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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Footsie in wait-and-see mode ahead of US jobs report

The US jobs report could give a pointer to when the starting pistol will be fired on the cycle of interest rate rises

The top-share index was barely changed as investors wait on the US non-farm payroll numbers.

The FTSE 100 was down less than a point at 6,746, with investors wondering whether the jobs data will give any clue over when to expect the start of the interest rate tightening cycle in the US.

Jobs creation is one of the US central bank’s main criteria and if the number is in line with consensus forecast of around 220,000, many will draw the conclusion that a rate rise is imminent.

Overnight, Japan said it would not increase its money printing activities despite another weak quarter for the country’s economy.

On the company news front, broadcaster ITV (LON:ITV) struggled after US media companies took a tumble overnight. Shares fell 3.1% to 263.5p as ITV has been expanding its international base with acquisitions of US production studios.

Meanwhile, High Street bookie William Hill (LON:WMH) fell 7.5% to 380.3p on the back of underwhelming results. The bookie blamed new government legislation and write-downs as it saw pre-tax profit drop 35% to just £78.7mln (£121mln) and operating profit fall 12% to £155mln.

Shares in parcels and letters group UK Mail (LON:UKM) posted a 13% fall after it sounded the earnings alarm.

It slashed guidance after it said its move to a new fully automated facility in Coventry had "caused a greater level of customer churn and loss of volume than anticipated".

As a result, full-year pre-tax profits are expected to be in the £10-12mln range, well shy of the £20.1mln predicted by the City.

Also on the slide was Golden Saint Resources (LON:GSR), down 15.6%, after it revealed details of a board room shuffle. Cyril D'Silva becomes chief executive officer, while David McDonald has taken over from D’Silva as chairman, with executive responsibility.

In small caps, AorTech (LON:AOR) rose by 45% to 37p as revenues doubled to US$844,000 at the medical device provider in the year to March as losses more than halved to US$326,000.

Geoscience specialist Getech (LON:GTC) advanced 11.8% to 52p as it said the year to July would show “a very significant year on year improvement.”

Pre-tax profits are expected to double to £2mln with a 29% rise in revenues.

Turkey-focused gold miner Stratex (LON:STI) was wanted after a private-listed investment company Forest Nominees took a 4% stake in the company. The shares are 9.3% better at 2.05p.

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