Markets: Moves in China and Greece buoy FTSE 100 on Monday
17:07 - The FTSE 100 held onto its gains but maintained a flat path throughout the session, in the absence of any influence from Wall Street.
London’s blue chip index finished 40.18 points up at 5945.25 with wins for Weir Group (WEIR), up 6.5%, while Shire (SHP) was 1% lower.
On AIM, there was a strong finish for Legendary Investments (LEG), closing 45% in the black, while the wooden spoon went to Avia Health Informatics (AVIA), down 25%.
Interactive Investor users were all over Xcite Energy (XEL), with two-and-a-half times as many shares being bought than sold. Red Emperor (RMP) was a fixture on the list of most bought stocks, while BP (BP.) was widely sold.
"The morning's excitement, which saw stocks advance on hopes of a Greek deal and signs of monetary easing by China's dragon economy, has worn off and we now await any developments from the eurozone finance ministers' meeting in Brussels," said Chris Beauchamp, market analyst at IG Index.
"Traders in the UK and Europe are doubtless unwilling to push their luck too far today in the knowledge that an offhand comment from an overwrought minister late this evening could provide the necessary excuse for the Americans to spoil the rally tomorrow when they return to their desks," he noted.
"Adding to the general calm atmosphere are light corporate and economic calendars, which means that, as ever, the eurozone crisis remains the only game in town."
At a glance....
Commodities
Gold: $1,734.25 (
)
WTI crude oil: $105.42 ()
Currencies
GBP/USD: 1.5859 ()
GBP/EUR: 1.1959 (
)
EUR/USD: 1.3257 ()
All changes from 09:00 GMT
16:35 - Synchronica (SYNC) has signed a letter of intent with Canada's NewPace Technology Development to cooperate in the development, sales and marketing of a rich communication suite (RCS) product.
The proposed collaboration agreement between the two companies will enable NewPace's products to be extended to Synchronica's growing list of worldwide clients, said the company.
"This partnership presents us with a great deal of potential, not least the 'time to market' benefits of being able to provide a full RCS-e solution which meets the needs of our customers today," commented Simon Taylor, executive vice-president of aales and business development at Synchronica.
16:00 - Energy giant ExxonMobil (XOM) has been fined £2.8 million for failing to report carbon dioxide emissions from its Mosmorran chemical plant in Fife, it has emerged.
The Scottish Environment Protection Agency said there had been no direct environmental impact.
The fine, believed to be the biggest ever in the UK, dates to 2010 but the details have only just been published.
15:40 - Online personal health and well-being services provider Fitbug (FITB) has raised £530,000 through a placing of 29,444,444 new ordinary shares at 1.8p apiece.
The net funds raised will be used primarily to support and accelerate the development of the business in the US.
15:20 - Tool Location System, Ubisense (UBI)’s collaboration with Atlas Copco, has been adopted by some of the world's leading automotive manufacturers, including BMW, Jaguar Land Rover, Audi, GM, Hyundai and Paccar.
The Atlas Copco branded TLS software was jointly developed by Ubisense and Atlas Copco under a collaboration agreement signed in 2009.
"The fact that one in every three cars in the world is assembled with Atlas Copco tools highlights the enormous growth opportunity for the TLS, particularly as the solution is now being sold through the Atlas Copco catalogue providing increased exposure to a greater number of automotive manufacturers across multiple geographies," said Ubisense’s chief executive Richard Green.
15:00 - The FTSE 100 held onto its gains as Monday wore on, up 37 points to 5942.
Weir Group (WEIR) was at the top of the pack, up almost 7%. The biggest faller was Severn Trent (SVT), down 1.5%.
On the AIM front, Messaging International (MES) soared 50%, while shares in Eco City Vehicles (ECV) plunged more than 40%.
At a glance...
Commodities
Gold: $1,732.85 ()
WTI crude oil: $105.42 ()
Currencies
GBP/USD: 1.5853 ()
GBP/EUR: 1.1968 ()
EUR/USD: 1.3242 ()
All changes from 09:00 GMT
14:40 - Brent crude prices have hit their highest levels since June last year as tensions over Iran’s nuclear programme run high.
The price of a barrel of Brent crude for delivery next month rose to more than $120 on Monday after Iran blocked exports to Britain and France over EU sanctions.
For the full story, read Oil price soars as Iran blocks exports
14:20 - Shares in CSR (CSR) surged almost 20% to a six-month high as it announced a 60% increase in its final dividend and a $50 million (£31.5 million) share buyback.
The chip maker posted 2011 fourth-quarter revenues of $244 million, at the top end of its target range, and said that it expected first quarter revenues to be between $205 million and $225 million.
With first-quarter revenues estimated to be about 20% of full-year revenues, Seymour Pierce stated that its ‘buy’ case on the company remained firmly intact. "A EV/Sales ratio of 0.6 times is simply too low when compared with almost all of the semiconductor industry," it said.
14:00 - JJB Sports (JJB) announced that group like for like sales for the five weeks ended 29 January decreased by 5.7%, with the company citing "weaker UK employment numbers and the ongoing credit squeeze on consumers" as reasons for the "tough" environment.
"This is a solid performance, in the circumstances, given the fact that most clothing retailers have had a tough start to the calendar year," said Philip Dorgan, analyst at Panmure Gordon, who estimated that second half sales fell by 7.6%, compared with a fall of 17.9% in the first half.
He reiterated his ‘hold’ recommendation, stating that "green shoots" were beginning to become visible, including "continued strong performance of the refitted stores, a decent online opportunity emerging and ongoing good cash management".
13:35 - Spanish banking behemoth Santander (BNC) has been fined £1.5 million by the City regulator for failing to disclose whether structured products were covered under the Financial Services Compensation Scheme.
For the full story, read Santander fined £1.5 million for structured products failings.
13:05 - Kier Group (KIE)’s joint venture with BAM has signed a £100 million plus contract to carry out site preparation works for EDF Energy’s Hinkley Point C nuclear power station in Somerset.
The work includes excavation, earthworks, terracing, the installation of construction site infrastructure and formation of roads and networks to allow main construction to start, said the company.
12:45 - Speedy Hire (SDY) has signed a three year extension to its existing preferred supplier agreement with Carillion (CLLN).
The contract will now run from 2012 until 2016 and is expected to be worth in excess of £50 million over the next four years.
"I am delighted that we continue to develop our relationship with Carillion, one of the UK’s largest construction and support services companies," commented Steve Corcoran, Speedy Hire’s chief executive.
"This new agreement is another important step in our growth in our key markets of water, waste, energy and transport, all of which are undertaking major new infrastructure projects in the UK."
12:20 - Investors were kept on their toes with updates from four AIM-listed commodity players, including Nostra Terra Oil (NTOG) and Northern Petroleum (NOP).
Read all the news: Four AIM commodities players update investors
12:00 - The FTSE 100 tested six-month highs as it climbed up 46 points to 5952.
Expectations that the eurozone meeting later on today would be different from the others boosted investor optimism.
Additionally, the Chinese central bank cutting reserve requirements for China’s banks fuelled speculation that this would help industrial production, boosting UK commodity shares, with Kazakhmys (KAZ) the top performer, up about 3%.
"Although we can all be allowed a degree of sceptism regarding an imminent solution to the Greek bailout, investors still seem happy to look for excuses to buy, and stock markets still seem to have plenty of momentum, even considering how far they have come in recent months," commented David Jones, chief market strategist at IG Index.
He added that the eurozone meeting had the potential to inject some volatility in the afternoon session.
On the AIM front, shares in Legendary Investment (LEG) soared over 50%. Speymill (SYG) fell more than 16%.
Xcite Energy (XEL) retained the top spot as Interactive Investor’s most-traded stock as the company announced a resource upgrade at its Bentley field.
At a glance...
Commodities
Gold: $1,734.34 ()
WTI crude oil: $105.23 ()
Currencies
GBP/USD: 1.5874 ()
GBP/EUR: 1.1961 ()
EUR/USD: 1.3269 ()
All changes from 09:00 GMT
11:40 - Shares in Westminster Group (WSG) gained almost 50% in morning trading on Monday after the company announced that its aviation division has secured a major 15 year contract to provide security at an international airport in Africa.
The AIM listed supplier of system solutions and products said the contract, which has a potential revenue value in excess of $150million over its term of the contract, is to provide comprehensive ground security operations at the main international airport of a West African nation.
For the full story, read: Westminster soars on airport deal
11:20 - China's central bank has cut the amount of money banks must keep in reserve, in an effort to boost lending and sustain economic growth.
The People's Bank of China (PBOC) said that the reserve requirements will fall half a percentage point from 24 February
Analysts said this could add as much as 400 billion yuan (£40 billion) to the financial system.
The Chinese government is battling to get inflation down after it hit a three-year high last July.
10:55 - UK Commercial Property Trust (UKCM) has acquired an industrial park portfolio from Segro (SGRO) for £60.51 million.
The portfolio, which consists of Emerald Park East in Bristol, Gatwick Gate Industrial Estate in Crawley and Motor Park in Portsmouth, provides a combined total floor area of 549,413 square feet and a total income of £4.67 million per annum, reflecting a net initial yield of 7.34%. The average weighted lease length across the portfolio is nine years and one month with an occupancy rate of approximately 98%.
"This portfolio is also attractive as it offers us the potential to grow value through the application of our disciplined and focussed approach to asset management," said chairman Christopher Hill, while Segro confirmed that the disposal marked "a positive step forward" in the execution of its plans to focus on its multi-let industrial portfolio on London and the South East.
10:35 - A $56.25 million (£35.5 million) payment from LightSquared has not been received by Inmarsat (ISAT).
While Inmarsat reassured investors that the revenue generation of the mobile satellite services and solutions businesses remained unaffected by today's announcement, it also stated that it could not provide any assurance that discussions held with LightSquared would result in any further payments being received.
10:20 - Tesco (TSCO) has launched the initial public offering of its Thailand property fund, aiming to raise up to $585 million to finance future expansion.
The fund, formally called Tesco Lotus Retail Growth Freehold and Leasehold Property Fund, will offer shares at a price range of 9.65-10.40 baht each, putting the total deal at up to 18 billion baht, Tesco's Ek-Chai Distribution System Co unit said in a statement.
At that price, the fund would have a yield of 6.5% to 7% a year.
10:00 - Shares in Xcite Energy (XEL) gained more than 11% as the company announced a resource upgrade at its Bentley field.
However, one analyst said that various challenges mean the jury is still out for the company.
For the full story, read: Xcite Energy upgrades reserves at Bentley field
09:45 - Rio Tinto (RIO) has announced a $518 million (£327 million) investment in autonomous trains for Pilbara iron ore rail network in Western Australia.
The world's first automated long-distance heavy-haul rail network is being pioneered as part of the automation component of Rio Tinto's Mine of the FutureTM initiative that also includes driverless trucks and autonomous drills.
"Expanding Pilbara iron ore production is a high-return and low-risk investment for Rio Tinto that will enhance shareholder value. Automation will help us meet our expansion targets in a safe, more efficient and cost-effective way," said Sam Walsh, Rio Tinto’s Australia and Iron Ore chief executive.
09:25 - Lloyds Banking Group (LLOY) is expected to claw back £2 million in bonuses from 10 executives including former chief executive Eric Daniels.
A report from the BBC said the executives, which include four board directors, will be required to repay the cash for their role in the bank’s payment protection insurance mis-selling scandal.
For the full story, read: Lloyds set to clawback bonuses ahead of sharp losses
09:00 - The FTSE 100 (UKX) opened on the front foot on Monday, buoyed by a move from China’s central bank to stimulate growth in the world's second-largest economy and positive signals for Greece.
London’s blue chip index added 30 points to 5935 as BP (BP.) jumped to the top of the gaining stocks, while United Utilities (UU.) edged lower.
Early winners and losers on the AIM index were Westminter Group (WSG), up 57%, and Woburn Energy (WBN), down 15%.
Interactive Investor users were full of beans as trading got underway, with Xcite Energy (XEL) more popular than ever on its latest announcement. Bowleven (BLVN) shares were also busy.
"Equities have pushed higher again this morning following the news that China has cut banks Reserve Requirement Ratio in order to boost lending and combat slowing growth," said Mike McCudden, head of retail derivatives at Interactive Investor.
"Many regard this move as too little too late but regardless, any Chinese intervention to keep this express train running is music to the ears of investors."
He added: "Watching the Euro/USD drift lower this morning, you can sense the nervousness around eurozone ministers ability to finally sign off the €130 billion Greek bailout package today. Until this is ratified markets will be reluctant to test new highs, and furthermore, with Wall St closed today, we could easily see some profit taking."
US markets are closed for a national holiday on Monday.
At a glance...
Asian markets
Nikkei 225: 9485 ( 100)
Hang Seng: 21424 ( 66)
Shanghai Composite: 2363 ( six)
Commodities
Gold: $1,731.01
WTI crude oil: $104.83
Currencies
GBP/USD: 1.5858
GBP/EUR: 1.2020
EUR/USD: 1.3195
08:00 - The FTSE 100 (UKX) opens at 5905.07.
