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Market Wrap - Midday

FTSE starts recovery after pound strengthens

15 June 2016 12:03

The FTSE 100 started to recover as the pound strengthened, aided by lower unemployment figures.

The FTSE 100 climbed 0.8% to 5,970.38 and the FTSE 250 nudged 0.4% higher to 16,291.69.

West Texas Intermediate (WTI) crude oil fell 0.8% to $48.08 and Brent crude oil retreated 1.2% to $49.21 per barrel, respectively.

Gold declined 0.2% to $1,283.2 per ounce, while copper rose 2.6% to $4,629.78 per tonne.

MAIN NEWS OF THE DAY

Retailer Steinhoff said it's considering a takeover of Poundland (PLND), causing shares in the latter to climb 2.4% to 200.4p. Steinhoff recently tried to acquire French electrical retailer Darty (DRTY).

Bowling operator Hollywood Bowl announced a planned IPO in July in a bid to expand the business and provide a platform for further growth.

UK unemployment declined to 1.67 million in the three months to 30 April, which beat expectations according to the Office for National Statistics (ONS).

Average earnings also rose above expectations to 2.3%, while more people entered employment said the ONS.

BLUE CHIP RISERS AND FALLERS

Housebuilder Berkeley (BKG) suffered a 20% drop in new home reservations as demand fell, while pre-tax profit declined as a result of reduced ground rent sales. The market was unimpressed, causing shares to retreat to 2,939p.

MID CAP RISERS AND FALLERS

British luxury shoe brand Jimmy Choo (CHOO) reassured investors with a good start to the year, confirming it is on track to deliver improved margins, boosting shares 13.3% to 108.7p.

Tech firm Aveva (AVV) terminated talks with Schneider Electric again and its shares fell 12.7% to 1,619p.

SMALL CAP RISERS AND FALLERS

Structural steel group Severfield (SFR) boosted its revenues and pre-tax profit after focusing on operational improvements and efficiencies over the last three years, leaving investors relieved as shares were up 11% to 52.7p.

UK software company Servelec (SERV) announced a profit warning after stating its operating profits will be significantly lower than last year, triggering a drop of 33.3% to 226.7p.

Turkish company MNG Gold Jersey said it plans to buy a 55% stake in Aureus Mining (AUE) and CEO David Reading resigned, boosting shares in Aureus by 14.8% to 3p.

Technology tool supplier Oxford Instruments (OXIG) boosted its pre-tax profit through its cost saving programme, pleasing the market and pushing shares 3.3% higher to 682p.

Oil and gas drilling firm Enteq Upstream (NTQ) reduced pre-tax loss by more than $40m despite depressed oil prices, but this didn't stop a 1.5% decline to 13p.

Iron casting producer Castings (CGS) was up 5% to 464.9p after increasing full-year profits. It said profit will decline in the current financial year, although is anticipated to improve next year.

Chemical technology group Accsys (AXS) posted increased revenue, which was driven by higher prices and more licensing income, triggering a rise of 4.5% to 65.6p.

Timber processing business Active Energy (AEG) said AEG WoodFibre delivered a 40% increase in revenue and anticipated revenue could rise by the end of the year to $50m. The market liked the news, prompting a climb of 3.2% to 4p.

Herencia Resources (HER) executed formal documentation for the sale of the company's 70% equity in the Paguanta project, causing shares to shoot up 5.7% to 0.03p.

Highland Natural Resources (HNR) announced a deal to sell its helium assets to Opera Investments and its shares dropped 24.8% to 34.8p.

Story provided by StockMarketWire.com

Related Company: PLND

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