuesday 16th April 2013
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The Markets UK Consumer Price Inflation (CPI) remained unchanged in March at 2.8%, some way above the Bank of England's 2% long-term target. Figures released by the Office for National Statistics revealed that the unchanged CPI figure was a manifestation of rises in goods such as personal electronics and insurance, set against lower inflation for petrol and diesel. The Bank of England (BoE) is set to publish new inflation forecasts next month and some economists feel that this could trigger the Bank to re-start its controversial quantitative easing programme as a means of kick-starting growth in the beleaguered economy. Howard Archer of IHS Global Insight commented, "With the marked retreat in oil and commodity prices currently diluting the upside risks to consumer price inflation, it looks ever more likely that the Bank of England will sooner or later undertake more stimulative action." In yet another gloomy growth forecast, the International Monetary Fund (IMF) cut its projections on global economic growth for the next two years on fears of a pro-longed crisis in the Eurozone as well as significant spending cuts in the United States. The IMF trimmed its 2013 forecast for global growth from 3.5% to 3.3% and also shaved its 2014 forecast to 4% from 4.1%. One positive that came out of the figures was the upgraded numbers on Japan as the IMF welcomed the country's new monetary stimulus programme which it has embarked upon in an attempt to stimulate growth. The IMF said in its report "Global economic prospects have improved again but the road to recovery in the advanced economies will remain bumpy." The bank which does God's work Goldman Sachs reported a 7% rise in net profits to 1.47 billion pounds for the first three months of 2013 on a 1% increase in revenues. The bulk of the profit increase was attributed to the Investment Banking division, which gained from appreciations in its equity investments. However, revenues generated from client trading - which has accounted for 60% of its revenue over the past 4 years - was down by 10% in a reflection of an increasingly competitive market. The results follow numbers from JP Morgan and Citigroup - which have in the previous week reported profit increases of 33% and 30% respectively. 
At the London close the Dow Jones was up by 126.32 points at 14,725.52 and the Nasdaq grew by 31.72 points to 2,829.19. In London the FTSE 100 was down by 39.02 points to 6,304.58; the FTSE 250 finished 82.04 points down at 13,659.57; the FTSE All-Share lost 20.06 points to 3,323.50; and the FTSE AIM Index slipped by 1.96 points to 713.19.  Broker Notes Canaccord Genuity retained its "buy" stance on SuperGroup (SGP) with an unchanged target price of 850p. The broker is impressed with the recent 5 million pounds investment into a new 500,000 square feet distribution centre and feels that the move suggests Supergroup's growth ambitions far exceed its own forecasts. Canaccord noted that rival Asos has reduced its labour cost per unit by 50% since April 2011, when it opened a similar centre and feels that SuperGroup's cost trend will follow Asos' downward blueprint. The shares slid by 7.5p to 670.5p. N+1 Singer maintained its "buy" recommendation on energy consultancy group Utilitywise (UTW) with a target price of 130p. The broker was encouraged by today's interim results which were in-line with its expectations and revealed a 44% growth in revenues to 10.2 million pounds. N+1 Singer continues to see strong medium-term potential in the group as the organic growth story is supplemented by EPS enhancing deals. The shares remained flat at 92.5p. Shore Capital re-iterated its "buy" recommendation on agricultural and engineering group Carrs Milling (CRM) after it released impressive interim results for the period ended 2nd March 2013 which were above market expectations. In addition, Shore Capital cited the fact that the shares currently trade on an "undemanding" FY2013 PER multiple of 10.2 and an attractive EV/EBITDA multiple of 6.3 as further justification for its "buy" stance. The shares climbed by 131p to 1,190p. 
Blue-Chips Mining giant Rio Tinto (RIO) announced a 7% year-on-year increase in global iron ore shipments to 57.3 megatons for the first three months of 2013 but production was down by 8% on the previous quarter. This fall in output was attributed to three tropical cyclones near the Pilbara mine in Western Australia which severely disrupted shipping operations. Furthermore, Rio Tinto conceded that the recent wall slide at Kennecott Utah Copper's Bingham Canyon Mine is expected to reduce production by 100,000 tonnes in 2013. The shares lost 11.5p to 2,961.5p. Precious metals group Polymetal (POLY) revealed that its flotation concentrator - a machine used to separate ores - at its Mayskoye mine in Russia has been started and has produced its first dry gold concentrate. The metal mining company said that the Mayskoye concentrator has a nameplate capacity of 850 thousand metric tonnes (Kt) of ore per annum which should help it to exploit the resources at one of the largest gold deposits in Russia. The shares ended 2p lower at 744p. Glencore (GLEN) has now all but completed the $30 billion (19.6 billion pounds) takeover of fellow miner Xstrata after the acquired group sacrificed its Las Bambas mine in Peru in order to secure the approval of China's Ministry of Commerce. The Chinese regulatory bodies were wary of the effects that the merger would have on the control on the supply of copper. However, Xstrata's decision to sell Las Bambas has soothed these fears and the Chinese regulators have now sanctioned the biggest-ever deal in the sector. The shares were up by 4p at 325.1p. ADVERTISEMENT Spreadbet UK equities at t1pspreadbetting.co.uk - as well as Stock Indices, Commodities, Bonds & Forex - CLICK HERE to open an account at our brand new trading platform
Mid Caps Recruiters Michael Page International (MPI) reported a 6.7% year-on-year fall in gross profits for the first three months of 2013. This squeeze in profits was driven by a 15.1% decline in profitability in the Europe, Middle East and Africa region - which accounts for two-thirds of group profit - in a reflection of the poor health of the underlying economies. The news prompted both Investec and Panmure Gordon to retain their "sell" recommendations on the group.. The shares were down by 19.9p to 377.4p. Oil and gas producer Salamander Energy (SMDR) declared that it has began drilling on its 100% owned Bedug exploration well in South-East Asia. The target depth of the well is 2,050 metres and Salamander is expecting to encounter both oil and gas formations. Hopes are high for the drilling campaign as the well is located to the 4 Km to the east of the Angklung-1 gas discovery and 500m up-dip of the recent South Kecapi-1 ST oil and gas discovery. The shares fell by 3.2p to 186.4p. 
Small Caps Alternative energy research group Ilika (IKA) warned the market that revenues generated for the full year ended 30th April 2013 would be 1.1 million pounds, just over half the 2 million pounds it recorded for the previous year. The group attributed this significant fall to contract delays from two new customers in the US and one new client in Europe. Additionally, Ilika went on to reveal that it has lowered sales forecasts for the next financial year in a reflection of the lower deal conversion rates which it has experienced this year. The shares plummeted by 11.25p to 28p. Silvermere Energy* (SLME), the oil and gas exploration group, announced that a shareholder who subscribed for 80,000 pounds worth of shares back in February has failed to fulfil his commitment to buy them. The group admitted that the unpaid subscription has a "material effect" on the company's cash resources which, in turn, could force Silvermere to default on significant outstanding financial commitments on its I-1 Well, risking its working interest in the project. The shares dived by 2.375p to 2.625p. Thor Mining* (THR) has claimed that recent exploration work at Dundas Gold Project in Western Australia has uncovered promising Nickel and Copper indicators. Thor said that Infill grid soil XRF analysis - a method which can show which chemical elements are present within a sample - has exposed three areas of elevated Nickel which are broadly coincident with elevated copper. Completion of this ongoing soil geochemistry program is planned to occur over the next two months. The shares gained 0.05p to 0.425p.
Business support services group Green Compliance (GCO) revealed that trading in the first three months of 2013 has been "encouraging", with revenue up by 5% on the previous quarter. The period was characterised by several significant contract renewals, with the group claiming success with cross-selling services to existing customers. Additionally, the group confirmed that the company reduced costs by 1 million pounds on an annualised basis over the quarter. The shares edged up by 0.3p to 2.1p. Technology company Imaganatik (IMTK) announced that, after discussions with all of its institutional investors, it has decided that it is in its best interests to remain listed on the AIM market. This comes after substantial operating losses prompted the group to seek approval of the cancellation of trading in the company's shares on AIM back in February. The firm is now in advanced discussions with institutional investors regarding its future funding. The shares were up by 0.1p to 0.25p. Palm oil producer M.P. Evans (MPE) posted profits of $21.55 million (14.1 million pounds) for 2012, down from $39.7million (26 million pounds) in 2011, as hefty crop increases were more than offset by falling prices of crude palm oil. The group - which also farms Australian beef cattle - also suffered as a result of a subdued cattle market in Australia. The group went on to warn that there seems to be little prospect of an immediate return to the levels of crude palm oil prices seen in the early part of 2012, with growth in demand for vegetable oils looking set to rise at lower levels than in recent years. The shares lost 12p to 498p. * Silvermere Energy and Thor Mining are corporate clients of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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