Anglo Asian Share News (AAZ)

LONDON (Alliance News) - The following stocks are the biggest risers and fallers within the main London indices midday Tuesday.
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FTSE 100 WINNERS
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Randgold Resources, up 1.6%; BHP Billiton, up 0.5%; Rio Tinto, up 1.1%; Fresnillo, up 0.7%; Glencore, up 0.1%. The big mining stocks are recovering some of Monday's losses after concerns that the Chinese manufacturing sector may have slipped into contraction in September failed to materialise. The HSBC China manufacturing PMI came in a 50.5 overnight, up from 50.2 in July. A number below 50.0 would have indicated contraction. Recent softness in precious metal prices has also been weighing on the miners, but both gold and silver are more than 0.5% higher by midday Tuesday.
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FTSE 100 LOSERS
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Shire, down 6.0%; AstraZeneca, down 5.1%; Smith & Nephew, down 3.4%. The London-listed drug makers have recently been the target of actual, or speculated, takeover bids by large US corporations. Their shares have dropped in early trade following the news that the US government has taken steps to clamp down on the tax loophole that allows US companies to move their headquarters abroad in order to benefit from a lower corporate tax rate. US Treasury Secretary Jack Lew said the practice, known as corporate inversion, was an "unfair loophole" that puts a larger tax burden on all other taxpayers, including small businesses. The new rules include a ban on companies using foreign cash without paying US taxes.

Tesco, down 3.8%. The supermarket giant continues to lose share to the discounters. In the 12-week period to September 14, Tesco's share of the UK grocery market fell to 28.8%, from 30.2% in the corresponding period last year, according to data from Kantar. The latest data comes on the back of Monday's third profit warning in three months from Tesco as things for the company appear to be going from bad to worse. On Tuesday, it confirmed that incoming Chief Financial Officer Alan Stewart will now start immediately, over two months earlier than planned, as it tries to shore up its reputation.

Sainsbury, down 3.8%; Morrison, down 2.1%. The other major UK supermarkets also continue to lose market share to the discounters. In the 12-week period ended September 14, Sainsbury's share dropped to 16.2% from 16.6%, and Morrison's share dropped to 10.9% from 11.1%.
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FTSE 250 WINNERS
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Al Noor Hospitals Group, up 2.5%. Goldman Sachs has reiterated its Buy recommendation on the Dubai-based medical clinic operator and raised its price target to 1,314p, from 1,250p. The increased price target suggests a 28% upside from Monday's closing price of 1,030p.

Go-Ahead Group, up 1.4%. Deutsche Bank raised its recommendation on the transport operator to Buy, from Hold, and raises its price target increase 2,790p from 2,270p, suggesting a 14% upside from Monday's closing price of 2,443p. Deutsche issued the upgrade after revising it forecasts for the Govia Thameslink Railway contract win and the Southeastern extension. The bank says that Thameslink contract adds a significant and relatively low-risk earnings stream and should mean significant upside to the group's dividend payments.

AG Barr, up 0.7%. The Scottish soft-drink maker declared a 10% increase in its interim dividend to 3.11 pence per share, after it posted a pretax profit of GBP16.5 million for the six months to July 27, up from GBP13.2 million a year earlier, buoyed by a 5.4% increase in revenue. The Irn Bru maker also said it has signed a 10-year deal giving it the exclusive rights to sell, market and distribute the Snapple brand in the UK and several other EU countries.
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FTSE 250 LOSERS
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Tate & Lyle, down 17%. The sweeterners and starches company said it faced a challenging first half, and warned that supply chain issues will hit its annual profit. In a trading statement, the company, known for its low-calorie sweetener Splenda, said supply constraints due to a severe winter in the US, caused operational difficulties in its US corn plants, which left it with much-lower inventories than usual, wiping around GBP10 million off its profit for the first quarter. The company's supply chain was also hit by an industrial accident at it Singapore facility, which drove up costs. For the year ending March 31, 2015, Tate & Lyle is now expecting to report an adjusted pretax profit of between GBP230 million and GBP245 million. Last year it made an adjusted pretax profit of GBP173 million in the first half, and a full-year profit of GBP329 million.
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AIM ALL-SHARE LOSERS
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Panmure Gordon & Co, up 12%. The stockbroker and investment bank said it made a GBP1.9 million pretax profit in the six months ended June 30, compared with GBP335,000 in the corresponding period last year, boosted by a 25% increase in net commission and fee income to GBP16.2 million. Panmure Gordon also reiterated that it could start paying a dividend again for the current fiscal year, having last paid a dividend in 2007 ahead of the financial crisis.

Richland Resources, up 8.8%. The gemstone producer said its pretax loss widened due to continuing illegal mining in Tanzania, which has affected the quality and value of its products and forced the company to try and optimise a smaller working area. Richland reported a pretax loss of USD1.5 million in the six months ended June 30, widened from USD551,000 in the comparable period in 2013, as revenue decreased to USD3.8 million, from USD7.5 million.

Ilika, up 7.8%. The materials innovation company said the pilot line for the production of prototype batteries has successfully completed its factory acceptance test as part of its deal with the University of Southampton to build a solid-state battery scale-up facility. The company signed a deal with Southampton University in July 2013 to design, build and operate a solid-state battery scale-up facility.

Monitise, up 7.3%. UBS initiated analyst coverage of the mobile payments company with a Buy rating and a price target of 80p, which suggests a 146% upside from Monday's close of 32.5p. UBS is impressed with the company's relationships with the banks and says the transition to a subscription model will increase long term value.
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AIM ALL-SHARE LOSERS
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Anglo Asian Mining, down 30%. The miner's shares dropped heavily in early trade after it said it made a pretax loss of USD7.5 million in the six months to June 30, compared with a USD4.2 million profit a year earlier. Revenue rose to USD32.7 million, from USD27.6 million last year, but this was offset by a near doubling in the group's cost of sales to USD33.5 million, from USD18.3 million, as fuel costs rose and it commissioned its agitation leaching plant in June 2013.

Regenersis, down 23%. The support services company said pretax profit in the year to June 30 was GBP2.9 million, down from GBP5.7 million a year earlier. Revenue rose to GBP197.5 million, from GBP179.7 million, but the rise was offset by a jump in acquisition and one-off restructuring costs to GBP9.4 million, from GBP1.9 million a year earlier. Revenue was held back by the strength of sterling, and would have been up 18% at constant currencies.

Starcom, down 24%. The wireless tracking products provider said its pretax loss widened to USD741,000 in the six months to June 30, from a USD89,000 loss a year earlier, as revenue fell to USD2.9 million, from USD3.5 million. It was hit by the loss of sales to Ukraine, which accounted for 20% of total sales in its 2013 financial year, as well as slower-than-expected revenue from its WatchLock arm. The second generation of the WatchLock product is expected to come to market in 2015.

CA Sperati, down 23%. The buttons and bows maker's shares fell heavily after it said it raised money through a discounted share subscription, would exit its apparel business, and will subscribe to shares in Kentucky Oil & Gas. CA Sperati said it had raised GBP400,000 via an oversubscribed share subscription at 3 pence per share, a discount to the 3.875 pence closing price on Monday. The company said it has been considering options to expand its apparel business via acquisitions or organically, but has concluded the best course of action for shareholders would be to sell the business or redeploy the capital in the unit by means of investing in other areas.

Beacon Hill Rescurces, down 14%. The coal company said its pretax loss in the six months to June 30 widened to USD10 million, from a USD7.6 million loss last year, as revenue fell to USD331,000 from USD1.1 million and administrative expenses rose to USD5.1 million, from USD4 million. The company said it is not anticipating any production in the second-half as its Minas Moatize coking coal project remains in care and maintenance until the construction of the expanded washplant is completed. The company said it intends for the project to re-enter production in late 2015 or early 2016.
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By Jon Darby; jondarby@alliancenews.com; @jondarby100

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