| From UK-Analyst.com: Wednesday 17th April 2013
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The Markets The UK unemployment rate grew to 7.9% over the three months ending February as 70,000 people joined the jobless ranks, bringing the total number of unemployed to 2.56 million. Figures from the Office for National Statistics also revealed that average weekly earnings growth in the three months was 1%, the smallest increase since the indicator was first measured back in 2011. The figures will again raise questions as to whether the Bank of England (BoE) should inject fresh money into the struggling economy as a means of stimulating growth. Alan Clarke, economist at Scotiabank, commented, "A lot of the froth and really good news we had over the last year on jobs is becoming exhausted, which shouldn't be a surprise when there is not much growth around." Car sales in Europe were down a further 10% in March, a fall which represented the 18th successive month of declines, with demand hit by the region's well documented recession. According to figures from the European Automobile Manufacturers' Association, sales in Germany fell by 17.2% over the period as business confidence and consumers' willingness to buy took a hit following the nation's links to a bailout for debt-stricken Cyprus. Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co, warned, "The car boom in Germany has come to an end, people have stopped buying cars as consumers are much less confident of the future, especially after the latest decision on Cyprus." Economic growth in Russia fell to 1.1% in the first three months of 2013, down from the 4.9% which was recorded in the corresponding period in 2012. This follows the government's decision to slash its forecast for economic growth from 3.6% to 2.4% last week as it pointed to disappointing industrial output and wavering consumer demand. London-based Capital Economics consultancy said in a research note "With growth easing in most trading partners, the fact that Russia has slowed is not surprising. But the magnitude of the slowdown is becoming increasingly worrying."
At the London close the Dow Jones was down by 145.54 points at 14,611.24 and the Nasdaq lost 55.36 points to 2,783.05. In London the FTSE 100 was down by 60.37 points at 6,244.21; the FTSE 250 finished 128.40 points down at 13,531.17; the FTSE All-Share lost 31.31 points to 3,292.50; and the FTSE AIM Index slipped by 7.72 points to 705.47.  Broker Notes Canaccord Genuity maintained its "buy" recommendation on equipment hire group Speedy Hire (SDY) with a 55p target price. The broker is impressed with the group's pre-close update which suggested that pre-tax profits will be marginally ahead of the Board's previous expectations. Furthermore, Canaccord cites recent comments by environmental consultancy, SLR Consulting, which highlights a pick-up in UK commercial planning related work as encouraging for the group's medium-long term prospects. The shares lost 1.5p to 46.75p. N+1 Singer retained its "buy" recommendation on sportswear retailer JD Sports Fashion (JD.) with an 875p target price. The broker is confident in management's ability to turn the Outdoor business around and views international and multi-channel development in the core business as key drivers of the investment case. In addition, N+1 Singer does acknowledge that the shares have fallen back in recent weeks but argues that this only makes for an even more attractive entry point. The shares inched up by 3p to 745p. Shore Capital re-iterated its "buy" recommendation on caterers Bunzl (BNZL) as it feels that the group continues to benefit from its strategic position in providing a diverse range of clients with capital efficiency. Furthermore, the broker expects the organic performance to continue to strengthen over the course of FY2013 and into next year, citing further acquisitions and positive currency movements for its reasoning. The shares slipped by 4p to 1,267p.
Blue-Chips Supermarket giant Tesco (TSCO) revealed a 51.5% fall in statutory pre-tax profits to 1.96 billion pounds for the 52 weeks ended 23rd February 2013 in its first annual profits fall in almost 20 years. Tesco attributed the fall to the costs of a turnaround plan, particularly its decision to wind up its "Fresh & Easy" US business which had a 1.2 billion pounds negative effect on profit before tax for the year. Revenues did in fact grow by a 1.4% - a hike driven by 13% growth in online sales - but this did little to offset the huge re-organisation costs. The shares fell by 15.1p to 369.75p. Luxury brand Burberry (BRBY) reported a 13% increase in underlying revenues to 1.116 billion pounds for the 6 months ended 31st March in an uplift driven by sales growth in the Asia-Pacific region. The group also confirmed that its retail operations - as opposed to its wholesale operations - now account for 75% of total sales as the company opened an additional 10 stores over the period, including sites in Chigaco, US and Kensington in London. The shares gained 23p to 1,289p. Financial services group Hargreaves Lansdown (HL.) revealed that assets under administration increased by 4.7 billion pounds to 35.1 billion pounds in the first three months of 2013. The group attributed this increase to improving confidence amongst investors in a trend which also drove a 19% increase in share dealing volumes over the period. Hargreaves Lansdown also revealed that revenues grew by 24% to 216.6 million pounds but warned that the ongoing economic issues in the Eurozone and in other regions could adversely affect revenue levels in the short-term. The shares grew by 49p to 949p. 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 Diamond miner Petra Diamonds (PDL) has recovered a rare 25.5 carat blue diamond (below) at its Cullinan Mine in South Africa. To put the find into context, Petra found a similar diamond of 26.6 carats which was sold for $9.49 million (6.22 million pounds) at a Sotheby's auction back in 2009. Broker Citigroup re-iterated its "buy" recommendation on Petra earlier in the week, increasing its target price from 143p to 151p. The shares edged up by 1.1p to 108.8p. 
Moneysupermarket.com (MONY) reported a 13% hike in revenues for the first three months of the year, with trading in line with expectations over the period. Revenues from the group's travel division were up by 23% with better trading in package holidays, car hire and hotels. However, revenues generated from non-credit products including savings and current accounts were down by 45% as the government's Funding for Lending scheme slashed competition for retail deposits and reduced savings revenues for the year. The shares were up by 4p at 189.7p. Hikma Pharmaceuticals (HIK) announced that it would keep its injectable business after dismissing several approaches from external parties for the division. Last month the firm revealed that it was reviewing a number of approaches for the unit, which helped to propel the shares to a record high of 1,048p. However, management has come to the conclusion that it can create further value by retaining the business by "leveraging its high quality manufacturing facilities, broad product portfolio, attractive R&D pipeline and global distribution platform". The shares fell by 67.5p to 917.5p. Small Caps Anpario (ANP), the natural feed additives producer, revealed a 39% increase in profit after tax to 2.1 million pounds for 2012 as demand surged in the Asia-Pacific, Latin America and Middle East regions. The group stressed that these territories will remain the focus for the group as it looks to capitalise on the growing populations, increasing economic prowess and subsequent growth in demand for meat. Looking ahead, China is an area of priority for the group as it attempts to build on the 122% revenue growth which its Chinese subsidiary demonstrated over the period. The shares grew by 17.5p to 149.5p, although broker FinnCap sees further upside, it having a 160p target. International Greetings (IGR), the manufacturers of gift packaging & greetings, claimed that its adjusted earnings per share should be "substantively in line with expectations" due to strong growth in overall profit in the company's US businesses. The group also said that cost cutting initiatives, coupled with "modest" top line growth, more than offset pressure on margins due to geographical sales mix and higher freight costs. IGR went on to confirm that it increased its working capital investment in February and March in an attempt to satisfy all orders on its books. The shares lost 6.1p to 41.9p. Afferro Mining (AFF) confirmed that it has been in talks with International Mining and Infrastructure Corporation (IMIC) regarding a potential offer for the entire issued and to be issued share capital of the company. IMIC - which already owns 5% of Afferro - has submitted three offers for the group with varying mixes of cash and shares which value each Afferro share in the 100p - 140p range. The shares were up by 8.875p at 72.6p. 
Magnolia Petroleum (MAGP) revealed an increase in the value of its oil reserves from $18 million (11.8 million pounds) to $94 million (61.6 million pounds) as specified by a new competent persons report. The report estimates the group's proven, probable and possible oil reserves at 2.8 million barrels of oil and condensate and 9.2 million cubic feet of gas. The report also projects that production from Magnolia's portfolio has the potential to rise to 1,067 barrels a day by 2017 and identified that there could be as many as 696 additional drilling locations within the 7,866 acres Magnolia has acquired in Montana. The shares were down by 15p at 362.4p. Medical technology group Amphion Innovations (AMP) declared that revenues for 2012 are expected to be lower than in 2011 and the loss for the year is expected to be higher, partly due to further downward adjustments in the carrying value of holdings in several partner companies. The group also attributed its difficulties to the elusiveness of obtaining outside financing, which has been reflected in the group's financial performance. The shares were flat at 2.25p. NetDimensions (NETD), the provider of learning management systems, revealed that its talent suite has been chosen by Fresenius Medical Care, to be rolled out to its 30,000 employees in 24 countries. Fresenius Medical Care is the world's largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure and chose the product to support its needs internationally whilst simultaneously meeting key regulatory requirements. The shares inched up by 2p to 43p. | 
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