Scalpuman
Admin
Posts : 1174
Join date : 2009-05-13
 |  Subject: ADVFN Evening Euro Markets Bulletin - June. 14th 2010  Mon Jun 14, 2010 4:33 pm | |
| By ADVFN.comADVFN offer FREE streaming stocks and shares data form around the world. SEE | London Markets Report |
Mining stocks boost Footsie
Market Movers
techMARK 1,640.80 +0.85%
FTSE 100 5,202.13 +0.74%
FTSE 250 9,795.41 +1.37%
Footsie finished with good gains as mining stocks enjoyed a boost from higher metals prices. Mining companies Kazakhmys, Vedanta and BHP Billiton went well but it was silver and gold miner Fresnillo that led the way on rumours that the company is under the bid microscope.
The oil disaster in the Gulf of Mexico has now cost BP £1.1bn ($1.6bn) and the pressure on the oil giant is likely to intensify over the next few days.
Over 51,000 claims have been submitted since the MC252 oil well blew up in the Gulf of Mexico in April, and more than 26,500 payments have been made, totalling over $62m (£42m).
There is also speculation that the company could be stripped of control of its US oil and natural gas wells and shut out of federal government contracts.
Life insurer Resolution suspended its shares this morning after confirming it is in discussions to buy AXA's UK life assurance businesses for £2.75bn. The businesses to be acquired are AXA's UK protection and annuities arms and also its group pensions business. A £2bn rights issue will help pay.
Most of National Grid’s shareholders, 94.2%, have taken up their rights as part of the gas and electricity supplier’s £3.2bn cash call announced last month.
Utility giant United Utilities (UU) is to offload its principal non-regulated water interests in the United Kingdom and Europe to Veolia Water UK. Veolia is paying £174.2m for the assets, of which £108.6m is cash.
Broker comment is weighing on Argos and Homebase owner Home Retail Group. JP Morgan Cazenove has had a few days to run the rule over the retailer’s results last week and has decided to downgrade the shares.
Shares in Weir Group jumped after a strong trading statement and some acquisition activity from the engineer. Weir said trading for the nine weeks to 4 June has been stronger than expected and confirmed it will acquire Kuala Lumpur based Linatex for £138m as it expands its global reach. Linatex, which provides wear-resistant products to the mining and sand industries, fits into its strategy of growing its global capability, Weir said.
In other acquisition activity, Dana Petroleum has made a major expansion of its North Sea interests with the purchase of Petro Canada's Dutch arm for €328m. Petro Canada Netherlands (PCN) operates in the in the Dutch sector of the North Sea. It brings an additional 31m barrels of oil equivalent of proved and probable ("2P") reserves and 51m of possible reserves.
Petrofac, the international oil and gas facilities service provider, has bought TNEI Services, a specialist consultancy supporting the energy, power and renewables sectors. Petrofac is paying £7.5m for TNEI, of which 30% is contingent upon senior management's continued participation in the business. TNEI has some 50 staff in Newcastle and Manchester and provides services in the areas of power transmission and distribution, planning and environmental consent and energy management.
Support services firm Carillion has been awarded a 10-year framework contract to provide facilities management services at Heathrow Airport.
Wine retailer Majestic Wine said full year pre-tax profit more than doubled, helped by its takeover of Lay & Wheeler and changes to its minimum purchase rules. For the 52 weeks ended 29 March 2010 pre-tax profit increased to £16.0m from £7.4m the same time a year earlier. Total sales rose to £233.2m from £201.8m before. The figure includes a £12.4m contribution from Lay & Wheeler which it bought in March 2009.
SuperGroup, owner of the fast growing Superdry fashion label, has signed a franchise agreement with Al Khayyat Investments to open 13 Superdry stores across the United Arab Emirates.
Cinema chain Cineworld is to go fully digital across its estate in the UK and Ireland. The company has entered into an agreement with Arts Alliance Media (AAM), a leading European provider of digital cinema technology and distribution services, to complete the roll-out of digital projection facilities.
Sheffield based oil and gas equipment supplier Pressure Technologies fell after it saw its half year profit decline and its order book shrink but the company said it is on track to meet full year expectations.
Drug developer Phytopharm has been given the go-ahead for a phase two trial of its Parkinson’s disease treatment Cogane by the US Food and Drug Administration. The study will investigate the efficacy, safety and tolerability of Cogane administered for 28 weeks to patients with early stage Parkinson's disease. |
| | Get The Best Hand-Picked Penny Stocks For FREE |
And Make 50-100% In A Single Day... All You Need To Do Is To Read Your Email...
Click Here |
| FTSE 100 - Risers
Fresnillo (FRES) 1,060.00p +5.05%
Kazakhmys (KAZ) 1,183.00p +4.32%
Anglo American (AAL) 2,672.50p +3.73%
InterContinental Hotels Group (IHG) 1,197.00p +3.64%
Barclays (BARC) 301.35p +3.61%
Whitbread (WTB) 1,451.00p +3.57%
Smiths Group (SMIN) 1,105.00p +3.56%
British Airways (BAY) 206.10p +3.52%
Xstrata (XTA) 1,033.00p +3.30%
Eurasian Natural Resources (ENRC) 1,061.00p +3.21%
FTSE 100 - Fallers
BP (BP.) 355.45p -9.30%
Morrison (Wm) Supermarkets (MRW) 257.70p -1.53%
Home Retail Group (HOME) 231.50p -0.94%
Tesco (TSCO) 391.65p -0.65%
Man Group (EMG) 244.90p -0.61%
Sainsbury (J) (SBRY) 319.70p -0.53%
Shire Plc (SHP) 1,428.00p -0.14%
AstraZeneca (AZN) 3,057.00p +0.03%
Cobham (COB) 232.10p +0.04%
Sage Group (SGE) 242.10p +0.04%
FTSE 250 - Risers
Weir Group (WEIR) 1,066.00p +12.15%
Cookson Group (CKSN) 465.90p +6.03%
Fenner (FENR) 217.00p +5.91%
Eaga (EAGA) 118.00p +5.73%
Morgan Crucible (MGCR) 191.60p +5.62%
Brit Insurance Holdings NV (BRE) 929.00p +5.57%
Senior (SNR) 128.00p +5.00%
Domino Printing (DNO) 414.00p +5.00%
Ferrexpo (FXPO) 265.00p +4.83%
Salamander Energy (SMDR) 250.70p +4.46%
FTSE 250 - Fallers
Unite Group (UTG) 172.30p -2.98%
Capital & Counties Properties (CAPC) 104.80p -2.96%
Grainger (GRI) 108.00p -2.61%
Taylor Wimpey (TW.) 29.03p -1.76%
WH Smith (SMWH) 433.80p -1.70%
Premier Foods (PFD) 20.40p -1.45%
Logica (LOG) 121.20p -1.38%
Hargreaves Lansdown (HL.) 349.90p -1.30%
Hiscox (HSX) 338.00p -1.20%
Davis Service Group (DVSG) 367.80p -1.10% |
| | Point spreads on Wall Street – every point counts! |
We can’t say fairer than that. It’s a special one-off deal with a 1 point spread on Wall Street for the duration of the World Cup. Now that’s a big deal on a very small spread. Click here for more info. |
| | European Markets |
Large gains for bourses
Europe’s main markets closed higher on Monday after adding to gains in afternoon trading on the back of a good start on Wall Street.
French insurer AXA rallied after the UK’s Resolution confirmed it is in discussions to buy AXA's UK life assurance businesses for £2.75bn. The businesses to be acquired are AXA's UK protection and annuities arms and also its group pensions business.
UK utility company United Utilities is to offload its principal non-regulated water interests in the United Kingdom and Europe to Veolia Water UK. Veolia is paying £174.2m for the assets, of which £108.6m is cash with the remainder accounted for by £65.6m in net debt assumed by the purchaser.
Societe Generale advanced on news that its Credit du Nord unit is in exclusive talks to buy a French retail bank from BPCE for €872m. Societe Marseillaise de Credit, or SMC, operates in south-east France through 144 branches and serves around 200,000 customers.
Elsewhere in the banking sector, Spain’s Santander could be the only bidder for 318 high street branches being sold by the Royal Bank of Scotland when the auction ends today. The Spanish bank is reported to be have tabled a £2bn offer in April.
Santander has been snapping up UK assets in recent years, having bought Abbey, Alliance & Leicester and the savings arm of Bradford & Bingley. A deal for RBS's old Williams & Glynn businesses would make it a major player in the UK bank market with 14% of the mortgage market and 10% of retail savings.
Across the markets, the Dax in Frankfurt added 77 points to 6,125, while the Cac in Paris gained 71 points to 3,626. The Swiss market closed 45 points higher at 6,472.
The oil disaster in the Gulf of Mexico has now cost BP £1.1bn ($1.6bn) and the pressure on the oil giant is likely to intensify over the next few days as Barack Obama prepares to address the American people tomorrow.
Over 51,000 claims have been submitted since the MC252 oil well blew up in the Gulf of Mexico in April, and more than 26,500 payments have been made totalling over $62m (£42m).
On the economic front, euro zone industrial production rose by 0.8% month-on-month and a record 9.5% year-on-year in April. |
| | BMV U.S. Investment Properties starting from £24,995 |
If your looking for a high cash flow positive property with tens of thousands of dollars equity from the start, then Mayfair Group offers you a complete hands free ‘zero hassle’, investment package with yields up to 25% per annum from just $35,995 all in. Click Here |
| | US Markets Report |
Stocks Seeing Considerable Strength In Mid-Morning Trading
Stocks are up by substantial margins in mid-morning trading on Monday, driven higher by optimism derived from generally upbeat economic comments by St. Louis Federal Reserve Chairman James Bullard. The major averages are all in positive territory, attempting to extend the upward move started late last week.
The buying in interest stocks comes as Bullard remarked in Japan today that the "rapid Chinese growth can easily be reconciled with the fundamentals, and so the risk of a sudden slowdown in China derailing the global recovery, while certainly not zero, seems limited".
He also said that the ongoing debt crisis in Europe is not likely to deflate continued economic recuperation on a global scale and that the recovery by U.S. GDP should be complete by the third quarter of this year.
In regards to U.S. interest rates, the St. Louis Fed chief said the Fed would need to see more improvement before raising rates.
Bullard added that the financial turbulence brought on by the sovereign debt crisis in Europe makes it unnecessary to raise the Fed's discount rate at this time.
On the corporate front, BP Plc (BP) has returned to the downside today, as the firm is expected to make a decision on its dividend payout and has been contacted by the White House to set up an account for victims affected by the oil spill.
The major averages have all seen choppy movement in recent dealing, drifting near session highs. The Dow is up 63.71 points or 0.6 percent at 10,274.78, the Nasdaq is up 24.78 points or 1.1 percent at 2,268.38 and the S&P 500 is up 8.20 points or 0.8 percent at 1,099.80.
|
| | Let CMS Forex find patterns for you |
Our integrated pattern recognition technology identifies patterns in real-time.
Download the free demo - Click Here |
| | Broker tips: |
Aggreko, Majestic, Weir
An exhaustive visit to nine of Aggreko’s sites in Africa has not changed Panmure Gordon’s mind about the company’s shares, which it thinks are fairly valued by the market, though the broker was impressed with the growth prospects for the temporary power provider over the long term.
“In addition to underlying improvements in rates, which we believe are now coming through in a number of markets, there remains a fundamental shortage of investment into replacement and new-build power generation which should continue to leave supply requirements for temporary power short of what remains growing demand in a material number of countries,” the broker said.
The company remains “well placed to win more than its fair share” of contracts for high profile special projects such as the Winter Olympics or the World Cup, but with the shares trading on 19.4 times projected 2010 earnings per share the stock is rated no more than a “hold”, with “only marginal upside to our 1458p price target”.
Results from Majestic Wine were ahead of expectations but FinnCap thinks the wine seller will be awaiting next week’s UK Budget with a degree of trepidation.
The company has had some success selling more fine wines – like for like (LFL) sales growth in this area was 22.7% year on year compared to LFL growth of 8.4% overall – but the broker things “the ‘trading up’ into fine wines would appear to be threatened by the upcoming ‘austerity’ Budget – Majestic’s customers appear to be in the firing line.”
On the plus side the company should continue to derive better than average LFL sales growth from its online business, FinnCap suggests, while “the encouraging start to the year should allow forecast upgrades today.”
“The shares already enjoy a premium rating, reflecting the strength of the company’s trading model and its balance sheet. It seems likely that the current trading statement will underpin that in the short-term,” FinnCap concludes.
Engineering group Weir was the best performing FTSE 250 stock on Monday morning after trading in the nine weeks to 4 June exceeded expectation.
Broker KBC Peel Hunt has reiterated its “buy” recommendation on the stock, saying: “After market demand remains strong and continues while original equipment orders are beginning to improve.”
Weir said first half pre-tax profit is now expected to be around £140m, while over the full year it should be somewhere in the range of £250m to £260m. KBC Peel Hunt had originally been forecasting pre-tax profit of £220m for the current year. |
| |
|
