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  3i, Amec, Segro and Rolls Royce lead FTSE 100 higher, Resolution and RSA Insurance fall
Reported by Proactive Investors on Monday, 16 November 2009 (on November 16, 2009)
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Overview: the FTSE 100 held on to its early gains as commodities and property stocks stayed strong throughout the day. The UK blue chip index stood 1.2% higher in late afternoon as miner Lonmin (LSE: LMI) remained in the lead after releasing its full year results this morning, also benefitting from higher platinum prices.
Base metals focused miners Xstrata (LSE: XTA), Antofagasta (LSE: ANTO), Rio Tinto (LSE: RIO) and Anglo American (LSE: AAL) followed with gains of over 3% as copper, nickel and zinc rose. Gold miner Randgold Resources (LSE: RRS) also made it to the leaderboard, climbing 4%. Non-commodity stocks in the top ten included private equity group 3i (LSE: III), energy services firm Amec (LSE: AMEC), which said trading was in line with expectations, commercial property company Segro (LSE: SGRO) and engine maker Rolls Royce (LSE: RR), which reported US$2 billion worth of orders today.
Just two FTSE 100 constituents lost 1% or more. Insurance sector focused investor Resolution (LSE: RSL) and RSA Insurance Group (LSE: RSA) declined 1.2%, 1.1% and 1% respectively to emerge as the leading fallers in the index.
The US stock market was buoyant in the morning to further bolster the Footsie. The Dow Jones Industrial Average climbed 1% in early trade, while the broader S&P 500 index gained 1.2% and the technology heavy Nasdaq composite added 1.1%.
The markets were helped by an upbeat sales update which was released today in the US, saying retail sales beat projections, rising 1.4% in October after falling 1.5% in the previous month.
Oil climbs to bolster energy stocks
Oil prices inched slightly lower, but oil & gas stocks remained buoyant. December Brent Crude retreated to US%77.14/barrel, while US light, sweet crude for December delivery moved down to US$77.28/barrel. BG Group (LSE: BG) led the sector with a gain of nearly 2%, while Tullow Oil (LSE: TLW) and Petrofac (LSE: PFC) followed, advancing 1.7%.
Supermajors BP (LSE: BP) and Shell (LSE: RDSB) were up 1.2% and 1% respectively and Cairn Energy (LSE: CNE) added 1.5%.
Midcaps were mixed as while Dragon Oil (LSE: DGO) declined marginally, fellow FTSE 250 constituents Heritage Oil (LSE: HOIL) posted a small gain and Dana Petroleum (LSE: DNX) rose 1.7%.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) led the juniors with a 7% advance after reporting gas shows form its Logbaba gas and condensate project in Cameroon. US focused junior Empyrean Energy (AIM: EME) also was in demand, tacking on 4.5%.
Energy investor Xtract Energy PLC (AIM: XTR) emerged as one of the leading fallers in the sector, shedding almost 10% after reporting its final results. Europe focused oil and gas developer Ascent Resources (AIM: AST) and Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) followed, sliding 4%.
Gold reaches record highs and silver reaches $18 and platinum eclipses $1,400
Precious metals performed strongly throughout the day. Gold hit new all time highs at 1,131/oz today. Silver and platinum also reached new milestones, climbing to US$18.03/oz and US$1,425/oz respectively.
Lonmin (LSE: LMI) remained strong until late in the session, leading the blue chips with a 9.3% rally. Fellow FTSE 100 constituents gold miner Randgold Resources (LSE: RRS) and Fresnillo (LSE: FRES) rose 4% and 2.5% respectively.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) also added 2.5%.
Mid tier miners also traded well. Gold miner Petropavlovsk (LSE: POG) added 4%, Aquarius Platinum (LSE: AQP) was up 3% and silver producer Hochschild Mining (LSE: HOC) climbed 1.5%.
Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (AIM: CGH) and Brazil focused gold miner Horizonte Minerals (AIM: HZM) emerged as the top performer among the small caps, surging 10%. Uzbekistan focused gold miner Oxus Gold (AIM: OXS) followed with a 6% advance, while Western Australia operating Norseman Gold (AIM: NGL) and Philippines focused gold producer Medusa Mining (AIM&ASX: MML) followed with gains of 5%.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the fallers among the juniors, slipping 11%. Australian gold and copper prospector Solomon Gold (AIM: SOLG) and African focused nickel and gold exploration and development junior Nyota Minerals (ASX&AIM: NYO) were down 3.5%.
Miners climb as copper, nickel and zinc rise
Base metals also advanced with copper and nickel climbing to US$3.05/lb and US$7.45/lb, while zinc was just short of US$1/lb.
Xstrata (LSE: XTA) led the sector, gaining 7%. Antofagasta (LSE: ANTO), Rio Tinto (LSE: RIO) and Anglo American (LSE: AAL) followed, gaining 6.5%, 5% and 4% respectively. Eurasian Natural Resources (LSE: ENRC) and Vedanta Resources (LSE: VED) both were up 3.5%. Kazakhmys (LSE: KAZ) gained 3% and BHP Billiton (LSE: BLT) rose 2.2%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) moved with the market, tacking on nearly 2%.
The few notable movers among the small caps in the sector included iron ore focused investor Red Rock Resources (AIM: RRR) with a 3.5% gain and South American focused junior miner Herencia Resources (AIM: HER) and Tunisia focused metal miner Maghreb Minerals (AIM: MMS), which both lost nearly 5%.
Banks, insurance, private equity
Financial stocks were in buying mode today.
HSBC (LSE: HSBA) led the banking sector with a 3.2% gain. Barclays (LSE: BARC) and Standard Chartered (LSE: STAN) followed, advancing 2.2% and 1.5% respectively. Part-nationalised banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) turned early losses into gains, sitting slightly above the opening level by the end of the day.
Insurance stocks were mixed today. Old Mutual (LSE: OML) led with a gain of 2.7%. Prudential (LSE: PRU) and Aviva (LSE: AV) followed, climbing 1.8% and 1.3% respectively. Standard Life (LSE: SL) rose marginally. Elsewhere in the sector, car insurer Admiral Group (LSE: ADM) and Legal & General (LSE: LGEN) declined marginally, while RSA Insurance Group (LSE: RSA) lost 1%.
Private equity group 3i (LSE: III) did well, advancing 4.6%.
Home credit and motor finance specialist S & U PLC (LSE: SUS) did well, climbing 3.2%.
Small Cap Movers
Other notable movers among the small caps included environmental science and technology company Accsys Technologies (AIM: AXS), which climbed 8.7% and mobile email and data synchronisation group Synchronica PLC (AIM: SYNC), which added 7% after announcing its 12th contract win this year for its mobile email product Mobile Gateway. Machine to machine (M2M0 communications specialist Telit Communications (AIM: TCM) also did well, climbing 8%.
Large and Mid Cap News
FTSE 100 Engineering firm, Rolls-Royce (LSE: RR.) announced two new contract wins to supply it Trent aviation engine to international airlines – the combined contracts are worth almost $2 billion in new business. In the larger of the two deals, Rolls-Royce won an order worth $1.5 billion to supply Trent 700 engines to power 20 Air China Airbus A330 aircraft. Separately the second deal with Ethiopian Airlines is for $480m.
UK house builder Persimmon plc (LSE: PSN) released its third quarter Interim Management Statement for the period from July to 16 November 2009. According to Persimmon the company ‘remains strong’ after a period in which the group’s sales and debt position is ahead of expectations.
UK listed maintenance and building service company, Interserve released its Interim Management Statement (‘IMS’) for the period since July. According to Interserve (LSE: IRV), it has benefitted from a ‘strong performance’ in its Middle-East operations and an ‘ongoing stability’ in the public and utilities sectors in the UK. Overall the company said that it is trading in-line with expectations.
FTSE 100 oil and gas support services group, Petrofac (LSE: PFC) announced that its Offshore Engineering & Operations subsidiary had secured a five year, £100 million maintenance contract with BP (LSE: BP).
Web-based consumer advice and price comparison company, Moneysupermarket.com Group (LSE: MONY) reported in-line results for the third quarter and year-to-date. In an interim statement MoneySupermarket said trading levels had continued to stabilise, and as a result, Q3 has been the strongest trading period so far this year.
Small Cap News
Empyrean Energy (AIM: EME) reported further progress on the highly anticipated Quinn 3H well, which has already been the subject of intense speculation amongst investors after the company reported encouraging results from the well recently.
Provider of software and IT services Advanced Computer Software (AIM: ASW) has acquired Derby-based Healthy Software Ltd (HSL) in a cash and share deal worth £0.9 million to build on and complement its own solutions targeting the healthcare market.
Red Rock Resources PLC (AIM: RRR), the mineral exploration and development company focused on advancing iron ore, manganese and uranium projects in Australia and East Africa, said it will shortly begin a new programme of exploration at the Migori greenstone belt in southern Kenya.
Energy investor Xtract Energy PLC (AIM: XTR) reported on the results for the full year ending 30 June, saying it has swung to losses as revenues narrowed amid “dramatically changed” market conditions, while reaffirming its focus on investments that are likely to pay off sooner to reduce cash burn.
Titanium Resources Group (AIM: TXR) has raised £15.1 million through an equity placing to increase production and processing capacity at its Sierra Rutile Mine in Sierra Leone.
Biopharma group Lipoxen PLC (AIM: LPX) said it has signed a collaboration deal with Russian private research-based pharmaceutical company Pharmasynthez ZAO to apply Lipoxen's ImuXen and PolyXen proprietary technologies to a broad range of six drug and vaccine candidates in collaboration with Pharmsynthez.
IdaTech (AIM: IDA) and ACME Group (‘ACME’) announced that they had agreed to alter a previously announced supply agreement to a distribution agreement for IdaTech’s ElectraGen™ back-up power products, which typically use a methanol-water mix as a fuel, but can also run on natural gas.
Payment and data processing specialists, Planet Payment (AIM: PPT, OTCQX: PLPM) delivered further evidence last week that its business model is capable of returning significant growth for shareholders and stakeholders alike.
Shares in Victoria Oil & Gas (AIM: VOG)(‘VOG’) were in demand after the Africa and FSU operating oil and gas junior released an update from its Logbaba gas and condensate project in Cameroon, reporting gas shows in the La-105 well.
Construction consultancy and project manager Cyril Sweett Group PLC (AIM: CSG) said it has been appointed to work on the ‘crystalline’ tower, with 385 metres the highest building planned in The King Abdullah Financial District (KAFD) in Riyadh, Saudi Arabia.
Stem ReNeuron Group PLC (AIM: RENE) said it is presenting further positive pre-clinical efficacy data for its ReN009 stem cell therapy for peripheral arterial disease (PAD) at the American Heart Association (AHA) Scientific Sessions 2009 in Orlando, Florida, which will run until November 18.
Papua New Guinea operating Australian based miner Allied Gold (AIM: AGLD, TSX: ALG, ASX: ALLD), which is set to start trading on the Toronto Stock Exchange today, has filed a prospectus in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia for an equity offering aimed at raising C$155 million.
Amphion Innovations PLC (AIM: AMP) investee company Myconostica Ltd said it has won this year’s award for ‘Innovation in Diagnostics Project of the Year’ from BioNoW, the cluster support group for the Northwest of England's biotechnology, pharmaceutical and healthcare industry.
Security solutions specialist Westminster Group (AIM: WSG) confirmed this afternoon that it has made an approach for fellow AIM listed company Pentagon Protection Plc (AIM: PPR). Pentagon Protection produces window films and glass containment anchoring systems that provide anti-shatter and bomb blast protection characteristics for buildings.
South American focussed gold producer and mining developer Mineral IRL (AIM: MIRL) confirmed that it would be pushing forward with infill drilling at the Ollachea Gold Project in southern Peru after it released a scoping study considering the viability of the project as an underground mining operation.
Evolution Securities revisited its valuation of Firestone Diamonds (AIM: FDI) after the South Africa and Botswana operating diamond miner released its full year results, reducing the target price to 50 pence, but maintaining its “buy” recommendation for the stock with expectations of a significant newsflow over the next nine months.
Aminex PLC (LSE: AEX) said it has farmed out a 12.5 percent interest in the Likonde-1 well in Tanzania to Solo Oil PLC (AIM: SOLO). Likonde-1 is the first well scheduled to be drilled on Aminex's Ruvuma Production Sharing Agreement (PSA) in southern Tanzania with spudding likely to occur in about two months, the precise date depending on rig move logistics. A rig contract has been signed.
South America focused explorer Mariana Resources (AIM: MARL) said it has closed the placing of shares prived at 13 pence each to institutional and other investors it announced a week ago, raising £2.95 million, more than the £2.6 million originally envisaged.
Mobile email and data synchronization group Synchronica PLC (AIM: SYNC) has landed its fifth order from an African operator for its mobile email product Mobile Gateway, its twelfth contract announced this year.
Links: Full news story
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