Equities in London have staged something of a rally, although it remains to be seen how sustainable it is. Click here to find out what The Trader Nicole Elliott thinks of the markets.
IC TIP UPDATES:
Customised electronics supplier Acal (ACL) has confirmed that it will hit earnings forecasts this year, despite coming up against uncertain market conditions. To accompany this trading update was news of another acquisition. Canada-based Plitron, which supplies the magnetic cores used in transformers, was acquired for £2m, and will slot into the group’s expanding design and manufacturing segment. Buy.
Shares in motor finance provider S&U (SUS) rose 5 per cent after the group announced its advantage finance business had grown customers by around a third to 32,500 by the year end at 31 January. It has also announced that dividends this year will total 43p, against 36p last year. Buy.
KEY STORIES:
Shares in Rolls-Royce (RR.) jumped 14 per cent after the engineer reassured investors about difficult market conditions by maintaining its guidance for 2016. That news trumped the first dividend cut in 24 years. While the cut was deeper than some analysts expected, investors seemed satisfied about management’s goal to free up funds to invest in the business.
Premier Oil (PMO) has blamed rig problems for its decision to terminate a contract to drill the Chatham exploration well in the Falkland Islands. Though drilling in the current campaign has been ruled out, Premier will maintain a dialogue with the Falkland Islands Government. Joint venture partner Rockhopper Exploration (RKH) said the decision would not affect the field development plan for the Sea Lion discovery.
Hotelier Millennium & Copthorne (MLC) will take a £43m net impairment charge against its pre-tax profits for its 2015 financial year. The group, whose shares have fallen 30 per cent in the past year, said it had accounted for £76m of impairment losses relating primarily to four properties located in New York, Rest of Europe and Rest of Asia. This has been offset by revaluation gains of roughly £33m on its investment properties.
Market concern over global growth and the Federal Reserve’s stuttering moves to raise interest rates has proved very good news for gold miners so far this month. Leading the charge in London are Pan African Resources (PAF), up 28 per cent since 1 February; Acacia Mining (ACA), which has gained a fifth; and Randgold Resources (RRS) and Highland Gold (HGM), up 23 and 24 per cent respectively.
OTHER COMPANY NEWS:
Oxford Instruments (OXIG) has appointed Synergy Health’s former finance director Gavin Hill to replace Kevin Boyd, who is leaving to join engineer Spirax-Sarco (SPX). Chairman Nigel Keen said Mr Hill’s vast experience can make a significant contribution to the growth of the business.
