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HSBC, Barclays, Standard Chartered and Lloyds rise to bolster FTSE 100, Aggreko and LSE slide

Last updated: 14:54 21 Dec 2009 GMT, First published: 15:54 21 Dec 2009 GMT

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Overview: the FTSE 100 rose sharply in late afternoon, nearly tripling its early gains to stand 85 points, or 1.6% above the opening level as the US market was off to a fast start after more positive news from Dubai and the Federal Reserve Bank of Chicago, which said that its national activity index improved to minus 0.32 from a revised minus 1.02 for the previous month, signalling an increase in the level of economic activity.

Meanwhile, the eocnomy minister of the United Arab Emirates said the state would look into providing more funds for Dubai to help it repay the massive debts of state owned conglomerate Dubai World that at the moment amount to US$26 billion.

The key indices surged in early trading with the Dow Jones Industrial Average, the broader S&P 500 index and the technology heavy NASDAQ composite advancing 1.2%.

Oil and gas company Cairn Energy (LSE: CNE) emerged atop the leaderboard with a 5% climb. Heating and plumbing equipment Wolseley (LSE: WOS) and insurer Aviva (LSE: AV) followed, advancing 3.5%. Other notable risers included InterContinental Hotels (LSE: IHG) and airline British Airways (LSE: BAY) with gains of nearly 3%.

Just three FTSE 100 constituents were sitting in the red close to the end of the session. Temporary power supplier Aggreko (LSE: AGK), which was making its debut in the blue chip index, corrected 1.3% after adding nearly 8% on Friday. London Stock Exchange (LSE: LSE) and software developer Sage Group (LSE: SGE) declined marginally.

Commodities

Oil prices rose today with February Brent Crude reaching US$74.50/barrel and US light, sweet crude sitting just below the US$75/barrel mark.

All major oil and gas stocks improved today with Cairn Energy (LSE: CNE) taking the lead with a 4.6% climb. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) both gained nearly 2.5%, while Tullow Oil (LSE: TLW) and BG Group (LSE: BG) added 2% and 1% and Petrofac (SLE: PFC) rose marginally.

Midcaps also did well. Heritage Oil (SLE: HOIL) led the way with a 2.7% advance, while Dana petroleum (SLE: DNX) followed with a gain of 1.5%. Melrose Resources (LSE: MRS) and Dragon Oil (LSE: DGO) rose marginally.

Iraq operating Irish oil company Petrel Resources (AIM: PET) led the juniors with a 30% rally. Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) and Irish oil and gas exploration company Petroceltic International (AIM: PCI) followed, advancing 7% and 4% respectively.

Europe focused oil and gas developer Ascent Resources (AIM: AST) and energy investor Xtract Energy PLC (AIM: XTR) headed in the opposite direction with each shedding 5%.

Gold and silver climb to bolster miners

Precious metals rose slightly to recoup a small part of their recent losses. Gold reached US$1,113/oz, while silver and platinum climbed to US$17.33/oz and US$1,429/oz respectively.

Most major mining stocks rose today. Platinum miner Lonmin (LSE: LMI) took the lead in the sector in the FTSE 100 with a 1.8% gain, while gold miner Randgold Resources (LSE: RRS) and silver producer Fresnillo (LSE: FRES) climbed 1%.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) was flat.

Midcaps were mixed as while gold miner Petropavlovsk (LSE: POG) rose 3% and Aquarius Platinum (LSE: AQP) added less than 1%, another FTSE 250 constituent silver producer Hochschild Mining (LSE: HOC) shed 1%.

South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI), which today entered into an option agreement over eight kimberlites in Botswana, and Brazil focused gold miner Horizonte Minerals (AIM: HZM) emerged as the top performers in the sector, advancing 8.5%. Commodity asset development company Mercator Gold (AIM: MCR) came close with a 6% climb, while Turkey focused gold miner Ariana Resources (AIM: AAU) added about 4%.

Tajikistan operating gold miner Kryso Resources (AIM: KYS) headed in the opposite direction, slipping 6%, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Turkey and Ethiopia operating gold miner Stratex International (AIM: STI) both slid 4%.

Copper and nickel rise

Base metals also were on the rise today. Copper and nickel reached US$3.12/lb and US$7.93/lb, while zinc improved to US$1.08/lb.

Xstrata (LSE: XTA) led the base metal focused stocks with a 3% climb. Anglo American (LSE: AAL) and Vedanta resources (LSE: VED) followed with gains of 2.5%, while Rio Tinto (LSE: RIO) added 2.2% and Kazakhmys (LSE: KAZ) tacked on nearly 2%. BHP Billiton (LSE: BLT) added 1.4%, while Antofagasta (LSE: ANTO) and Eurasian Natural Resources (LSE: ENRC) climbed 1%.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) moved against the tide with a 1.3% decline.

Cement operator Prosperity Mineral Holdings (AIM: PMHL) led the small caps with a 17.5% rally after entering an agreement to sell its Chinese cement business for circa £300 million. Botswana operating nickel and copper miner Discovery Metals (AIM: DME) and South American focused junior miner Herencia Resources (AIM: HER) also did well with gains of 5.5% and 4.5% respectively.

Indonesia operating coal miner Churchill Mining (AIM: CHL) was in correction, shedding 9%. Laterite nickel specialist European Nickel (AIM: ENK), Tunisia focused metal miner Maghreb Minerals (AIM: MMS) and South Africa operating chrome miner Chromex Mining (AIM: CHX) followed, sliding 5.5%, 5% and 4.5% respectively.

Banks, insurance, private equity

Financial stocks were in buying mode today. Standard Chartered (LSE: STAN) led the banking stocks with a 3% gain, while Barclays (LSE: BARC) and HSBC (LSE: HSBA) added 2.6% each. Part-nationalised banks were lagging behind as Lloyds (LSE: LLOY) tacked on 1.3%, while Royal Bank of Scotland (LSE: RBS) remained flat.

Aviva (LSE: AV) and Prudential (LSE: PRU) led the insurance stocks with gains of over 3%. Admiral Group (LSE: ADM) and Old Mutual (LSE: OML) added more than 2.5%, while Standard Life (LSE: SL) was up 1% and RSA Insurance Group (LSE: RSA) rose marginally.

Private equity group 3i (LSE: III) added 2.3%.

Large and Mid Cap News

Edinburgh headquartered Cairn Energy (LSE: CNE) said it has secured a rig for the summer drilling season at its Greenland exploration project. The oil and gas producer has contracted the Stena Forth drill ship for approximately 6 months in 2010.

European Real Estate Investment Trust and Hammerson (LSE: HMSO) announced they had entered into a 50:50 joint venture with the Canada Pension Plan Investment Board (CPPIB) to acquire the 93,000 m² Silverburn  shopping centre near Glasgow. The JV will pay a total of £297 million for the property, representing a £148.5 million commitment for each party.

In a pre-close trading statement, National Express Group PLC (LSE: NEX) said underlying revenue trends have stabilised in the fourth quarter and its full year profit is expected to be consistent with previous guidance. According to executive Chairman, John Devaney the transport operator has resolved its significant issues.

FTSE100 constituent The London Stock Exchange Group PLC (LSE: LSE) has agreed to acquire Turquoise Trading Ltd to create a new pan-European trading venue. The integration of the LSE Group’s Baikal platform and the Turquoise platform will provide a neutral European equity trading platform, which will be a FSA regulated Multilateral Trading Facility.

South America focused gold producer Minera IRL Ltd (AIM: MIRL) said the recommended all-share offer for Hidefield Gold PLC (AIM: HIF) announced in October has now been completed and it has appointed Hidefield’s executive chairman Kenneth Judge as non-executive director.

Seattle Genetics Inc (NASDAQ: SGEN) said it has entered into a collaboration agreement with GlaxoSmithKline PLC (LSE: GSK) under which GSK will pay an upfront fee of US$12 million for rights to utilize Seattle Genetics' antibody-drug conjugate (ADC) technology with multiple antigens to be named by GSK.

Africa focused investment company Lonrho PLC has (AIM: LONR) has increased its holding in Kwikbuild Corp Ltd to 70 percent from 62 percent, in line with the stated intention to increase its equity in both the agricultural and buildings divisions.

UK outsourcing specialist, the Capita Group Plc (LSE: CPI) announced the acquisition of ICT service group Synetrix Ltd for £75 million in a cash deal with private equity group, the Apax Partners. According to the FTSE100 constituent the acquisition will add to and strengthen its current IT capabilities.

Small Cap News

Goldplat PLC (AIM: GDP) said it has has entered into an agreement with Sanu Exploration (BVI) Ltd, a wholly owned subsidiary of NGEX Resources Inc, to acquire Sanu's option over the 246 square kilometre Nyieme gold project in Burkina Faso.

Amphion Innovations PLC (AIM: AMP) said WellGen Inc, in Which it holds a 14.6 percent stake, is entering a collaboration with RFI Ingredients develop proprietary medical food, functional food, and dietary supplement products.

Anti-microbial chemicals maker Byotrol (AIM: BYOT) said it has entered into a six month option agreement with a Fortune 150 corporation over exclusive rights to enter into negotiations for a licensing deal over the company’s technology and announced US acceptance of patens, causing the share price to go up 10%.

Firestone Diamonds (AIM: FDI) has entered into a JV (joint venture) agreement with Tawana Resources, giving it the right to earn up to an 85% interest in Tawana’s kimberlite exploration and evaluation projects in Botswana, including eight kimberlites in the Orapa field.

Telecoms giant, Vodafone (LSE: VOD) announced it will offer Apple’s (NYSE: AAPL) iPhone on its mobile phone network on January 14th2010. The increasingly popular iPhone was previously distributed and operated in the UK exclusively on Telefonica’s (IBEX: TEF, NYSE: TEF) O₂ network.

Ovoca Gold (AIM: OVG) has entered into a conditional acquisition agreement for a 100% interest in a portfolio of gold exploration projects in the Magadan region of Russia for up to US$25 million, looking to position itself as a significant junior gold explorer in that country.

Alkane Energy PLC (AIM: ALK) and TEG Group PLC (AIM: TEG) announced in separate statements a collaboration which will see them will jointly bidding for a range of anaerobic digestion (AD) facilities. Alkane will provide the gas handling, gas engines and grid connections and TEG will be responsible for the construction and operation of the anaerobic digesters and waste handling.

Prosperity Minerals Holdings (AIM: PMHL) has taken another step towards selling its Chinese cement business Upper Value Investments Limited official, having entered into a conditional sale and purchase agreement for the disposal with TCC international Holdings (HKG: 1136) to focus its investment strategy on its iron ore business and seek expansion into new markets in China.

Anti-microbial chemicals maker Byotrol (AIM: BYOT) said it has entered into a six month option agreement with a Fortune 150 corporation over exclusive rights to enter into negotiations for a licensing deal over the company’s patented technology.

Range Resources Ltd (ASX: RRS; AIM: RRL) said testing has confirmed a commercial discovery for its Smith #1 well in the North Chapman Ranch area in Texas and that the government of Somalia's Puntland State has now ratified the previously announced changes to the production sharing agreement over the Dharoor and Nugaal valley exploration areas.

Broadband satellite operator, Avanti Communications Group plc (AIM: AVN) (‘Avanti’) announced it has raised £280 million through a combination of equity and debt based financing. The proceeds will fund the purchase, launch and operation of the HYLAS 2 satellite.

Bglobal (AIM: BGBL) it has signed an extended contract with JD Sports Fashion PLC (LSE: JD) to fit its smart meters in all the retailer’s stores following a successful trial.

Plantic Technologies Limited (AIM: PLNT) has entered a joint collaboration agreement with National Starch LLC to establish a site for the manufacture of Plantic products in the US and relocate one of its existing proprietary manufacturing lines from Australia to the US.

Junior gold producer, Ascot Mining (Plus ASMP, FSE: AM3) confirmed this morning that it had produced its first gold dore bar at the Chassoul Mine in Costa Rica.  Mining  operations and the mill circuit are now “fully operational” at Chassoul, with the first 10 ounce gold dore bar produced after the completion a successful  primary  test-run of the entire ore processing circuit . A larger 100 ounce gold pour is scheduled to occur before Christmas.

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