StockMarketWire.com - FTSE indices trudged lower despite the issue of ahead-of-forecasts UK consumer-price inflation numbers for July, with gorilla miners and oilies deciding direction. They amply out-muscled rises in pharmas, utilities and commercial property stocks. Key European bourses eased.
To noon, FTSE 100 was down 42.93 points, or 0.66%, to 6507.35. FTSE 250 was down 10.7, or 0.06%, to 17,598.2. At 11.37am, crude was down 0.5% or less. Gold was up 0.14% to $1120/oz. Most three-month industrial metals prices eased, and spot copper fell 1.44% to $228.75/lb.
Miners responded to the metals prices, and a scorching 6.15% dive on the commodity-hungry China's Shanghai equities index last night. Antofagasta (ANTO) shed 2.79% to 557.5p, with BHP Billiton (BLT) fading 2.43% to 1106p and Anglo American (AAL) off 2.42% to 736.95p.
Among oilies, Wood Group (WG.) eased 2.5% to 565p as interims were squeezed by lower commodity prices. It is cutting 5000 jobs as pretax profits fell 31% to $160.2m on the year. Meantime, BG Group (BG.) faded 1.39% to 1062p, BP (BP.) lost 1.26% to 373.38p and Shell (RDSA), which has inked a contract with Wood Group, folded 1.84% lower to 1760p.
Roughly 75 blue chips were lower. Among sectors southbound were Asia-facing banks Standard Chartered (STAN), down 1.07% to 843.35p, and HSBC (HSBA), off 0.75% to 553.4p. House builders reversed earlier strength to be lower to noon. Persimmon (PSN), down 1.91% to 2080.5p, posted an H1 pretax profit up 31% to £272.8m. Barratt Developments (BDEV) fell 1.49% to 643.25p.
Among the risers were several pharmas behind Shire (SHP), up 1.41% to 5232.5p, and a number of commercial property stocks in the wake of Land Securities (LAND), rising 0.11% to 1323.5p. US-rate sensitive utilities made headway, too. Severn Trent (SVT) added 0.6% to 2197p.
BIGGER MOVERS
APC Technology Group (APC), down 23.35% to 12.13p, has launched an operational review after warning that underlying operating profit for 2015 will be below market expectations. Alpha Pyrenees Trust (ALPH), down 16% to 0.63p, has posted an H1 adjusted loss of £2.2m. It did not propose a dividend.
Mariana Resources (MARL), up 16.85% to 2.6p, said its total mineral resource estimate for the Hot Maden Project, Turkey, is 3m oz gold equivalent, including 2.03m oz gold equivalent indicated and 0.97m oz gold equivalent inferred.
African Potash (AFPO), down 16.52% to 1.44p, noted its share price rise and said it was negotiating with third parties to secure sales orders under the trading MoU with the Common Market for Eastern and Southern Africa and the Mask Africa Crowd Farm Fund Ltd.
ECONOMIC NEWS
UK's consumer price inflation rose to 0.1% in July, from June's 0% and ahead of forecasts, the Office for National Statistics said. Core CPI, which excludes energy, food, alcohol and tobacco, rose 1.2% in July. Retail price inflation was unchanged at 1%.
The UK input producer price index (PPI) was -0.9% in July, from -1.8% and against expectations for -1.9%. Output PPI was -0.1%, as expected and unchanged from previously.
LONDON HIGHLIGHTS
Akers Biosciences (AKR), down 9.71% to 232.5p, has booked an h1 pretax loss of $3.4m, from a loss of $1.1m a year ago. This year's loss included a one-time reserve of $864,000 for a past due receivable.
ITM Power (ITM), up 8.21% to 28p, has confirmed the official launch of the RWE power-to-gas plant in Ibbenburen, North Rhine Westphalia. The plant is part of a new system that links together the supply of local electricity, natural gas and district heating.
Vipera (VIP), up 3.47% to 3.88p, has secured a repeat sale with the Government Savings Bank of Thailand (GSB) through its partner TNFIS, part of the T.N. Information Systems group, utilising Vipera's digital financial services platform MOTIF, under license.
Menzies (MNZS), down 3.32% to 476.13p, posted an H1 pretax profit of £5.8m, from £14.2m. Revenue was £1.0bn, roughly flat. Interim dividend was 5p a share, from 8.1p. DekelOil (DKL), up 2.86% to 1.08p, has been accepted as an approved supplier to a World Bank-backed palm oil industry project in the West African nation.
Cyprotex (CRX) advanced 6.48% to 57.5p on H1 pretax losses narrowing. It lost £380,000 compared to £420,000 a year ago. Management expect a strong H2. Marshall Motor (MMH), up 4.57% to 194.5p, enjoyed strong maiden interims, accompanied with a confident outlook statement. Pretax profit rose 9.8% to £10.5m.
Cairn Energy (CNE) fell 5.08% to 146.55p as –any excitement over Senegalese drilling plans was overshadowed by a wider than expected H1 loss of $230m. Much of this can be attributed to a big writedown on the value of its Cairn India asset.
Other stocks in the news included Chime Communication (CHW), McColls Retail (MCLS), Nationwide Building Society (NAWI), Avanti (AVN), Origin Enterprises (OGN), Nighthawk Energy (HAWK), MX Oil (MXO), Sportech (SPO), H&T (HAT), Quindell (QPP) and Lucara Diamond Corp (LUC).
