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Market Wrap - Market Open

FTSE dips on resources as corporate news flows

11 February 2015 08:56

FTSE indices were a jot lower early on as investors digested a platter of corporate news, with resources stocks southbound. Greece's meeting with Euro-group finance ministers today added a side order of uncertainty. Wall St firmed overnight.

Shortly after the open, FTSE 100 was down 10.08 points, or 0.15%, to 6819.04. FTSE 250 was down 6.75, or 0.04%, to 16,652.0. At 8.20am, WTI crude was up 1.08% to $50.56/bbl. Brent was up 0.73% to $56.84/bbl.

Lonmin (LMI) fell 5.57% to lead blue chips down after Glencore (GLEN), down 0.37% to 270.05p, plans to sell its 23.9% non-core stake in the outfit, also unveiling new capex figures and improved output numbers. Anglo American (AAL) and others also fell. Financial stocks slipped behind Schroders' (SDR) 1.7% slide to 2912.5p.

Tullow Oil (TLW) led oily stocks down with a 2.87% fall to 402.4p on falling to an impairment-driven FY pretax loss and markedly lower total dividend. Cairn Energy (CNE) followed, but slips in BP (BP.) and Shell (RDSA) were well off the southbound pace.

Retail was lower, Morrisons (MRW) down 0.76% to 182.7p. Reckitt Benckiser (RB.) gained 4.25% to 5827.5p, on better FY numbers and dividend. Utilities and property stocks also rose. Telco BT (BT.A) added 3.35% to 458.65p, on a premier league rights win, while ARM Holdings (ARM) gained 3.93% to 1097p on a much improved FY pretax profit and dividend.


TelecityGroup (TCY) has reached a non-binding agreement on an all-share merger with Interxion Holding N.V. The proposed deal would be structured as an offer by TelecityGroup for Interxion. Separately, TelecityGroup booked a lower FY pretax profit. It rose 16.76% to 990.75p.

ValiRx (VAL), up 16.67% to 0.28p, has received patent approval by the European Patent Office covering the means for diagnosing and monitoring of patients using biomarker testing for B-cell lymphomas and its prognostic outcome.

Trap Oil (TRAP), down 57.33% to 0.8p, has decided to also relinquish licence P.1556 Block 29/1c (Orchid), which was becoming unduly expensive to maintain. It expected to book a resultant impairment of £5.8m.

Tangent Comms (TNG) fell 15.28% to 4.13p on seeing FY underlying operating profit at £1.2m, against £2.4m a year earlier. Diseconomies of scale, notably in its property print business, heightened after low sales during the Christmas period. Restructuring had been undertaken.

Secure Property Development & Income (SPDI) plans to raise 10m euros via an issue of 29.7m shares at 25p each. It fell 12.7% to 27.5p.


Markets remain jittery about the Greece-Europe debt stand-off and a related meeting of Euro-group finance ministers today. Greece finance minister Yanis Varoufakis is spruiking plans to ease the country's debt burden, but has so far run into firm opposition. Germany has put the brakes on any imminent deal between Greece and its creditors.


Thomas Cook Group (TCG), down 5.29% to 126.15p, reported Q1 revenue of £1.52bn, from £1.66bn a year earlier. The company noted, however, that like for like revenue rose 1.6%, reflecting progress in its New Product and Winter Sun initiatives. Underlying EBIT was down 3.5%.

Dunelm (DNLM) saw revenues rise 14.0% to £406.4m in the 26 weeks to Dec. 27. Like-for-like sales rose 6.2%. Gross margin was maintained at 50.4% and pre-tax profits rose by 10.7% to £68.2m, from £61.6m. Its shares rose 4.15% to 903p.

Red24 (REDT), up 8.22% to 14.88p, advises that trading prospects continue to improve with a number of new business wins and a particularly busy quarter for operational responses in the special risks area.

Styles&Wood (STY), up 6.72% to 71.5p, has traded in line with FY market views, significant hikes in revenue being enjoyed in H2. Meantime, Billington (BILN), up 7.81% to 172.5p, said its performance continued to improve in H2 2014 and its results would be ahead of market views.

Redrow's (RDW) H1 pretax profit surged ahead to £91.2m, up 92% from £47.5m, thanks to a double-digit spike in legal completions. Revenue was £560.6m, up 54% from £363.0m. It proposed a dividend of 2p a share, up from 1p a year ago. It rose 9.8% to 325.9p.

Stocks on the up following corporate news included Snoozebox (ZZZ) and Speedy Hire (SDY). Those lower included HomeServe (HSV) and QinetiQ Group (QQ.).

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