Wednesday 20 July 2011

Minors hoist large cap as the price of metal Bond

With gold reaching another top and silver destabilization $40 an ounce for the first time since 1980, as well as copper checking, Fresnillo and Randgold resources advanced 38 p to £ 16,46 and 110 p to £ 53.40 respectively.

But it was not just surging metal prices having a positive impact on minors. M & A potential reactions were also the towers, invited by expectations that commodity trading house, Glencore, will float in London. Swiss-based Glencore already has almost 35pc of Xstrata and mines and the logistics of the chains around the world, as well as trade commodity. Bernstein analysts believe that Glencore could float in the second quarter of this year and perhaps try to merge with Xstrata.

Then, analysts estimate, the combined entity could make room for anglo american. The broker believes that such acquisition may be motivated by factors, including an overlap of solid goods between the two companies, including copper and nickel.

"Even outside this scenario, we believe that Anglo American is the target of acquisition probably among the large diversified miners and might be of interest in the company of a number of his peers," said Bernstein analysts.

They have highlighted two other potential M & A among minors diverse major, including bhp billiton to another offer of Rio tinto and Xstrata sell himself to the Chinese of a takeover of 30pc premium. Xstrata advanced 40½p to £ 125 p to £ 33.44 15.13½ and Anglo American. BHP Billiton and Rio Tinto progression 68½ £ 25.85½ and 139 p to £ 45.24 respectively. Minors midcap kenmare Resources and African Barrick Gold advanced 3½ to 49 p and p 18½ to 563, respectively.

Activity in the resource sector helped establish the benchmark on a firm footing after it slipped back later Thursday following another earthquake in the Japan. The FTSE 100 rose 48.38 points to 6055.75, then that the FTSE 250 points 66.77 at 11726.19.

Also on the rise has been undertaken of security, G4S, who set p of 3.6 to 262,7 after purchasing group Cotswold, a provider of surveillance, of £ 10. 2 m.

Ticks too was drug manufacturer, Shire, higher at £ 18.19 28 p. He has given boost by the American Food and Drug Administration (FDA) by saying that it was not recommending changes in the use of stimulants to treat hyperactivity, such as Adderall XR of the County, after a review of a study on the potential heart disease risks posed by drugs. The FDA has not yet give an update completes its review, but traders were encouraged by the positive signals from surveillance of drugs.

"Even if not absolutely definitive, that is positive for the stimulant class and Shire," said Bernstein analysts. "" "". Concerns about the possibility of a wrong result moderate our enthusiasm for Shire. »

Join Shire was Scottish & Southern Energy, spread up to 29% to £ 13.12 as Credit Switzerland developed at the enterprise level of public services "outperform" from "neutral", which raised its price target to £ 12.25 £ 14.00.

Conversely, Credit Switzerland cut ICAP of "neutral" to "underperform" for purposes of evaluation, sending broker disappear down 21 519 p.

Drag-back was too Aggreko, who reached 30 p £ 16.66, that Morgan Stanley, also citing reasons for the evaluation, cut electricity provider temporary to "equalweight" from "overweight".

As oil rose to a high airlines, 30 months prices fell from favour. On the top flight, International Airlines Group slid 5.6 p 217.4 while peer midcap easyJet declined 8.7% 324.3. Also weighing on this last point was a note from UBS cut its price target to 460 p 420 p, but keeping its rating to "buy".

Leading the laggards, however, was online games company bwin.party, which sank 6.4 c p. With investors still scratching his head on the implications of the German States - apart from the Schleswig-Holstein - proposes to strengthen their regulations on gambling, Numis analysts recalled the words of Lord Palmerston: "only three people have never really understood the Schleswig-Holsteinle Prince Consort business"who is dead, a German Professor, who lost the reason and me, who have forgotten all about it. »

Since the emergence of proposals Wednesday, the share of the bwin.party price slipped 18 5pc, as worried investors of the potential impact on earnings. But analysts at Numis thought that it was an overreaction, "which will reverse as the proposed Act is improved in the coming months" and retained their "buy" rating.

However, UBS analysts cut their rating to "sell" from "neutral", with a price target of p 100 185 p.


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