AP: FTSE 100 Gains As Gold, Silver, Platinum, Copper And Nickel Climb To Lift Miners
Overview: the FTSE 100 returned to positive ground after the US stock market rose in early trading despite the bigger than expected decline in private sector jobs for November revealed by the ADP employment report, which was released today, saying a total of 169,000 jobs were lost during the month, while a drop of 150,000 was projected. The Dow Jones Industrial Average and the S&P 500 index both added 0.2%, while the technology heavy Nasdaq composite rose 0.7%.
Investors are now awaiting the Fed’s Beige Book survey of US regional economic conditions, also due out today.
The UK blue chip index gained 0.5% after sliding 0.5% earlier in the day. Tour company TUI Travel (LSE: TT) took over the lead in the index with a 3.8% advance, while platinum miner Lonmin (LSE: LMI) and software developer Sage Group (LSE: SGE) followed, climbing 3.5% and 3%, respectively. Other notable risers included mobile operator Vodafone (LSE: VOD), engineering company Invensys (LSE: ISYS), infrastructure software developer Autonomy Corporation (LSE: AU) and defence contractor Cobham (LSE: COB) also made it to the leaderboard with gains of over 2%.
Royal Bank of Scotland (LSE: RBS) was the biggest faller with a loss of almost 3%. Utility company Severn Trent (LSE: SVT), National Grid (LSE: NG) and Associated British Foods (LSE: ABF), which went ex-dividend today, followed with losses of 2.5%, 2% and 1.5% respectively.
Commodities
Oil inched lower in the morning after the American Petroleum Institute reported that crude inventories increased by almost 3 million barrels, while gasoline and distillate stockpiles also grew. However, oil prices recouped some of their losses later in the day ahead of today’s announcement from the US Department of Energy. January Brent Crude was back to US$79/barrel, while US light, sweet crude for January delivery rose to US$78/barrel.
A report released later in the day by the US Department of Energy showed that crude inventories rose by more than 2 million barrels against expectations of a 400,000 decline, while gasoline supplies increase by 2.9 million barrels, significantly more than the projected increase of 700,000 barrels.
Supermajors BP (LSE: BP) and Shell (LSE: RDSB) declined marginally, while BG Group (LSE: BG) shed 1% and Cairn Energy (LSE: CNE) retreated 3%.
Tullow Oil (LSE: TLW) did better, tacking on 1%, while Petrofac (LSE: PFC) posted a small gain.
Midcaps were mixed as while Heritage Oil (LSE: HOIL) remained above the opening level, fellow FTSE 250 constituents Dana Petroleum (LSE: DNX) and Dragon Oil (LSE: DGO) lost more than 1%.
Africa focused energy company Dominion Petroleum (AIM: DPL) led the sector, surging 22%. Mongolia-focused Petro Matad Ltd (AIM: MATD) also rose, tacking on 3.7%.
Energy investor Xtract Energy PLC (AIM: XTR) was among the biggest fallers in the sector, slipping 7%. Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO), Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) and Kazakhstan operating Max Petroleum (LSE: MXP) shed about 5.5%.
Europe focused oil and gas developer Ascent Resources (AIM: AST) slid 4%, while Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) was down 3.5%.
Miners advance as gold breaks through $1,200
Precious metals were on the rise today as gold hit new highs, reaching US$1,212/oz. Silver and platinum climbed to US$19.30/oz and US$1,499/oz respectively.
Blue chip miners didn’t show much movement today, with the exception of platinum producer Lonmin (LSE: LMI), which advanced 2.8%. Silver miner Fresnillo (LSE: FRES) posted a small gain, while gold producer Randgold Resources (LSE: RRS) made little headway.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) also remained flat.
Midcaps did better. Silver producer Hochschild Mining (LSE: HOC) rose marginally, while gold miner Petropavlovsk (LSE: POG) added 1.8% and Aquarius Platinum (LSE: AQP) climbed 5%.
Australian gold and copper prospector Solomon Gold (AIM: SOLG) was among the top performers in the sector, advancing 10%. African focused nickel and gold exploration and development junior Nyota Minerals (AIM & ASX: NYO) followed with an 8% gain, while Western Australia operating Norseman Gold (AIM: NGL) added 6%. Africa focused gold deposit developer Cluff Gold (AIM: CLF) and South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) also did well, rising 7.5% and 7% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) and Africa focused gold miner Pan African Resources (AIM: PAF) were up 5% and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) rose 4.5%.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) headed in the opposite direction, shedding nearly 7%.
Copper and nickel rise
Base metals also rose today with copper and nickel climbing to US$3.22/lb and US$7.42/lb respectively, while zinc reached US$1.08/lb.
All major base metals focused stocks were on the rise today. Kazakhmys (LSE: KAZ) and Vedanta Resources (LSE: VED) were in the lead with gains of 3%. Eurasian Natural Resources (LSE: ENRC) and Rio Tinto (LSE: RIO) followed, tacking on more than 2%. Antofagasta (LSE: ANTO) was up 1.5%, BHP Billiton (LSE: BLT) and Xstrata (LSE: XTA) rose 1.3% and Anglo American (LSE: AAL) added slightly more than 1%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) went against the tide, sliding 2%.
Nickel and iron ore exploration junior Landore Resources (AIM: LND) and tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) led the juniors with gains of 8.5% and 7% respectively, while mineral sands producer Kenmare Resources (LSE: KMR) tacked on 4%.
Cement operator Prosperity Mineral Holdings (AIM: PMHL) and South American focused junior miner Herencia Resources (AIM: HER) headed in the opposite direction, slipping 9% and 6.5% respectively. Russia focused copper and nickel miner Amur Minerals (AIM: AMC) and Tunisia focused metal miner Maghreb Minerals (AIM: MMS) both lost more than 5.5%.
Banks, insurance, private equity
The banking sector was in selling mode today. Royal Bank of Scotland (LSE: RBS) was at the bottom of the pile with a 3.5% loss, while another bailed out bank Lloyds (LSE: LLOY) fell 1%.
Peers HSBC (LSE: HSBA), Barclays (LSE: BARC) and Standard Chartered (LSE: STAN) declined marginally.
Insurers were mixed. Prudential (LSE: PRU) was the top performer in the sector with a gain of almost 1%. Admiral Group (LSE: ADM), Aviva (LSE: AV) and RSA Insurance Group (LSE: RSA) declined marginally. Legal & General (LSE: LGEN) went in the opposite direction, shedding 2%, while Old Mutual (LSE: OML) and Standard Life (LSE: SL) declined marginally.
Private equity group 3i (LSE: III) posted a small loss.
Small cap movers
Other notable movers among the small caps included environmental science and technology company Accsys Technologies (AIM: AXS), which declined 6%, and drug discovery and development group Immupharma (AIM: IMM), which rose 4.5%. Direct marketing software developer smartFOCUS (AIM: STF) also added 4.5% after announcing a contract win from Rank Group (LSE: RNK).
Large and Mid Cap News
International construction and maintenance group Carillion (LSE: CLLN) has revealed a new £360 million contract win to ‘revitalise’ Toronto’s Union Station. The City of Toronto appointed Carillion as construction manager for the 5-year project.
Accountancy software specialists, Sage Group Plc (LSE: SGE) (‘Sage’) reported final results for the financial year ended 30th September, noting that while conditions have stabilise they ‘are not yet seeing a general recovery’ in their markets. At a glance, the software developers headline figures appeared strong; however currency conversion played a significant role.
Small Cap News
Berkeley Resources (ASX & AIM: BKY) has announced a Scoping Study undertaken by the Company on its Salamanca Uranium Project has strongly demonstrated the technical and economic viability of the Project.
Direct marketing software developer smartFOCUS (AIM: STF) has landed another high profile company to its customer base, winning a contract for its marketing software suite from Rank Group (LSE: RNK), which operates some of the best known gaming brands in the UK.
The Emirates National Oil Co Ltd LLC (ENOC) moved to dispel speculation that the recent debt problems among fellow Dubai-state owned enterprises may threaten the proposed minority buy-out of Dragon Oil (LSE: DGO). The Dubai-controlled refiner agreed it will not sell or accept any offer for its shareholding in Dragon Oil until at least 31 December 2011.
Ocean Equities has initiated coverage of Africa focused nickel and gold exploration and development junior Nyota Minerals (AIM & ASX: NYO), noting its “highly prospective package of gold assets” and valuing the stock at 17 pence, nearly three times the current price of 6.38 pence per share.
Edison Investment Research is reviewing its valuation of Gulfsands Petroleum (AIM: GPX), waiting for more details on the company’s exploration and development plans for 2010, which are currently being finalised.
Shares in executive HR company Hexagon Human Capital (AIM: HHC) collapsed, falling over 45% as it announced it was in default to Her Majesty’s Revenue and Customs (HMRC) and that the board now anticipates that full year earnings will fall below market expectations.
GEONG International Limited (AIM: GNG) performed well during the first half of the year, reporting increases in profits and revenues after securing new contracts and winning a number of new clients in China, leading it to expect full year results to be in line with market expectations.
Amphion Innovations PLC (AIM: AMP) said it has appointed Katharine Cushing as strategic investment advisor to assist Amphion and its partner companies in fund raising activities. She will be based in New York.
Specialist filtration and environmental technologies group Porvair (AIM: PRV) expects to hit its full year sales and profits targets, anticipating better cash generation and net debt despite a “very difficult economic environment,” which it said would continue into 2010.
Catalyst Media Group (CMG; AIM: CMX) said its main asset Satellite Information Services (SIS) performed strongly during the first half of the year, helping it to almost double its profits and earnings.
Accuma Group (AIM: ACG) announced a recommended offer for the debt consultancy specialist by chief executive Charles Howson and financial services firm Zeus Group at 15.5 pence per share, valuing Accuma at £5.07 million.
Solomon Gold PLC (AIM: SOLG) said that, in line with its previously flagged diversification strategy, has agreed in principle to acquire two separate Australian gold exploration companies for 86.8 million shares, A$1 million in cash and A$1 million in convertible notes.
Plant genetic research and development group Futuragene PLC (AIM: FGN) said it has raised £3 million through a non-brokered placing with new institutional and existing institutional and private shareholders and has issued warrants to the placees which could potentially raise another £3 million.
