Mixed economic data from China, the world’s second largest economy and biggest consumer of metals, triggered a poor showing from UK equities. Click here to read The Trader Nicole Elliott’s thoughts on this latest development.
IC TIP UPDATES:
Good news for Amerisur Resources (AMER) from operations at the Loto-2 well, CPO-5 Block, Colombia. The Company has reported that the Loto-2 well has been successfully directionally drilled to a total depth of 10,320 feet. Drilling encountered indicates 54 feet of net pay thickness in the Mirador formation. Eyes remain on Amerisur’s Ecuadorian pipeline interconnector (OBA) which is still expected to be up and running by the end of 2015. The asset should cut OPEX substantially and diversifies export options. Buy
News that Barclays (BARC) will soon appoint former JP Morgan banker James “Jes” Staley as its new boss sent shares in the banking giant down 2 per cent. Mr Staley, who currently works at BlueMountain Capital Management in the US, will replace Antony Jenkins, who was fired in July after falling out with board members. Buy.
The UK housing boom continues to buoy Bellway (BWY). The housebuilder posted a 44 per cent jump in pre-tax profit in the year to July, as it sold 13 per cent more homes at an average selling price of £224,000. Buy.
An encouraging trading update from RWS Holdings (RWS) was enough to propel shares in our sell tip up 19 per cent. Sales at the provider of intellectual property translation, filing and search services climbed almost a tenth off a spike in patent applications. Under review.
Shares in Michael Page (MPI) leapt 2 per cent in early morning trading after the recruitment consultant’s third quarter gross profit climbed 10 per cent at constant-currencies. The FTSE 250 group also confirmed that chairman Robin Buchanan is stepping down. Buy.
Good trading in Next Fifteen Communication's (NFC) core US market saw group revenues grow 18 per cent to £62m in the six months to July. Markets responded by sending shares in the marketing company up 2 per cent. Buy.
Full-year results at Nanoco (NANO) weren’t quite so positive. The maker of quantum dot semiconductors reported a widened pre-tax loss, owing to higher costs, but did say it will soon start generating sales from its plant in South Korea. Nanoco also confirmed that it has signed a follow-on joint development agreement with Osram Licht AG to develop LED lighting technology. Buy.
KEY STORIES:
The 'megabrew' merger could still be on. Following a series of offers from Stella Artois maker Anheuser-Busch InBev and rebuttals by smaller UK rival SABMiller (SAB), the two sides report they’ve come to an agreement in principle. Under the terms of this “possible” offer, shareholders in SABMiller will receive £44 per share in cash, with a partial share alternative available for around 41 per cent of shares.
Royal Mail (RMG) shares fell 5 per cent in early morning trading after the UK government offloaded its remaining 14 per cent stake in the postal operator. The overnight sale added £591m to the government’s coffers, bringing the total amount it has raised from the sell-off to £3.3bn.
Meanwhile, shares in Flybe (FLYB) soared 6 per cent off double digit increases in seat capacity, passenger numbers and revenue. Second quarter passenger revenue climbed 13 per cent, fuelling further signs of a turnaround at the low-cost regional airline.
Investors in Circle Oil (COP) were similarly buoyed after the oil and gas company confirmed that its Ksiri West-A exploration well in Morocco is flowing ahead of expectations. Shares climbed 4 per cent off this operating update.
New corporate customers and a strong contribution from its US operation saw profits, revenues and the dividend surge at email specialist dotDigital (DOTD). But despite a positive set of full-year results, shares dipped 2 per cent in early morning trading.
OTHER COMPANY NEWS:
Scapa’s transition from self-story into growth play continues to bear fruit, judging by this morning’s brief update. Against a difficult macro-economic backdrop, the bonding and adhesive product provider confirmed it’s trading ahead of the same period last year.
Staffline's (STAF) desire to expand and bag new blue-chip clients saw the group acquire Northern Ireland recruitment agency Diamond Recruitment. According to management, the acquisition will be earnings neutral this year and is being funded from Staffline’s existing bank facility.
Testing services and medical diagnostic products provider Immunodiagnostic (IDH) warned markets of falling revenues as near-term trading remains “challenging”. But management is confident of growth before the end of the financial year as it moves to review its cost base.
Dalata Hotel Group (DAL) has continued its spending spree by buying the four star Clarion Hotel in Cork for €35m (£26m). Last week Dalata told markets it had bid for seven separate sites in the greater Dublin area, as it looks to use €160m of fresh equity capital to buy or build new hotels in Ireland.
Shares in Inchcape (INCH) fell 1 per cent off news that finance director John McConnell will leave in March 2016 after 16 years. The car dealership group confirmed the search for a successor is underway.
