Showing posts with label commodities. Show all posts
Showing posts with label commodities. Show all posts

Thursday, 19 May 2011

Weakening commodities weigh on equities

A decrease in oil prices has also reached producers such as bg Group, which has dropped from 51 percent to £ 14.06. Lower market, there was bad news for The oil againtoo. Explorer listed dropped goal 24½ in 84½p after inconclusive results from one of its North Sea of investors wells disappointed.

But stocks which suffered earned the field of oil prices surging. Cruise operator, Carnival, almost fell 20pc during the first four months of the year in the fears on the rise in fuel prices. In February, analysts at Nomura suggested that each amendment 10pc at the price of fuel in both sense affected the result by action of the Carnival by FP7 - 8pc.

But as brent withdraw yesterday, Carnival remonta 102 p to £ 25.50 to claim the pole position.

Among other stocks of travel which brought much of the concerns on the rise in fuel prices, International airlines consolidated advanced 6.6 to 246 p and TUI Travel - owner of first choice - gained 0.4 percent 241.9.

However, the blue chip set index remains low with minor heavyweight financial stocks leading the large cap below. The FTSE 100 slipped points 64.09 to 5919.98, then that FTSE 250 points Qatar to 11845.72

Suffering the sharpest slide was Schroders, which fell from 123 p to £ 13,98 as investment manager has experienced an unexpected loss on investments in the first quarter.

Lloyds banking Group also plunged 4.64 to 53.38 p as supported by the State Bank took a charge of MD surprise £ 3 against its profits to cover the compensation for the sold insurance that they would never be able to claim or that they did not know that they were purchasing. Decline of infected Lloyds other banking stocks, Royal bank of scotland fell 1.22% 40.48 and Barclays dropping 7½ to 276.3 p.

But then the market has remained firmly in reverse, accelerated transport by a commercial update upward of Green fire groupoperators.

The midcap company, which operates trains from the Southeast and the Gatwick Express, has led up to 95% at £ 14.95 to claim the gold medal, as it announced that annual profits are expected to top previous expectations after a strong performance in the last three months.

Rail revenue jumped over that 10pc during the three months at the beginning of April and his company of British bus sales rose 9 8pc. Its joint venture yellow school buses to the United States was also satisfactory progress, said the green light.

Analysts kept Arbuthnot as their "buy" rating, saying that Green was a "relatively stable and cash-generative group" and there was scope for improvement of earnings more if the progression of rail revenue continues.

Along with green light, first group - which will of the Great Western - sautéed franchise 11 335 p and bus and coach operator, Stagecoach, rose 4.9 percent 240.7.

Return on the highest level, arm Holdings traded laggards to leaders, who took a sharp fall earlier in the week. Microchip designer plunged Thursday as investors line venerate yet on an announcement to us rival Intel after the Bell. But yesterday, investors seem to determine that the "revolutionary" of Intel 3D technology was after all not so disturbing.

Analysts at Nomura said that it was a negative in the short term for the arm, but added that by the time Intel new product really works and running, the Cambridge-based company could already have moved to a more powerful chip design and once more be coming on the market. That helped advance ARM 9 567 percent.

A series of optimistic business updates also supported like it of Smith & Nephew (S & N), Diageo and Rexam as investors fall on a few glimmers of strength corporate.

Manufacturer of medical devices, S & N, ticked up to 20 and 680 p as he posted an increase in revenue in the first quarter set. Which prompted analysts at Investec to upgrade their rating "buy" from "hold", saying that the results showed S & N "is more than hold its own".

S & N was the subject of perennial repeated speculation, but these rumours have the end tweezers. The actions were sous-effectuées in the last months of rumours of bid fading, analysts Investec said that assessment was now seeking more attractive.

During this time, Diageo climbed p 18-12: £ 30 as the creator of Smirnoff vodka and third quarter sales unveiled the Johnnie Walker whisky which prevails over the estimates of analysts.

Rexam, which makes the boxes for Carlsberg and Red Bull, was tuppence 385.4% better than the first commercial after quarter was consistent with expectations.

However, it was more cautious about the prospects of its plastic packaging division. Rexam said he saw a low trade home products and personal care and make-up. The company added that the process of divesting its business closures - which makes the tops and lids for products such as beverage containers - is progressing well.

Among the second liners, signs of strong trading AZ electronic materials has helped the supplier of specialty chemicals Bond 8.6 p 288.9. But, as the highest level, oil producers have been disgraced with the premier oil retired 68 p to £ 18.22.

Lower market, rangemaster AGA - maker of the eponymous oven - cooled 9.75 to 111 p as he said orders were down in April from the same month last year, as consumers were become more cautious.


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Wednesday, 10 November 2010

Mining shares lift FTSE 100, buoyed by bullish outlook for commodities

Meanwhile, currency concerns relating to the possibility of renewed QE and a prolonged period of negative real interest rates in the US are likely to drive strong investment demand for gold and silver, said Morgan Stanley.

Xstrata – which rose 46½p to £12.86 – and Kazakhmys, up 56p to £14.83, are the broker’s top picks from the London market.

African Barrick Gold also climbed 22 to 638p as Morgan Stanley raised its price target to 762p from 668p to take into account higher gold price forecasts and the prospect of a re-rating following third-quarter results on October 22, which the broker thinks should restore confidence in the company after the production issues in the second quarter.

Hannah Kirby, an analyst at Morgan Stanley, said: “We expect African Barrick Gold to report that Buzwagi is back on track given the corrective measures put in place at the mine. The resulting July run rates from Buzwagi also suggest that this is the case.”

Overall, the FTSE 100 moved 45.63 points higher to 5681.39 while the FTSE 250 jumped 118.27 points to 10800.23.

British Airlines put on 11½ to 266.1p as Barclays Capital raised its target price to 350p from 320p in the wake of strong traffic figures released earlier in the week.

A JP Morgan Cazenove upgrade to “buy” boosted Capita. The broker argued that near-term risks from public sector spending cuts are diminishing whilst the longer-term opportunities are increasing. The shares were also given a boost by a contract win. The company said it has been appointed by West Sussex County Council as the authority’s IT Infrastructure partner. The seven-year contract is worth £56m. The shares rose 13½ to 792p.

Inmarsat rallied 15 to 644p after Barclays Capital upgraded the shares to “equal weight”, arguing that risks to the company are fully “priced in” the shares.

Tesco benefited from Credit Suisse raising its price target to 500p from 460p. “Our initial big picture reaction to the results and analyst meeting was of a company now emerging from recession (albeit some countries/divisions faster/slower than others) more confident of now delivering higher returns,” said analysts at Credit Suisse. Tesco advanced 9.4 to 440.6p.

Property stocks made it onto the leaderboard as Nomura upgraded the sector to “neutral” from “bearish”. Mike Prew, an analyst at Nomura, said his contrarian forecast of a dip in commercial real estate values is now fully priced into share ratings and should be limited to around 5pc by extraordinarily low long-term interest rates.. Hammerson perked up 10.3 to 412p while Land Securities put on 13 to 676p.

On a less positive tack, Autonomy plummeted 301p to £15.51 after the software company lowered its forecast for full-year revenue by about 3pc. Goldman Sachs took the company off its “conviction buy” list and Numis downgraded the stock to “sell”. Analysts at Numis said yesterday’s statement indicates that product revenue will fall between 10pc and 15pc in the fourth quarter.

Among the second liners, a better-than-expected trading update and traffic figures helped Easyjet take off. The shares climbed 46.4 to 433.3p.

Charter International added 25 to 747½p following news that Thermadyne, a US listed metal cutting and welding products manufacturer, accepted a $422m bid from Irving Place Capital, a private equity firm. Numis advised clients to buy Charter as the broker believes M&A is still a theme for the sector and UK engineering companies are “in play”.

Ladbrokes also gained 1.6 to 136½p despite a Credit Suisse downgrade to “underperform”.

However, De La Rue slipped 12½ to 643p as UBS reiterated its “sell” rating on the stock. UBS analysts said they believe De La Rue will lose part of the India contract gradually over the next two years as suppliers increase capacity and India builds up its own capacity. As a result they cut their forecasts by a further 10pc.

UBS also continues to see downside risk as we do not know the profit contribution from India and expects the reputational damage to linger for quite a period of time.

Gemfields jumped 5¼ to 10½p after full-year results showed soaring emerald sales. The company sold just under $20m worth of the green gemstone, against less than $1m the previous year, as the market for the gems recovered.


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Monday, 1 November 2010

Banks and commodities drag FTSE 100 into red

Banks were the biggest laggards as an effective stake sale by a key Abu Dhabi investor in Barclays helped send its shares down 2.5pc.

Abu Dhabi exercised 131.6m warrants in the bank, equivalent to a 1.1 pc stake, and simultaneously entered into a hedging arrangement with Nomura, it said in a statement after Thursday's close.

Energy stocks were also languishing as crude prices fell by $1.30. BP shares fell 0.9 pc. Miners retreated after early gains as nerves set in ahead of the payrolls data. Rio Tinto lost 0.7 pc while silver miner Fresnillo fell 4.6 pc.

By midday, the FTSE 100 was 47.82 points lower at 5614.50, after it closed 0.3pc lower on Thursday on a wave of placings and block trades, signalling that some investors reckon the market has reached its peak.

On Thursday, Kazakhmys was the worst performer after broker Credit Suisse sold 9.35m shares – 1.75pc of the company – on behalf of the Orleans Trade & Investment Corporation (OTIC). Vladimir Ni, a non-executive director of Kazakhmys who died in the summer, had transferred 9.35m shares to OTIC.

Lloyd's of London insurer Catlin also dipped 16½ to 325p as Morgan Stanley placed 14m shares – around 3.9pc of the company – at 325p. Traders reckon the seller and buyer were long-only instiutions.

Thursday's deals follow a string of other share sales earlier in the week. Harbinger Capital sold a 14pc of its stake in Inmarsat, down 7½ to 636½p, while Vladimir Kim, chairman of Kazakhmys, disposed of 11pc of his shareholding in the mining giant to the Kazakh government, pocketing nearly $1.3bn in the process.


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Thursday, 14 October 2010

Mining shares lift FTSE 100, buoyed by bullish outlook for commodities

Meanwhile, currency concerns relating to the possibility of renewed QE and a prolonged period of negative real interest rates in the US are likely to drive strong investment demand for gold and silver, said Morgan Stanley.

Xstrata – which rose 46½p to £12.86 – and Kazakhmys, up 56p to £14.83, are the broker’s top picks from the London market.

African Barrick Gold also climbed 22 to 638p as Morgan Stanley raised its price target to 762p from 668p to take into account higher gold price forecasts and the prospect of a re-rating following third-quarter results on October 22, which the broker thinks should restore confidence in the company after the production issues in the second quarter.

Hannah Kirby, an analyst at Morgan Stanley, said: “We expect African Barrick Gold to report that Buzwagi is back on track given the corrective measures put in place at the mine. The resulting July run rates from Buzwagi also suggest that this is the case.”

Overall, the FTSE 100 moved 45.63 points higher to 5681.39 while the FTSE 250 jumped 118.27 points to 10800.23.

British Airlines put on 11½ to 266.1p as Barclays Capital raised its target price to 350p from 320p in the wake of strong traffic figures released earlier in the week.

A JP Morgan Cazenove upgrade to “buy” boosted Capita. The broker argued that near-term risks from public sector spending cuts are diminishing whilst the longer-term opportunities are increasing. The shares were also given a boost by a contract win. The company said it has been appointed by West Sussex County Council as the authority’s IT Infrastructure partner. The seven-year contract is worth £56m. The shares rose 13½ to 792p.

Inmarsat rallied 15 to 644p after Barclays Capital upgraded the shares to “equal weight”, arguing that risks to the company are fully “priced in” the shares.

Tesco benefited from Credit Suisse raising its price target to 500p from 460p. “Our initial big picture reaction to the results and analyst meeting was of a company now emerging from recession (albeit some countries/divisions faster/slower than others) more confident of now delivering higher returns,” said analysts at Credit Suisse. Tesco advanced 9.4 to 440.6p.

Property stocks made it onto the leaderboard as Nomura upgraded the sector to “neutral” from “bearish”. Mike Prew, an analyst at Nomura, said his contrarian forecast of a dip in commercial real estate values is now fully priced into share ratings and should be limited to around 5pc by extraordinarily low long-term interest rates.. Hammerson perked up 10.3 to 412p while Land Securities put on 13 to 676p.

On a less positive tack, Autonomy plummeted 301p to £15.51 after the software company lowered its forecast for full-year revenue by about 3pc. Goldman Sachs took the company off its “conviction buy” list and Numis downgraded the stock to “sell”. Analysts at Numis said yesterday’s statement indicates that product revenue will fall between 10pc and 15pc in the fourth quarter.

Among the second liners, a better-than-expected trading update and traffic figures helped Easyjet take off. The shares climbed 46.4 to 433.3p.

Charter International added 25 to 747½p following news that Thermadyne, a US listed metal cutting and welding products manufacturer, accepted a $422m bid from Irving Place Capital, a private equity firm. Numis advised clients to buy Charter as the broker believes M&A is still a theme for the sector and UK engineering companies are “in play”.

Ladbrokes also gained 1.6 to 136½p despite a Credit Suisse downgrade to “underperform”.

However, De La Rue slipped 12½ to 643p as UBS reiterated its “sell” rating on the stock. UBS analysts said they believe De La Rue will lose part of the India contract gradually over the next two years as suppliers increase capacity and India builds up its own capacity. As a result they cut their forecasts by a further 10pc.

UBS also continues to see downside risk as we do not know the profit contribution from India and expects the reputational damage to linger for quite a period of time.

Gemfields jumped 5¼ to 10½p after full-year results showed soaring emerald sales. The company sold just under $20m worth of the green gemstone, against less than $1m the previous year, as the market for the gems recovered.


View the original article here

Wednesday, 13 October 2010

Banks and commodities drag FTSE 100 into red

Banks were the biggest laggards as an effective stake sale by a key Abu Dhabi investor in Barclays helped send its shares down 2.5pc.

Abu Dhabi exercised 131.6m warrants in the bank, equivalent to a 1.1 pc stake, and simultaneously entered into a hedging arrangement with Nomura, it said in a statement after Thursday's close.

Energy stocks were also languishing as crude prices fell by $1.30. BP shares fell 0.9 pc. Miners retreated after early gains as nerves set in ahead of the payrolls data. Rio Tinto lost 0.7 pc while silver miner Fresnillo fell 4.6 pc.

By midday, the FTSE 100 was 47.82 points lower at 5614.50, after it closed 0.3pc lower on Thursday on a wave of placings and block trades, signalling that some investors reckon the market has reached its peak.

On Thursday, Kazakhmys was the worst performer after broker Credit Suisse sold 9.35m shares – 1.75pc of the company – on behalf of the Orleans Trade & Investment Corporation (OTIC). Vladimir Ni, a non-executive director of Kazakhmys who died in the summer, had transferred 9.35m shares to OTIC.

Lloyd's of London insurer Catlin also dipped 16½ to 325p as Morgan Stanley placed 14m shares – around 3.9pc of the company – at 325p. Traders reckon the seller and buyer were long-only instiutions.

Thursday's deals follow a string of other share sales earlier in the week. Harbinger Capital sold a 14pc of its stake in Inmarsat, down 7½ to 636½p, while Vladimir Kim, chairman of Kazakhmys, disposed of 11pc of his shareholding in the mining giant to the Kazakh government, pocketing nearly $1.3bn in the process.


View the original article here