Hutchmed Share News (HCM)

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices midday Wednesday.
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FTSE 100 - WINNERS
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G4S, up 2.4%. The security company said it swung back to a profit in the first half of the year as revenue rose and it didn't repeat the write offs and impairments that weighed on last year's results. The company is undergoing a revamp which has included asset sales, restructuring of its UK and Ireland operations, and a focus on gaining new profitable contracts, particularly in emerging markets, is showing signs of paying off. The company swung to a pretax profit of GBP85 million in the six months to June 30, compared with a loss of GBP94 million a year earlier when it had booked GBP124 million of impairment charges after a review of its operations and a writedown on some unprofitable contracts.

Prudential, up 2.2%. The financial services group continues to be one of the big risers in the blue-chip index following its increase in its interim dividend by 15% to 11.19 pence on Tuesday.

Land Securities Group, up 1.6%. The property firm said it has sold its 50% stake in Cabot Circus shopping centres, Friars Quake and surrounding shops in Bristol to AXA Real Estate in a deal worth GBP267.8 million. The assets had produced net rental income of GBP17.3 million for Land Securities.

Petrofac, up 0.8%. The oil company said it has won a USD500 million contract from a subsidiary of Malaysia's national oil and gas company for a refinery package in the Pengerang project in Johor, Malaysia. The company said the engineering, procurement, construction and commissioning contract has been awarded by PRPC Refinery & Cracker Sdn Bhd, a subsidiary of Petroliam Nasional Berhad, known as Petronas. The Pengerang project is the largest liquid-based greenfield downstream scheme in Malaysia.
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FTSE 100 - LOSERS
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Admiral Group, down 4.5%. The non-life insurers lead the FTSE 100 fallers. Admiral reported a 2% rise in pretax profit but a 5% decline in revenues in its interim results. It also announced that Kevin Chedwick will replace Geraint Jones as the new chief financial officer, which according to Ben Vartia, trader at Accendo Markets, "has not impressed investors and shows a lack of confidence in Chidwick and the company going forward." Moreover, analysts have highlighted the pressure on earnings from many sources going into the future.

Glencore, down 2.8%. The company reported that own-sourced copper production was down 12% on the second half of 2013 due to lower head grades caused by mine sequencing at Collahuasi and Antamina and planned maintenance shut downs at its Collahuasi, Mount Isa and Mopani mines. In addition, own-sourced zinc production was 650,400 tonnes, down 11% on the year, primarily due to Glencore's Perseverance and Brunswick mines having depleted their reserves in June 2013. Production was broadly flat compared with the second half of 2013, as a ramp up at the Perkoa mine largely offset mine sequencing lower grades at Antamina and some opportunistic favouring of third party feed at Kazzinc.

BT Group, down 1.3%, IMI, down 1.2%, Diageo, down 1.1%, Meggitt, down 1%, GKN, down 0.8%, Standard Chartered, down 0.7%, Schroders, down 0.5%, and Ashtead Group, down 0.4%. The companies are among the fallers in the blue-chip index after going ex-dividend, meaning new buyers no longer qualify for the latest dividend payouts.

AstraZeneca, down 0.7%. The company was amongst those whose shares went ex-dividend. It also was subject to a price target cut by Societe Generale from 3,740p to 3,700p.
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FTSE 250 - WINNERS
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Evraz, up 2.3%. The Russian steel company said it has signed an agreement to sell a 34% stake in Evraz Highveld Steel and Vanadium to Macrovest 147 Proprietary Ltd for ZAR289 million, or about USD27 million. "We have analysed various options for the further development of Highveld and decided to introduce a strong local partner, who we believe will add significant value and expertise in developing our South African asset in a challenging market," said EVRAZ Chief Executive Alexander Frolov in a statement. Evraz will keep a 51% stake in South Africa-based Highveld, and said it will continue to focus on improving the operating efficiency of the unit and undertaking initiatives that will boost its profit. Evraz also said Wednesday it has signed a USD425 million syndicated pre-export credit facility with a syndicate of banks to refinance its existing debt pile.
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FTSE 250 - LOSERS
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EnQuest, down 5.8%. The oil and gas company has posted a rise in pretax profit in the first half on Wednesday though it warned of further delays to the Alma/Galia development in the North Sea and said its cost of sales also jumped higher in the period. Pretax profit for the company rose 3.6% to USD284.0 million from USD274.0 million a year earlier coming on the back of an 11% rise in revenue to USD503.8 million from USD455.9 million last year. But its cost of sales rose to USD339.5 million in the period from USD280.9 million in 2013. On Alma/Galia, the company said progress has been made on the floating production, storage and offloading unit for the development, but warned sail away of shipments is now weather-dependent.

Direct Line Insurance Group, down 4%. The motor insurer is one of the leading losers in the mid-cap index following the trend of the whole sector. Shore Capital notes that regulatory clouds still surround the industry and that UK households are being provided no respite from an income squeeze, as evidenced by the most recent wage data.

Countrywide, down 3.7%, Greene King, down 2.4%, Vesuvius, down 1.1%, Man Group, down 1%, and MoneySupermarket.com Group, down 0.8%. The companies are among the fallers in the FTSE 250 after going ex-dividend.

CSR, down 2.7%. The company was amongst those whose shares went ex-dividend and also has been downgraded by Jefferies to Hold from Buy with a price target of 569p, down from 679p.

Michael Page International, down 2.2%. The recruitment company reported higher profit and revenue for the first half of the year as the economic recovery drove improved hiring in its major markets, although its overseas earnings took a big hit from the strength of sterling. The company reported a pretax profit of GBP35.6 million for the six months to June 30, up from GBP32.0 million a year earlier, as revenue rose to GBP512.2 million, from GBP503.2 million, and it felt the benefit of cost savings and efficiency programmes it undertook last year. However, the currency hit meant revenue growth was just 1.8%, compared with 8.3% growth at constant currencies, while its operating profit grew 11%, compared with 21.4% at constant currencies.
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AIM ALL-SHARE - WINNERS
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Getech Group, up 12%. The company expressed confidence in a "substantially improved" performance in its new financial year, on the back of a strong second half of the recently completed year and the signing of contracts worth over USD5 million. The company expects to post a pretax profit of GBP1.0 million for the year to end-July, down from GBP2.2 million in the previous year, on revenue of GBP6.6 million, down from GBP8.0 million. Getech said that the first part of the year had seen lower spending across the whole oil and gas exploration sector, However, it had ended the year strongly, as it expected. Getech cited strength in its US gravity data operations, strong demand for its consultancy service, and the completion of its first three years of its Globe platform. The Globe platform, a geographic information system, is expected to produce further sales with a "significant number of commitments" in the second half.

Vipera, up 11%. The mobile financial services company said its Codd & Date Srl subsidiary has executed a contract for the use of its technology by IfItalia, part of the BNP Paribas Group. IfItalia has launched a new mobile service in Italy for financial services called IfiMobile, which uses Vipera's Motif platform. The company said that this takes the Motif platform beyond applications for retail customers. No financial details of the contract were disclosed.

Amara Mining, up 11%. The gold miner reported exceptional drilling results from the Yaoure gold project in Côte d'Ivoire. The company said the latest 15 diamond drill results showed exceptional intercepts, demonstrating high-grade areas in the Yaoure central zone and the presence of mineralisation in 'information gaps'.

Flowgroup, up 7.7%. The energy-efficient technology firm said it has signed a heads of agreement with Mears Group for Mears to provide installation and after-care services for Flowgroup's microCHP boiler. Under the terms of the agreement, Mears will provide nationwide coverage for the installation of the boiler, along with servicing and maintenance. Flowgroup said the inclusion of servicing and installation in the agreement could have the potential to deliver a strong, ongoing revenue stream for the company from the servicing market.

Daisy Group, up 6.9%. The communications company said it has received a preliminary takeover approach from a consortium consisting of Toscafund Asset Management LLP, Penta Capital LLP and Daisy Chief Executive Matthew Riley. The company said it received an approach of 190 pence per share from the consortium July 27. Daisy said that it has convened an independent committee of the board to engage in preliminary discussions with the consortium. Toscafund confirmed in a separate statement Wednesday that the consortium was at the "preliminary stage" of considering a possible cash offer for Daisy.
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AIM ALL-SHARE - LOSERS
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President Energy, off 24%. The company is the leading faller in the AIM index after it suspended drilling at the Jacaranda-1 well in Paraguay, despite expressing optimism that the results from the well de-risks the remaining two wells in the drilling campaign. President said the Jacaranda-1 well had been drilled to a depth of 4,500 metres, but has now been suspended for re-entry at a later date. It also said that while the well confirmed developed reservoir-quality sand, the carboniferous sandstone was not sealed and hydrocarbons have migrated away.

Hutchinson China MediTech, down 10%. The company said that an independent data safety and monitoring committee had recommended that a Phase III trial of its HMPL-004 treatment for ulcerative colitis be terminated following an interim analysis of the trial. The trial is being conducted by Nutrition Science Partners, Hutchinson's joint venture with Nestlé Health Science SA. The independent committee evaluated the data of two doses of the compound compared to a placebo. Hutchinson said that no meaningful safety signals or risks for patients were identified, and further analysis and review of the data will be conducted.
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By Neil Thakrar; neilthakrar@alliancenews.com

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