After a stellar start to the year, shares in London are mixed today with the FTSE100 struggling for upwards momentum. Click here for The Trader Nicole Elliott's latest thoughts om the markets.
IC TIP UPDATES:
Hurricane Energy (HUR) has spudded Halifax, the well it acquired in an off-market licence deal last year and where the company believes the oil column discovered at Lancaster may extend to. Results of the well testing, which will conclude Hurricane's successful drilling programme, are due by the end of March. Until then, we're remain buyers.
Aggreko (AGK) announced that it has extended several contracts in Argentina with the most significant being 174MW of fixed site contracts extended out to the end of 2017. Buy.
KEY STORIES:
Acacia Mining (ACA) has confirmed it is in early stage merger talks with Canada-listed Endeavour Mining (TSE:EDV) to create a £3bn gold miner. Acacia, which is majority-owned by Canada’s Barrick Gold, cautioned that there can be no certainty of a deal, but analysts at Canaccord Genuity believe a transaction could allow Barrick to exit the business and give Endeavour a London listing in the process.
Emerging markets fund manager Ashmore (ASHM) reported net outflows of $0.7bn (£0.58bn) and a negative $1.7bn investment performance for the three months to the end of December. Local currency debt suffered the highest withdrawals, with assets down 9 per cent on the previous quarter. The steepening of yield curves and strength of the US dollar were to blame for the decline.
Property fund manager First Property (FPO) has announced a new fund mandate with Christ Church and St Catherine’s colleges of Oxford and Cambridge’s Robinson college. This involves the setting up of a new fund, Fprop UK Opportunities which will invest in commercial property in the UK. The colleges are committing £14.5m and First Property £725,000, giving the fund firepower of £30m after leverage.
Brickmaker Michelmersh (MBH) has sold a landfill site at Chesham for £2.68m and also said that full year financial performance is likely to be at a similar level to last year.
Fellow brick company Ibstock (IBST) has reported that revenue rose by 5 per cent in the year to December after particularly strong performance in the US where revenues rose by 18 per cent at constant exchange rates. The UK, which accounts for 80 per cent of the business, saw more modest 2 per cent growth.
OTHER COMPANY NEWS:
Main market-listed Kenmare Resources (KMR) posted record monthly production in December, as the miner's Moma titanium plant in Mozambique continues to ramp up production. Improved cash generation and last year's share placing also helped to reduce net debt by 87 per cent, to $45m.
