Monday 22 August 2011

SOCO international climb while FTSE 100 runs in red

"We believe 400-500 p is a range of fair value recovery for SOCO," said analysts, who helped push SOCO until 16.6 340½p.

But the SOCO gain reflected by other stocks of resources, which collapsed on Wednesday on the fear that China will redouble its efforts to cool inflation.

After having joined the earlier this week as investors rushed into the gold miners lost their lustre with Lonmin dropping back 88 percent to £ 18.06, while Antofagasta declined by 56 percent to £ 14.05.

Poor performance of stocks mining has led to the FTSE 100 down points 58.25 5816.94 - far from the 5,900 touched briefly on Tuesday.

China concerns side, a host country concerns were also darkening mood, with concerns about the debt of the Ireland send a shiver through the markets.

Ireland borrowing costs have reached a record level this week, and concerns were more fed Wednesday clearing house LCH Clearnet place requiring a larger deposit of government bond trading clients.

Patrick Honihan, Governor of the Central Bank of the Ireland admitted the country needs to get its financial situation clearly under control and to reassure investors quickly.

Include the increasing concern about the State of the economy of the country, the economy, Oli Rehn European Commissioner, has denied rumours that the Irish Government had contacted the new euro area Rescue Fund and international monetary Fund on a Greek bailout market.

On a more optimistic note utility stocks were heating, providing support for the index of reference.

The Board winners included Scottish & Southern Energy, spreading up to 42 per cent to £ 11,60 energy provider increases its dividend.

Bank of America - Merrill Lynch analysts were impressed and upgraded their rating."With having lower stock UK utilities since June, we are seeing renewed clarity and management such as positive and upgrade trust to buy," said the broker.

Other public services have increased in the wake of SES on a day when defensive were in favour, with National Grid 7½ to 583 p and Centrica 1.9 percent 336.2 more.

BAE Systems has been too as rating Investec repeated his "buy" on defence society following an "optimistic" investor day is gaining ground.Analysts noted footprint geographic BAE and said that, for the first time in a time management spoke in terms of growth in the top row across its extensive portfolio, despite the slowdown in both sides of the Atlantic defence budgets.BAE ended 10.9 359.4 p.

But coming under pressure Marks & Spencer, losing 10.4 percent 395.6, as investors continue to chew CEO Marc Bolland plans of evolution rather than révolution.Sentiment no help was that M & S President, Sir Stuart Rose, had sold more than £ 400.00 worth actions on the same day, Mr Bolland set out its strategy.

Nick Bubb, Arden partners analyst said the negative reaction on the part of M & S review "seemed rude" it has kept its "neutral" rating and encouraged for its own benefit throughout the year, pre-tax forecast $ 740 million to £ 725 m £.

He was also cast his eye on HMV, retailer of music, after the Russian billionaire, Alexander Mamut, its participation in 3pc.M.Bubb describes the unexpected news, but welcome, it highlights the anomaly enormous assessment in actions.HMV ticked up to 1.25 percent now.

After taking a fall Tuesday due to low sales figures, Yell Group fell another 0.21 to 12.16% Goldman Sachs reiterated his "sell" rating on the editor page jaunes.Goldman also slashed its target 8% 27% due to a worsening outlook structural and debt.

Analysts said that they continue to remain concerned about the effect of levier.Yell refinanced its debt burden of the 8bn £ 3 through a capital raising last year, said the broker purchased Yell time from having to undergo another refinancing in 2013.Mais to further reduce leverage, analysts estimate that Yell will require approximately £ billion capital supplémentaire.Chute Yell was FTSE 250 lost 10994.52 112.36 points.

Prices of gilts had a fall after the Bank of England revised until his foreacasts inflation for the next year, suggesting a second wave of quantiative easing (QE) is less.

The December gilt future installs 118 ticks down 122.68, barely over the three-month closure 122,60 low on October 27 and after earlier hit by two weeks intra-day low 122.37.

5-10 Years of the gilt - more likely to be purchased by the Bank maturity curve should it regain its program QE - has been the hardest hit, with yields in the sector up to 15 basis points.

The Bank of England expects that inflation coming two years would be less than objective 2 PC, as it did in its quarterly inflation report in August.

But it has increased its forecasts of inflation in the coming year and said that had increased the risk of its forecasts.

"For many of the market it is significantly decreased the probability of EQ,"Francis Diamond, JP Morgan, gilts strategist told Reuters.""


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