Overview: the FTSE 100 preserved its early gains, standing about 0.8% above the opening level in late afternoon, as investors regained confidence following a positive update from Dubai, which managed to secure a US$10 billion loan from fellow emirate Abu Dhabi to solve its immediate debt problems, including paying off a US$4.1 million debt that is set to mature today and financing the government owned conglomerate Dubai World through to 30 April 2010.
The US stocks were off to a slower start with the Dow Jones Industrial Average tacking on just 0.15%, while the broader Standard & Poor’s 500 index added 3%. The technology heavy Nasdaq composite did better, rising 0.5%.
London Stock Exchange Group (LSE: LSE) emerged atop the leaderboard with a 10% advance, while bank Standard Chartered (LSE: STAN), which has a high level of exposure to Dubai’s debts, was a distant second, climbing 4.7%. Hospitality group Whitbread (LSE: WTB) also made it to the top three with a 4% gain.
Miners also were in demand as most metals rose today. Platinum miner Lonmin (LSE: LMI) taking the lead in the sector, rising 4%, while base metal focused Anglo American (LSE: AAL) and Antofagasta (LSE: ANTO) added nearly 3%. Other notable risers included oil and gas company Tullow Oil (LSE: TLW), hedge fund manager Man Group (LSE: EMG) and pharmaceutical company Shire (LSE: SHP), which tacked on about 2.5%.
Only a handful of FTSE 100 constituents lost more than 1% today, including bailed out bank Lloyds (LSE: LLOY) and plumbing and heating equipment manufacturer Wolseley (LSE: WOS) emerging as the biggest fallers with losses of 2%. Packaging group Rexam (LSE: REX), commercial property companies Segro (LSE: SGRO) and Hammerson (LSE: HMSO), consumer goods company Reckitt Benckiser (LSE: RB), broadcaster BSkyB (LSE: BSY) and security solutions group G4S (LSE: GFS) followed with losses of over 1%.
Commodities
Oil prices slid today with January Brent Crude sliding to US$72.11/barrel and US benchmark crude slipping below US$70/barrel.
Most oil and gas stocks were on the rise today. Tullow Oil (LSE: TLW) and BG Group (LSE: BG) were in the lead, advancing 2.7%. Supermajors BP (LSE: BP) and Shell (LSE: RDSB) added 1.3%, while Petrofac (LSE: PFC) followed with a 1% gain and Cairn Energy (LSE: CNE) rose marginally.
Midcaps were mixed as while Dragon Oil (LSE: DGO) posted a small loss, fellow FTSE 250 constituents Dana Petroleum (LSE: DNX) and Heritage Oil (LSE: HOIL) tacked on 1.5% and 2.3% respectively.
Energy investor Xtract Energy PLC (AIM: XTR) and Kazakhstan operating Max Petroleum (LSE: MXP) emerged as the top risers in the sector with gains of 11% and 7%, respectively.
Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) headed in the opposite direction, slipping 8%. Africa focused energy company Dominion Petroleum (AIM: DPL) and Iraq operating Irish oil company Petrel Resources (AIM: PET) moved along, shedding 6%. Europe focused oil and gas developer Ascent Resources (AIM: AST), which will hold an extraordinary general meeting to approve the proposed £6 million placing today, Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL) and EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG) followed with gains of 5%.
Miners mixed as gold, silver and platinum recoup losses
Precious metals recovered after falling early in the day as gold reached US$1,120/oz, while silver and platinum advanced to US$17.19/oz and US$1,439/oz respectively.
Major mining stocks were mixed today. Platinum producer Lonmin (LSE: LMI) took the lead, adding almost 4%. Silver miner Fresnillo (LSE: FRES) gained 1.6%, while gold producer Randgold Resources (LSE: RRS) was flat.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) declined marginally.
In the FTSE 250, gold producer Petropavlovsk (LSE: POG) retreated 2.9%, while Aquarius Platinum (LSE: AQP) tacked on nearly 1% and silver producer Hochschild Mining (LSE: HOC) posted a marginal loss.
Most small cap companies were in decline today.
Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) slid 8%, while Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) and commodity asset development company Mercator Gold (AIM: MCR) followed with losses of 6% and 5% respectively. Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 4%.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) outperformed the sector, rallying 12.5%.
Nickel rises while copper slides
Base metals headed in different directions today as while copper declined to US$3.12/lb, nickel rose to US$7.49/lb and zinc held steady at US$1.03/lb.
Base metal focused stocks were in demand today with all major companies posting gains. Anglo American (LSE: AAL), Antofagasta (LSE: ANTO) and Xstrata (LSE: XTA) led the pack, tacking on more than 2%. Eurasian Natural Resources (LSE: ENRC) added 2%, while Vedanta Resources (LSE: VED) improved 1.8% and BHP Billiton (LSE: BLT) and Kazakhmys (LSE: KAZ) advanced 1.2% and Rio Tinto (LSE: RIO) rose marginally.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) also posted a small gain.
Botswana operating nickel and copper miner Discovery Metals (AIM: DME) was the top performer among the juniors with a 10% climb. Laterite nickel specialist European Nickel (AIM: ENK), copper and nickel explorer Regency Mines (AIM: RGM) and zinc mining and recycling specialist ZincOX (AIM: ZOX) also did well, tacking on 3%.
Iron ore focused investor Red Rock Resources (AIM: RRR), Finders Resources (ASX&AIM: FND) and mineral sands producer Kenmare Resources (LSE: KMR) were in decline, shedding 12%, 8% and 6%, respectively. Australia focused coking coal producer Caledon Resources (AIM: CDN) joined in with a 4% loss.
Banks, insurance, private equity
Financial stocks were mixed today. Standard Chartered (LSE: STAN) led the banking sector with a 4.8% climb, while HSBC (LSE: HSBA) and Barclays (LSE: BARC) followed, advancing 2% and 1.3%, respectively. Royal Bank of Scotland (LSE: RBS) turned early losses into a 1% gain, while fellow bailed out bank Lloyds (LSE: LLOY) lost 1.7%.
Insurers also headed in different directions today. Admiral Group (LSE: ADM) and RSA Insurance Group (LSE: RSA) shed less than 1%, while Standard Life (LSE: SL) was flat. Old Mutual (LSE: OML) added 1%, Legal & General (LSE: LGEN) and Prudential (LSE: PRU) both gained more than 1.5% and Aviva (LSE: AV) took the lead in the sector with a 2.5% advance.
Private equity group 3i (LSE: III) added nearly 1%.
Small Cap Movers
Other notable movers among the small caps included IP commercialisation company Amphion Innovations (AIM: AMP) and Novel pesticides and plant nutritional products developer Plant Impact (AIM: PIM), which slid 9% and 5% respectively.
Large and Mid Cap News
In a fairly outspoken statement to its investors, Cadbury (LSE: CBRY) Chairman Roger Carr said the confectionary group is worth far more than the takeover bid put forward by Kraft Foods (NYSE: KFT). Carr warned investors, "Don't let Kraft steal your company with its derisory offer."
UK banking giant the Lloyds Banking Group (LSE: LLOY) revealed strong investor support for its £13.5 billion rights issue, saying it has received acceptances of over 95% for the capital raising. The company’s new ‘fully-paid’ shares began trading on the London Stock Exchange this morning.
UK countermeasures, materials and ammunition specialist Chemring Group PLC (LSE: CHG) said a US unit has won a supply contract with the Canadian military worth up to US$34 million under which it will provide the Canadian Armed Forces with its Husky Mounted Detection System Ground Penetration Radar GPR kits (HMDS GPR).
British Airways (LSE: BAY) and its respective trustees, have calculated the extent of the company’s total pension deficit at £3.7 billion. The airlines burgeoning pension deficit has been one of the main sticking points of its proposed merger with Iberia (IBEX: IBLA). The two European airlines finally agreed the long awaited merger last month subject to BA’s resolution of its pension problems.
Small Cap News
Epistem Holdings PLC (AIM: EHP), a UK biotechnology company with adult epithelial stem cell expertise in oncology, gastrointestinal and dermatological diseases, has won a national award for its overseas success, The Manchester Evening News reported on its website.
International rights and film production company HandMade (AIM: HMF) announced that its feature films Planet 51, which has so far grossed over US$60 million, and Cracks premiered on 4 December this year in cinemas across the UK.
Vatukoula Gold Mines (AIM: VGM) has signed the Vatukoula trust deed with the Minister for Lands and Mineral Resources of the Republic of Fiji to establish the Social Assistance Trust in return for a number of concessions and exemptions to the company.
Carlton Resources (AIM: CLN) has purchased an option to acquire all of the shares in Malian Tobon Tondo suarl, which owns highly prospective gold exploration interests in the country which is the world’s third largest producer of gold.
Infrastructure support services group Mouchel Parkman (LSE: MCHL) surged over 25% today as the company confirmed it has snubbed two informal takeover approaches from VT Group (LSE: VTG). The cash-rich former shipbuilder said in a separate statement tried to initiate a constructive dialogue, however Mouchel refused to enter into any form of discussion. Shares in the potential acquisition target were last changing hands at around 238p.
Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) has decided to shift attention to the Koskuduk and Beschoku projects from Naimanjal and said assay results from the Benkala project would likely be in line with expectations.
Surgical Innovations Group (AIM: SUN) said the first laparoscopic procedure (keyhole surgery) using the group’s specialist instrumentation was conducted successfully on a reindeer at Edinburgh Zoo.
Ascent Resources (AIM: AST) looks to secure funds for its Eastern European projects, seeking shareholder approval for the proposed placing to raise £6 million after the results from a 3D survey at the Petisovci oilfield in Slovenia proved to be better than expected.
Range Resources Limited (AIM: RRL) and Africa Oil Corp (TSX-V: AOI) have modified the terms of the existing production sharing agreement (PSA) with Somalia's Puntland State over the Dharoor and Nugaal valley exploration areas, where Vancouver-based exploration company Lion Energy (TSX-V: LEO) holds a 15% interest.