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Blue-chip shares slide while Aim stocks thrive

Published: 17:21 31 May 2016 BST

Bull & bear.

The top-share index finished lower on the day, and lower on the month, ending a run of three months on the spin in which the Footsie had risen.

The FTSE 100 closed 40 points lower on the day at 6,231, and 10 points lower on the month.

While the blue-chips were suffering, laid low by reports that the Brexit campaign is gaining support, Aim’s leading lights had a strong day, with the FTSE Aim 100 index up 28 points (0.8%) at 3,487.

The broader-based All-Share advanced four points (0.5%) to 739.5.

The day’s best performer was Mobilityone Limited (LON:MBO), which saw its market value increase by two-thirds. The company’s directors were moved to put out a statement saying they knew of no reason for the rise.

There was no mystery behind the rise in the share price of HaiKe Chemical Group Limited (LON:HAIK), which shot up 18% to 11.5p in well-received full-year results.

Strategic Minerals PLC (LON:SML) kept the positive news flow going, as it reported nickel bearing sulphides being intersected at the Hanns Camp project in Australia.

The shares rose 23% to 0.35p, and are up 220% over the last three months.

The trading statement from PCG Entertainment Plc (LON:PCGE) proved to be a downer for shareholders.

The Asia-Pacific online gaming and media company has been sucked into a debt settlement dispute involving the recently acquired Center Point Development Corporation and its former major shareholder Kolarmy Technology.

Chagala Group Limited (LON:CGLO), the specialist services and facilities provider to the oil and gas industries in Kazakhstan, saw almost a quarter of its market value wiped out as it posted its annual report online. The company released a summary of its full-year results three weeks ago so the report should not have come as a surprise, but evidently it did.


Mid-session

Small-cap drug stocks were healthier on Tuesday despite a lacklustre performance by the wider market.

ImmuPharma PLC (LON:IMM) was 12.1% higher at 31.95p after investor Alto Invest increased its holding to 4.15% of the drug group’s shares.

Scancell Holdings Plc (LON:SCLP) perked up 10.4% to 18.62p as broker Panmure Gordon reiterated its ‘buy’ rating, while Motif Bio Plc (LON:MTFB) was also benefiting from positive sentiment towards the sector – up 7.4% at 51p.

While small-cap indices rose, the FTSE 100 Index trod water as traders shrugged off mixed economic data from the continent.

Top-flight shares were 0.27 points off at 6270 as German retail sales fell to -0.9% against the 1% expected.

There was mixed news for the European Central Bank as growth in loans to Eurozone businesses edged up in April, but loans to households and money supply growth slowed.

New data showed that the Eurozone remained in deflation in May and the area’s unemployment was unchanged at 10.2%.

The US session was tipped to provide interest during the afternoon, with investors trying to guess how the Federal Reserve will vote in June and July.

Augustin Eden at Accendo Markets said: “The USD is still in consolidation mode, with a break above its 100-day moving average encouraging for bulls, who'll be jumping on Janet Yellen's comments that indicated a 'summer' US rate hike might be on the cards.”

Back in equities, Strategic Minerals PLC (LON:SML) hardened nearly 30% to 0.37p as the miner said the first drill hole at its Hanns Camp project in Australia had intersected nickel sulphides.

Proton Power Systems Plc (LON:PPS) motored nearly 13.3% to 4.25p as the fuel cell developer and producer signed a €15mln deal with a blue-chip German customer.

Wearable fitness equipment group Fitbug Holdings PLC (LON:FITB) rose 11.1% to 0.75p although there was no news from the company. The shares have tumbled after hitting a peak of 20p in late 2014 on order wins.

Democratic Republic of Congo-focused Sacoil Holdings Limited (LON:SAC) spurted 10.3% to 0.91p after it forecast annual basic earnings per share of between 1.23 cents and 2.05 cents, up from a loss per share of 8.54 cents a year ago.

But APC Technology Group PLC (LON:APC) backtracked 10.5% to 8.17p despite record orders fr its specialist electronic component business.

PCG Entertainment Plc (LON:PCGE) was also off colour, down 40.4% to 0.51p, after the AIM listed Asia-Pacific online gaming and media company said it could take a trading and financial hit from a dispute related to an acquisition.

Back in the top flight, a big winner was DCC (LON:DCC) at 6,355p, up just over 1.5%, driven by a broker upgrade last week and energy sector acquisitions.

Mining and oil shares were among the largest losers as the price of a barrel of Brent crude subsided 0.6% to US$49.45.


Preview at 6.57am

FTSE 100 set for a tepid start after Fed Yellen comments

The FTSE 100 is set for a slow start to the shortened trading week with the spread betting firms predicting the index of blue-chip shares will fall 16 points to 6,254.79 on opening.

Tuesday will be the first time the UK has been able to react to US Federal Reserve chairman Janet Yellen’s comments on US interest rates.

“Fed officials have repeatedly claimed that a summer rate hike would be a reasonable assumption, a view that was supported as recently as Friday by chair Janet Yellen, although as always, the decision will be data dependent,” said Craig Erlam, analyst at OANDA.

The Americans will be eyeing the latest jobs figures due later this week to see whether they are supportive of the case for higher borrowing costs.

In Asia, the Shanghai Composite was up almost 3% after Goldman Sachs said there was a good chance China’s leading shares would be included in the MSCI Indexes.

This would mean added to demand for the mainland stocks from intuitional investors, including tracker funds.

In Japan, the Nikkei 225 was up 0.8% after better than expected industrial output figures.

Here in the UK it is expected to be a fairly quiet week for scheduled company news with building supplies giant Wolseley, car parts firm Halfords and metals specialist Johnson Mattheyat the vanguard.

*Brent crude 2 cents lower at US$49.74 per barrel.

*Gold up US$2.10 an ounce at US$1,215.90.

Market Rumours

*Alliance Trust has confirmed that it has received an informal approach about a £5 billion merger with RIT Capital Partners, which is chaired by the British financier Jacob Rothschild – Guardian.

*Telefónica is seeking to move on from the blocked merger of its UK business with CK Hutchison’s Three as the Spanish telecoms company plots a future sale or flotation of O2 – FT.

City Headlines

*HSBC’s Stuart Gulliver is the European bank chief executive who investors would most like to be replaced, according to a recent poll of large shareholders – FT.

*Annual profits at Jaguar Land Rover have fallen 40%, despite the carmaker reporting record sales and a 10% rise in revenues – FT.

*A third of bosses at Britain’s biggest public companies say they have spent up to £1mln preparing for the consequences of leaving the EU – Times.

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