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  Segro, Liberty Intl and Hammerson lead FTSE 100 higher, commodities advance as oil and metals rise
Reported by Proactive Investors on Wednesday, 11 November 2009 (on November 11, 2009)
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Overview: as was expected, the US stock market rose in early trade with the top indexes setting new 2009 highs as the US Dollar continued weakening. The Dow Jones Industrial Average added 0.3%, the S&P 500 index rose 0.3% and the Nasdaq composite added 0.5%.
Despite the buoyant start on Wall Street and gains in the mining and oil & gas sectors, the FTSE 100 had its early gains trimmed to 0.6% late in the day. The stocks also got a boost in the morning from the Bank of England’s statement, which upped its economic growth and inflation forecasts.
Publisher Reed Elsevier weighed on the blue chip index, shedding almost 4% after its CEO quit after eight months on the job. Mobile operator Vodafone (LSE: VOD) and defence contractor Cobham (LSE: COB) followed with losses of nearly 2%. Broadcasting company BSkyB (LSE: BSY) and Home Retail Group (LSE: HOME) joined the leading fallers late in the day with declines of about 1.5%.
Miners and energy stocks were on the rise today as oil and metal prices rose. Silver miner Fresnillo (LSE: FRES) and gold producer Randgold Resources (LSE: RRS) led the index throughout the day with gains of more than 6%.
Property companies also gained momentum in late afternoon as Segro (LSE: SGRO), Liberty International (LSE: LII) and Hammerson (LSE: HMSO) climbed 5.5%, 4.7% and 3.5% respectively.
Hedge fund manager Man Group (LSE: EMG) and tour company Thomas Cook (LSE: TCG) also wer ein demand, rising 4% and 3.5% respectively.
Commodities
Oil prices were on the rise today as December Brent Crude rose to US$78.50/barrel, while US light, sweet crude for December delivery was just 5 cents short of US$80/barrel.
Cairn Energy (LSE: CNE) led the sector with a 2% climb. Petrofac (LSE: PFC) and BG Group (LSE: BG) both tacked on 1.5%, while Tullow Oil (LSE: TLW) posted a small loss.
Supermajors headed in different directions with BP (LSE: BP) sliding 1% and Shell (LSE: RDSB) tacking on 1.5%.
Midcaps were mixed as Dana Petroleum (LSE: DNX) and Heritage Oil (LSE: HOIL) added more than 1%, while Dragon Oil (LSE: DGO) slid 1.5%.
Most juniors were in decline today.
Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) lost 6.5%, while Africa focused energy company Dominion Petroleum (AIM: DPL) and Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) both lost 5%. Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) dropped 4%.
Mongolia-focused Petro Matad Ltd (AIM: MATD), North America focused oil & gas junior Pantheon Resources (AIM: PANR) and Gulfsands Petroleum (AIM: GPX), an oil and gas company with assets in Iraq, Syria and Gulf of Mexico, all declined 3%.
Ukraine focused gas producer, Regal Petroleum (AIM: RPT) went against the tide, climbing 4%. Energy investor Xtract Energy PLC (AIM: XTR) climbed 3%.
Gold and silver buoy miners
Precious metals rose today as gold reached US$1,112/oz and silver climbed to US$17.55/oz. Platinum improved to US$1,367/oz.
Major mining stocks were in buying mode today. Gold miner Randgold Resources (LSE: RRS) and silver producer Fresnillo (LSE: FRES) were in the lead with gains of almost 7%. Platinum miner Lonmin (LSE: LMI) followed with a 4% climb.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) advanced 2.6%.
Midcaps fell into the same pattern. Gold miner Petropavlovsk (LSE: POG) added nearly 7%, while Aquarius Platinum (LSE: AQP) rose 6%. Silver producer Hochschild Mining (LSE: HOC) added 1.3%. Yamana Gold (LSE: YAU) climbed 4%.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) was among the leading fallers in the sector, slipping 11%. Uzbekistan focused gold miner Oxus Gold (AIM: OXS) slid 4.5%, while Philippines focused Metals Exploration (AIM: MML) and Africa operating gold miner GMA Resources (AIM: GMA) lost more than 3%.
Australian gold and copper prospector Solomon Gold (AIM: SOLG) and Persian Gold (AIM: PNG) did well, climbing 5%. South Africa focused emerging platinum producer Platmin (AIM: PPN) added 4.5%. Stratex International (AIM: STI), Africa focused gold miner Pan African Resources (AIM: PAF) and South American based explorer Mariana Resources (AIM: MARL) followed with gains of over 3%.
Copper and nickel recover
Base metals recovered from their recent losses with copper and nickel climbing back to US$2.99/lb and US$7.66/lb respectively. Zinc improved to US$0.98/lb.
Rio Tinto (LSE: RIO) and BHP Billiton (LSE: BLT) led the sector, advancing 3%. Xstrata (LSE: XTA) followed, climbing 2.7%, while Antofagasta (LSE: ANTO), Vedanta Resources (LSE: VED) and Eurasian Natural Resources (LSE: ENRC) tacked on 2%.
Anglo American (LSE: AAL) was up 1.8%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) posted marginal gains.
Strategic Natural Resources PLC (AIM: SNRP) was in the lead among the small caps with an 11% climb after Coal of Africa (AIM: CZA) upped its stake in the company to 15%.
Indonesia operating coal miner Churchill Mining (AIM: CHL) and copper and nickel explorer Regency Mines (AIM: RGM) followed with gains of over 8%. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) was up 6%.
Laterite nickel specialist European Nickel (AIM: ENK) and iron ore focused investor Red Rock Resources (AIM: RRR) went in the opposite direction, slipping 8% and 6% respectively. Mineral sands producer Kenmare Resources (LSE: KMR), uranium and copper explorer Kalahari Minerals (AIM: KAH) and nickel and iron ore exploration junior Landore Resources (AIM: LND) followed, sliding 5.5%, 4.5% and 3.5% respectively. Philippines focused nickel and copper miner Metals Exploration (AIM: MTL) also shed 3.5%.
Banks, insurance, private equity
Part-nationalised Lloyds (LSE: LLOY) led the banking sector with a 4% climb. Standard Chartered (LSE: STAN) and HSBC (LSE: HSBA) added 1.7% and 1% respectively.
Another bailed out bank Royal Bank of Scotland (LSE: RBS) went in the opposite direction, shedding 1.2%. Barclays (LSE: BARC) also declined, posting a small loss.
Legal & General (LSE: LGEN) led the insurance sector with a 5% climb. Aviva (LSE: AV) and Old Mutual (LSE: OML) both added 3%, while Standard Life (LSE: SL) and Prudential (LSE: PRU) added 2.5%. Car insurer Admiral Group (LSE: ADM) added 1%. RSA Insurance Group (LSE: RSA) remained flat.
Private equity group 3i (LSE: III) was unmoved.
Small Cap Movers
Other notable movers among the small caps included African Diamonds (AIM: AFD) with an almost 10% gain and pharmaceutical company Alliance Pharma (AIM: APH), which tumbled 6%. Developer of CAD and image analysis software Medicsight (AIM: MDST) also declined, shedding 5%.
Large and Mid Cap News
Scottish and Southern Energy plc (LSE: SSE) announced that it intends to submit a planning application to Wakefield Metropolitan District Council for developing the UK's largest carbon dioxide capture trial facility at its Ferrybridge coal-fired power station near Castleford in Yorkshire. SSE also revealed an improved financial performance in its first half results which it also announced this morning.
This morning, Tullow Oil (LSE: TLW) (‘Tullow’) released its Interim Management Statement for the period covering July to 11 November. The FTSE 100 Oil & Gas producer said that its business continues to perform strongly, with particular emphasis on its exploration success rate of 85% in the year-to-date. The initial success in its exploration programme has largely been driven by projects in Uganda, Ghana and Sierra Leone.
Britain’s third largest supermarket group Sainsbury (LSE: SBRY) released first half results this morning which revealed like-for-like sales growth of 5.7% (excluding fuel). Pre-tax profit and underlying earnings per share rose substantially, rising approximately 32% and 42% respectively. Due to the improving performance Sainsbury increased the interim dividend by 11% to 4 pence per share. Investors appear to have responded positively to the news, share rose over 3.5% this morning.
In an update ahead of its half year results, UK based IT company Micro Focus International plc (LSE: MCRO) upped its full year profit guidance considerably this morning, following a ‘strong close’ to the first half of the financial year. The revise guidance anticipates total revenues of approximately $195 million compared to the previous year’s revenues of $135.6 million.
In its latest Interim Management Statement, International Power (LSE: IPR) (‘IPR’) CEO Philip Cox said that the company continues to benefit from a strong operational performance and a diversified international portfolio. The statement updates investors on the company’s performance to date since July 2009. According to the statement International Power expects full year earnings per share (EPS) to be broadly in-line with last year.
Small Cap News
Access Pharmaceuticals (OTCBB: ACCP) certainly has been making waves in the past six months, announcing a number of strategically significant deals to commercialise its oral mucositis treatment, MuGard in North America and Europe. Shares in the junior biotech company have soared from a 52 week low of 75 cents per share to a high of $5.00 per share, and are currently hovering around the $3.00 mark. This could be an opportune time for investors looking to gain exposure to a promising biotech stock with near term commercial potential.
Shares in Great Portland Estates (AIM: GPOR) rose today after the Central London landlord announced the acquisition of two West End developments and a profit share and debt structuring arrangement with Eurohypo to develop the properties, while announcing narrower losses for the first half of the year.
The recent turbulence encountered by Aero Inventory PLC (LSE: AI) is coming in an unsatisfactory end for investors. Today the aerospace procurement and inventory management specialists announced the appointment of joint administrators.
Property investment company Panther Securities (AIM: PNS) said its rental income and profits in the third quarter were consistent with the same period last year, stating that the property market appears to be over the worst of the economic cycle.
Lonrho’s (LSE: LONR) trading update pleasantly surprised Edison Investment Research, which said its full year figures were ahead of forecasts as all of the group’s five trading divisions performed in line with expectations.
Strategic Natural Resources (AIM: SNR) has announced today that South Africa focused coal explorer and developer Coal of Africa Limited (CoAL; AIM, ASX, JSE: CZA) has upped its stake in the company to 15% by purchasing a further 7.7 million shares just two days after taking a 4.67% shareholding in the company.
Chaarat Gold Holdings Ltd (AIM: CGH) said it was notified that non-executive chairman Christopher Palmer-Tomkinson this week bought 800,000 shares at 23.5 pence each and is now interested in a total of 6,675,000 Chaarat shares, representing 5.91 percent of the issued capital.
The fate of the AK6 diamond project, in the heart of Botswana’s world class Orapa district, took a new twist after it was announced on Wednesday evening (10 November) that Canadian Venture listed diamond junior, Lucara Diamond Corp (TSX-V: LUC)(‘Lucara’) would be acquiring De Beers’ 70% stake in the project for US$49 million.
TyraTech Inc (AIM: TYR) said non-executive director Alan Reade bought 17,000 shares in the company at 20 pence each, tasking hios holding to 69,200 shares representing an 0.5 percent stake.
Small cap investment company LP Hill (AIM: LPH) is close to adding a new uranium and thorium asset to its portfolio, having agreed to acquire another UK investment holding company Tranomaro, which owns the Marodambo project in Madagascar.
Africa focused gold and iron ore miner African Aura Mining (AIM: AAAM, TSX-V: AUR) is set to commence a 4,000 metre diamond drill programme at its Wadu gold project in western Liberia in early 2010, aiming to expand the resource on its Bea Mountain mining license.
Mineral exploration and development company Lydian International Ltd (TSX: LYD) said step-out drilling at one of its main projects, the Amulsar gold discovery in Armenia, has identified a new prospect and potential resource that is more than worthy of further drill testing in 2010.
Cobra Biomanufacturing (AIM: CBF) revealed it was in takeover talks with a possible bidder, saying it was too early to say whether an offer would be made as the discussions were at a preliminary stage.
Pacific Horizon Investment Trust PLC (LSE: PHI) said its net asset value per share rose by 5.5 percent over the 3 months to October 31 2009 compared to a rise in the comparative index of 4.7 percent.
Jubilee Platinum PLC (AIM: JLP; JSE: JBL) said its chairman Malcolm Burne and chief executive Colin Bird have acquired further shares in the company.
Links: Full news story
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