FTSE in-depth: Lonrho takes aim at the FTSE
Veteran dealers will remember the early 1990s, when Lonrho would hit the headlines on an almost daily basis for all the wrong reasons. For many years its founder, tycoon Tiny Rowland, rode high both in the City of London and across Africa.
Geoff Foster: Fund managers on both sides of the Pond trousered profits.
But he eventually fell victim to the conglomerate's demise and was ousted before Lonmin was born from Lonrho's mining assets in 1998. With the help of soaring platinum prices Lonmin (55p off at 1688p) became a Footsie constituent, and the rump of Lonrho's other assets were listed on AIM.
But not for much longer. Lonrho's shares will be moving up from the junior market to a full listing on April 26 and institutions are bound to take a closer look at the company which is considered to be an excellent play on emerging African markets.
The shares closed flat at 17.50p but could soon test their 52-week high of 19.75p. Rumours suggest that management, led by chief executive Geoffrey White, are sitting on a couple of highly lucrative contracts involving its core agribusiness, Rollex.
One is believed to be for the transportation of fish from Namibia and South Africa to America and the other is for shiploads of citrus fruit going to Japan.
Lonrho bought the remaining 49% of Rollex from the trustees of the De Robillard Family Trust in May of last year. It sources, packs and delivers fresh fruit, vegetables, meat and fish produce from across Africa to clients including Marks & Spencer, Tesco and Sainsbury.
Dealers are now confident that confirmation of any sizeable contract and its promotion to the main market should prompt a re -rating.
Special situation investors chased drug delivery company Oxford Nutrasciences Group 0.38p higher to 4.13p on hearing that 18.9pc shareholder David Norwood has become chairman with immediate effect.
The English chess grandmaster used to run stockbroker Beeson Gregory before becoming a director of investment bank Evolution Securities. He was also a founder of IP Group, a hugely successful developer of intellectual property based businesses. ONG's shareholders will be delighted.
Fund managers on both sides of the Pond trousered profits. The Footsie fell 88.97 points to 5,964.47 and the FTSE 250 148.1 points to 11,541.6, while Wall Street lost 126 points in early trading.
Minds were made up by Goldman Sachs' decision to advise clients to sell oil and close the 'CCP basket' it recommended in December, which encompasses bets on crude, copper, cotton and platinum.
As the price of Brent crude dipped 2.3% to $121.15 a barrel and metal prices slumped, oils and miners moved sharply south. Tullow Oil dipped 58p to 1413p and BG Group 57p to 1488p. Fresnillo plummeted 85p to 1576p, Antofagasta 74p to 1411p, Kazakhmys 74p to 1419p, and Anglo American 152.50p to 3187p.
The prospect of cheaper fuel though lifted world cruise operator Carnival 110p to 2476p, British Airways group IAG 9.6p to 225.10p and holiday operator TUI Travel 2.3p to 232.40p.
Household goods giant Unilever, which yesterday became the latest group to shut its UK final-salary pension scheme to the existing 7,000 members, rose 11p to 1915p. The group said the scheme was 'increasingly unaffordable and unsustainable'.
Sellers dragged Invensys 8.4p lower to 325.5p on hearing it has missed out on a big contract. Transport for London announced it has appointed Bombardier preferred bidder for the re-signalling for the Circle, District, Hammersmith, and City and Metropolitan Lines on the London Underground.
Singer Capital Markets said it was disappointing news and cut its operating profit estimates by 2% to £286m for the year to end-March 2012 and by 3% to £310m for 2013.
Possibly spooked by the disappointing retail sales figures, investors sold online retailer ASOS ahead of today's fourth-quarter sales figures and the close was 39p down at 1707p. Peel Hunt is a seller. It remains highly enthused by management and the business, but not by the valuation, which requires a leap of faith.
Popular of late on talk of a possible 190p a share cash bid from Premier Oil, shares of Encore Oil relinquished 4.25p to 121.25p despite news of a find at a well in the Cladhan field in the UK North Sea. Westhouse Securities' target price is 166p.
Eros International, the largest integrated Indian film studio, featured a gain of 5p at 239p following an upbeat pre-close trading update. Full-year profits are in line with expectations. A positive trading update from all of its African gold projects helped Goldplat sparkle at 10.63p, up 0.50p.
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