Today's market overview
Equities are flat as traders digest disappointing US economic data from yesterday, but The Trader Dominic Picarda is firm in his belief that this rally has plenty of legs left yet.
IC TIP UPDATES:
Buy recommendationFaroe Petroleum (FPM) has been awarded seven licence blocks in the 2nd Icelandic licensing round, opening up a potential new front in exploration inside the arctic circle. Valiant Petroleum (VPP) has also been awarded licences.
Advanced semi conductor wafer maker IQE (IQE) has received its first single order worth £1m for advanced wafers to be used in fibre optic communications devices. Demand for such wafers from countries like China, which are expanding their telecoms networks at great pace, is expected to be strong. We keep our buy.
Pubs group Greene King (GNK) has enjoyed a buoyant trading in the six months to 14 October with total sales up 7.3 per cent and pre-tax profits 7.1 per cent better at £82.7m. Retail sales in the past six weeks are also up by 2.2 per cent. Buy.
May Gurney Integrated’s (MAYG) first half results reflect the problems the company has experience with revenues up marginally but profits down on squeezed margins. The order book remains at £1.5bn.
Buy recommendationNew River Retail (NRR) has issued solid interim results with gross revenues up from £6.3m to £8.7m and recurring profits up from £1.4m to £2m. Net asset value is down marginally to 252p, although this beats a bigger fall in the wider market.
Tui Travel (TT.) is bucking tough market conditions with strong performance in the UK in particular. Conditions are tougher in southern Europe and France but management reports strong winter sales and good indications over summer 2013.
Xstrata’s (XTA) finance director Trevor Reid has indicated that he will not take on the finance chief’s role at the merged Glencore-Xstrata, marking the first senior management departure from the mining group.
Wolseley’s (WOS) first quarter results show 2.1 per cent like for like growth in revenues and a 7.6 per cent jump in trading profit to £198m.
F&C Asset Management (FCAM) has announced the appointment of former Gartmore and Deutsche Asset Management chief Richard Wilson has its new chief executive. He begins in January.
Van hire specialist Northgate (NTG) saw profits dip slightly in the six months to October as it continues to manage it business prudently in the tough end markets of the UK and Spain.
OTHER COMPANY NEWS:
Sound Oil (SOU) says it is close to gaining access to the Rapagnano gas field in Italy and should recommence gas flows before the end of the month with proper commercial gas flows by mid-January.
Max Petroleum (MXP) has confirmed a shareholder’s meeting for 20 December to vote on a restructuring of its bonds.
Peruvian oil and gas play Clontarf Energy (CLON) has signed a memorandum of understanding with an Italian group to develop two gas prospects. Talks are also ongoing for the construction of a gas fired power plant nearby.
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