London open: Bumi battered by concerns at subsidiary
Market Movers
- techMARK 2,135.69 -0.14%
- FTSE 100 5,827.47 -0.43%
- FTSE 250 11,908.94 -0.34%
London has started the week on a dull note, with renewed concerns over
the single currency region weighing on sentiment following France and
Germany's failure to agree a schedule for initiating shared oversight of
the region banking sector.
Bumi plummets
Mining giant Bumi
said it was investigating allegations of financial and other
irregularities at its Indonesian operations. The investigation centres
on PT Bumi Resources, in which the company has a 29%. interest, with
particular focus on that firm's development funds.
"The
extensive development funds in PT Bumi Resources Tbk and the one
development asset in PT Berau Coal Energy Tbk were marked down to zero
in the accounts of Bumi plc as at December 31st 2011, except for one
investment with a carrying value of $39m in the consolidated financial
statements," the statement said.
Fund manager Aberdeen Asset Management
saw its assets under management (AuM) edge up in the first two months
of the second half of the year. AuM at the end of August stood at
£184.3bn, up from £182.7bn at the end of June. Gross new business during
July and August totalled £6.1bn, but overall the group saw a net
outflow of £0.1bn.
Dairy Crest warned of lower first
half profits, as challenging conditions continue, but said profit
expectations for the full year ending March 31st 2013 remain unchanged.
Profit before tax and exceptional items slipped to £14.9m in the six
months ended July 28th, from £16.2m in the corresponding period of last
year at Irn-Bru maker AG Barr. The company took a £1m hit from
adverse currency movements, although around £0.6m of this is expected to
unwind in the second half of the year. On a constant currency basis,
first half profit before tax was £0.3m behind the similar period in the
prior year. Sales in the first seven weeks of the second half have shown
double digit percentage growth.
Analysts at Bank of America Merrill Lynch have downgraded their view on shares of Anglo American to "neutral" from "buy".
Other markets
The
price of oil has turned south, with the most activiely trade futures
contract for Brent crude off 89 cents at $110.53 a barrel.
Gilts are not getting any benefit from investors spurning equities.
Prices fall back, resulting in yields edging up. The yield on the
benchmark 10-year gilt is 1.84%, up from 1.83% at Friday's close.
FTSE 100 - Risers
Reckitt Benckiser Group (RB.) 3,615.00p +0.44%
Smith & Nephew (SN.) 689.00p +0.44%
Hammerson (HMSO) 450.20p +0.36%
Rexam (REX) 437.30p +0.21%
Capital Shopping Centres Group (CSCG) 335.80p +0.21%
Pennon Group (PNN) 747.50p +0.20%
BP (BP.) 441.90p +0.20%
Associated British Foods (ABF) 1,294.00p +0.15%
British Sky Broadcasting Group (BSY) 734.00p +0.14%
Centrica (CNA) 337.50p +0.09%
FTSE 100 - Fallers
Evraz (EVR) 263.00p -3.27%
Anglo American (AAL) 1,895.00p -2.22%
Glencore International (GLEN) 355.30p -1.85%
Eurasian Natural Resources Corp. (ENRC) 338.70p -1.68%
Kazakhmys (KAZ) 717.00p -1.65%
Fresnillo (FRES) 1,803.00p -1.64%
Vedanta Resources (VED) 1,069.00p -1.57%
GKN (GKN) 222.50p -1.55%
Rio Tinto (RIO) 2,998.00p -1.41%
Antofagasta (ANTO) 1,259.00p -1.33%
FTSE 250 - Risers
QinetiQ Group (QQ.) 182.30p +6.11%
Petra Diamonds Ltd.(DI) (PDL) 114.00p +3.92%
Stobart Group Ltd. (STOB) 117.00p +2.18%
Computacenter (CCC) 375.00p +2.12%
KCOM Group (KCOM) 86.30p +1.89%
Capital & Counties Properties (CAPC) 214.60p +1.75%
Shanks Group (SKS) 90.10p +1.69%
JPMorgan Emerging Markets Inv Trust (JMG) 547.00p +1.48%
Brewin Dolphin Holdings (BRW) 173.00p +1.47%
British Assets Trust (BSET) 124.20p +1.14%
FTSE 250 - Fallers
Bumi (BUMI) 145.00p -25.98%
Workspace Group (WKP) 254.00p -3.05%
Centamin (DI) (CEY) 93.25p -2.56%
Heritage Oil (HOIL) 204.90p -2.52%
Ferrexpo (FXPO) 210.30p -2.41%
Petropavlovsk (POG) 430.00p -2.18%
Redrow (RDW) 150.80p -1.69%
Diploma (DPLM) 450.20p -1.64%
F&C Commercial Property Trust Ltd. (FCPT) 102.40p -1.54%
UK Event Calendar
Monday September 24
INTERIMS
Barr
(A.G.), China Food Co, DDD Group, EKF Diagnostics Holdings , Lighthouse
Group, Mam Funds, Manganese Bronze Holdings, Michelmersh Brick
Holdings, RGI International Ltd., Vphase, Wandisco
INTERIM DIVIDEND PAYMENT DATE
African Barrick Gold , Fidessa Group, GKN, Henderson Opportunities Trust
QUARTERLY EX-DIVIDEND DATE
Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
FINALS
Finsbury Food Group, Petra Diamonds Ltd.(DI)
AGMS
Angel Mining , iEnergizer Ltd., Marechale Capital , Max Petroleum, SnackTime
TRADING ANNOUNCEMENTS
Aberdeen Asset Management, Dairy Crest Group, QinetiQ Group
| Europe Market Report |
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| FTSE 100 | Euronext | Dax perf | CAC 40 |
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Europe open: Stocks begin the week down slightly
-Merkel and Holland differ on banking supervision
-Eurozone authorities study leveraging ESM –Der Spiegel
-Greece denies speculation Troika has found €20bn deficit gap
-Banks deposit €305bn overnight at ECB
-Spain´s de Guindos says country will not rush to ask for aid
-French PM calls for more fiscal stimulus in Europe
FTSE-100: -0.37%
Dax-30: -0.37%
Cac-40: -0.74%
FTSE-Mibtel 30: -0.70%
Ibex 35: -0.89%
Stoxx 600: -0.40%
European equities have begun today´s session with modest falls. That
following the differences aired by Germany and France, this weekend,
over the timetable to grant the European Central Bank (ECB) supervisory
powers over the Continent´s banks. That is a necessary precondition for
Europe´s so-called rescue fund, the European Stability Mechanism (ESM),
to be able to inject funds directly into Europe´s banks.
Somewhat perplexingly -given the above- a report in German weekly Der Spiegel holds that Eurozone authorities are again looking at ways to leverage the European Stability Mechanism (ESM) to over €2trn.
Also very much worth highlighting are the calls from French Prime
Minister Jean-Marc Ayrault, on Sunday, for Greece to be given more time
to meet its targets so long as the country is sincere about reforming
its economy. Mr. Ayrault also called for further fiscal stimulus
measures in Europe.
Acting as a backdrop, the tensions around the Diaoyu islands continue to simmer.
Weakness in Basic Resources leads stocks down
German automotive supplier Continental
is on track to reach its full-year targets and does not need to shorten
workers' hours, the company´s Chief Executive has told the German
press.
Peugeot does not intend to cut jobs or plants
"at this stage", but domestic factories must improve productivity to
match sites in Spain and Britain, the company´s COO has said.
From a sector stand-point the worst performers within the DJ Stoxx 600
are now the following: Basic resources (-1.6%), Construction (-0.96%)
and Automobiles (-0.90%).
IFO on tap
Germany´s IFO business confidence index has come in at 101.4 points for the month of September (Consensus: 102.5).
Oil futures down
The euro/dollar is now off by 0.21% to the 1.2952 dollar level.
Front month Brent crude futures are now down by 0.878 dollars, to the 110.43 dollar mark on the ICE. |
| US Market Report |
US close:Market falls for fourth time in five days
Market movers
Dow Jones: -17 at 13,579
S&P 500: -0 at 1,360
NASDAQ Composite: +4 at 3,180
After a fairly bright start on rumours that Spain is discussing terms
for a bailout package, US equities drifted back in the afternoon
session, causing the S&P 500 to close lower on the day, as it has
done in four of the last five sessions. Tyre companies deflated
On a sector view,
Tyres, Railroads, Coal and Real Estate were the day's four biggest
clunkers, while top of the tree were the Mobile Telecommunications,
Forestry & Paper, Paper and Mortgage Finance sectors were top of the
tree. Goodyear led the tyres sector lower as Capital Markets downgraded the stock from "buy" to "hold", while Cooper Tire & Rubber got the same treatment from the broker.
Although the S&P fell back, the tech-heavy NASDAQ Composite
finished in positive territory on the day uber-tech company Apple
launched its new iPhone. Deutsche Bank (DB), however, was more inclined
to look elsewhere in the tech sector, issuing buy notes on online
retailer Amazon and advertising giant Google.
According to DB, Amazon is the only large-cap company in the broker's
research universe which has a manageable plan to grow revenues ten-fold
over the next decade they say.
That sort of growth rate is enough to make even Apple
sit up and take notice, were it able to do so under the rugby scrum of
media luvvies rushing to give free advertising to the launch of its new
iPhone 5.
Deutsche Bank has also got the Apple bug, raising
its target for the company's shares to $850 from $775 before. DB's move,
and the launch of the new iPhone for that matter, had little effect on
Apple, which closed little changed.
Things are not looking so kushti for Research In Motion,
the maker of the Blackberry smartphone. Blackberry users on the
Vodafone network in Europe, the Middle East and Africa suffered a
service outage on Friday.
Wireless carrier MetroPCS Communications was wanted after the company's boss, Roger Linquist, told investors on Thursday that subscriber cancellations are tailing off.
Analysts at Citi have upgraded their view on shares of Mastercard, the credit card firm, to "buy". Cantor Fitzgerald, meanwhile, has initiated coverage on online travel company Expedia with a "buy" recommendation.
Oil futures bounce back
West Texas intermediate crude for November delivery climbed 47 cents to
$92.89 a barrel on the New York Mercantile Exchange, clawing back some
of the week's losses. The price of the most actively traded contract of
West Texas sweet, light crude fell 6.5% on the week, its worst
performance since the beginning of June.
10-year US Treasuries yields eased to 1.75% from 1.76% overnight.
S&P 500 - Risers
Darden Restaurants Inc. (DRI) $57.21 +4.55%
Expedia Inc. (EXPE) $59.37 +3.99%
Motorola Solutions Inc (MSI) $51.79 +3.98%
Metropcs Communications Inc. (PCS) $11.63 +3.93%
Frontier Communications Co. (FTR) $4.97 +3.86%
Sprint Nextel Corporation (S) $5.65 +3.86%
AutoNation Inc. (AN) $42.95 +3.39%
CBS Corp. (CBS) $37.90 +3.27%
Seagate Technology Plc (STX) $30.95 +3.11%
Davita Inc. (DVA) $101.50 +2.88%
S&P 500 - Fallers
First Solar Inc. (FSLR) $21.20 -6.05%
Goodyear Tire & Rubber Co. (GT) $12.73 -4.86%
Abercrombie & Fitch Co. (ANF) $36.88 -4.65%
Dean Foods Co. (DF) $15.57 -4.07%
Coach Inc. (COH) $56.62 -4.05%
Cliffs Natural Resources Inc. (CLF) $40.93 -3.67%
Genworth Financial Inc. (GNW) $5.66 -2.92%
Alpha Natural Res (ANR) $7.21 -2.70%
Borg Warner Inc. (BWA) $72.29 -2.47%
Carmax Inc. (KMX) $29.28 -2.27%
Dow Jones I.A - Risers
McDonald's Corp. (MCD) $93.71 +0.60%
General Electric Co. (GE) $22.53 +0.45%
Exxon Mobil Corp. (XOM) $91.92 +0.44%
Pfizer Inc. (PFE) $24.51 +0.43%
Kraft Foods Inc. (KFT) $41.78 +0.42%
Dow Jones I.A - Fallers
Coca-Cola Co. (KO) $38.03 -1.58%
Alcoa Inc. (AA) $9.13 -1.30%
Cisco Systems Inc. (CSCO) $18.90 -1.10%
Hewlett-Packard Co. (HPQ) $17.59 -0.96%
JP Morgan Chase & Co. (JPM) $40.88 -0.90%
Caterpillar Inc. (CAT) $91.72 -0.89%
Bank of America Corp. (BAC) $9.11 -0.87%
Microsoft Corp. (MSFT) $31.19 -0.83%
American Express Co. (AXP) $57.86 -0.82%
Nasdaq 100 - Risers
Avago Technologies Ltd. (AVGO) $35.51 +5.21%
Expedia Inc. (EXPE) $59.37 +3.99%
Randgold Resources Ltd. Ads (GOLD) $123.86 +3.15%
Seagate Technology Plc (STX) $30.95 +3.11%
Intuitive Surgical Inc. (ISRG) $517.76 +2.26%
NetApp Inc. (NTAP) $36.26 +2.11%
Nasdaq 100 - Fallers
Research in Motion Ltd. (RIMM) $6.45 -6.52%
Green Mountain Coffee Roasters Inc. (GMCR) $26.76 -3.88%
Virgin Media Inc. (VMED) $29.61 -2.73%
Adobe Systems Inc. (ADBE) $33.83 -2.03%
Expeditors International Of Washington Inc. (EXPD) $36.78 -2.00%
| FX and Commodities round-up |
FX round-up: Dollar slips on Spain optimism
The
dollar slipped against the euro on Friday on growing speculation that
Spain is moving closer to requesting a bailout from the European Union
to ease the nation's debt crisis.
The dollar index, which
measures the dollar against a basket of six other currencies, fell to
79.342 from 79.427 on Thursday. For the week the index is up 0.6%.
The dollar fell after a report from the Financial Times said that Spain
and European officials are in talks about economic reforms to enable
the Eurozone's fourth-largest country to ask for a bailout in the next
month. The newspaper said Spain's package of economic reforms could be
outlined as early as next week.
The euro chipped away at
earlier gains to trade at $1.2988, still up from $1.2968 on Thursday.
Over the week the single currency was down 1%.
The dollar was
down against the Japanese yen on Friday at ¥78.13 from ¥78.27 on
Thursday after a volatile week after the Bank of Japan expanded its
asset-purchase programme.
Sterling rallied to a near 13-month
high against the broadly dollar after UK borrowing data came in not as
bad as forecast. Reports that Spain may soon ask for financial aid also
boosted demand for risk currencies.
Sterling traded at $1.6310, up around 0.5% before later reducing gains to trade at around $1.6271.
Commodities: Oil stocks rebound
US
crude oil futures settled a touch higher on Friday, recovering from
four days of consecutive losses, as the weaker dollar attracted bargain
hunters.
Oil gains also came as the front-month contract
changed to November futures. The dollar index, which measures the dollar
against a basket of six other currencies, fell to 79.342 from 79.427 on
Thursday.
Crude oil for November delivery rose 47 cents or
0.5% to settle at $92.89 a barrel on the New York Mercantile Exchange.
Oil managed to trim its biggest weekly loss in more than three months
however oil still remained down 6.5% for the week.
The bounce
back comes after steep losses earlier in the week with market
commentators still at a loss to explain Monday's dramatic sell-off
followed by Wednesday's steep fall.
The New York Mercantile
Exchange did not report any technical problems and dismissed suggestions
a "fat finger" may have triggered the fall.
Analysts said
Wednesday's decline was prompted by comments from Saudi officials and
technical trends as crude inched towards $100.
Among precious
metals gold posted a weekly advance of about 0.3% and settled up 0.4% on
Friday as the weaker dollar drummed up support for the yellow metal and
as markets bet that Spain is moving closer to requesting a bailout from
the European Union.
Gold for December delivery climbed $7.80
to settle at $1,778 an ounce on the Comex division of the New York
Mercantile Exchange.
December silver futures dropped 4 cents
to settle at $34.64 an ounce while palladium for December delivery
advanced $10.45 to $671.55 an ounce.
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