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Prudential shares in demand; Metal Tiger and Falcon Oil & Gas strong gainers

Last updated: 14:30 15 Feb 2017 GMT, First published: 09:28 15 Feb 2017 GMT

Resources

2.30pm … Financials wanted …

Financial stocks continued to provide the main boost for the FTSE 100 index in mid afternoon trade, with insurers, as well as banks, in demand.

Prudential PLC (LON:PRU) stood out, up 1.2% to 1,638p after the Financial Times reported that the insurer is bidding to take a large portion of the £12.50bn worth of mortgages issued by Bradford & Bingley that are being sold by the UK government.

Food producer to Primark clothing chain owner Associated British Foods PLC (LON:ABF) was another gainer, up 0.2% to 2,530p after Shore Capital upgraded its rating ‘buy’ from ‘hold’ following a positive meeting with the company's finance director.

But holidays firm  TUI Group was the biggest FTSE 100 faller, shedding  over 6.0% at 1,138p, retreating from strong gains made yesterday when it affirmed its full-year guidance and unveiled the sale of its Travelopia business for £325mln.

On the second line, African gold miner  Acacia Mining PLC (LON:ACA) was the biggest FTSE 250 gainer, up nearly 5% to 526p after Numis upgraded its rating to ‘buy’ from ‘hold’ after an update yesterday.

11.30am … Resources a focus …

Resources investor Metal Tiger PLC (LON:MTR) was a strong gainer in late morning trading, up over 27% to 2.1p as investors anticipated good news from its joint venture partner in Botswana, MOD Resources (ASX:MOD).

MOD, the majority partner in a 70/30 joint venture with Metal Tiger on a prospect in the Kalahari copper belt, is expected to release “significant drill results” from below the proposed T3 copper/silver pit

But among other minnows, Polemos PLC (LON:PLMO) was the market's biggest faller, dropping over 21% to 0.05p after the natural resources investor launched a placing of 1.41bn shares at 0.035p each to raise £495,000 which will be used to back its search for investment opportunities.

Separately, Polemos also named Dan Maling and Nick Lee to its board as non-executive directors.

Elsewhere, green energy group Powerhouse Energy Group PLC (LON:PHE) shed 18% to 1.23p as it raised £2.5mln via a placing of shares at 0.8p each.

The group said the funds raised will largely be used to repay a convertible loan note facility with finance house, Hillgrove.

And shares in Tracsis (LON:TRCS) fell 13% to 402.5p as the transport software specialist said its first half underlying profit is expected to be slightly ahead of the previous period but warned of price competition in its traffic and data services business.

In a trading update, Tracsis said its underlying profit (EBITDA) for the six months to 31 January 2017 is anticipated to be a tad higher than the £3.2mln reported in 2016.

9.30am ... Bookies bashed ...

The bets were off for bookmakers William Hill PLC (LON:WMH) and Ladbrokes Coral Group (LON:LCL) in early trading, both of which dropped over 2% to 266.1p and 122.7p respectively, after HSBC downgraded ratings for the pair to ‘reduce’ from ‘hold’

In a sector review, the bank said: “Early 2017 sports results have been helpful, but we think longer-term risks are large and not fully in valuations.”

Broker comment, however, was a boost for Hunting Plc (LON:HTG), which gained 2.8% to 586p after Goldman Sachs upgraded its stance on the FTSE 250-listed oilfield services company to ‘Conviction Buy’ from ‘buy’.

Among today’s meagre corporate news, mid cap defence contractor QinetiQ Group (LON:QQ.) added 1.5% at 280.4p after saying trading met its expectations in the third quarter of its financial year, leaving it in line to meet its forecasts for the full year.

But merged interdealer broker NEX Group PLC (LON:NXG) shed 2.6%, at 559.5p despite seeing its third-quarter revenues rise, boosted by Donald Trump's election as US president, as  the firm cautioned that it is "too early" to assume an end to subdued market conditions.

Among the small caps, Falcon Oil & Gas Ltd (LON:FOG) was a strong gainer, up 19% to 6.25p after it said drilling results from the Beetaloo Basin project in Australia's Northern Territory indicate a material shale gas resource at the site.

Galileo Resources PLC (LON:GLR) also moved ahead up 5.2% to 4.05p after saying drilling has begun on its Concordia copper project in South Africa's Northern Cape Province.

And renewables group AFC Energy plc (LON:AFC) rallied 12% higher to 13.75p after  completing a placing of 58.5mln shares and subscription of 1.5mln shares at 10.00 pence each, raising £6mln.

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