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Epic & Msn data

Epic	ASX
Time:	11:03:00
Mid Price:	2908.39
Change Today:
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Period & price data

Period	Price
Now:	2908.39
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Additional information

Additional	Information
Market:	All Share Index
Sector:	General Mining
Epic:	ASX
News:	Latest news
Web Site:	UK Market Wrap
Other Articles:	19-03-201019-03-201018-03-2010

Fresnillo, Lonmin and Randgold fall on weaker metals, FTSE 100 down 1.5% at midday

Overview: as was expected by traders, the UK blue chip index slid 1.5% in the morning in response to yesterday’s late slump on Wall Street following the downgrade of Wells Fargo (NYSE: WFE) by an banking analyst at Rochdale Securities, which weakened the whole banking sector and caused the main indices to head south following a strong start on upbeat Q3 reports from Yahoo (NYSE: YHOO) and Morgan Stanley (NYSE: MS).

The Dow Jones industrial average lost 0.92% to slip below 10,000, while the Nasdaq Composite declined 0.6%.

The markets had to absorb another hit yesterday when the Fed released its Beige Book business survey, reporting small gains in business activity and weakness in the real estate and banking sectors.

Investors were cautious ahead of the big reporting day as US futures declined in the morning, pointing to a slow start on Wall Street in anticipation of quarterly reports from more than 50 S&P 500 constituents that are due today.

Mobile phone operator Vodafone (LSE: VOD), which climbed 1.7%, was the only FTSE 100 constituent to gain more than 1%.

Fallers were led by airline British Airways (LSE: BA), insurer Old Mutual (LSE: OML) and tour company Carnival (LSE: CCL), all of which lost more than 3%. Hotel operators InterContinental Hotels (LSE: IHT) and communications services group WPP Group (LSE: WPP) shedding 2.5%.

Commodities

Oil prices slid in the morning following the overnight rally with December Brent Crude moving down to US$79.13/barrel and US light, sweet crude for December delivery shed about 50 cents, but managed to stay above US$80/barrel.

Apart from Dragon Oil (LSE: DGO), which today reported a 9% year on year increase in Q3 production and offered a positive outlook for the rest of the year, all oil and gas companies in the FTSE 350 turned negative.

Supermajors BP (LSE: BP) and Shell (LSE: RDSB) both declined 2%, as did fellow FTSE 100 constituent BG Group (LSE: BG), moving down to 1,127 pence per share.

Cairn Energy (LSE: CNE) and Tullow Oil (LSE: TLW) lost 1.6%, while Petrofac (LSE: PFC) was at the bottom of the pile with a 2.7% loss.

Heritage Oil (LSE: HOIL) declined marginally, while fellow midcap Dana Petroleum (LSE: DNX) moved down 1.6%.

Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) led the sector with a 13% rally. North Sea explorers Xcite Energy (AIM: XEL), which entered an agreement with service company Fugro to develop its Bentley field in the North Sea, and energy investor Xtract Energy PLC (AIM: XTR) followed with gains of 10% and 7% respectively.

Mongolia-focused Petro Matad Ltd (AIM: MATD) was up 5.6% after hiring a service company to drill its Block XX prospect in Mongolia.

Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG), Western Europe operating oil and gas company Northern Petroleum (AIM: NOP), which just secured a new licence in the Netherlands, and Chinese coal bed methane developer Green Dragon Gas (AIM: GGG) all lost more than 3%.

Ukraine focused gas producer, Regal Petroleum (AIM: RPT) and EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG) slid 3%.

Precious metals

Gold inched slightly higher, improving to US$1,057/oz, while Silver reached US$17.54/oz. Platinum was fluctuating around US$1,360/oz.

Silver producer Fresnillo (LSE: FRES) was the leading faller among the top tear miners with a 2.7% slide. Platinum miner Lonmin (LSE: LMI), which just reported a 20% year on year slide in quarterly production, shed 2%, as did gold miner Randgold Resources (LSE: RRS).

Specialty chemicals firm Johnson Matthey (LSE: JMAT) lost 1.4%.

With the exception of gold miner Petropavlovsk (LSE: POG), which held on to the opening level, mid tier miners also were in decline with silver producer Hochschild Mining (LSE: HOC) shedding less than 1%, while Aquarius Plaitnum (LSE: AQP) lost 2%.

Diamond miner with assets in Sierra Leone and Guinea West African Diamonds (AIM: WAD) was the leading riser among the juniors with a 7% climb. Philippines focused Metals Exploration (AIM: MML) and Africa focused gold deposit developer Cluff Gold (AIM: CLF), which today upped the resource estimate for its Baomahun gold project in Sierra Leone by 40%, followed, advancing 5.5% and 4.8% respectively.

Turkey focused gold miner Ariana Resources (AIM: AAU) and nickel and platinum focused Australia and South Africa operating miner Braemore Resources (AIM: BRR) led the fallers with declines of 6.7% and 6% respectively.

Uzbekistan focused gold miner Oxus Gold (AIM: OXS) and Tajikistan operating gold miner Kryso Resources (AIM: KYS) lost 4% and 3%.

Base metals

Copper and Nickel slightly declined from the morning levels, moving down to US$2.96/pound and US$8.81/pound respectively, while Zinc was on the rise, eclipsing US$1/pound.

All major base metals focused stocks turned negative in early trade.

Antofagasta (LSE: ANTO) was in the lead with a 2% slide, while BHP Billiton (LSE: BLT) and Kazakhmys (LSE: KAZ) both declined 1.7%. Eurasian Natural Resources (LSE: ENRC) shed a little over 1%, while Rio Tinto (LSE: RIO) and Xstrata (LSE: XTA) were down 1%.

Anglo American (LSE: AAL) and Vedanta Resources (LSE: VED) started the day with small losses.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) headed in the same direction with a 5% slide.

Juniors Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) and nickel and iron ore explorer Landore Resources (AIM: LND) moved with the market, shedding over 6%.

Indonesia operating coal miner Churchill Mining (AIM: CHL), which released its full year results today, declined 5%.

Australia focused coking coal producer Caledon Resources (AIM: CDN) and South American focused junior miner Herencia Resources (AIM: HER) both shed 3%.

Southern Africa focused Strategic Natural Resources PLC (AIM: SNRP) outperformed the sector with a 5% gain.

Banks, insurance, private equity

The banking sector was mixed in the morning. Lloyds (LSE: LLOY) and Standard Chartered (LSE: STAN) rose marginally, while HSBC (LSE: HSBA) and Royal Bank of Scotland (LSE: RBS) both lost 1.8%. Barclays (LSE: BARC) declined 1%.

All insurance stocks were in decline.

Old Mutual (LSE: OML) was the heaviest faller with a 3.6% decline, while Standard Life (LSE: SL) was down 3%.

Prudential (LSE: PRU) and Friends Provident (LSE: FP) were close with losses of 2%. Aviva (LSE: AV) and RSA Insurance Group (LSE: RSA) shed more than 1%, while Legal & General Group (LSE: LGEN) declined marginally.

Private equity group 3i (LSE: III) was flat.

Small Cap Movers

Other notable movers among the small caps included developer of CAD and image analysis software Medicsight (AIM: MDST), which lost 8%. Novel pesticides and plant nutritional products developer Plant Impact (AIM: PIM) added more than 6% after securing a EUR1 million grant form the European Union.

Large and Mid Cap News

Ferrexpo plc (LSE: FXPO) announced that its major shareholder RPG Industries SE (RPGI) has sold 70.5 million Ferrexpo shares  to J.P. Morgan, Citigroup and Morgan Stanley in three separate Total Return Swap ("TRS") transactions. The deal represents approximately 12% of the issued share capital in Ferrexpo.

Dragon Oil PLC (LSE: DGO) said gross field production for the third quarter 2009 averaged 46,060 barrels of oil per day, a 9 percent increase over the corresponding period of 2008, and that the outlook for the remainder of 2009 is positive on the back of the oil price recovery.

Vectura Group plc (LSE: VEC) announced that the Phase III trials with NVA237 are proceeding to plan while the initiation of Phase III studies for QVA149 are now expected to occur during 2010. The drugs are designed for the treatment of chronic obstructive pulmonary disease (COPD). As a result of the trial’s progress, the receipt of the associated milestone payment of $7.5m is expected during the financial year to 31 March 2011.

International Power (LSE: IPR) announced that it has successfully completed the acquisition of Canadian wind farm developer, AIM PowerGen Corporation. International Power acquired AIM PowerGen from Renewable Energy Generation Limited (AIM: RWE) for a total value of £139m.

Anglo American plc (LSE: AAL) announced that it is going to restructure its businesses units to create a more streamlined management structure and further focus the Group on its core mining portfolio. The international mining group will create seven commodity business units (BU), additionally Anglo has decided to divest certain non-core assets.

Small Cap News

Gulfsands Petroleum PLC (AIM: GMX) said gross cumulative oil production from the Khurbet East  field in Block 26,  Syria, has reached 5 million barrels with minimal water production and  little pressure depletion being observed to  date.

North Sea explorers Xcite Energy (AIM: XEL) has advanced its Bentley field closer to production today, engaging oil & gas services provider Fugro Well Services to drill and test a horizontal production well on the field, intended to be the start of an early production system to deliver first oil on the field.

Mongolia-focused Petro Matad Ltd (AIM: MATD) has hired Ansai Yuehua Oil Tech Company to drill its Davsan Tolgoi prospect on Block XX in eastern Mongolia.

African focused nickel and gold exploration and development junior Nyota Minerals (AIM & ASX: NYO) reaffirmed its focus on the Muremera and its drilling programme in Ethiopia and said various parties were interested in farming into its SwaziGold project in Swaziland, which it said was the best way to further develop and finance the project.

Churchill Mining PLC (AIM: CHL) said the maiden reserve statement for its flagship East Kutai coal project (EKCP)  in Indonesia is nearing completion and will be published soon, to be followed by completion of a project feasibility study - currently 80 percent completed - by the end of the 2009 calendar year.

Rambler Metals & Mining PLC (TSX-V: RAB, AIM:RMM) confirmed the closing previously announced private placing. Rambler raised £5.5 million before expenses through the issuance of 27.5m ordinary shares at a price of 20p per share.

Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) has added another item to its Dutch assets portfolio, winning the license to another gas prospect in the West Netherlands Basin, where it already has four other exploration and production licenses.

Novel pesticides and plant nutritional products developer Plant Impact (AIM: PIM) has been granted a EUR1 million research grant from the European Union for the development of its nematicide technology and a soil delivery system.

Gulf Keystone Petroleum Ltd (AIM: GKP) said a preliminary evaluation of its Shaikan-1 well in the Kurdistan region of northern Iraq states that the well has discovered a significant resource of low gravity oil, and the range of oil  in-place for the structure is currently estimated to be a gross 1.0-5.3 billion barrels of oil, with a mean of 2.8 billion barrels.

West African focused gold deposit developer Cluff Gold (AIM & TSX: CLF) reported a 40% increase in total mineral resources at its flagship Baomahun gold project in Sierra Leone after an extensive drilling campaign with investigation into possible mineralisation extensions set to be launched shortly.

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