Friday, June 11, 2010

London close: BP recovery lifts Footsie

Date: Friday 11 Jun 2010


Footsie closed in the blue after recovering from an earlier dive on the back of disappointing retail sales in the US. BP was in focus as the oil giant recovered from heavy losses that have come in the wake of the ongoing oil leak in the Gulf of Mexico.

BP finished 8% higher, despite the amount of oil spilling out of the leak into the Gulf of Mexico may be more than double original estimates according to the latest reports from the US body monitoring the spill.

The US Geological Survey now suggests 25,000 to 30,000 barrels daily may have been leaking ever since the Deepwater Horizon rig blew up on 20 April, killing eleven people and starting the spillage.

US retail sales had been expecting to rise 0.3% in May after climbing 0.4% in April but took a step back for the first time since September, falling 1.2%.

BHP Billiton chairman Jac Nasser has written to shareholders to restate the mining giant’s opposition to the new super tax on the mining industry proposed by the Australian government. He said meetings with government representatives since the controversial plan was first announced on 2 May have been about how the tax would be brought in, not about its “major design features (and flaws)”.

Standard Chartered was out of favour on rumours it is preparing to splash out $1.4bn on a 46% stake in Indonesia’s Panin Bank.

Reed Elsevier was a bright spot after Morgan Stanley upgraded the publishing group to “overweight” from “equal weight”. Home Retail, meanwhile, claws back some of yesterday’s losses even though Citigroup has reacted to the retailer’s disappointing figures on Thursday by slicing its target price for the stock.

Nickel and zinc miner Talvivaara Mining rose after saying it has got its second production line up and running at its metal recovery plant. The production line is currently operating well and will be ramping up towards its full capacity during the upcoming months, the company said.

Underwriters are a strong sector after Brit Insurance last night rejected a £10 per share indicative takeover approach from US private equity firm Apollo saying it significantly undervalued the group. Rivals Catlin and Amlin are up in sympathy.

Pub group and brewer Fuller's is cheering even before the World Cup starts. The London-based group posted record profits last year as its managed pubs and hotels pushed forward with its brewing business also going well. Profits in the year to March jumped 86% to £26.8m, with underlying profits 17% ahead at £26.6m - well ahead of market forecasts.

Bury St. Edmund’s based brewer and pubs group Greene King meanwhile has bought four freehold pub restaurants from cash constrained competitor Punch Taverns for £5.3m. The pubs which are located in “highly attractive, food-led, destination sites in Aberdeen, Northampton and Nottingham,” Greene King said.

Real estate investment trust Hammerson has bought a long leasehold on Leadenhall Court, a City of London office building, for £65m including transaction costs. The building is fully let until March 2014. Passing rents are £7.16m per annum reflecting an initial yield of 11%.

Jarvis Securities is at its highest in over three months after the retail stockbroker did a deal to provide a branded execution-only share dealing services for mobile media firm Worldlink Group.

FTSE 100 - Risers
BP (BP.) 391.90p +7.22%
Cable & Wireless Worldwide (CW.) 88.85p +4.53%
Tullow Oil (TLW) 1,162.00p +3.66%
BT Group (BT.A) 135.90p +3.11%
London Stock Exchange Group (LSE) 618.50p +3.00%
GlaxoSmithKline (GSK) 1,197.00p +2.88%
Cairn Energy (CNE) 419.20p +2.77%
BG Group (BG.) 1,098.00p +2.62%
Home Retail Group (HOME) 233.70p +2.37%
Reed Elsevier (REL) 494.60p +2.30%

FTSE 100 - Fallers
Aggreko (AGK) 1,415.00p -3.94%
Lloyds Banking Group (LLOY) 54.33p -2.83%
Prudential (PRU) 535.00p -2.64%
Standard Chartered (STAN) 1,615.50p -2.03%
Invensys (ISYS) 273.50p -2.01%
Tesco (TSCO) 394.20p -1.83%
Royal Bank of Scotland Group (RBS) 42.37p -1.83%
Antofagasta (ANTO) 856.50p -1.78%
Anglo American (AAL) 2,576.50p -1.72%
Sage Group (SGE) 242.00p -1.71%

FTSE 250 - Risers
Brit Insurance Holdings NV (BRE) 880.00p +20.71%
Yell Group (YELL) 28.60p +9.75%
Unite Group (UTG) 177.60p +8.96%
DS Smith (SMDS) 118.30p +8.63%
Catlin Group (CGL) 346.90p +6.28%
DSG International (DSGI) 27.00p +5.80%
Melrose Resources (MRS) 253.00p +5.42%
Beazley Group (BEZ) 120.20p +5.25%
Fenner (FENR) 204.90p +5.18%
Punch Taverns (PUB) 64.85p +4.77%

FTSE 250 - Fallers
Mcbride (MCB) 179.30p -3.55%
Ashtead Group (AHT) 108.90p -3.37%
Afren (AFR) 87.00p -3.12%
Daejan Holdings (DJAN) 2,309.00p -2.94%
Rightmove (RMV) 689.00p -2.61%
Premier Farnell (PFL) 237.90p -2.50%
Imagination Technologies (IMG) 265.20p -2.50%
Keller Group (KLR) 579.00p -2.28%
UK Commercial Property Trust (UKCM) 76.45p -1.99%
St. Modwen Properties (SMP) 161.80p -1.94%


  • Posted by suprastock at 6/11/2010 05:41:00 PM

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