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Market Wrap - Market Open

FTSE mixed as Randgold leads blue chips north

06 February 2017 08:54

London shares are mixed in early deals -- blue chips up a jot and the mid cap down a wafer -- as a chipper set of FY results from Randgold Resources (RRS) propelled its shares higher, chased by other metals diggers and multiple financials.

Soon after the open, FTSE 100 was up 4.33 points, or 0.06%, to 7192.63, while FTSE 250 dropped 19.74, or 0.11%, to 18,391.9. At 8.29am, WTI crude was up 0.17% to $53.92/bbl and Brent was up 0.05% to $56.84/bbl. Gold rose 0.41% to $1225.8/oz, with silver and copper also moderately up.

Randgold Resources (RRS), up 4.05% to 7137.5p, has hiked its FY profit to $294.2m, up 38% on the year, and proposed lifting its FY dividend by 52% to $1 a share after improving production for a sixth consecutive year.

It was chased by fellow gold specialist Fresnillo (FRES), up 1.29% to 1488p, and then Glencore (GLEN), up 1.15% to 313.05p, Anglo America (AAL), up 0.79% to 1342.5p, and Rio Tinto (RIO), ahead 0.72% to 3415p.

Utilities were also in focus, guided SSE (SSE) and National Grid (NG.), both on news that is outlined further below. Also notable among the blue-chip risers were lenders behind Standard Chartered (STAN), up 0.75% to 807.5p, and Lloyds (LLOY), ahead 0.64% to 66.27p.

Other blue-chip sectors on the up included insurers, tobacco and pharmas. To the downside, airlines, retail-related and house builders were in focus. Dixons Carphone (DC.) guided with a fall of 1.59% to 299.75p. International Consolidated Airlines (IAG) fell 1.26% to 478.6p.

EasyJet (EZJ), down 0.82% to 932.25p, carried 4,745,630 passengers in January, up 11% on the year. Load factor was 86.2%, up from 85.0% last time. It carried 74,921,296 on a 12-month rolling basis, up 6.9%. The load factor was 91.5% compared with 91.6% previously.

Also lower were supermarkets M&S (MKS), down 1.16% to 336.25p, and Sainsbury (SBRY), down 0.85% to 262.55p. House builders followed Taylor Wimpey (TW.), off 0.98% to 170.9p, while commercial real estate fallers included Land Securities (LAND), down 0.25% to 1001.5p.

OTHER BLUE-CHIP NEWS

National Grid (NG.), up 0.26% to 930.4p, has begun a share buy-back for the period Feb. 6 to no later than Feb. 17. The maximum amount allocated to the buy-back programme was £34.98m, and the maximum number of shares that would be purchased was 3.5m.

SSE (SSE), up 0.46% to 932.3p, has provisionally secured agreements to provide a total of 4451MW (megawatts) of de-rated electricity generation capacity from October 2017 to September 2018 in the GB Capacity Market Auction.

BIGGER MOVERS

NU-Oil & Gas (NUOG), down 20.77% to 0.52p, has raised £2.05m in total before expenses, at 0.5p a share, in an placing and subscription. Proceeds would go to the continued implementation of NU-Oil's stranded and marginal field strategy and for general working capital purposes.

Solo Oil (SOLO) rose 19.1% to 0.53p as the Ntorya-2 appraisal well in the Ruvuma PSA was successfully drilled to a depth of about 2750 metres, encountering a 50-metre thick gas-bearing reservoir interval, in excess of the company's prognosis prior to drilling.

Advanced Oncotherapy (AVO) fell 13.1% to 63p on agreeing with Sinophi Healthcare Ltd to end purchase orders announced March 25 and Oct. 21, 2015. They also agreed to end a distribution agreement announced March 25, 2015. AVO would retain full distribution rights for its LIGHT proton therapy system in China and other countries in South East Asia.

LONDON HIGHLIGHTS

Aminex (AEX), up 11.11% to 3.1p, has reported better-than-expected results from the Ntorya-2 appraisal well, which was successfully drilled to a depth of about 2750 metres. Pebble Beach Systems Group (PEB), flat at 12.25p, has warned that its results for FY 2016 are seen materially below directors' previous expectations.

Ithaca Energy (IAE), up 10.56% to 119.13p, was recommending C$1.95 a share takeover by Delek Group, which valued the issued share capital of company at C$841m and implied a total enterprise value of about US$1.24bn.

Safestay (SSTY), down 8.89% to 41p, expected to report FY 2016 underlying EBITDA of £2.2m, from £0.6m, and revenues of £7.4m, from £4.0m, but noted the terror attacks in France dented visitor numbers to the UK capital and elsewhere amid an overall challenging market.

Proxama (PROX), up 6.67% to 0.4p, said a South African insurance and financial services provider has signed a five-year contract with Proxama Solutions Ltd for the supply of in-house EMV card issuing, PIN management and card lifecycle management.

Water Intelligence (WATR), up 6.52% to 122.5p, confirmed the signing and launch of its first formal national contract with one of the top-five insurance companies in the US to provide adjusters a trusted partner to pinpoint water leaks and minimize collateral damage claims from residences and businesses.

Botswana Diamonds (BOD), up 5.56% to 1.9p, has entered into an option and earn-in agreement with Vutomi Mining Pty and Razorbill Properties 12 Pty -- collectively known as Vutomi -- a private diamond exploration and development firm in South Africa.

Amryt Pharma (AMYT), up 4.41% to 17.75p, has reported positive results of a newly completed pre-clinical study that compared its drug compound AP102 with pasireotide, an approved product for treating patients with resistant acromegaly.

BATM Advanced Communications (BVC), up 2.63% to 19.5p, has agreed to acquire Zer Laboratories for NIS2.75m (about £580,000) in cash. Telit Communications (TCM), down 1.7% to 289.5p, said it was collaborating with Yokogawa on a new Industrial Internet of Things (IIoT) architecture.

Other stocks in the news included Watkin Jones (WJG), IP Group (IPO), Frontier Developments (FDEV), Bagir (BAGR), Eagle Eye (EYE) and Fyffes (FFY).

Story provided by StockMarketWire.com

Related Company: RRS

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