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Markets: FTSE 100 moves back ahead

Interactive Investor News Team
27.11.09


16:59 - London's leading share index was determined to end the week on a high, with Royal Bank of Scotland (RBS) propelling the stockmarket forward.

The banking group's shares shot up over 5% following its decision to join the government-run Asset Protection Scheme.

The FTSE 100 (UKX) closed up 51 points at 5245, as Xstrata (XTA) and Thomas Cook Group (TCG) also notched up gains.

16:24 - US markets were still entrenched in negative territory on Friday, but had at least recovered some of their early losses.

Concerns over Dubai's debt problems continued to be the dominant force, sending indices south.The Dow Jones was 136 points down at 10328, wit the Nasdaq falling 28 to 2148 and S&P 500 down 16 to 1094.

15:55 - The strong rebound in global markets helped JPMorgan European Fledgling Investment Trust (JFF) produce a total return on net assets of 45.5% in the first half of the year, it said today.

However, it said the company was "disappointed" to have underperformed the benchmark index - the HSBC Smaller European Companies (ex UK) Total Return Index - which returned 62.6% in sterling terms.

Revenue was lower, down £1.1 million to £3.3 million, but the company said that "for the first time in many years", it had a positive balance on the revenue reserve, with this touching £2.9 million.

It maintained its stance of not paying out a dividend.

Shares in the FTSE 250-listed firm were up just shy of 1% to 632p.

15:29 - Turnover at security services provider Legion Group (LGNG) more than doubled in the first-half of the year, the AIM-listed reported today.

Pre-tax profit also soared, up to £964,000 from last year's £129,000 in the six-month period to end-September.

According to non-executive chairman Stephen Thomas, the firm's restructuring following the acquisition of Craft Services had supported the figures, with long-term public sector contracts likely to support its performance.

Shares were unmoved at 2.12p.

15:01 - London's leading index was and truly back on the front foot in afternoon trading at the end of the week, with Royal Bank of Scotland (RBS) buoyant after it signed up to the government-run Asset Protection Scheme.

The FTSE 100 (UKX) was up 50 points to 5244, with RBS up almost 6% to 34.93p, followed by Thomas Cook (TCG) - ahead of its results on Monday - and miner Xstrata (XTA). Both climbed over 4%.

It was no change at the bottom of the pile, with Lloyds Banking Group (LLOY) still nursing losses over 35%, with Inmarsat (ISAT) its nearest faller, down just over 2%.

14:37 - US markets plunged at the start of their shortened trading day, catching up with the concerns surrounding Dubai's debt problems after yesterday's Thanksgiving holiday.

Despite retailers slashing prices and opening earlier, all investors' eyes were turned to the Middle East, sending the Dow Jones down 200 points to 10263 - a loss of almost 2%.

The percentage falls were even larger on the Nasdaq - down 48 points (2.2%) to 2129 - and the S&P 500, which fell 25 points (or 2.3%) to 1086.

13:59 - AIM-listed Ascent Resources (AST) has conditionally raised £6 million through a share placing in order to accelerate the company's exploration projects.

The oil and gas company has issued 120 million shares at a price of 5p.

Managing director Jeremy Eng said the placing would strengthen the company's institutional shareholder base and help it ramp up its 2010 development plan.

However, the news was not taken well by the market which knocked almost 17% off its value, taking the share price down to 5.88p.

See what the City without a suit makes of Ascent in our iBall TV episode on the firm.

13:31 - Department store chain John Lewis reported a 14.9% year-on-year increase in the week to 21 November, further fuelling hopes of an upturn in consumer spending this Christmas.

The rise comes on the back of the previous week's 17.1% gain, while John Lewis also reported sales were up over 20% year-on-year in the current trading week.

Despite the positive figures, Howard Archer, chief UK and European economist at IHS Global Insight, remained cautious: "The concern remains that any significant pick up in spending over the final weeks of the year could very well prove temporary and that the upside for consumption will be limited for some time to come due to the serious headwinds still facing consumers."

13:02 - London's leading share index headed into positive territory on Friday, as banks and miners pared their early losses.

The FTSE 100 (UKX) was 15 points to the good at 5209, with Thomas Cook Group (TCG) and Royal Bank of Scotland (RBS) leading the way - the latter lifted by confirmation of its participation in the government's Asset Protection Scheme.

Although the rest of the banking sector had recovered, Lloyds Banking Group (LLOY) was still in the mire - down over 35% to 57.2p.

12:25 - Shares in Burberry (BRBY) were flying in the face of the overall market malaise on Friday, boosted by an upgrade from brokers at Goldman Sachs.

The fashion retailer was lifted from "sell" to "neutral" after Goldman Sachs said returns at Burberry were improving and forecast sales growth of 8.5% in 2011 and 10.9% in 2012.

Burberry's shares gave back some of the earlier gains, but were still up over 1% to 570.25p.

11:59 - Gold shied away from its record high as fears over Dubai's health sent shockwaves through the financial markets.

Gold prices slipped almost 5% to $,1158 an ounce, down from yesterday's $1,189 an ounce, after real estate investor Dubai World asked creditors to delay repayment of $3.5 billion due next month.

There is concern that investors within and into the region may sell off some gold holdings to stimulate the global economy.

However, analyst John Meyer of Fairfax, said "central bank and other investor demand for gold should soak up Middle Eastern sales potentially averting a wider crisis".

11:38 - Petra Diamonds (PDL) was on gleaming form on Friday, after fetching over $6 million for its 168 carat white Cullinan diamond.

An undisclosed buyer beat off "high interest" to purchase the special white diamond, which was recently recovered at the Cullinan mine in South Africa, for a healthy sum of $6.28 million.

The AIM-listed company described the stone of "exceptional colour and quality".

Its shares were up almost 7% to 62.38p.

For the full story, read: Petra buoyed by $6m diamond sale.

11:12 - London's leading share index maintained its stay in the red, but losses were minimal in comparison to yesterday's tumbles.

Despite steady gains from Thomas Cook Group (TCG) and Segro (SGRO), the FTSE 100 (UKX) was down 18 points to 5176.

The banking sector was still struggling however, with Lloyds Banking Group's (LLOY) 35% nosedive weighing on the rest of the sector. Its nearest rival on the fallers' board was satellite communication firm Inmarsat (ISAT), which was down over 2%.

Interactive Investor travelled up to yesterday's Lloyds AGM at the NEC in Birmingham. Read: Bischoff battles Lloyds shareholders at AGM for the inside story.

10:44 - Fears over the health of Dubai's economy rocked the oil industry, sending the price of crude tumbling over $3 dollars to $74.37 a barrel.

The Emirate state sent global markets reeling after its leading development conglomerate Dubai World called on creditors to let it delay forthcoming payments for six months.

London Brent fared slightly better at $75.42 a barrel.

10:22 - Desire Petroleum's (DES) Ocean Guardian drilling rig has begun its treacherous journey from Scotland to the Falkland Island waters.

The AIM-listed oil and gas exploration company said its rig departed from the Cromarty Firth in Scotland on Thursday and is expected to take two months to arrive at its destination.

Desire will begin drilling around early February 2010.

The company's shares edged up to 81.5p.

For an alternative investment view, watch our iBall TV episode on Desire Petroleum.

09:59 - Accident Exchange Group's (ACE) share price plunged 16% after it admitted that its financial position remained uncertain.

Investors were dealt a blow when the courtesy car provider said it was unsure it would be able to comply with existing covenants or operate within its existing bank facilities.

The company said it would take "prompt and strong action" to slash its cost base, including the reduction of its fleet, following a damaging rise in provision for open claims and greater-than-expected settlement adjustments.

Its shares, listed on the FTSE Fledgling index, fell to 10.5p.

09:37 - Travel specialist Holidaybreak's (HBR) full year profits took a sharp hit, despite robust school trip bookings.

A drop in adventure travel demand dragged the group's headline pre-tax profits down from £32.6 million in 2008 to £28.4 million in 2009, while its statutory pre-tax profits plunged to £5.4 million from £23.4 million during 2008.

The education division, however, escaped the recession relatively unscathed as parents continued to place emphasis on their child's school trip.

John Coleman hailed the results as a "resilient performance in a difficult economic environment" and said it was well placed to benefit once the economic recovery takes hold.

The company's shares slipped over 1% to 245p.

09:15 - Asthma inhaler producer Vectura (VEC) saw first-half post-tax losses narrow to £3.3 million and reported a solid progress in its pipeline.

Revenue grew 71% to £22.8 million, with gross profit up 86% to £21.2 million for the six months to 30 September. However, net cash inflow fell by more than half to £2.3 million.

The FTSE 250-listed firm's shares were up almost 2% to 74.67p.

08:53 - Continued concern over the extent of Dubai's debt situation weighed once more on London's top share index on Friday.

Banks and miners were the sectors suffering most as the FTSE 100 (UKX) fell 19 points to 5175, with Lloyds Banking Group (LLOY) - fresh from its successful cash call yesterday - suffering horrendous losses of over 34%.

Asian markets tumbled on Friday, as Dubai's debt problems reached across global indices.

The Nikkei slumped to a four-month closing low and completed its fifth successive weekly fall. Exporters were also knocked by the strength of the yen against the dollar, sending Japan's benchmark index down 301 points to 9081.

It was a similarly story of woe in Hong Kong, with banking shares leading the fallers. Sector heavyweight HSBC fell as much as 7% during trading, but recovered marginally by the close of play, mirroring the overall index. However, the Hang Seng's losses still read like a horror book, down 1075 points - almost 5% - to 21134.

US markets were closed yesterday for the Thanksgiving holiday, while trading will close early today.

Mobile phone retailer and broadband provider Carphone Warehouse (CPW) has raised its full-year guidance following an expectation-beating first half of the year.

In the six months to 30 September, the group's headline earnings per share rose from 3.2p to 6p and revenue climbing 13% year-on-year to £789 million.

Growth in its pre-tax profit was even more encouraging, soaring 88% to £75 million.

Its FTSE 250-listed shares were up just shy of 2% at 195.85p.

08:00 - The FTSE 100 (UKX) opens at 5194.