Today's market overview
Markets are on the front foot again this morning, and The Trader Dominic Picarda is beginning to believe that there is some tangible momentum this time, although volumes are not yet enough to be sure.
IC TIP UPDATES:
Leyshon Resources (
) has announced suspension of trading in its shares on the Australian Stock Exchange ahead of an expected announcement of drilling results some time before Monday, but shares continue to trade on London's Aim market. We maintain our recent buy recommendation.
Online dating specialist Cupid (
) says trading remains strong with revenues and profits likely to come in substantially ahead of last year. Buy.
Sell recommendationReckitt Benckiser (
.) is to acquire nutrition and vitamins specialist Schiff Nutrition in a deal worth $1.4bn.
) UK trading performance remains subdued. In the six months to 13 October worldwide sales grew by 2.1 per cent to £636.8m driven by 10.8 per cent growth in international retail sales which mitigated an 8.6 per cent fall in UK retail sales. The UK like for like sales decline has slowed from -7 per cent last year to -3.4 per cent this time round. Our recommendation is under review.
African budget airline Fastjet (
) has announced a strong reaction to its planned start of operations in Tanzania next week. It has already taken 8,000 bookings, equivalent to 60 full aircraft. We keep our buy rating.
Brewer and pubs group Young & Co’s Brewery (
) has reported 11 per cent growth in both revenues and profits in the first half of the year. Managed house revenue is up 6 per cent on a like for like basis in the early weeks of the second half. We maintain our buy recommendation.
Buy recommendationClose Brothers Group (
) has reported continued solid trading with banking and asset management making up for slow trading conditions in the securities division.
Brewer SABMiller (
) says it is bucking the trend for a declining beer market in the UK. Its UK sales grew by 5 per cent in the six months to September with its Peroni brand proving particularly successful. Globally, half year revenues grew 11 per cent and profits by 12 per cent to $2.3bn.
Dart Group’s (
) first half figures reflected strong performance at its airline and package holidays business with revenues up by 31 per cent to £584.5m and profits 37 per cent higher at £57m. This will be partially reversed in the second half as seasonal factors kick in but the company still expects to beat market expectations for the full year.
Media group Daily Mail & General Trust (
) has reported gross revenue decline of 1 per cent, but a 3 per cent underlying rise. Adjusted profits rose by 10 per cent to £255m.
OTHER COMPANY NEWS:
Solo Oil (
) is popular with investors this morning after confirming the details of its sales pitch to potential suitors looking to farm in to its Ruvuma Basin interests offshore Mozambique.
Canadian oil sands business Mercom Oil Sands (MMO) has announced that one of its minority shareholders is trying to acquire Nordic Petroleum – the company with whom Mercom recently failed to seal a farm in agreement over the Chard oil sands prospects. If the minority shareholder succeeds in buying Nordic it will then offer to sell 100 per cent interest in the licences to Mercom.