Koovs PLC (LON:KOOV) was a big gainer on AIM in afternoon trading, leaping nearly 15% higher at 28p after the Indian fashion retailer announced a new partnership with FTSE 250-listed online retailer N Brown Group PLC (LON:BWNG).
Under the partnership's terms, a capsule Koovs private Label young fashion brand will be available from N Brown’s Simply Be site in larger sizes from December, followed by a more extensive range from Spring and Summer in 2018, rolling out in March,
The partnership, and planned distribution in the United Arab Emirates through Souq.com, is expected to commence in the next three weeks, accelerating Koovs' international ambitions.
An even bigger gainer was Sunrise Resources Plc (LON:SRES) which jumped nearly 19% higher to 0.19p after the miner said it received positive news after testing samples from its CS pozzolan-perlite project in Nevada, as well as the discovery of a new perlite occurrence at the site.
The AIM-listed firm said drill samples from the Tuff zone shows good continuing strength gain consistent with the performance of a high quality natural pozzolan - an ingredient used in the cement-making process - with the same indications recorded from samples from the main zone.
But among the AIM fallers, Augean PLC (LON:AUG) shed 8% at 25p after the waste management company announced the resignation of its chief executive officer, Stewart Davies, with its non-executive chairman, Jim Meredith stepped up into the executive chairman role.
Davies’ immediate departure, with "mutual consent", came as Augean warned that it believes its full year profit will be "below" that of the previous year, and that it also expects 2018 profit to be "lower" than previous expectations.
2.15pm: Shire gains on reported activist shareholder pressure
Among the blue chip gainers in afternoon trading, Shire Plc (LON:SHP) took on 2.9% at 3,959.5p after Sky News reported that US hedge fund Sachem Head Capital Management is urging the Dublin-based drugmaker to explore a sale or spin-off of several of its units.
The move, which the broadcaster said has been raised during discussions between the hedge fund and Shire directors in recent months, comes after Sachem Head disclosed during the summer that it had acquired a small stake in the pharmaceuticals group.
Fellow FTSE 100-listed drugmaker AstraZeneca PLC (LON:AZN) was also higher, up 1% at 5,178p after Swiss bank Credit Suisse upgraded its rating to ‘outperform’ from ‘neutral’ in a review of the global pharma sector.
Meanwhile, US broker Jefferies International raised target prices for both AstraZeneca and rival GlaxoSmithKline plc (LON:GSK), up 0.2% at 1,518.5p, in its own sector review today.
Broker comment also gave a lift to blue chip commercial broadcaster ITV plc (LON:ITV), which added 1% at 174.4p after the broking arm of HSBC upped its stance to ‘buy’ from ‘hold’ in a note on the European TV sector.
Miners provide a prop
But miners continued to lead the FTSE 100 higher as commodity prices advanced after Chinese inflation data for September met expectations, with Chilean copper miner Antofagasta PLC (LON:ANTO) the top blue chip gainer, up 3.4% at 1,049p, while BHP Billiton plc (LON:BLT) added 2.7% at 1,435.5p, and Rio Tinto PLC (LON:RIO) rose 2.1% to 3,765.5p.
On the downside, automotive and aerospace parts makers GKN PLC (LON:GKN) was once again the biggest blue chip faller, shedding another 2.6% at 309.9p as a welter of broker downgrades rolled in following last week’s profit warning.
Among the negative comment, French broker Societe Generale cuts its stance for GKN to ‘hold’ from ‘buy’, while Numis Securities reduced its rating to ‘add’ from ‘buy’ noting that the “banana skins are unfortunate but are mainly one-off in nature and do not detract the inherent value argument.”
Although the Numis analysts added that: ”It certainly raises the pressure on the new management team”.
11.00am: Interserve drops on bank discusssions
Interserve PLC (LON:IRV) was a big faller in late morning trading, down 5% at 105p after the construction and support services company confirmed it is in "constructive and ongoing discussions with its lenders" following media reports.
On Sunday, Sky News reported that a group of high street banks, including HSBC and Royal Bank of Scotland Group, hired Ernst & Young last week in the wake of a profit warning from Interserve in September.
In a statement today, Interserve said talks are being held, and that "work is underway to provide greater clarity on its current trading and Energy-from-Waste provision."
In mid-September, the small cap firm had warned the complexity of exiting its energy-from-waste business was set to "significantly exceed" the £160mln it had already put aside and warned that its 2017 outcome would be significantly below its previous expectations.
Also among the major market fallers, Low & Bonar PLC (LON:LWB) plunged 18.5% lower to 65.0p after it warned that ongoing problems at its civil engineering business are being compounded by rising raw material costs leading to an as expected loss.
The industrial fibres and textiles specialist said it is now reviewing what it can do with the civil engineering arm, which strengthens concrete among other things, and will make a loss this year.
L&B added that the hurricanes in the US and Caribbean have pushed up raw material prices and attempts recoup these had affected margins.
ConvaTec deflated
Convatec Group PLC (LON:CTEC) was the worst FTSE 100 performer, dropping by 20% to 222.2p after the wound dressings maker lowered its full year organic revenue growth expectations on the back of supply issues.
The company said its third quarter group revenue grew by 6.8% to US$445.5ml, up from US$417.4mln a year earlier, but added that it now anticipates full year organic revenue growth to be between 1% and 2%.
The group – floated a year ago – said that outcome is dependent on the resolution of its remaining supply issues, fulfilment of back orders, and recovery of orders in both Advanced Wound and Ostomy Care in the final quarter of the year.
10.00am: Spectra Systems jumps on bullish update
Spectra Systems Corp (LON:SPSY) was a strong gainer in early morning trading, up 6% to 86.5p after the firm said it expects its full-year results to "significantly exceed" market expectations after "record" royalties performance from a licensee.
The banknote authentication company said its licensee for covert authentication technologies had reported that royalties based on finished printed notes will reach a "record level" in 2017.
Spectra, chief executive officer, Nabil Lawandy commented: “Based on our licensee's projections for material purchases, we expect the royalties to be somewhat higher than average next year although not necessarily at these record levels."
Also on the up, Acal Plc (LON:ACL) also rose by nearly 6% to 332p after the customised electronics specialist revealed it expects full-year earnings to be ahead of expectations after a strong first half performance.
The Guildford-headquartered group said it has generated “good levels of organic growth” in the opening six months of its year, driven by new project wins and “favourable” market conditions, particularly in continental Europe.
And Concepta PLC (LON:CPT) jumped 8% higher to 10.0p on news it has signed two more distributor agreements in China for its myLotus product, which will target the early pregnancy and fertility markets.
Concepta said Huanzhong Biotech and Wanma Technology have both signed 3-year exclusive distribution agreements, which will cover the provinces of Hebei near Beijing and the Shanghai area respectively.
Other Proactive news headlines:
Sunrise Resources Plc (LON:SRES) has discovered a potential new perlite/pozzolan deposit in Nevada. Using techniques refined from those that identified the CS pozzolan/ perlite deposit, Sunrise has identified a new conical outcrop of glassy volcanic rock having a base diameter of approximately 400m and a height of up to 45m above the surrounding plain, suggesting good tonnage potential.
Fox Marble Holdings PLC (LON:FOX) has now received the complete advance payment of US$500,000 from OM Enterprises, as per the sales agreement announced last month.
Medtech firm genedrive PLC (LON:GDR) has signed a distribution agreement with Sysmex Corporation, a world leader in clinical laboratory systemization and solutions, covering EMEA, with an initial focus on Africa.
RM Secured Direct Lending PLC (LON:RDML), an investment trust specialising in secured debt instruments, saw its net asset value per share rise last quarter to 99.51p from 97.6p at the end of June.
Shares in industrial Internet of Things company Telit Communications Plc (LON:TCM) advanced on Monday following weekend reports that potential bidders are circling.
Futura Medical PLC (LON:FUM) jumped at the opening bell after it told investors that the majority of physicians in the US think its erectile dysfunction gel is an improvement over current ED therapies. The innovative healthcare group said the latest market research data found that 60% of doctors think MED2002 – the official name of the gel – is a better treatment than the likes of Viagra and Cialis.
Highlands Natural Resources Plc (LON:HNR) told investors it is now moving ahead to flowback operations at the Wildhorse and Powell wells, at the East Denver project in Colorado. The company has now completed a fracking programme on the two wells, with each fractured 55 times. It is expected that both wells will begin production during the fourth quarter.
Silence Therapeutics PLC (LON:SLN) has announced the appointment of Dr Annalisa Jenkins, CEO of Dimension Therapeutics Inc. as the AIM-listed group’s non-executive chair with effect from today. Jenkins will succeed Dr. Stephen Parker, the company's non-executive chairman since September 2015 who will become a non-executive director.
Orosur Mining Inc (LON:OMI) has commenced a 15,000 metre drill campaign in Colombia. The drilling is supported by the US$3.2 mln in new money that the company raised in August. Separately, first quarter production numbers from the San Gregorio mine in Uruguay show that Orosur is on track to meet guidance of between 30,000 and 35,000 ounces of gold for the year.
Strategic Minerals Plc (LON:SML) has signed a term sheet for the acquisition of the Leigh Creek copper mine in Australia. Subject to due diligence, Strategic will pay A$1mln in cash in staged payments, provide interim loan funding, subscribe for shares in the owner, LCCM, and grant a significant royalty over the project.
Merrill Lynch Australia funds have bought just over 5% of Base Resources Limited (LON:BSE). The share purchase comes after Taurus sold a slightly bigger stake last week.
Vast Resources PLC (LON:VAST) enjoyed a record third quarter, as operations at the Manaila polymetallic mine in Romania and the Pickstone-Peerless gold mine in Zimbabwe outperformed the previous quarter in terms of tonnes mined, tonnes milled, copper concentrate produced and gold produced. At Manaila there was a 31% increase in copper concentrate produced, although grade dropped marginally. Zinc production fell, but gold production rose.
Metal Tiger PLC (LON:MTR) told investors that it has added more shares in Kingsgate Consolidated Limited (ASX:KCN). It has purchased 430,000 shares at a price of 33 Australian cents, equivalent of 20p, per share. The transaction takes MTR’s stake up to 11.58mln shares, amounting to 5.18% of the Australian company.
Società Chimica Bussi (SCB) is investing in additional manufacturing capacity for a stain removal product developed by Itaconix Plc (LON:ITX).
APQ Global Limited (LON:APQ), the emerging markets growth company, announces that as at the close of business on 30 September 2017, its unaudited book value per ordinary share was 96.94p.