FTSE in-depth: Iodine maker is one to watch
As hard-hatted dealers reached for their mogadon tablets as the friendless Footsie fell a further 97 points to 5,598.23 - taking its decline since Japan's devastating earthquake and tsunami to 4pc, or 230 points - and Wall Street dropped 180 points more in early trading, investors turned to Iofina for some solace.
Foster: Footsie decline since Japan's devastating earthquake and tsunami has hit 4%.
They heard that the AIM-listed Coloradobased iodine producer, could be one to watch amid the worsening nuclear crisis. Buyers got stuck in and the shares rallied from an oversold 21.25p to close at 22.38p, a penny better on the day.
The reasoning behind the sudden interest is that Iofina owns technology which allows the extraction of iodine from brine streams, water found underground containing various salts and minerals.
It should be ramping up production of iodine from around 100 tonnes to over 1000 tonnes a year via third party contracts over the next 12 months. The US consumes almost a third of the world's iodine, while producing just 5pc.
Chile produces around 60pc and Japan 20pc. With the price of iodine doubling in the last five years to more than $30/kg and over 10pc this year, experts expect the price to rise further as demand for iodine tablets in Japan and Russia soars.
In the wake of Friday's disaster and in a country now neurotic about toxic air clouds, Japan distributed 230,000 units of stable iodine to evacuation centres near the Fukushima Daiichi and Fukushima Daini nuclear power plants.
Meanwhile, Thailand's health ministry said that 15,000 iodine pills would be distributed to passengers who depart to Japan from Thai airports today. Iodine tablets protect the thyroid gland from the impact of being exposed to certain kinds of high-level radiation .
Insurer Standard Life lost 11.2p to 199.8p following a sale of shares by director Jacqueline Hunt.
Other insurers reflected the declining value of their equity portfolios with Prudential off another 21.5p at 674p.
Amid speculation that Barclays could soon shift its special purpose vehicle Protium, where it parked a raft of toxic assets, back onto its balance sheet, its shares cheapened 10p to 282.175p. Arturo de Frias, head of banks research at Evolution Securities, says the 're-consolidation' of Protium assets is an increasingly likely option. He remains a seller down to 260p.
De Frias said: 'Barclays will certainly want to sell those assets to avoid increasingly negative capital impact. When that disposal takes place, another impairment or writedown is very likely.'
Chip producer Imagination Technologies blew a fuse at 430.48p, down 31.8p, despite a positive trading update. Investors took evasive action on hearing that one of its key licensee partners, Renesas Northern Japan Semiconductor, has had to shut down seven facilities post the earthquake.
Primark-to-Silver Spoon sugar group AB Foods rallied 9.5p to 949.25p after Credit Suisse upgraded to outperform from neutral, citing the benefits of high sugar prices.
Tullow Oil gushed to £14 before closing 6p better at 1355p. Buyers responded to news of the long-awaiting signing of a Memorandum of Understanding with the Government of Uganda over the sale of assets to Heritage Oil, 4.5p better at 289.8p. RBS has a target price on Tullow of 1525p and says the resumption of development and exploration activity in Uganda should be taken positively.
Peroni brewer SAB Miller frothed up to 2017.5p on revived rumours of a possible merger with Belgian rival Anheuser Busch InBev. But analysts again pooh-poohed the idea and profit-taking left the close a penny dearer at 1986p. Tracker buying helped electrical components maker XP Power advance 79p to 1622.5p.
Support services firm Serco lost 15p to 556p after signing a £42m contract to provide prisoner escort and custody services within the new National Offender Management Service region of London and the East of England. The contract is expected to start at the end of August 2011.
Impressive maiden annual results lifted Capital Drilling to 84p before a flat close at 80p. Fox Davies's price target is 131p. Sound Oil, the upstream oil and gas company with assets in Indonesia and Italy, edged up a fraction to 4.025p following an operations update.
Canaccord Financial, the largest stockbroker - market cap of £715m - listed in London, closed flat at 912.5p despite a Charles Stanley recommendation and target price of 1077p. It believes Canaccord offers investors an unusual proposition which has demonstrated superior returns on equity.
Most watched Money videos
- Introducing Britain's new sports car: The electric buggy Callum Skye
- Mini Cooper SE: The British icon gets an all-electric makeover
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Top Gear takes Jamiroquai's lead singer's Lamborghini for a spin
- Footage of the Peugeot fastback all-electric e-3008 range
- A look inside the new Ineos Quartermaster off-road pickup truck
- Kia's 372-mile compact electric SUV - and it could costs under £30k
- Alfa Romeo reveals first electric sporty SUV Junior for Alfisti fans
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Savers piled £11.7bn into cash Isas in April - the...
- SHARE OF THE WEEK: Boost for British American Tobacco as...
- Revolution Bars tells creditors to back restructuring or...
- SMALL CAP MOVERS: Quadrise blooms on client win
- MARKET REPORT: JD Sports drags its feet as few spend big...
- Donald Trump sees more than £400m wiped off his fortune
- The consumer champion's guide to getting what you want:...
- INVESTING EXPLAINED: What you need to know about the...
- House prices rose in May, says Nationwide as wage growth...
- VW Passat is 50 Not Out, says RAY MASSEY: But new version...
- Government sells £1.24bn in NatWest shares despite fears...
- Nationwide's £2.9bn takeover of Virgin Money probed by...
- How to buy great British shares - at a discount
- Soho House rejects takeover bid that would have seen it...
- JD Sports shares plummet as 'challenging market' puts a...
- ALEX BRUMMER: Don't trash energy security
- Eurozone inflation rose to higher-than-expected 2.6% last...
- Vodafone completes sale of its Spanish operations for £4.3bn