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London afternoon: Stocks steady at higher levels
Wed, 08 Feb, 2012
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London afternoon: Stocks steady at higher levels
Wed, 24 Feb 2010, 14:19:00
London has moved into consolidation mode in the afternoon session, ahead of a moderately firmer opening on Wall Street. <b>HSBC</b> remains the top performer as reports circulate that the company is preparing to sell its train leasing business for around £2bn. Sentiment towards the bank is also sweetened by reports that the board is expected to scrap a pay rise of almost 40% for its chief executive Michael Geoghegan following shareholder protests. <b>Lloyds</b>, which reports results on Friday, is another strong performer but <b>RBS</b>, due to report tomorrow, has relinquished early gains. <b>Reckitt Benckiser</b> is lower again on worries over the inquiry into its sales methods for Gaviscon heartburn products. Mining giant <b>BHP Billiton's</b> chairman Don Argus has chosen 30 March as the date on which he will relinquish the role and quit the board. Oil producer <b>Melrose Resources</b> said output during 2009 amounted to 38.6m barrels of oil a day (Mboepd), compared with guidance of 38.5Mboepd. Housebuilder <b>Barratt Developments</b> has cut half year losses and predicts a "significant" improvement in operating margin in the second half versus the first as it begins selling more houses and fewer flats. A loss before tax and exceptionals of £48.5m for the last six months of 2009 was much less than the £80.6m deficit reported a year ago, as was the loss after exceptionals of £178.4m versus £594.5m in 2008. Elsewhere in the sector <b>Kier</b> delivered profits in line with expectations as it continued to focus on winning work 'at the right price.' Profit before tax virtually halved to £16.7m in the six months to 31 December 2009 from £31.6m in 2008. However, that was after taking an exceptional charge of £13.8m, compared to a one-off credit of £6.3m in 2008. Heavy restructuring costs sent profits lower at public-sector focused software group <b>Logica</b> last year, though the underlying numbers beat forecasts. Sales were flat and the group expects little revenue growth in the current 12 months. Wickes owner <b>Travis Perkins</b> gave a gloomy assessment of the mindset of consumers as sales and underlying profits fell last year with revenues also down in the current year. "We are concerned in particular about weak consumer spending trends in 2010 as inflation rises and the cushion of falling mortgage costs annualises out. We expect the home improvement market to contract further in 2010," chief executive Geoff Cooper said. Fellow DIY-related stocks <b>Home Retail</b> and <b>Wolseley</b> fall back in sympathy. <b>Blacks Leisure</b> has postponed today's EGM to vote on its £20.3m fund raising to give it more time to come to a settlement with 28.5% shareholder Sports Direct, which stated on Monday it would vote against the plan. "There can be no guarantee that these discussions will reach a successful conclusion," it added. Fund manager <b>Henderson</b> swung into the black last year after a loss-making 2008 and increased assets under management (AUM) by 17% following the acquisition of rival New Star in April for £94.2m. <b>St James Place's</b> funds under management soared by 31% in 2009 to hit a new record as rising stock markets sparked a surge of new money into the wealth manager. Price comparison website <b>Moneysupermarket.com</b> posted a 26% decline in full year EBITDA but added it was confident in its prospects for the full year. Trading improved significantly in February after a slow start in January. Philippines-focused gold miner <B>Medusa Mining</B> celebrated record half yearly net income in the second half of 2009 as the gold price soared and the company ramped up production. Among TechMARK stocks <b>AEA Technology</b> surges on a big contract win. The US Department of Energy is calling on the assistance of the energy and climate change consultancy to integrate and coordinate the requirements of the 'Save Energy Now' energy saving assessment initiative with the activities of the department.
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