- FTSE 100 closes down 0.01% at 7,348
- Fresnillo biggest loser
- Astra downgraded by Jefferies
FTSE 100 closed the day little changed at 7,348, down 0.43.
Miners were lagging with Fresnillo plc (LON:FRES) the biggest laggard - down 2.52% at 1,583p.
The big gainer was Primark owner Associated British Foods (LON:ABF), which added 3.78% to 2,578p be top dog on the blue chip benchmark.
It comes as reports have emerged that the group is looking for a new chairman.
FTSE 100 barely changed...
Given the threat of escalation of tensions between the US and Russia, equities have been remarkably placid today.
The FTSE 100 was barely changed, down just 2 points at 7,346, and that was largely due to precious metals miners Randgold Resources Ltd (LON:RRS) and Fresnillo (LON:FRES) being down 2.4% and 1.9%, respectively.
Given that precious metals miners are regarded as a safe harbour for risk-averse investors, that is an indication that Syria is not expected to be this generation’s Cuban missile crisis.
IMPORTANT: I’m now told by 4 well-placed sources that US *knows* #Russia was involved in the #KhanSheikhoun chemical weapons attack.#Syria pic.twitter.com/xgSzeg9oxl
— Charles Lister (@Charles_Lister) April 10, 2017
Closer to home, AstraZeneca PLC (LON:AZN) was down 1.2% at 4,735p after US broker Jefferies downgraded the stock from ‘buy’ to ‘hold’ and cut its target price to 5,050p from 5,350p.
Among the mid-caps, property group Shaftesbury PLC (LON:SHB) hardened 29p to 947.5p on reports that property tycoon Samuel Tak Lee might use his 18% stake as a launch-pad for a takeover attempt.
Among the tiddlers, MySQUAR Ltd (LON:MYSQ), the social media platform operator focused on Myanmar, shot up by a third for reasons unknown to be the top riser.
The top faller, also for reasons unknown, was Milestone Group PLC (LON:MSG), the digital media firm. Its shares were off 19.2%.
11.13 ... Banks take a bashing
What is it about banks that makes them scandal magnets?
What's to come of this? https://t.co/79hQmtz8xs via @proactive_uk
— Renae Dyer (@renae_proactive) April 10, 2017
It does not help when the head teacher is, allegedly, leaning on the pupils to misbehave.
Libor: Bank of England implicated in secret recording https://t.co/BDWRsGfYCO
— BBC News (UK) (@BBCNews) April 9, 2017
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Meanwhile, back in the stock market, Strategic Minerals continues to show most other stocks a clean pair of heels.
11.26 ... Oil giants drag Footsie just below the surface
Markets remain relatively flat and therefore sanguine about the prospect of Russia's relationship with US deteriorating further.
A special session of the Group of 7 nations will be held in Italy today with foreign ministers scheduled to discuss the situation in Syria.
Oil prices have headed higher but that has not stopped sector heavyweights BP PLC (LON:BP) and Royal Dutch Shell PLC (LON:RDSB) from drifting lower, helping to push the FTSE back into negative territory.
Among the small-caps palm oil producer Dekeloil Public Ltd (LON:DKO) was on the rise as it readies itself for bumper production this year.
Infinity Energy SA (LON:INFT) lost more than a sixth of its value, sliding from 0.195p overnight to 0.16p as it issued shares at 0.13p a pop to raise £600,000 before expenses.
10.38 ... BHP Billiton tops the risers as activist investor wants jam today
Mining stocks have dragged the top-share index into positive territory, albeit only just.
The FTSE 100 was up 2 at 7,352, with the two mining giants – BHP Billiton PLC (LON:BLT) and Rio Tinto PLC (LON:RTZ) – among the top blue-chip performers.
BHP surged 4.7% to 1,348.5p as activist investor Elliott Advisors called on the lumbering resources giant to give investors a quick buck by selling off its US petroleum assets.
It was a battle of the minerals at the top of the leader board, with Mineral & Financial Investments Limited (LON:MAFL), Strategic Minerals PLC (LON:SML) and Bacanora Minerals PLC (LON:BCN) all sharply higher.
8.38 ... Caution the watchword as politics trumps economics and sabres are rattled
The FTSE 100 was in positive territory, but only just as the escalating tensions between the US and Russia made for a rather cautious start to the new trading week.
At 8.30am, the index of blue-chip shares was up five points at 7,354.22 amid widespread concern over the fall-out from America’s missile attack on a Syrian air base.
The miners led by BHP Billiton (LON:BLT) – up 5% - were back in demand as the flight to safe haven stocks ended. Retailers Tesco (LON:TSCO) – which has results on Wednesday – and Marks & Spencer (LON:MKS) were also in demand.
The precious metals firms Fresnillo (LON:FRES) and Randgold Resources (LON:RRS) tracked the gold price lower as they fell 1.4% and 1.7% respectively. On the FTSE 250, Centamin (LON:CEY) was off 3% after grade issues hit first quarter production from the Sukari Gold Mine in Egypt.
Shares in Shaftesbury (LON:SHB), owner of huge tracts of London’s Soho, was up almost 5% after it emerged that Hong Kong billionaire Samuel Tak Lee had increased his stake in the property group.
Among the small-caps Strategic Minerals (LON:SML) was up 20% early on as it snagged a new, improved deal for output from its Cobre iron ore operation in New Mexico.
Proactive news summary
Akers Biosciences Inc. (NASDAQ:AKER, LON:AKR) said it has identified a potentially large opportunity for its heparin test in Puerto Rico that aligns closely with its commercial strategy in the US.
It has found a specialist outsourced sales group that will target the 64 hospitals on the island.
Collagen Solutions PLC (LON:COS) has unveiled some “promising” data for its collagen-based wound healing spray adhesive.
The AIM-listed firm presented a poster at the recent Society for Biomaterials (SFB) annual meeting in Minneapolis which highlighted the new data.
Continued operational progress at its Ayenouan project in Côte d'Ivoire as well as higher palm oil prices helped Dekeloil Public Ltd (LON:DKL) to a record quarter in the first three months of 2017.
The palm oil producer generated revenues of €9.7mln in the quarter to 31 March, an increase of almost 37% compared to the same period in 2016.
In a quarterly update Magnolia Petroleum PLC (LON:MAGP) has told investors it is seeing a significant increase in proposals for new wells.
Hague and London Oil PLC (LON:HNL) has announced a deal to acquire production licences offshore Netherlands that will deliver 2,900 barrels oil equivalent production per day.
The property fund manager and investor First Property Group PLC (LON: FPO) expects its full-year trading and pre-tax profits to be in line with market expectations prior to a profit on the sale of a Romanian property announced at the end of March.
Platinum and chrome miner Tharisa PLC (LON:THS) has reported another quarter of “steady production” and said it remains on track to meet production guidance for the current financial year as prices for the metal jumped.
6.45am ... cautious start predicted
The FTSE 100 is likely to start the week on the front foot, ignoring the escalating tensions between the US and Russia following the former’s missile attack on Syria.
The spread betting firms are predicting the index of blue-chip firms will advance nine points at the open to 7,358.37.
In Asia, the markets were largely in negative territory, with Hong Kong the notable exception as a buoyant property sector kept the Hang Seng afloat.
Looking ahead, sentiment will likely be guided not by economic data, but how Washington and Moscow repair a deteriorating relationship, if in fact they are able to, analysts said.
Russia is talking about a red line having been crossed with Iran lining up behind it in the wake of the US navy strikes on a Syrian airfield.
The VIX, which measures stock market volatility, ticked up, while the dollar rose as the risk of conflict continues to grow.
Returning to the UK, the corporate calendar includes a few interesting scheduled results statements, including Tesco (LON:TSCO) on Wednesday.
On the same day we have figures from recruiter Pagegroup (LON:PAGE), while trainer specialist JD Sports Fashion (LON:JD.) delivers its prelims the day before.
- Pound worth US$1.2376.
- Gold down US$1.60 at US$1,255.60 an ounce.
- Brent crude up 16 cents a barrel at US$55.40.
Business newspaper headlines
- Wall Street has discovered a new enthusiasm for tech IPOs, to judge by the third strong reception for a software company in less than a month but few tech companies are waiting in the wings to take advantage of the most receptive IPO market for some time, say investors and other observers – FT.
- Concord Resources, a fast-growing metals trader launched during the worst commodity downturn in a generation, is considering a stock market listing in London to help fund ambitious growth plans – FT.
- Controversial businessman and Labour Party donor Chai Patel has held talks over a possible bid to buy half of Bupa’s care home estate for up to £450mln – Daily Mail.
- The Guardian’s decision to contemplate returning to its Manchester roots coincides with a 50% rise in the business rates at its lavish London headquarters – Times.
- London was the top choice for company flotations in the first quarter of the year, accounting for almost half of the total amount raised in European initial public offerings – Daily Telegraph.
City Schedule
Interim: Empiric Student Property PLC (LON:ESP)
Final: Highland Gold Mining Ltd (LON:HGM)