Global markets lethargic

Global markets were lethargic today as investors couldn’t decide whether buying on multi-year highs amidst a generally disappointing European reporting season is justified. Research has shown that although fifty-seven percent of European firms have met or beaten expectations in the current quarter, this is still down from 63 percent earlier this week. Thus, many analysts are bracing for a correction to the downside as investors are bound to eventually realise that earnings are equally as important as macro-economic headlines.

The euro zone is also back on the agenda today as 10-year yields on Spanish and Italian debt rose following worse-than-expected business climate data from Germany. Investors are relying on the economic stability of power-houses like Germany in order to justify buying risky bonds from nations like Spain and Italy. Clearly the markets are starting to wonder whether current yields are high enough from Spain and Italy when nations like Germany are also struggling in the current economic climate.

Risers:

 

G4S, +2.13%

HSBC upgraded security firm G4S to "neutral" from "underweight", and raised price target to 250p from 205p. The bank says that while business fundamentals remain challenging in Europe and may precipitate a weak close to 2013, hopes that value can be unlocked through breakups and a rejuvenated strategy are likely to buoy G4S. HSBC also adds a "volatility flag" to the stock, emphasising it won't likely be a smooth ride. This comes despite chief Richard Morris resigning today over the tagging enquiry.

 

Elementis, +4.91%

Despite the tough market conditions being faced by Elementis, the firm are pleased to announce another resilient performance resulting in a 12 percent growth in sales in the current quarter. The Group's strategy of creating its own growth opportunities, combined with its strong, diverse market positions and a return to more normal trading patterns in oilfield drilling are the key drivers of the Group's success.

 

Phoenix Group, +2.71%

Phoenix Group extended its strong financial performance into the second half and is on track to achieve the top end of its 2013 cash generation target. The insurance provider confirmed year-to-date cash generation of £734 million, and said it was bound for its full-year cash generation target of between £650m and £750m.

 

Tullow Oil, +2.5%

Shares in Tullow Oil have risen throughout the morning’s session after the exploration company confirmed plans to issue €362M of debt. The current plan is to issue senior debt with a 6-year maturity life, with interest payable on a biannual basis. The exploration company said yesterday that it will use the net proceeds from the latest debt offering to repay certain existing debt under the firm’s credit facilities, but won’t be cancelling commitments under such facilities. 

 

Antrim Energy, +28%

Adding the most significant gains amongst AIM listed equities,  the Canadian-based international oil and gas exploration and production company shares have rocketed after reporting that routine maintenance of its North Cormorant Platform has been completed and oil production from its Cormorant East and Causeway fields have resumed, with the startup of electrical submersible pumps and water injection set to boost production at Causeway.

 

Fallers:

 

AZ Electronics, -5.67%

Falling the most amongst any share in the FTSE 350, shares in AZ Electronics have taken a knock after analysts at Credit Suisse downgraded the stock to “underperform”. They currently have a 290p price target on the stock indicating a potential upside of 2.84% from the company’s current price.

 

Great Portland Estates, -2.09%

Great Portland Estates was downgraded by Deutsche Bank to a “sell” rating in a research note issued today. They currently have a 460p price target on the stock, down from their previous price target of 470p. Deutsche Bank’s price target would suggest a potential downside of 23.08% from the company’s current price.

 

Nyota Minerals, -13.33%

Nyota Minerals Limited said key strategic partner Centamin PLC has further reduced its shareholding in the company, a move that comes a day after Nyota detailed the structure of a sales agreement with another exploration company. The gold exploration and development company operating in East Africa said that Centamin sold 9.4 million shares in Nyota over Monday and Tuesday this week, lowering its holding to 141.6 million shares or 16.1% of the company's issued share capital, down from 17.2%.

 

Imaginatik, -8.11%

Imaginatik the world's first full service innovation provider, today announced that it has signed a significant three year global innovation-solutions contract with a Canadian banking and financial services corporation. The Company will support the customer in its innovation activities initially across several divisions and over time expanding its reach within the enterprise