LONDON (Alliance News) - The following stocks are amongst the biggest risers and fallers within the main London indices midday Monday.
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FTSE 100 WINNERS
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International Consolidated Airlines Group, up 3.3%. Aer Lingus Group and International Consolidated Airlines Group both confirmed that IAG has made a revised EUR2.55 per share cash offer for Aer Lingus, with the board of the Irish airline saying it is considering the offer. The latest offer comprises a EUR2.50 a share cash offer for Aer Lingus shares and a cash dividend of EUR0.05 a share. In total, the offer values Aer Lingus at EUR1.36 billion, according to an Alliance News calculation.
Shire, up 2.3%. The pharmaceutical giant noted that NPS Pharmaceuticals Inc, which Shire is acquiring, has had its Natpara drug for hypoparathyroidism approved by the US Food and Drug administration, saying it was further evidence of the value of the deal. The US FDA has approved Natpara as an adjunct to calcium and vitamin D to control hypocalcemia in patients with hypoparathyroidism, which is a rare endocrine disorder characterized by insufficient levels of parathyroid hormone.
EasyJet, up 1.5%. The discount airline is trading higher as consolidation takes place in the industry following IAG's bid for Aer Lingus.
SSE, up 1.4%. The gas and electricity generator kept its lowered guidance for its results in the current financial year, and said it still expects to pay a dividend for the year that's at least equal to RPI inflation, continuing that policy in future years as well. The company still expects its results for the year to March 31 to be in line with the guidance it gave when it put out its half-year results last November.
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FTSE 100 LOSERS
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Fresnillo, down 2.1%, and Randgold Resources, down 1.3%. The gold miners are amongst the worst blue-chip performers after the price of gold fell Monday morning. The yellow metal is currently quoted at USD1,281.92.
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FTSE 250 WINNERS
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Berkeley Group Holdings, up 2.6%. HSBC has raised the housebuilder to Overweight from Neutral, according to traders.
Close Brothers Group, up 2.4%. Barclays and UBS have both raised their price targets on the merchant banking group. Barclays raised its target to 1,625.00 pence from 1,500.00p, maintaining its Overweight rating. UBS raised its target to 1,500.00p from 1,430.00p, reiterating its Neutral recommendation. The company currently trades at 1,564p.
Betfair Group, up 1.9%. Merryll Lynch has raised the online betting company rating to Buy from Neutral, according to traders.
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FTSE 250 LOSERS
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Vedanta Resources, down 7.9%. Credit Suisse has cut the company's target price to 500.00 pence from 900.00p, keeping its Neutral rating. The stock currently trades at 395.90p.
Petra Diamonds, down 5.3%. The diamond miner said two exceptional diamond sales and weakness in the South African rand offset a softer rough diamond market in the first half, but its shares dropped after it warned downgraded grades and pricing guidance for the second half may mean it misses market expectations for the year. It said the rough diamond market showed traditional seasonal weakness in the first quarter of its 2015 financial year, but said further pressure on prices has been driven by some short-term indigestion in the pipeline resulting from liquidity issues, polished inventory levels and the impact of the strong US dollar on diamond prices denominated in that currency.
WH Smith, down 3.0%. UBS has cut the retailer to Sell from Neutral, according to traders.
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AIM ALL-SHARE WINNERS
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Sable Mining Africa, up 18%. The company said its West Africa Exploration SA subsidiary has signed an Infrastructure Development Agreement with the Liberian government for the Nimba Iron Ore project in Guinea. Under the deal, West Africa Exploration and Liberia's government have reached agreement on the development, ownership, rights, financing, use and operation of rail and port infrastructure in Liberia needed to facilitate the export of iron ore from the Nimba project. The iron ore will be transported through Liberia using the rail line already in place in the country linking Yekepa to the Port of Buchanan.
WYG, up 11%. The programme, project management and technical consultancy firm launched a strategic review, saying it will look at all options for the future of the growing business, including whether it would be better off being acquired and made part of a larger group. The company said it will look at strategic options including a strategic partnership, a merger or acquisition, selling a stake in the business to a new investor, selling the company, taking out a new or extended bank facility, or continuing to invest in expanding the business organically and through partnerships and bolt-on acquisitions.
Horizonte Minerals, up 7.4%. The nickel development company said that drill results from bulk sample sites on the Araguaia nickel project in Brazil confirmed high nickel grades. The company said its drilling programme is on schedule, having already drilled 113 diamond holes, while it has so far received high grade nickel assay intersections from the first 15 holes of the bulk sample drilling. It said that further infill drilling results are due from the Pequizeiro Deposit where drilling is currently underway.
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AIM ALL-SHARE LOSERS
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Global Energy Development, off 18%. The oil producer and developer said the recent slide in oil prices had cut its reserves valuation and it will have to write-down the value of its assets in the Bocachico Contract area because it had become uneconomic. It said the oil price decline had made the heavy oil reserves in the Bocachico Contract area uneconomic, and it will write down the carrying value of its oil assets in the contract in its 2014 statements. It could reverse the writedown in the future were oil prices to improve.
FinnAust Mining, down 17%. The company reported that nickel and copper grades found at its Kelkka nickel sulphide project were below expectations. It said hole R306 at the Kelkka project in Finland has intersected nickel and copper sulphides.
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By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
22 Dec 2015 16:03
Turbulent commodities make it a tough six months for Sable
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