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The Markets
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The Markets
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

US jobs data propels FTSE100 to strong finish

Footsie surged ahead Thursday as investors hailed US jobs numbers this afternoon.

FTSE100 finished up almost 49 points at 6,865, with Sports Direct (LON:SPD) taking the podium - up 5.63%, and big miners doing well.

But the big news was from across the pond, where it emerged the world's largest economy had created 288,000 jobs in June and the unemployment rate fell to 6.1% from 6.3%,

The market had been expecting jobs to have increased by 215,000 but yesterday processing firm ADP revealed figures showing 281,000 jobs were added in June, comfortably ahead of expectations of 210,000.

Today's figure beats that 281,000 jobs number comprehensively, while the unemployment numbers show the lowest jobless rate for six years.

It pushed the benchmark Dow Jones through the 17,000 mark, as itr added 91 points, while the Nasdaq and S&P500 both were up.

The strong US report suggests the economy is picking up as hiring rebounds but it also brings into sharper focus the Fed's approach to interest rates, which it may rise now sooner than expected.

Sports Direct's share rise in London, meanwhile, comes after the much talked about bonus scheme at the firm was approved yesterday by shareholders. It was the third attempt.

Mike Ashley, who owns 58% of Sports Direct, did not vote on the issue because of a conflict of interests; more than three-fifths of the votes that were cast were in favour of the scheme that will see Sports Direct employees (including Ashley) receive shares if earnings double by 2019.

Meanwhile, one of the days high profile losers in London was Balfour Beatty (LON:BBY), which fell 4.52% to 222.5p.

Today, saw the mid-cap construction group issue its third profit warning this year and its fourth in the last two years.

Under the cosh Balfour said it had seen "further worsening" in trading at its mechanical and electrical engineering arm - part of its UK business since the first quarter IMS.

It now expects a £35mln shortfall in this division compared to previous expectations.

Meanwhile, Poundland (LON:PLND) saw shares go higher as it posted a 25% increase in underlying profit after tax to £27.3mlnin the year to end March.

In the junior market, the mood also appeared to be buoyant. FTSE AIM All-share closed up 5.53 to 790.07, while FTSE AIM 100 finished up 41.21 at 3,432.09.

The standout riser was Mosman Oil & Gas (LON:MSMN), which has not been out of the spotlight much in recent days.

Share soarded over 36% after the group said the lower-lying Cobden limestone of its Cross Roads-1 well in New Zealand had been classed an oil discovery.

While oil shows were found in the Cobden, more detailed petro-physical analysis was required.

This was carried out consultants, including SRK, which performed a lot of the early analysis of the acreage, and it has now been deemed the Cobden limestone meets the official definition of a discovery.

The drill-rig has already moved to the next target, Crestal-1, on this incredibly shallow Petroleum Creek licence.

Marketing studies have confirmed the Middle East as a potential market for pig iron from its Tete project in Mozambique, Baobab Resources (LON:BAO) said. Its shares nudged a little higher.

The combination of low cost, high quality Tete pig iron and competitive freight rates to the Middle East give it a production cost advantage over local produced direct reduced iron.

That makes it an ideal raw material source as the region boosts rebar manufacturing capacity, Baobab said.

Shares in Ortac Resources (LON:OTC) added 10% just as the company started working underground at its Šturec deposit in Slovakia.

Ortac said that underground mining has now begun following last week's inspection and approval by the District Mining Bureau, and marks the return of mining to Šturec after a break of nearly 20 years; it also satisfies the company's obligations to the Slovak Republic for maintaining the validity of its Mining Licence Area.

London Mining (LON:LOND) added over 16%, while Range Resources (LON:RRL) was also up 10.29%.

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