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Banks higher ahead of next week’s stress tests results on FCA Libor support news

Last updated: 15:46 24 Nov 2017 GMT, First published: 08:59 24 Nov 2017 GMT

RBS branch

Banks were higher in afternoon trading ahead of next week’s stress tests results, also benefitting after the Financial Conduct Authority said that all 20 panel banks have agreed to support the London interbank offered rate, Libor, a key benchmark rate used in determining interest on loans, until it is phased out in 2021.

Royal Bank of Scotland Group PLC (LON:RBS) rose 1.0% to 272.2p, while Standard Chartered PLC (LON:STAN) added 0.8% at 742.10p.

On the second line, Ophir Energy Plc (LON:OPHR) found support, ahead 1.9% at 67.5p after Credit Suisse upgraded its rating to ‘outperform’ from ‘neutral’ even though it at the same time cut its target price due to a delayed start-up for the Fortuna LNG project offshore Equatorial Guinea.

And mid-cap engineer Rotork PLC (LON:ROR) gained 0.5% at 263.9p, as Liberum Capital raised its stance on the valve actuators maker to ‘hold’ from ‘sell’  after the firm on Thursday maintained its full-year expectations amid third quarter revenue and order book growth as market condition improvements continued.

12.10pm: Sanderson Group up as it acquires unlisted supply chain and enterprise resource firm

Sanderson Group (LON:SND) was a good gainer at lunchtime, adding 11.8% at 15.75p after the digital retail software developer said it acquired unlisted supply chain and enterprise resource planning solutions provider Anisa Consolidated Holdings for an enterprise value of £12.0mln.

Sanderson said UK-based Anisa will complement its Enterprise division and the merged business is expected to provide and develop incremental and synergistic market opportunities.

The deal consideration comprises an initial payment of £3.39mln, made up of £2.06mln in cash and issue of 1.9mln new Sanderson shares at 70p each.

Elsewhere, small cap fund manager Miton Group PLC (LON:MGR) gained 9.6% at 38.5p after it said it expects its full year profit to be ahead of current market expectations as it has continued to experience positive net inflows in the second half of the year.

Miton said its unaudited assets under management were £3.64bn as at October 31, with the average assets under management for the first ten months of the year at £3.29bn.

And Global Petroleum PLC (LON:GBP) took on 6.25% at 2.13p as the oil and gas company said its Namibian subsidiary has extended its exploration licence for a further year and agreed to a second extension once the first has expired.

It added that new 2D seismic data has "significantly" improved the prospectivity of the licence and the Gemsbok prospect in particular.

10.00am: James Fisher sinks on offshore contribution warning 

Shipping group James Fisher & Sons plc (LON:FSJ) sunk nearly 3% lower to 1,575p in mid-morning trading as it warned that the full-year contribution from its offshore oil division will be lower than last year.

Despite this, Fisher said it had made good progress in the first ten months of the year with revenue for the period up 7.0% year-on-year and its full year outlook is unchanged.

Bookmaker William Hill plc (LON:WMH) was also a faller, down 0.4% to 282.6p after confirming it is in "very preliminary" talks with Australia's Crown Resorts about a possible merger of their local online businesses.

Business information group UBM PLC (LON:UBM) was weak too, down 0.8% to 742p after analysts at Liberum Capital downgraded their rating for the stock  to 'hold'.

But the same broker upped its stance for UBM’s blue chip peer Informa PLC (LON:INF), which gained 1.2% at 760.5p, while an upgrade in rating by Exane BNP Paribas helped credit checking firm Experian PLC (LON:EXPN) take on 1.5% at 1,575p.

9.00am: Next weak on 'Black Friday'

Next Plc (LON:NXT) lead blue chip retailers lower in early morning trading, shedding 1% at 4,340p as commentators noted that the clothing stores chain is taking part in ‘Black Friday’ promotions for the first time this year.

Independent retail analyst Nick Bubb said "the shock news is that even Next is joining in the promotional frenzy today, with a '70% off” Sale Online and instore, having previously held firm against the self-defeating discounting."

In the absence of much corporate news, broker comment provided the other main early focus.

BT Group plc (LON:BT.A) was the top FTSE 100 faller, off 1.4% at 245.5p as Deutsche Bank cut its price target for the telecoms giant to 238p from 265p on worries over capex and pensions.

In a note to clients, the German bank’s analysts said: “BT is working hard to mitigate but remains on the back foot and may stumble again. We keep our Sell rating.”

And Whitbread plc (LON:WTB) also retreated, down 0.7% to 3,578p after traders said broker Alphavalue had downgraded its rating for the Costa Coffee to Premier Inns owner to ‘reduce’ from ‘add’.

Proactive news headlines:

WYG PLC (LON:WYG) continues to experience delays in the signing of new contracts, as a result of which it has lowered guidance for the year. The programme, project management and technical consultancy said operating profit for the full year will be within the range of £3.5mln to £4.0mln, substantially below current market expectations.

SDX Energy Inc (LON:SDX) told investors it has spudded its latest well at the Sebou project in Morocco. The KSR-16 well is expected to be drilled in 20-25 days, and it is earmarked as a production well.

Cabot Energy PLC (LON:CAB) has told investors that it’s 75% owned Canadian fields are now producing between 750 and 850 barrels of oil per day. The latest production comes from the addition of the 16-05 side-track well, drilled last month, which is delivering around 200 bopd, and the new 13-33 dual completion well is scheduled to come online shortly to add another 50 bopd.

Falcon Oil & Gas Ltd (LON:FOG) has told investors it ended the three months to September 30 with a strong financial position – it is debt free and had US$9.4mln of cash. As the AIM-quoted shale group continues to await the outcome of a government commissioned review into fracking in Australia’s Northern Territory the company continues to adopt strict cost management.

Katoro Gold PLC (LON:KAT) is to carry out a pulsed light survey at Imweru in Tanzania to create high-resolution, detailed topographical maps of the gold prospect. Louis Coetzee, executive chairman, said the LiDAR survey would add integrity and confidence to the ongoing pre-feasibility study (PFS).

After raising £1mln (US$1.32mln) from investors earlier in the week, Vast Resources PLC (LON:VAST) has outlined the details of the follow-up open offer. Vast is looking to raise up to another £1.23mln (US$1.64mln) through the open offer by issuing 238.1mln shares at 0.525p apiece – the same price as the placing.

IronRidge Resources Limited (LON:IRR) has identified more bauxite and gold at two projects in Queensland, Australia. Surface sampling at Koko discovered additional bauxite mineralisation adjacent to the Monogorilby prospect. Bauxite is the source ore for aluminium.

Base Resources Limited (LON:BSE) (ASX: BSE) said Bank of America Corporation has notified the company that it and its related corporate bodies have a relevant interest in 38,868,951 Base Resources ordinary shares representing 5.20% of the total issued share capital. In October, reports had said two BofA Merrill Lynch funds in Australia had bought a total of just over 40mln Base Resources shares, amounting to around 5.37% of the company.

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