London open: Bumi battered by concerns at subsidiary
Market Movers
- techMARK 2,135.69 -0.14%
- FTSE 100 5,827.47 -0.43%
- FTSE 250 11,908.94 -0.34%
London has started the week on a dull note, with renewed concerns over the single currency region weighing on sentiment following France and Germany's failure to agree a schedule for initiating shared oversight of the region banking sector. Bumi plummets
Mining giant Bumi said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29%. interest, with particular focus on that firm's development funds.
"The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at December 31st 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said.
Fund manager Aberdeen Asset Management saw its assets under management (AuM) edge up in the first two months of the second half of the year. AuM at the end of August stood at £184.3bn, up from £182.7bn at the end of June. Gross new business during July and August totalled £6.1bn, but overall the group saw a net outflow of £0.1bn.
Dairy Crest warned of lower first half profits, as challenging conditions continue, but said profit expectations for the full year ending March 31st 2013 remain unchanged.
Profit before tax and exceptional items slipped to £14.9m in the six months ended July 28th, from £16.2m in the corresponding period of last year at Irn-Bru maker AG Barr. The company took a £1m hit from adverse currency movements, although around £0.6m of this is expected to unwind in the second half of the year. On a constant currency basis, first half profit before tax was £0.3m behind the similar period in the prior year. Sales in the first seven weeks of the second half have shown double digit percentage growth.
Analysts at Bank of America Merrill Lynch have downgraded their view on shares of Anglo American to "neutral" from "buy".
Other markets
The price of oil has turned south, with the most activiely trade futures contract for Brent crude off 89 cents at $110.53 a barrel.
Gilts are not getting any benefit from investors spurning equities. Prices fall back, resulting in yields edging up. The yield on the benchmark 10-year gilt is 1.84%, up from 1.83% at Friday's close.
FTSE 100 - Risers
Reckitt Benckiser Group (RB.) 3,615.00p +0.44%
Smith & Nephew (SN.) 689.00p +0.44%
Hammerson (HMSO) 450.20p +0.36%
Rexam (REX) 437.30p +0.21%
Capital Shopping Centres Group (CSCG) 335.80p +0.21%
Pennon Group (PNN) 747.50p +0.20%
BP (BP.) 441.90p +0.20%
Associated British Foods (ABF) 1,294.00p +0.15%
British Sky Broadcasting Group (BSY) 734.00p +0.14%
Centrica (CNA) 337.50p +0.09%
FTSE 100 - Fallers
Evraz (EVR) 263.00p -3.27%
Anglo American (AAL) 1,895.00p -2.22%
Glencore International (GLEN) 355.30p -1.85%
Eurasian Natural Resources Corp. (ENRC) 338.70p -1.68%
Kazakhmys (KAZ) 717.00p -1.65%
Fresnillo (FRES) 1,803.00p -1.64%
Vedanta Resources (VED) 1,069.00p -1.57%
GKN (GKN) 222.50p -1.55%
Rio Tinto (RIO) 2,998.00p -1.41%
Antofagasta (ANTO) 1,259.00p -1.33%
FTSE 250 - Risers
QinetiQ Group (QQ.) 182.30p +6.11%
Petra Diamonds Ltd.(DI) (PDL) 114.00p +3.92%
Stobart Group Ltd. (STOB) 117.00p +2.18%
Computacenter (CCC) 375.00p +2.12%
KCOM Group (KCOM) 86.30p +1.89%
Capital & Counties Properties (CAPC) 214.60p +1.75%
Shanks Group (SKS) 90.10p +1.69%
JPMorgan Emerging Markets Inv Trust (JMG) 547.00p +1.48%
Brewin Dolphin Holdings (BRW) 173.00p +1.47%
British Assets Trust (BSET) 124.20p +1.14%
FTSE 250 - Fallers
Bumi (BUMI) 145.00p -25.98%
Workspace Group (WKP) 254.00p -3.05%
Centamin (DI) (CEY) 93.25p -2.56%
Heritage Oil (HOIL) 204.90p -2.52%
Ferrexpo (FXPO) 210.30p -2.41%
Petropavlovsk (POG) 430.00p -2.18%
Redrow (RDW) 150.80p -1.69%
Diploma (DPLM) 450.20p -1.64%
F&C Commercial Property Trust Ltd. (FCPT) 102.40p -1.54%
UK Event Calendar Monday September 24
INTERIMS
Barr (A.G.), China Food Co, DDD Group, EKF Diagnostics Holdings , Lighthouse Group, Mam Funds, Manganese Bronze Holdings, Michelmersh Brick Holdings, RGI International Ltd., Vphase, Wandisco
INTERIM DIVIDEND PAYMENT DATE
African Barrick Gold , Fidessa Group, GKN, Henderson Opportunities Trust
QUARTERLY EX-DIVIDEND DATE
Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
FINALS
Finsbury Food Group, Petra Diamonds Ltd.(DI)
AGMS
Angel Mining , iEnergizer Ltd., Marechale Capital , Max Petroleum, SnackTime
TRADING ANNOUNCEMENTS
Aberdeen Asset Management, Dairy Crest Group, QinetiQ Group
| Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Europe open: Stocks begin the week down slightly
-Merkel and Holland differ on banking supervision
-Eurozone authorities study leveraging ESM –Der Spiegel
-Greece denies speculation Troika has found €20bn deficit gap
-Banks deposit €305bn overnight at ECB
-Spain´s de Guindos says country will not rush to ask for aid
-French PM calls for more fiscal stimulus in Europe
FTSE-100: -0.37%
Dax-30: -0.37%
Cac-40: -0.74%
FTSE-Mibtel 30: -0.70%
Ibex 35: -0.89%
Stoxx 600: -0.40%
European equities have begun today´s session with modest falls. That following the differences aired by Germany and France, this weekend, over the timetable to grant the European Central Bank (ECB) supervisory powers over the Continent´s banks. That is a necessary precondition for Europe´s so-called rescue fund, the European Stability Mechanism (ESM), to be able to inject funds directly into Europe´s banks.
Somewhat perplexingly -given the above- a report in German weekly Der Spiegel holds that Eurozone authorities are again looking at ways to leverage the European Stability Mechanism (ESM) to over €2trn.
Also very much worth highlighting are the calls from French Prime Minister Jean-Marc Ayrault, on Sunday, for Greece to be given more time to meet its targets so long as the country is sincere about reforming its economy. Mr. Ayrault also called for further fiscal stimulus measures in Europe.
Acting as a backdrop, the tensions around the Diaoyu islands continue to simmer. Weakness in Basic Resources leads stocks down
German automotive supplier Continental is on track to reach its full-year targets and does not need to shorten workers' hours, the company´s Chief Executive has told the German press.
Peugeot does not intend to cut jobs or plants "at this stage", but domestic factories must improve productivity to match sites in Spain and Britain, the company´s COO has said.
From a sector stand-point the worst performers within the DJ Stoxx 600 are now the following: Basic resources (-1.6%), Construction (-0.96%) and Automobiles (-0.90%).
IFO on tap
Germany´s IFO business confidence index has come in at 101.4 points for the month of September (Consensus: 102.5).
Oil futures down
The euro/dollar is now off by 0.21% to the 1.2952 dollar level.
Front month Brent crude futures are now down by 0.878 dollars, to the 110.43 dollar mark on the ICE. |
| US Market Report | US close:Market falls for fourth time in five days
Market movers
Dow Jones: -17 at 13,579
S&P 500: -0 at 1,360
NASDAQ Composite: +4 at 3,180 After a fairly bright start on rumours that Spain is discussing terms for a bailout package, US equities drifted back in the afternoon session, causing the S&P 500 to close lower on the day, as it has done in four of the last five sessions. Tyre companies deflated
On a sector view, Tyres, Railroads, Coal and Real Estate were the day's four biggest clunkers, while top of the tree were the Mobile Telecommunications, Forestry & Paper, Paper and Mortgage Finance sectors were top of the tree. Goodyear led the tyres sector lower as Capital Markets downgraded the stock from "buy" to "hold", while Cooper Tire & Rubber got the same treatment from the broker.
Although the S&P fell back, the tech-heavy NASDAQ Composite finished in positive territory on the day uber-tech company Apple launched its new iPhone. Deutsche Bank (DB), however, was more inclined to look elsewhere in the tech sector, issuing buy notes on online retailer Amazon and advertising giant Google.
According to DB, Amazon is the only large-cap company in the broker's research universe which has a manageable plan to grow revenues ten-fold over the next decade they say.
That sort of growth rate is enough to make even Apple sit up and take notice, were it able to do so under the rugby scrum of media luvvies rushing to give free advertising to the launch of its new iPhone 5.
Deutsche Bank has also got the Apple bug, raising its target for the company's shares to $850 from $775 before. DB's move, and the launch of the new iPhone for that matter, had little effect on Apple, which closed little changed.
Things are not looking so kushti for Research In Motion, the maker of the Blackberry smartphone. Blackberry users on the Vodafone network in Europe, the Middle East and Africa suffered a service outage on Friday.
Wireless carrier MetroPCS Communications was wanted after the company's boss, Roger Linquist, told investors on Thursday that subscriber cancellations are tailing off.
Analysts at Citi have upgraded their view on shares of Mastercard, the credit card firm, to "buy". Cantor Fitzgerald, meanwhile, has initiated coverage on online travel company Expedia with a "buy" recommendation.
Oil futures bounce back
West Texas intermediate crude for November delivery climbed 47 cents to $92.89 a barrel on the New York Mercantile Exchange, clawing back some of the week's losses. The price of the most actively traded contract of West Texas sweet, light crude fell 6.5% on the week, its worst performance since the beginning of June.
10-year US Treasuries yields eased to 1.75% from 1.76% overnight.
S&P 500 - Risers
Darden Restaurants Inc. (DRI) $57.21 +4.55%
Expedia Inc. (EXPE) $59.37 +3.99%
Motorola Solutions Inc (MSI) $51.79 +3.98%
Metropcs Communications Inc. (PCS) $11.63 +3.93%
Frontier Communications Co. (FTR) $4.97 +3.86%
Sprint Nextel Corporation (S) $5.65 +3.86%
AutoNation Inc. (AN) $42.95 +3.39%
CBS Corp. (CBS) $37.90 +3.27%
Seagate Technology Plc (STX) $30.95 +3.11%
Davita Inc. (DVA) $101.50 +2.88%
S&P 500 - Fallers
First Solar Inc. (FSLR) $21.20 -6.05%
Goodyear Tire & Rubber Co. (GT) $12.73 -4.86%
Abercrombie & Fitch Co. (ANF) $36.88 -4.65%
Dean Foods Co. (DF) $15.57 -4.07%
Coach Inc. (COH) $56.62 -4.05%
Cliffs Natural Resources Inc. (CLF) $40.93 -3.67%
Genworth Financial Inc. (GNW) $5.66 -2.92%
Alpha Natural Res (ANR) $7.21 -2.70%
Borg Warner Inc. (BWA) $72.29 -2.47%
Carmax Inc. (KMX) $29.28 -2.27%
Dow Jones I.A - Risers
McDonald's Corp. (MCD) $93.71 +0.60%
General Electric Co. (GE) $22.53 +0.45%
Exxon Mobil Corp. (XOM) $91.92 +0.44%
Pfizer Inc. (PFE) $24.51 +0.43%
Kraft Foods Inc. (KFT) $41.78 +0.42%
Dow Jones I.A - Fallers
Coca-Cola Co. (KO) $38.03 -1.58%
Alcoa Inc. (AA) $9.13 -1.30%
Cisco Systems Inc. (CSCO) $18.90 -1.10%
Hewlett-Packard Co. (HPQ) $17.59 -0.96%
JP Morgan Chase & Co. (JPM) $40.88 -0.90%
Caterpillar Inc. (CAT) $91.72 -0.89%
Bank of America Corp. (BAC) $9.11 -0.87%
Microsoft Corp. (MSFT) $31.19 -0.83%
American Express Co. (AXP) $57.86 -0.82%
Nasdaq 100 - Risers
Avago Technologies Ltd. (AVGO) $35.51 +5.21%
Expedia Inc. (EXPE) $59.37 +3.99%
Randgold Resources Ltd. Ads (GOLD) $123.86 +3.15%
Seagate Technology Plc (STX) $30.95 +3.11%
Intuitive Surgical Inc. (ISRG) $517.76 +2.26%
NetApp Inc. (NTAP) $36.26 +2.11%
Nasdaq 100 - Fallers
Research in Motion Ltd. (RIMM) $6.45 -6.52%
Green Mountain Coffee Roasters Inc. (GMCR) $26.76 -3.88%
Virgin Media Inc. (VMED) $29.61 -2.73%
Adobe Systems Inc. (ADBE) $33.83 -2.03%
Expeditors International Of Washington Inc. (EXPD) $36.78 -2.00%
| FX and Commodities round-up | FX round-up: Dollar slips on Spain optimism
The dollar slipped against the euro on Friday on growing speculation that Spain is moving closer to requesting a bailout from the European Union to ease the nation's debt crisis.
The dollar index, which measures the dollar against a basket of six other currencies, fell to 79.342 from 79.427 on Thursday. For the week the index is up 0.6%.
The dollar fell after a report from the Financial Times said that Spain and European officials are in talks about economic reforms to enable the Eurozone's fourth-largest country to ask for a bailout in the next month. The newspaper said Spain's package of economic reforms could be outlined as early as next week.
The euro chipped away at earlier gains to trade at $1.2988, still up from $1.2968 on Thursday. Over the week the single currency was down 1%.
The dollar was down against the Japanese yen on Friday at ¥78.13 from ¥78.27 on Thursday after a volatile week after the Bank of Japan expanded its asset-purchase programme.
Sterling rallied to a near 13-month high against the broadly dollar after UK borrowing data came in not as bad as forecast. Reports that Spain may soon ask for financial aid also boosted demand for risk currencies.
Sterling traded at $1.6310, up around 0.5% before later reducing gains to trade at around $1.6271. Commodities: Oil stocks rebound
US crude oil futures settled a touch higher on Friday, recovering from four days of consecutive losses, as the weaker dollar attracted bargain hunters.
Oil gains also came as the front-month contract changed to November futures. The dollar index, which measures the dollar against a basket of six other currencies, fell to 79.342 from 79.427 on Thursday.
Crude oil for November delivery rose 47 cents or 0.5% to settle at $92.89 a barrel on the New York Mercantile Exchange. Oil managed to trim its biggest weekly loss in more than three months however oil still remained down 6.5% for the week.
The bounce back comes after steep losses earlier in the week with market commentators still at a loss to explain Monday's dramatic sell-off followed by Wednesday's steep fall.
The New York Mercantile Exchange did not report any technical problems and dismissed suggestions a "fat finger" may have triggered the fall.
Analysts said Wednesday's decline was prompted by comments from Saudi officials and technical trends as crude inched towards $100.
Among precious metals gold posted a weekly advance of about 0.3% and settled up 0.4% on Friday as the weaker dollar drummed up support for the yellow metal and as markets bet that Spain is moving closer to requesting a bailout from the European Union.
Gold for December delivery climbed $7.80 to settle at $1,778 an ounce on the Comex division of the New York Mercantile Exchange.
December silver futures dropped 4 cents to settle at $34.64 an ounce while palladium for December delivery advanced $10.45 to $671.55 an ounce. |
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