LONDON (Alliance News) - Shares have opened mixed Monday despite a strong lead from Asian markets, as tensions in Ukraine continue to concern investors.
Kentz Corp said its pretax profit increased in 2013 driven by revenue growth at its Technical Support Services division during the period, and it forecast a strong 2014. The major oil and gas engineering company said pretax profit increased 4.7% to USD109.7 million from USD104.8 million the previous year as its revenues increased 6% to USD1.66 billion from USD1.56 billion in 2012.
Kentz shares are up 4.8% at the open Monday, the third biggest riser in the FTSE 250.
Traders say Investec has raised Lloyds Banking to Buy from Hold early Monday, while Morgan Stanley has removed British Airways-owner IAG from its Europe Best Ideas list.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.3% at 6,535.12
FTSE 250: up 0.1% at 16,177.08
AIM ALL-SHARE: flat at 856.54
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Hang Seng: closed up 1.8% at 14,475.30
Nikkei 225: closed up 1.8% at 14,475.30
DJIA: closed down 0.2% at 16,302.77
S&P 500: closed down 0.3% at 1,866.52
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GBP-USD: up at USD1.6500
EUR-USD: up at USD1.3816
GOLD: down at USD1,322.64 per ounce
OIL (Brent): down at USD106.64 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
08:28 Germany Markit Manufacturing and Services PMI Preliminary
08:58 EU Markit Manufacturing, Services and Composite PMI Preliminary
09:00 Germany German Buba President Weidmann speech
12:30 US Chicago Fed National Activity Index
13:58 US Markit Manufacturing PMI Preliminary
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The Russian Defence Ministry Sunday denied reports that Russia was amassing troops along the border with Ukraine. Deputy Defence Minister Anatoly Antonov called on the US in particular to look at the activities of Russian troops "objectively" and not to escalate an already tense situation, Interfax news agency reported. Russia was abiding by all international agreements, including an accord on the number of Russian troops on the Ukrainian border, Antonov said.
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Business sentiment among Chinese purchasing managers dropped to an eight-month in March, according to preliminary survey findings released Monday. The index by financial services company HSBC showed a reading of 48.1, down from 48.5 in February, and the lowest since the 47.7 recorded in July. A figure above 50 generally means a positive outlook in the manufacturing sector, while below 50 is taken as a negative reading.
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China should unlock the substantial growth potential in the service sector in order to boost employment, consumption and living standards, International Monetary Fund Managing Director Christine Lagarde said. Addressing an audience at the China Development Forum in the capital, Beijing, Lagarde noted that China's financial sector is a potential source of higher-quality growth and improved welfare.
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China's vice finance minister Zhu Guangyao said the first interest rate hike by the Federal Reserve six months after the end of quantitative easing would have a substantial impact on the global economy. "If interest rates rise six months after the QE exit, the impact on the US economy and the rest of the world would be substantial," Zhu said at the weekend. He expects the Fed to complete its exit from quantitative easing this October. Zhu observed signs of recovery in Europe but warned that structural reforms have been insufficient.
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A Chinese plane hunting for wreckage of a missing Malaysian passenger jet spotted unidentified "objects" Monday in an area of the southern Indian Ocean determined to be the most likely location for debris from flight MH370. Ten aircraft are patrolling a 59,000-square-kilometre patch of sea between Australia and Antarctica.
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France's extreme right National Front party and the conservative opposition saw their fortunes increase in a number of cities in the first round of two-stage municipal elections on Sunday. The results were seen as a referendum on the leadership of Socialist President Francois Hollande in his first test at the polling booth since taking office nearly two years ago. France's lagging economy and record unemployment pose a major challenge for Hollande's party.
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Turkey shot down a Syrian jet Sunday near their common border, both governments said. Turkish Prime Minister Recep Tayyip Erdogan said the fighter jet was downed after it had violated Turkish airspace while a Syrian military source quoted by Syria's official SANA news agency said the jet was shot down while it was chasing rebels inside Syrian territory. The Syrian official called the incident a "blatant aggression" carried out by Turkish air defences to support rebel groups inside Syria.
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The deadly Ebola virus has spread from southern Guinea to the capital, Conakry, United Nations children's fund Unicef warned Sunday. At least 59 people were reported killed by the virus in the West African nation, where health officials say the outbreak has reached epidemic proportions.
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BROKER RATING CHANGES
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DAVY CUTS CAIRN ENERGY TO 'NEUTRAL' ('OUTPERFORM')
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TRADERS: INVESTEC CUTS CAPE PLC TO 'ADD' ('BUY')
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TRADERS: INVESTEC RAISES LLOYDS TO 'BUY' ('HOLD')
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DAVY CUTS BARRATT DEVELOPMENTS TO 'NEUTRAL' - TARGET 409 PENCE
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DAVY RAISES BELLWAY TO 'OUTPERFORM' - TARGET 1886 PENCE
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BARCLAYS INITIATES DS SMITH WITH 'OVERWEIGHT' - TARGET 380 PENCE
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BARCLAYS CUTS EUROPEAN INDUSTRIALS TO 'EQUAL WEIGHT'
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BARCLAYS RAISES EUROPEAN UTILITIES TO 'SMALL OVERWEIGHT'
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GOLDMAN RAISES LONDON MINING PLC TO 'NEUTRAL' ('SELL') - TARGET 75 (90) PENCE
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TRADERS: CREDIT SUISSE CUTS BRITISH AMERICAN TOBACCO TO 'NEUTRAL'
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TRADER: MORGAN STANLEY REMOVES IAG FROM 'EUROPE BEST IDEAS LIST'
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COMPANIES - FTSE 100
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British advertising and public relations giant WPP PLC said it has acquired a majority stake in Cognifide Ltd, a digital technology consultancy in the UK, and its subsidiary has agreed to acquire a premium and gift specialist in China. WPP did not disclose any financial details of either acquisition.
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Beverage can maker Rexam PLC said it has a binding deal to sell the rest of its healthcare containers and closures unit to Berry Plastics Group Inc for USD135 million in cash. Last month, Rexam had said it would return about GBP450 million to shareholders once it received USD805 million cash proceeds from the proposed sale of most of its healthcare packaging unit. In a statement Monday, the company said this deal is progressing according to plan and it expects the deal to complete in the second quarter of 2014, after which it make the shareholder payout.
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Petrofac Gets 4 And A Half Year Oman Contract Worth More Than USD1B
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Two major consumer groups are calling for regulators to further investigate the UK's "broken" energy market, according to the BBC. Both Which? and the Federation of Small Businesses have said that nine out of 10 consumers think the firms need further probing. The consumer groups have written a joint letter to the Office of Fair Trading, energy regulator Ofgem and the new Competition and Markets Authority.
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Standard Life PLC Sunday said it is in advanced talks over a potential deal to acquire Ignis Asset Management Ltd from FTSE 250 Phoenix Group PLC, a move that would add substantially to its assets under management. The Edinburgh-based long-term savings and investments provider said the talks over a potential deal for Ignis, which has some GBP67.6 billion in assets under management, are exclusive. Most of Ignis's assets under management are related to fixed income.
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COMPANIES - FTSE 250
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Centamin FY Pretax Profit Down, USD184.0M Vs USD198.6M; Pretax Profit Before Exceptional Items Up, USD235.0M Vs USD231.7M; Revenues Up, USD503.8M Vs USD426.1M; FY Production Up 36% To 356,943 Oz, Above 320,000 Oz Guidance; Forecasts 2014 Production At 420,000 Oz
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Diploma Expects FY Adjusted Pretax Profit At Similar Level To Last Year; At Current Exchange Rates, Steling Appreciation Will Continue To Impact Results
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LondonMetric Property buys Distribution Warehouse For GBP22M
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Derwent London Announces Jager House Freehold Disposal For GBP30.75M; CEO: We Will Recycle Capital Into Development Programme
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Bovis Homes In Two Private Rental Sector Deals Involving About 510 Homes With Total Revenue Of About GBP80M
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Ophir Energy Completes 20% Sale Of Interest In Blocks 1,3 And 4, Tanzania
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Kentz Corporation FY Pretax Profit Up, USD109.7M Vs USD104.8M; Pretax Profit Before Exceptional Items Up 12.6%, USD118.0M Vs USD104.8M; Revenues Up 6%, USD1.66B Vs USD1.56B; Final Dividend 10.9 cents Per Share, Total 2013 Dividend Up 21% To 17.5 cents; Forecasts 2014 Performance Ahead Of Previous Expectations, With All 3 Units To Perform Strongly; CEO Says Valerus Outlook Very Positive; CEO: There Will Be Further Consolidation In Industry; CEO: Thinks Shares Still At Slight Discount To Market; CEO Says Had Acquisition Targets Of Own Before It Got Approached Last Year
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John Laing Infrastructure Fund FY Pretax Profit GBP32.1M Vs GBP33.5M; Total Shareholder Return Of 13.5%; FY Dividend Up 4.1% To 6.375p; ost Dividend NAV Increased To 106.8p Per Share
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COMPANIES - ALL-SHARE AND AIM
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Segro PLC and Picton Property Income Ltd said they have completed an industrial property swap deal. In a statement, Segro said it had acquired a distribution warehouse at Magna Park, Lutterworth from Picton for GBP34.0 million, while Picton has bought from Segro an industrial estate at Parkbury, Radlett for GBP40.5 million. Picton has paid Segro the balance of GBP6.5 in cash.
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Albemarle & Bond Holdings Lenders Won't Support Turnaround Plan; Working On Alternative Options, Including Sale; Shares To be Suspended
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Finsbury Food H1 Pretax Profit GBP2.1M Vs GBP1.4M; Revenue GBP86.6M Vs GBP88.2M; Maintains Interim Dividend At 0.25P Per Share; CEO: Consumer Markets Remain Challenging, Improvement Lies Ahead
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Miton Group 2013 Pretax Profit GBP0.7M, Vs GBP0.9M; Adjusted Pretax Profit GBP4.7M, Vs GBP3.9M; Net Revenue GBP15.0M, Vs GBP11.6M; AUM On Dec 31, 2013 GBP3.1B, Up From GBP1.8B Year Before
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Savannah Resources Raises GBP1.5M In Placing; To Use Funds For Evaluation of Jangamo Mineral Sands Project
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Ferrex In Placing To Raise GBP1.7M To Develop African Iron Ore, Manganese Assets
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Monday's Scheduled AGMs/EGMs
Temple Bar Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
12 Feb 2015 16:45
