logo-loader

Shell, Unilever and 3i rise, but FTSE 100 stays flat as commodities slip

Published: 11:28 09 Oct 2009 BST

no_picture_pai

Overview: the FTSE 100 finished flat for the second day in a row after it was weighed down by losses in the mining and energy sectors caused by the strengthening of the US Dollar on the back of yesterday’s comments from Fed Chairman Ben Bernanke, who said that monetary policy would likely tighten as recovery took hold.

Wall Street opened higher after stock index futures traded flat in the morning. The Dow Jones industrial average gained 0.4% in early trade, bolstering the UK blue chips and helping the FTSE 100 break even.

The FTSE 100 was led by private equity group 3i (LSE: III), which climbed 4%. Home improvement retailer Kingfisher (LSE: KGF) followed with a gain of 3%, while food manufacturer Unilever (LSE: ULVR) added 2%, as did business services company Serco Group (LSE: SRP).

Software developer Autonomy Corporation (LSE: AU) was the leading faller in the blue chip index with a 3%. Defence systems manufacturer BAE Group (LSE: BA), which is facing an investigation by the Serious Fraud Office, and mobile operator Vodafone (LSE: VOD) also weighted on the Footsie with declines of about 2%.

Commodities

Oil prices inched up today with November Brent Crude breaking through US$70/barrel and US benchmark crude stopping a few cents short of US$72/barrel.

Royal Dutch Shell (LSE: RDSB) outperformed the sector today, gaining 1.5% after announcing plans to build a 480 metre vessel, which will host a liquefied natural gas plant and float over offshore fields. Fellow supermajor BP (LSE: BP) declined marginally.

Tullow Oil (LSE: TLW) was the leading decliner among the blue chip oil and gas companies, shedding almost 2%, while Petrofac (LSE: PFC) lost 1.5%.

Cairn Energy (LSE: CNE) was flat, while BG Group (LSE: BG) improved 1% to 1,101 pence per share.

Mid caps were in decline today. Dana Petroleum (LSE: DNX) lost 2.8%, while Dragon Oil (LSE: DGO) was up 1.6%. Heritage Oil (LSE: HOIL) posted marginal losses.

Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) led the sector with a 15% rally. South American focused explorer Pan Andean Resources (AIM: PRE) followed, surging 11%. Europe focused oil and gas developer Ascent Resources (AIM: AST) and North American based explorer Nighthawk Energy (AIM: HAWK) both climbed 8%.

Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) added 5%, while North Sea explorers Xcite Energy (AIM: XEL) and EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG) rose 4% and 3% respectively.

Western Europe operating oil and gas company Northern Petroleum (AIM: NOP) went in a different direction, slipping 4%.

Precious metals

Precious metals prices improved today with Gold returning to US$1,050/oz and Silver climbing within reach of US$18/oz. Platinum traded within a narrow range around US$1,335/oz.

Major miners were able to recoup early losses to finish just below the opening level. Randgold Resources (LSE: RRS), silver producer Fresnillo (LSE: FRES) and platinum miner Lonmin (LSE: LMI) all declined less than 1%.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) also declined marginally.

Yamana Gold (LSE: YAU) went against the tide, rising 1.6%.

Mid caps were less fortunate with gold miner Petropavlovsk (LSE: POG) shedding 2.3% and Aquarius Platinum (LSE: AQP) sliding 1.2%. Silver miner Hochschild Mining (LSE: HOC) was flat.

Nickel and platinum focused Australia and South Africa operating miner Braemore Resources (AIM: BRR) emerged among the leading fallers among the small caps with an 11% dip. Commodity asset development company Mercator Gold (AIM: MCR) shed 7%.

Most other juniors did very well. South American based explorer Mariana Resources (AIM: MARL) was in the lead with a 10% surge. UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG), Philippines focused Metals Exploration (AIM: MML) and Canada based junior gold developer Rambler Metals and Mining (AIM: RMM) all rallied 9.5%.

Brazil focused gold miner Horizonte Minerals (AIM: HZM) and Africa focused gold miner Pan African Resources (AIM: PAF) both added more than 8%.

Africa operating gold miner GMA Resources (AIM: GMA) and Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) both rose more than 5%.

Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) and Western Australia operating Norseman Gold (AIM: NGL) climbed 4.5% and 3.5% respectively.

Base Metals

Base metals declined today with Copper moving down to US$2.81/pound and Nickel retreating to US$8.55/pound. Zinc held steady at US$0.92/pound.

With the exception of Rio Tinto (LSE: RIO), which added less than 1%, all major base metals focused stocks turned negative on Friday. Chilean copper miner Antofagasta (LSE: ANTO) and Indian miner Vedanta Resources (LSE: VED) both shed more than 1.5%.

Anglo American (LSE: AAL) and Eurasian Natural Resources (LSE: ENRC) declined 1%. Anglo-Swiss miner Xstrata (LSE: XTA) and the word’s largest miner BHP Billiton (LSE: BLT) both fell marginally.

Copper producer Kazakhmys (LSE: KAZ) was flat.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) outperformed the market with a 2.5% advance.

Tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) and Indonesia operating coal miner Churchill Mining (AIM: CHL) led the sector, rallying 11%. Laterite nickel specialist European Nickel (AIM: ENK) climbed 9%.

Uranium and copper explorer Kalahari Minerals (AIM: KAH), which just sold its project in Namibia to North River Resources, added 8%. Tunisia focused metal miner Maghreb Minerals (AIM: MMS), which rallied 15% in the morning, had its gains trimmed to 5%. Cement operator Prosperity Mineral Holdings (AIM: PMHL) improved 4%.

Zinc miner Connemara Mining (AIM: CON) moved with the market, sliding 5%.

Banks, insurance, private equity

Financial stocks were flat on Friday. Standard Chartered (LSE: STAN) and Royal Bank of Scotland (LSE: RBS) were the leading fallers in the banking sector today, declining 1.4%. Lloyds (LSE: LLOY) and Barclays (LSE: LLOY) posted marginal declines, while HSBC (LSE: HSBA) was flat.

Legal & General (LSE: LGEN) and Standard Life (LSE: SL) led the insurers, climbing 1.3%. Friends Provident (LSE: FP), Old Mutual (LSE: OML) and RSA Insurance Group (LSE: RSA) rose marginally, while Aviva (LSE: AV) and Prudential (LSE: PRU) both shed less than 1%.

Private equity group 3i (LSE: III) performed well, gaining 3.6%.

Large and Mid Cap News

International Energy Services company, the John Wood Group (LSE: WG.) updated investors ahead of December’s full year trading results. Conditions remain broadly in-line with pervious management guidance, with a ‘robust’ in its production support operation.

Small Cap News

Vyke Communications (AIM: VYKE) announced the agreement of a large scale distribution deal with Steen Group LLC to expand the Vyke product suite across Latin and South America. The deal is based on a margin sharing arrangement between the parties. Investors have welcomed this latest development, shares in Vyke  surged 25% this morning.

Asian Citrus (AIM: ACHL), China’s largest orange producer and largest orange plantation owner, announced that it has submitted its application for a new listing on the main board of the Hong Kong Stock Exchange (HKEx). On London’s AIM market shares in Asian Citrus rose 2% this morning. The Hong Kong listing was first proposed early this year in August.

Publishing Technology PLC (AIM: PTO), a software and services provider for the publishing industry, is teaming up with Japanese content software provider Sunmedia to jointly relaunch the latter’s online publishing platform as a robust new research service.

Omega Diagnostics Group Plc (AIM: ODX) updated investors ahead of next months interim results, the medical diagnostics company announced that turnover for the business is approximately 9% ahead of the same period in 2008 at £2.87 million. Growth continued in most regions and trading remains in line with management expectations.

Kalahari Minerals PLC (AIM: KAH), the exploration and evaluation group with a portfolio of uranium, copper and base metal interests in Namibia, said a new high grade zone has been discovered on the Rossing South uranium prospect, with one hole intersecting 53 metres at 1,616 parts per million triuranium octoxide (U3O8).

Sirius Petroleum PLC (AIM: SRSP) said it was granted an import licence for refined oil products from the Nigerian Ministry of Petroleum Resources. The news sent the stock up 12 percent in early trades, where it pretty much stayed throughout the morning session.

South African power producer IPSA Group Plc (AIM: IPSA) said it has taken back ownership of  Elitheni Clean Coal Holdings Ltd (ECCH) and has entered into an option agreement for the purchase of a site on which it intends to construct the first phase of its mine mouth power project in South Africa's Eastern Cape province.

Clean Air Power (AIM: CAP) announced it has entered into a Letter of Intent ('LOI') with a major truck manufacturer. The letter outlines a development agreement to deliver a joint demonstration vehicle designed to establish the technical and commercial viability of a jointly produced dual fuel vehicle.

Amphion Innovations PLC (AIM: AMP) said Arnab Basu,  the chief executive officer of its investee company Kromek Ltd, was named "The Ernst & Young Entrepreneur Of The Year” at an award ceremony last night.

The troubled property development company Songbird Estates (AIM: SBDB) said it has received acceptances for 59.6% new ordinary shares issued under a compensatory open offer announced last month along with an issue of preference shares and a credit facility to raise a total £1.03 billion and repurchase the £880 million loan facility from Citigroup.

Solomon Gold PLC (AIM: SOLG) said the airborne hoist electromagnetic survey completed in August 2009 over its Guadalcanal copper-gold tenement has identified several targets for the recommencement of drilling in the fourth quarter of 2009.

Shares in RWS Holdings (AIM: RWS) came under pressure today after the intellectual support services provider said underlying profits for the full year will be below consensus due to falls in interest income due to lower deposit rates, but will still mark an improvement over the previous year.

Workforce management software developer WorkPlace Systems International (AIM: WSI) said it saw a significant improvement in trading during the summer following “disappointing conditions” in the market, announcing a contract win by its US subsidiary, which managed to make a profit in the first half following a restructuring campaign.

Accesso's landmark deal with SEVEN marks strategic growth in the Saudi Market

Accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) chief executive Steve Brown joins Proactive's Stephen Gunnion with details of a significant partnership with Saudi Entertainment Ventures (SEVEN). Brown noted the collaboration highlights accesso's strategy to grow its global footprint,...

14 minutes ago