Markets: Flat finish for FTSE 100

Interactive Investor News Team
18.11.09

16:52 - London's leading index dipped back into the red at the close of play as investors mulled over a deluge of corporate news.

The FTSE 100 closed down four points at 5342 with Capita Group (CPI) just pipping Morrison's (MRW) to the lead the index lower.

At the other end of the scale, Marks & Spencer (MKS) was on flying form after poaching Morrison's chief executive Marc Bolland.

16:40 - Wall Street was feeling the effects of an unexpected drop in new housing starts in October.
Disappointing forecasts from energy companies also raised concerns about the pace of the economic recovery.

The Dow Jones fell 37 points to 10401 with the Nasdaq and the S&P 500 also down in negative territory.

16:29 - Intellego Holdings' (IHP) share price shot up over 15% after the company enjoyed record level order intake in October and said it would end the year with significantly improved financial results.

The e-Learning and solutions company described its prospect pipeline as 'very strong' - despite a drop in sales to £854,067 in the first six months of this year compared to £1.1 million last year.

The company is in talks with a specialist retailer, a large banking group and a multinational pharmaceutical company, and said it was confident that it would be able to recover the sales lost in the first half of the year.

Its shares were up 15.8% to 0.55p.

16:04 - Oil smashed through the $80 a barrel level today as the US dollar reversed its earlier gains.

Buoyant US industrial production data also helped to push prices along as investors grew more optimistic about the state of recovery.

Crude oil was at $80.21 a barrel while London Brent was pegged at $78.97 a barrel.

15:46 - High street mecca Marks & Spencer (MKS) gave its investors a reason to celebrate after unveiling Marc Bolland as its new chief executive.

Bolland, the chief executive of supermarket chain Morrison's (MRW), will take up the position in the new year following Sir Stuart Rose's decision to step down.

However, Sir Stuart will continue as part-time chairman of the retail chain to ensure a smooth transition, before handing over the reins completely in July 2011.

M&S shares climbed almost 7% while Morrisons' sank almost 5% on the news.

15:22 - London markets lost their momentum despite gains from the mining sector in afternoon trading.

The FTSE 100 (UKX) was flat at 5346 with gains from Marks & Spencer (MKS) offsetting losses from Morrison's (MRW) after the High Street giant announced it has poached the supermarket's chain chief executive.

14:59 - US markets were in the red at the start of play in trading on the other side of the Atlantic today, with weak housing data and an increase in consumer prices.

The cost of living in the US rose by a larger-than-expected 0.3% in October, while housing construction also weakened last month.

The Dow Jones slipped 63 points to 10374, while the Nasdaq fell 18 points to 2186 and the S&P 500 knocked five points off its starting value to 1105.

14:27 - First-quarter trading at merchant bank Close Brothers (CBG) was good despite the ongoing economic challenges, the firm reported today.

Its Banking division was the leading light, with a 3% increase in its loan book and a reduction in its bad debt ratio, while its Securities division also enjoyed a good first quarter - boosted by strong volumes at brokerage Winterflood.

The firm's Asset Management operation was only performing steadily in comparison, Close said, although total funds under management grew by 5% to £7.2 billion.

Close said it was confident it would "deliver a solid outcome for the full year".

Its shares were up over 2% to 730.5p.

14:00 - Retailer Mothercare (MTC) today reported an 11.1% increase in underlying profit for the first half of the year, with its international division producing record results.

Underlying profit stood at £10 million for the half-year to 10 October, with its international operations enjoying a 29.6% leap in retail sales and a 53.2% jump in underlying profit.

However, the group did report a pre-tax loss of £7.1 million - down from a profit of £13.2 million last year - after it took into account a charge of £17.1 million for non-underlying items.

The FTSE 250 firm's chief executive, Ben Gordon, was upbeat about the future: "With the strength of our two global brands, our rapidly growing international platform, a reducing UK cost base and debt free business, we are well placed as we enter the important second half."

Shares in the company were up 8p at 634p.

13:34 - Melrose Resources (MRS) ramped up third-quarter production by 25% year-on-year as it charged ahead with its development plans in Egypt.

Production totalled 18.2 billion cubic feet of gas and 949 thousand barrels of oil during the three-month period.

As a result, the FTSE 250 has upped its production forecast to 38.5 million barrels of oil per day from the 37.5 million it set in August.

The company's shares rose 6% to 359p.

13:11 - London's leading share index maintained its steady gains on Wednesday, with miners lifted by increased demand and a weaker dollar.

The FTSE 100 (UKX) was up 25 points to 5371, with Fresnillo (FRES) holding on to top spot ahead of retailer Marks & Spencer (MKS) and mining rivals Xstrata (XTA) and Lonmin (LMI).

Capita Group (CPI) and Morrison's (MRW) were still in the doldrums and heading the fallers' board.

12:33 - Shares in credit-checking giant Experian (EXPN) slipped today, despite it announcing an expectation-beating 7% increase in first-half operating profit.

The firm also said its total EBIT of $478 million was in line with the same period last year, while reporting that net debt had been significantly reduced in the half-year from $2.05 billion to $62 million.

Looking ahead, chief executive officer Don Robert commented: "In the second half, we continue to expect modest organic revenue growth and, for the year as a whole, remain on track to grow profits at constant currency and deliver strong free cash flow."

The FTSE 100-listed firm saw shares fall over 2% to 575.75p.

12:10 - Altona Energy's (ANR) share price shot up by more than a quarter following news that its wholly-owned Australian subsidiary Arckaringa Energy struck an agreement with CNOOC New Energy Investment.

Shares in the AIM-listed mining company climbed 26% after it inked an Unincorporated Evaluation Joint Venture Agreement which will see the pair explore ways to maximise the potential of Ackaringa Energy's 7.8 billion tonnes coal resource.

CNOOC-NEI, a subsidiary of the state-owned oil company China National Offshore Oil Corporation, specialises in developing alternative energy sources and intends to examine coal conversion ideas as well as project development options.

For the full story, read: Altona buoyed by joint venture.

11:49 - London's top share index was pushing on in trading today, as mining stocks continued to lead the way.

The FTSE 100 (UKX) was 21 points to the good 5367, with Fresnillo (FRES) topping the winners' board ahead of fellow miners Xstrata (XTA) and Lonmin (LMI).

On the fallers' board, supermarket chain Morrison's (MRW) and outsourcer Capita (CPI) were nursing the heaviest losses.

11:24 - The multi-billion pound question on the future of quantitative easing heavily split opinion on the Monetary Policy Committee in its November meeting, according to minutes released today.

Although seven of the nine members voted for a £25 billion extension from its initial £175 billion level, David Miles wanted a £40 billion rise to "provide greater insurance to the downside risks to growth and inflation".

Meanwhile, Spencer Dale, the Bank's chief economist, believed there should be no increase at all. He claimed that more money pumped into the economy might fuel "unwarranted increases in some asset prices that could prove costly to rectify".

However, all agreed to keep interest rates at a record low of 0.5%.

For the full story, read: Quantitative easing splits MPC.

10:53 - Gold was fast approaching the dizzy heights of $1,150 an ounce as a weak US dollar spurred investor interest.

The yellow metal hit a fresh high of $1,147 in early-morning trading as the US dollar reclined from yesterday's recovery.

Gold has gained 30% so far this year on strong investment demand and central banks turning to the precious metal as a safe haven.

10:28 - Struggling broadcaster ITV (ITV) has finally ended its search for a new chairman after it unveiled Archie Norman as Michael Grade's successor.

The former Conservative MP will join the struggling broadcaster in January 2010. John Cresswell will become interim chief executive.

The former Kingfisher (KGF) boss, who is also credited with turning round Asda and telecoms business Energis, will be tasked with finding a new chief executive and lobbying politicians and regulators as the broadcaster emerges from the worst advertising downturn for decades.

For the full story, read: ITV's chairman search finally ends.

10:01 - Outsourcing group Capita (CPG) had seen a solid performance in the second half of the year, but it had won fewer contracts than in the same period last year.

However, the firm was still confident that it would meet its target for underlying growth for 2009, with its property consultancy, resourcing and share registration operations performing well.

Shares in the firm were bottom of the pile on the FTSE 100 (UKX) - down over 4% to 730p.

09:39 - Total sales at housebuilder Bovis Homes (BVS) were up 8% in the year to 13 November, while private home reservations soared 83% year-on-year.

However, the firm did reveal that legal completions would be slightly down on last year's figure.

"Following signs of stabilisation in the housing market in the first half of 2009, the group has seen further signs of an improving market backdrop," the firm said, as it also reported around £89 million in net cash, allowing Bovis to purchase residential land assets.

Shares in the FTSE 250-listed firm slipped 1.1% to 443.2p.

09:15 - Shares in AIM-listed Petra Diamonds (PDL) were on the rise this morning, after the African-focused diamond miner reported a strengthening in prices.

The firm announced the sale of two Cullinan white diamonds of 58 and 53 carats were sold for $2.8 million, with the strong prices boding well "for the values that could be realised from the exceptional 507 and 168 carat white diamonds" that it recovered at the same mine.

The firm's shares were up 3% to 67p.

Listen to what our resident stockpicker Edmond Jackson makes of the news and how it will impact Petra in his podcast: Rising diamond prices to help Petra shine.

08:48 - Miners helped London's top share index head back into positive territory on Wednesday, but banks were hit by profit-taking.

The FTSE 100 (UKX) was up eight points t0 5354, with hedge fund manager Man Group (EMG) leading the way.

Fears over the weight of banks and property firms turning to fundraising dragged the Nikkei down to a six-week closing low on Wednesday. Japan's benchmark index slipped 53 points to 9676, with Japan Airlines also plunging after the country's transport minister refused to allay fears a court-led bankruptcy was awaiting the firm.

In Hong Kong, the picture was similarly red. Market heavyweight HSBC slumped from an intra-day 14-month high as profit-taking knocked the banking sector, with the Hang Seng ending the day down 73 points to 22840.

US markets took baby steps forward on Tuesday, despite retail stocks suffering in the wake of disappointing outlooks from sector heavyweights Home Depot and Target. However, it was upbeat notes from brokers for blue chip giants Exxon Mobil and Microsoft that investors took their lead from, helping the indices to touch new 13-month highs.

The Dow Jones closed 30 points up at 10437, with the Nasdaq rising six points to 2204 and the S&P 500 inching up a solitary point to 1100.

Real estate giant Land Securities (LAND) has seen the value of its portfolio slip 1.4% since March, but its year-on-year loss had drastically reduced as the market began to recover.

Overall, its portfolio had fallen by £117.8 million in the half-year, but it did see a marginal increase in its London portfolio. The value of its Retail portfolio, on the other hand, fell 3.6%.

However, Land Securities had managed to reduce last year's loss of £1.62 billion to a comparatively miniscule deficit of£4.6 million for the six months to 30 September.

Shares in the firm were up marginally to 714.75p.

The continued challenging trading conditions hit building products supplier Wolseley (WOS) in the third quarter, with profits down year-on-year and net debt rising.

Underlying profit for the three-month period to 30 October slumped 28%, on the back of revenue down 13% to £3.4 billion (down 20% at constant exchange rates).

Wolseley said the "seasonality of working capital" had contributed to its net debt climbing from £959 million at end-July to £1.22 billion.

Its shares fell over 1% to 1,348p.

08:00 - The FTSE 100 (UKX) opens at 5346.

Markets: Flat finish for FTSE 100

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