logo-loader

FTSE 100 surrender's the week's (modest) gains

Published: 13:09 28 Aug 2015 BST

Bananas

The Footsie is in negative territory and in danger of finishing down overall on what has been a tumultuous week.

Given the long weekend ahead, taking some money off the table has proved too tempting for many investors, and the FTSE 100 is down 32 at 6,160, with retailers such as Marks & Spencer (LON:MKS), Tesco (LON:TSCO) and Morrisons (LON:MRW) leading the retreat.

In contrast, oil stocks, which make a significant part of the top-share index’s weighting, are preventing the fall from being too severe.

The oil price shot up 10% last night, with Brent Crude jumping to a peak of US$48.44 and remained above US$47.

Royal Dutch Shell (LON:RSDB) climbed 0.9% to 1,668p while its putative merger partner BG Group (LON:BG.) rose 1.5% to 976p.

There is precious little news flow from the top companies, aside from WPP (LON:WPP) making an acquisition, which is less of a news event and more of a ritual.

The world’s biggest advertising conglomerate’s shares are little changed, after it announced the purchase of a minority stake in Rapid Media Services, an Australian media communications agency.

Among the mid-caps, Marshalls (LON:MSLH) was wanted, rising 5.9% to 335p, after it revealed pre-tax profits leapt 48% in the first half of the year to £20.8mln from £14mln on the back of better margins.

The company said trading conditions continue to be positive in its key markets and shares rose 5.85%.

At the other end of the FTSE 250 index, department store Debenhams (LON:DEB) shed more than 7% at 75.7p after UBS downgraded the stock to ‘sell’ from ‘neutral’ and cut the price target to 70p from 90p.

Meanwhile, Cinderella shoe maker Jimmy Choo (LON:CHOO) was not the belle of the ball for investors after its results as shares eased 2% to 163.312p.

Revenue for the six months to June 30 grew 6.5% to £158.5mln, giving adjusted operating profits of £27.7mln – which was flat year on year.

In small caps, Bacanora Mining (LON:BCN) charged higher after it finalised a conditional long-term lithium hydroxide supply agreement with Tesla Motors, the maker of electric vehicles and energy storage solutions.

Bacanora Minerals shot up 23% to 86p, taking Rare Earth Minerals (LON:REM) with it, as the agreement involves the Sonora Lithium project in Northern Mexico, in which Rare Earth Minerals is Bacanora’s partner.

Sticking with the Latin American theme, Minera IRL (LON:MIRL, CVE:IRL) has strengthened its depleted board with the appointment of a new director, Jaime Pinto.

At the company's annual general meeting, the proposal to re-elect chairman Daryl Hodges as a director was not approved, leaving the company with just two directors. Shares rocketed 62% to 4.25p on the news, which broke late yesterday afternoon.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

38 minutes ago