ASOS plc (LON:ASC) found support in afternoon trading adding 1.8% at 5,601p as the brokering arm of high street lender HSBC upgraded its stance on the Online fashion retailer to 'buy' from 'hold' following recent results.
The bank said the AIM-listed firm’s full-year results were in line, supported by good growth across all territories and KPIs.
HSBC’s analysts also raised their target price for ASOS to 6,650p from 6,250p, saying its new rating is supported by a strong net cash balance sheet.
Broker comment also helped give a lift to banking giant Barclays PLC, (LON:BARC), which took on 1.7% at 195.35p after German broker Berenberg upgraded its rating to ‘hold’ from ‘sell’ as it feels “the march towards higher UK rates seems inevitable.”
The upgrade countered news that Red Kite, a hedge fund specialising in metals investments, was reported to have filed an $850m lawsuit against Barclays, accusing it of causing it vast losses by front-running its trades in the copper market.
Among other banking gainers, blue chips Lloyds Banking Group PLC (LON:LLOY) and Royal Bank of Scotland PLC (LON:RBS) were up 0.5% at 67.32p and 1.5 % at 284.2p respectively, with both due to issue third quarter numbers next week
But on the downside, consumer product giants Unilever plc (LON:ULVR) Reckitt Benckiser PLC (LON:RB.) and were two of the biggest blue chip fallers after disappointing updates earlier this week, losing 2.2% at 4,204p and 2.1% at 6,647p respectively.
12.05pm: Investors on side for Octagonal after bullish trading update
Investors were on side for Octagonal PLC (LON:OCT) at lunchtime, with its shares jumping 23% higher to 3.73p after the financial services company said its wholly owned subsidiary Global Investment Strategy UK had "record" revenue and profit in the first half.
The AIM-listed firm said Global Investment Strategy reported a 17% increase in revenue to £3.3mln in the six months to September 30, up from £2.8mln a year earlier, helping net profit leap by 40% to £1.6mln.
Octagonal said Global Investment Strategy improved revenue and profit despite the negative impact of a slightly strengthened pound, as the majority of the investment company's revenue is in dollars.
Henry Boot fits well
Elsewhere, builder Henry Boot PLC (LON:BOOT) took on 7.6% at 331p after it said current trading has continued to be "very strong" across all business segments - in particular within property development and land promotion.
The small cap firm said that, as a result, given the "accelerated completion" of transactions in September and October and the successful delivery of major development schemes through the second half of the year, it now anticipates its performance for the year to 31 December would be "materially ahead" of the board's existing expectations.
It added that 2017 had proven to be an "outstanding" year where almost every deal it hoped to complete had been done.
Site deal fuels Velocys
Renewable fuels company Velocys PLC (LON:VLS) gained nearly 8% at 35.75p on news it has signed a site option agreement with Adams County in the State of Mississippi for its first US biorefinery, to be located in Natchez, Mississippi.
The AIM-listed firm said it has been offered economic development incentives from Adams County estimated to be worth the equivalent of US$42mln, with the project expected to qualify for additional incentives worth up to US$15mln, provided via Mississippi's Advantage Jobs Act and other statutory tax incentives.
10.55am: Record scratched as reports £1bn net client quarterly outflows
Record PLC (LON:REC) was a big faller in mid-morning trading, down 7.4% to 44p after the currency manager reported a net client outflow of US$1.0bn in its second quarter compared to the previous three months period, despite gaining an extra client.
That decline came despite the FTSE Fledging firm recording its "highest ever" assets under management due to positive movements in global stock markets and foreign exchange rates.
Record’s chief executive officer, James Wood-Collins said: "The theme of volatility in currency markets linked to political and economic uncertainty continues, and the consequent uncertainty provides opportunities for engagement with both existing and potential clients."
Also on the downside, Jersey Oil & Gas PLC (LON:JOG) was the top market faller, down 15% to 215.5p on news it is raising up to £24mln to fund an appraisal programme at the new Verbier project as well as new exploration drilling at the follow-on Cortina prospect.
The company has an 18% stake in the UK Seaward Licence P2170 in the North Sea where Statoil is the operator.
Tanzania export ban hits Acacia numbers
Acacia Mining PLC (LON:ACA) shed 5.2% at 200.9p as it reported a drop in quarterly gold production due to the export ban imposed by the government of Tanzania, causing its underlying earnings (EBITDA) to plunge by 60% to US$50mln.
Acacia has been banned by the country’s government from exporting gold and copper concentrates, which represent 30% of its output, from its mines in Tanzania since March.
However, Canadian miner Barrick - which owns 64% of Acacia - revealed after the market close yesterday that it had struck a deal to resolve the dispute with the government of Tanzania.
Barrick said Acacia would form a new joint venture with the Tanzanian government to operate its three mines in the country, including Bulyanhulu and Buzwagi and North Mara. The government will take a 16% free carry stake in the mines to receive a bigger share of royalties.
However, Acacia said today that it was seeking further clarification and is yet to receive a formal proposal.
9.40am: Ncondezi Energy signs key development deal for Mozambique project
Ncondezi Energy Limited (LON:NCCL) was the top market gainer in early trading, leaping 51% higher to 8.88p, after it announced that it has agreed in principle terms with China Machinery Engineering Corporation (CMEC) and General Electric Corp’s (NYSE:GE) South Africa unit to jointly enter into exclusive negotiations to develop, construct and operate the group’s coal-fired power project and open pit coal mine in Tete, Mozambique.
The AIM-listed firm – which on Wednesday conditionally raised £750,000 through the issue of 15 million shares at 5p each – said CMEC and GE have agreed to acquire a minimum 60% equity stake in the integrated project
Ncondezi’s non-executive chairman, Michael Haworth, commented: "The CMEC and GE NBO has the potential to materially de risk the development, financing, construction and operation of the Power and Mine Projects. CMEC and GE's collective experience in both the energy and mining sectors and specific experience and reputations operating in Mozambique, gives them distinct advantages as a potential partner with Ncondezi.”
Zenith upbeat on Zardab field
Zenith Energy Limited (LON:ZEN) was another good resources gainer, adding 13.5% at 11.5p after it issued an operational update on wells Z-21 and Z-28 in the Zardab field, Azerbaijan.
The company said that while it cannot forecast the potential post-workover oil production achievable from well Z-21, on the basis of the high pressure now recorded at this well, “the data strongly confirms that there is significant bottomhole pressure with large quantities of oil to be produced.”
Mike Palmer, Zenith’s chief operating officer of the company's Azerbaijan-based fully owned subsidiary, Zenith Aran, commented: “Zardab is a young, hugely unexploited field with original high reservoir pressure. The blowout at Z-21 confirms Zardab's vitality and abundance in oil.”
Ascent on the rise
And Ascent Resources PLC (LON:AST) took on 2.5% at 2.08p after a positive operational update, which highlighted the stages remaining before the company begins to export gas production.
Colin Hutchinson, Ascent’s CEO, commented: "All those associated with the project are keen to commence export production as soon as possible and every effort is being made to make this happen."
Proactive news headlines:
Jersey Oil & Gas PLC (LON:JOG) is raising up to £24mln to fund an appraisal programme at the new Verbier project as well as new exploration drilling at the follow-on Cortina prospect. The company has an 18% stake in the UK Seaward Licence P2170, in the North Sea, where Statoil is the operator
Bacanora Minerals Ltd reached another milestone in its bid to start mining lithium from its flagship Sonora project in Mexico with the receipt of environmental approval from the government
PowerHouse Energy Group PLC (LON:PHE) has hosted a two day demonstration of its waste-to-gas technology. The Distributed Modular Gasification (DMG) trial ran uninterrupted for 36 hours using tyre crumb as its feedstock. Syngas produced was flared as part of the demonstration.