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Market Wrap - Midday

Gold miners and defensives drive up FTSE

01 July 2016 11:46

The FTSE 100 continued to display post-Brexit momentum as investors maintained the trend of buying defensive stocks like British American Tobacco (BATS) and gold miners such as Rangdold Resources (RRS).

The FTSE 100 advanced 0.3% to 6,521.93, while the FTSE 250 slid 0.3% to 16,225.81.

Bank of England governor Mark Carney hinted at a UK interest rate cut in a bid to help Britain avoid a recession. That sent the banks down amid fears that lower rates would reduce their profit margins. Royal Bank of Scotland (RBS) and Barclays (BARC) fell by up to 3.3%.

West Texas Intermediate (WTI) crude oil declined 0.6% to $48 and Brent crude oil slipped 0.6% to $49.4 per barrel, respectively.

Gold glittered at $1335.1 per ounce.


Sunday Mirror owner Trinity Mirror (TNI) said it anticipated results would meet expectations as a result of strong cash generation, which enabled a further reduction in net debt, gaining 4.3% to 91.2p.

Coach operator Stagecoach (SGC) was downgraded by JP Morgan after weaker GDP growth data, which would affect the company's bus and rail operations. Its shares dropped 9.9% to 208.3p.

In June, the UK manufacturing sector moderately improved, according to the Markit/CIPS purchasing managers' index.


Finance recruitment specialist PageGroup (PAGE) fell 2% to 291.3p as investors worried about relocations of financial sector staff away from London.


Australia-based gold firm SolGold (SOLG) executed a short-term unsecured loan agreement with DGR Global to receive up to $7 million, nudging higher to 3p.

The market was impressed with cloud computing provider RapidCloud International's (RCI) contract with Malaysian conglomerate, Sime Darby Global Services Centre, for its RapidAPI gateway solution, shooting up 12.3% to 41p.

Servoca (SVCA) jumped 7.9% to 22.1p upon the acquisition of Classic Education for £1.2 million, to be funded from existing cash resources and debt facilities.

Investors were worried after media solutions specialist SpaceandPeople (SAL) said it would close S&P+ as a result of delayed and cancelled deals, which will have an effect on full-year financial results, triggering a share price drop of 13.3% to 39p.

Mobile casino operator Nektan (NKTN) slumped 21.3% to 48p after it said marginally lower EBITDA reduced the company's cash levels, forcing directors to assess financing options.

Tissue Regenix (TRX) won a contract with a US purchasing organisation for the use of DermaPure, sending the shares up 9.2% to 18.3p.

Oil production company EnQuest's (ENQ) drilling of the Scolty/Crathes development wells was completed ahead of schedule and under budget, boosting its shares 4.7% to 33.5p.

Clear Leisure (CLP) fell 15.1% to 0.7p after it narrowed full-year operating losses and financing charges were higher than the previous year.

Furniture retailer John Lewis of Hungerford (JLH) posted higher sales and a bigger order book, but retreated to 1p as investors reacted badly.

Pet medicine maker ECO Animal Health (EAH) posted improved full-year pre-tax profit and a planned 20% dividend hike, as a result of higher sales and a weaker pound, climbing 13.9% to 432.7p.

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Related Company: TNI

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