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Cable & Wireless, Shire and GlaxoSmithKline rise, but FTSE 100 falls as TUI and Thomas Cook tumble

Last updated: 15:54 20 Nov 2009 GMT, First published: 16:54 20 Nov 2009 GMT

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Overview: the FTSE 100 failed to get out of the red, ending the day 0.2% below the opening level as tour and commercial property companies continued sliding. The blue chip index was further dragged down by a weak start in the US stock market, where all key indexes turned negative after computer giant Dell (NYSE: DELL) and homebuilder D.R.Horton (NYSE: DHI) released weaker than expected quarterly results. The Dow Jones Industrial Average was down 0.5%, the S&P 500 index slid 0.6% and the technology focused Nasdaq composite tumbled almost 1%.

Tour operators TUI Travel (LSE: TT) and Thomas Cook Group (LSE: TCG) emerged as the biggest fallers in the top tier index with losses of 4% after Morgan Stanley downgraded the companies to “equal weight” and “underweight” respectively. Commercial property sector also was in selling mode with Hammerson (LSE: HMSO) and Segro (LSE: SGRO) shedding 3%, while British Land (LSE: BLND) lost 2.5%.

Safety services provider Intertek (LSE: ITRK) also was in decline, shedding 3% after confirming it was in talks with Norwegian company Det Norske Veritas to acquire its ubsiness assurance division.

Telecom company Cable & Wireless (LSE: CW) and specialty chemicals firm Johnson Matthey (LSE: JMAT) led the index with gains of 2%. About eight other FTSE 100 constituents managed to gain 1% or more, including pharmaceutical companies Shire (LSE: SHP) and GlaxoSmithKline (LSE: GSK), chocolatier Cadbury (LSE: CBRY), food manufacturer Unilever (LSE: ULVR) and airline British Airways (LSE: BAY).

Commodities

Oil prices extended yesterday’s losses with January Brent Crude sliding to US$76.67/barrel and US light, sweet crude for January delivery declining to US$76.50/barrel.

All major oil stocks slipped into the red as oil prices fell. Shell (LSE: RDSB) slid 1%, while fellow supermajor BP (LSE: BP) posted a marginal loss, as did other FTSE 100 constituents BG Group (LSE: BG), Cairn Energy (LSE: CNE), Petrofac (LSE: PFC) and Tullow Oil (LSE: TLW).

Midcaps Dragon Oil (LSE: DGO) and Dana Petroleum (LSE: DNX) followed the trend, sliding 1% and 1.4% respectively, however, fellow FTSE 250 constituent Heritage Oil (LSE: HOIL) outperformed the sector, gaining 2.5%.

Most juniors also were in decline. Energy investor Xtract Energy PLC (AIM: XTR) was among the biggest fallers in the sector with a 6% slide. US focused oil and gas junior Caza Oil & Gas (AIM: CAZA) and Europe focused oil and gas developer Ascent Resources (AIM: AST) followed, shedding 3% and 2% respectively.

Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) was among the top performers, gaining almost 5% after swapping assets with Canadian Imperial Venture Corp.

Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) also did well, climbing 4%.

Gold, silver and platinum retreat, but miners rise

Precious metals continued their retreated with gold sliding to US$1,138/oz, silver moving down to US$18.31/oz and platinum declining to US$1,436/oz.

Most miners were on the rise today. Gold miner Randgold Resources (LSE: RRS) and silver producer Fresnillo (LSE: FRES) advanced 1.5%, while fellow FTSE 100 constituent platinum producer Lonmin (LSE: LMI) rose 1%.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) added nearly 2%.

Yamana Gold (LSE: YAU) added almost 3%.

Aquarius Platinum was among the leading risers in the FTSE 250 with a gain of over 5%. Fellow midcap miners didn’t do that well as while silver producer Hochschild Mining (LSE: HOC) rose marginally, gold producer Petropavlovsk (LSE: POG) ended the day with a small loss.

South American based explorer Mariana Resources (AIM: MARL) and Kyrgyzstan focused gold explorer and developer Chaarat Gold Holdings (AIM: CGH) led the juniors, advancing 5% and 4%.

Western Australia operating Norseman Gold (AIM: NGL) and Tajikistan operating gold miner Kryso Resources (AIM: KYS) climbed 2.5%.

Elsewhere in the sector, Africa focused gold miner Pan African Resources (AIM: PAF), Philippines focused Metals Exploration (AIM: MML) and Philippines focused gold producer Medusa Mining (AIM&ASX: MML) headed in the opposite direction, sliding 3.5%, 3% and 2.5% respectively.

Copper and nickel recover

Base metals recouped some of their early losses as copper and nickel inched higher to US$3.07/lb and US$7.57/lb respectively and zinc held steady at US$0.99/lb.

Base metals focused stocks were mixed. Antofagasta (LSE: ANTO) was in the lead with a 1.6% gain, while Anglo American (LSE: AAL) and Xstrata (LSE: XTA) rose marginally. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) gave up nearly 1%, while BHP Billiton (LSE: BLT), Kazakhmys (LSE: KAZ) and Vedanta Resources (LSE: VED) declined marginally.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) outperformed the sector, rising 3%.

Specialty minerals exploration and development company Thor Mining (AIM: THR) emerged as the biggest faller among the juniors, slipping 15%. South Africa based coal exploration and production company Strategic Natural Resources (AIM: SNR) and South American focused junior miner Herencia Resources (AIM: HER) both lost 5%.

Copper and nickel explorer Regency Mines (AIM: RGM) was one of the top performers in the sector with a 5% improvement.

Banks, insurance, private equity

The banking sector was in selling mode today. Lloyds (LSE: LLOY) was at the bottom of the pile with a 1.5% slide, while Barclays (LSE: BARC) and Standard Chartered (LSE: STAN) lost nearly 1%. HSBC (LSE: HSBA) and Royal Bank of Scotland (LSE: RBS) declined marginally.

Insurance stocks were mixed. Old Mutual (LSE: OML) and Prudential (LSE: PRU) were in the lead, advancing 1.2% and 1% respectively. Car insurer Admiral Group (LSE: ADM) and Aviva (LSE: AV) rose marginally. Legal & General (LSE: LGEN) headed in a different direction, sliding 1.5% and 1%, while Standard Life (LSE: SL) posted marginal losses.

Private equity group 3i (LSE: III) was down 2.7%.

Large and Mid Cap News

This morning, Intertek Group plc (LSE: ITRK) announced that it is in discussions with Det Norske Veritas (DNV) to acquire the vast majority of its Business Assurance division. According to Intertek, an ‘all-share’ deal is envisaged resulting in DNV becoming a substantial shareholder in the company.

In an interim management statement, Rotork plc (LSE: ROR) said ‘group revenues and margins remained strong’.

This morning PV Crystalox Solar Plc (LSE: PVCS) said it has appointed Michael Parker as Non-Executive Director, with effect from 1 January 2010. Mr Parker is currently the Senior Independent Director at Invensys plc and has extensive experience in the technology and energy industries.

It wasn’t long ago that the oil majors were public enemy number one posting bumper profits whilst consumers were forced to pay record prices at the petrol pumps.  Not so anymore.  Lower oil and gas prices have meant the ‘big oils’ across the board posted profit falls with some faring better than others.  Whereas BP (LSE: BP.) and Conoco Phillips (NYSE: COP) came in significantly ahead of expectations, results at Royal Dutch Shell (LSE: RDSB) were not so robust.

Broker Fox-Davies Capital has retained its “buy” stance on Hochschild Mining (LSE: HOC) and upped its target price to £3.45 per share after the silver producer and FTSE 250 constituent increased its holding in Lake Shore Gold (TSX: LSG) to 36% from 32%.

Randgold Resources (LSE: RRS) announced the completion of the sale of its Kiaka project to Volta Resources (TSX: VTR) for C$4 million in cash and 20 million common shares in Volta. In October Volta successfully raised over C$8 million to fund the cash element of the transaction and an aggressive drilling program.

Missile defence company and FTSE 250 constituent Chemring Group (LSE: CHG) has placed fixed interest loan notes with a number of institutional investors to raise US$280 million to fund the acquisition of Hi-Shear Technology Corporation (NYSE Amex: HSR), repay existing short and medium term debt and boost its working capital.

Small Cap News

Dual-listed Thor Mining (AIM, ASX: THR) has advised it will scale back activities on the company’s flagship Molyhil project due to the continued weakness in international markets for molybdenum.

University commercialisation company Fusion IP (AIM: FIP) has licensed orthopaedic planning software developed by the medical physics team at the University of Sheffield to a global orthopaedic company in a £0.8 million deal.

Marketing research and consulting group Noble Insight called ImmuPharma (AIM: IMM) a steal after the pharmaceutical company released the results from a Phase II-b trial of its drug Lupuzor, which Noble said would no doubt be taken forward to longer, larger late-stage studies early next year after showing “the strongest data seen in lupus” apart from Genome’s Benlysta.

Epistem Holdings PLC (AIM: EHP), a UK biotechnology company with adult epithelial stem cell expertise in oncology, gastrointestinal and dermatological diseases, said it has raised £2.9 million before expenses though a placing with investors of 720,000 new ordinary shares at the market price of 400 pence each.

Enegi Oil (AIM: ENEG) announced that it has agreed a ‘project swap’ deal with Canadian Imperial Venture Corp (TSX-V: CQV, Frankfurt: DFM) and privately owned Shoal Point Energy. Under the terms of the deal, Enegi will gain 100% interest in the deeper formation on Exploration Licence 1070, the St George’s Group play. In return Enegi will transfer its interest in the licenses shallower, unconventional shale project the Green Point Formation.

Bus and coach manufacturer Optare (AIM: OPE) has won its first contract to utilise the Dual-Fuel System after gaining exclusive rights to Hardstaff Group’s dual-fuel conversion system for use in both new and existing passenger service vehicles.

Recruitment and human resources services provider Staffline Group (AIM: STAF) now expects full year earnings to be ahead of expectations after a number of new business wins and this year’s successful cost cutting programme.

Degradable plastics and waste-to-energy company Symphony Environmental Technologies PLC (AIM: SYM) has signed a supply agreement, together with its French distributor Alternative Plastics Sarl (APS), with the Danish packaging products maker Superfos Industries AS.

Nviro Cleantech PLC (AIM: NVR) announced it has made a proposal to Southbank UK PLC (CISX: SBK) which may or may not lead to an offer being made for the entire issued and to be issued share capital of Southbank at a ratio of 1,000 Nviro shares for every 7,489 Southbank shares, on a fully diluted basis.

Hanson Westhouse put a 'hold' rating on Metals Exploration (AIM: MTL) after the Philippines focused miner updated the resource estimate for its Runruno gold-molybdenum project, which reduced the overall resource after this year’s drilling did not support the previous interpretation of the inferred resource around the fringe of the deposit, but inceased the measured and indicated resource.

Independent merchant bank Quayle Munro Holdings PLC (AIM: QYM) said one of its investee companies, Submersible Technology Services Limited (STS), has been acquired by Australian oil and gas service group Neptune Marine Services Ltd (ASX: NMS) for £16 million with a further performance-linked paymenmt due in the future.

Noventa Ltd (AIM: NVTA), the tantalum junior with assets in Mozambique, said it is currently planning to restart the Marropino mine around March or April 2010 and is actively looking to recruit key staff including metallurgists and engineers for its future plans.

Marketing research and consulting group Noble Insight called ImmuPharma (AIM: IMM) a steal after the pharmaceutical company released the results from a Phase II-b trial of its drug Lupuzor, which Noble said would no doubt be taken forward to longer, larger late-stage studies early next year after showing “the strongest data seen in lupus” apart from Genome’s Benlysta.

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