Market report: Thursday close

By Mickey Clark for MailOnline
Updated: 12:03 EDT, 31 August 2006

SHARES in Asia Energy slumped by almost 60% today before being suspended at 117½p with the outlook for the company appearing bleak.

The halt to trading in the shares follows violent protests at the group's key Phulbari project in Bangladesh that resulted in six demonstrators being shot dead by police and 120 being seriously hurt. Asia Energy planned to spend $3bn (£1.6bn) on the mine and a related power plant, and a further $10.4bn over the next 30 years.

The protesters, along with local residents, politicians and rights groups, have objected to the project, claiming it would displace hundreds of families and damage the environment. The Bangladeshi government closed the mine following the deaths and after opposition parties called for a national strike.

Asia Energy was not available for comment and it is not known when, or if, the mine will be reopened. The company floated at below 100p in London two years ago, and the shares were changing hands at a peak of 870p less than a year later.

One casualty of the news will be RAB Capital, down 1¾p at 97½p. Its 15% stake is now worth only £8.5m. The same stake would have been worth more than £65m a year ago.

Share prices generally gave back some of yesterday's gains in thin trading. The FTSE 100 index fell 23.2 to 5895.0. Mining shares made some of the early running with Antofagasta up 18p at 465½p and Vedanta Resources 1p better at 1361p.

London Clubs International responded to news of Harrah's £280m, 125p-a-share offer with a jump of 33¾p to 132½p. LCI had been in merger talks with Stanley Leisure, up 29½p at 648p, since June, following a move engineered by Malaysian outfit Genting, which has 30% of LCI and 13% of Stanley. The talks have been terminated.

Social housing contractor Mears firmed 2¼p to 288¾p. Finance director David Robertson has raised enough cash for a round of drinks with the sale of 100,000 shares at 286½p each.

He has also exercised an option on a further 400,000 shares at prices ranging from 50p to 77p, or an average 65p, and sold them on at 268½p. That equates to profit of about £814,000 for the numbers man, who continues to have an interest in a further 337,000 share options.

Amec rose 27½p to 323p despite dropping into the red last year with a pre-tax loss of £57.9m. This followed write-offs by the builder and civil engineer totalling £79.3m and compares with a profit for the corresponding period of £18.7m. Broker Bridgewell has repeated its underweight rating in the shares and continues to prefer competitor Balfour Beatty.

Rival broker Seymour Pierce says the worst is over for Amec and most of the bad news is out of the way. It has maintained its outperform rating and target of 360p, while Citigroup says the results were above expectations and retains its hold rating and 350p target.

Medical diagnostics specialist Cozart firmed 2½p to 34p after moving into the black last year for the first time. Pre-tax profits were £300,000 against a loss of £500,000 previously.

First-half numbers from Avis Europe failed to live up to expectations, shares in the car rental group 3p in reverse at 65p. The group, 30%-owned by Belgian parent D'Ieteren Trading, dipped into the red with a pre-tax loss of €3.2m (£2.2m). That compared with a profit of £3.2m the previous year. The company is forecasting a better second half.