Euro markets continue to trade in the red

European markets continue to trade in the red, although recovering from intraday lows, whilst US markets trade in positive territory. Sterling recovered from a two-week low against the dollar after Bank of England Mark Carney’s first public speech since joining. Carney said the UK central bank is ready to increase stimulus if worldwide rising interest rates threaten Britain’s economic recovery. Carney also mentioned that policy makers plan to keep the benchmark interest rate at a record-low 0.5 percent for at least three years.

 

 

US stocks traded sharply higher, helped by energy shares rallying on higher oil prices amid growing speculation there will be a military strike against Syria. Administration officials have said that the US are planning potential military strikes on Syria which are not limited to a one-day operation after last weeks suspected chemical attacks. Gold climbed to a three-month high whilst oil reached a two-year high amid Syria tension.

 

 

US pending home sales dropped 1.3 percent, the most this year, coming in worse than the 0.2 percent increase the market was expecting. The drop in home sales has been caused by rising mortgage rates and a limited number of existing homes on the market. 

Risers

G4S
G4S shares have surged after clarifying plans to sell businesses and issue new shares to strengthen its balance sheet, allowing its new boss to focus on overhauling the security company and improve its battered reputation. G4S, which has endured an aborted takeover of Danish cleaning firm ISS, a botched contract to staff the 2012 Olympics and a profit warning in May, said it would place 140.9 million new ordinary shares representing up to 9.99 percent of its existing share capital.
G4S said its largest shareholder Invesco supported the placing and intended to participate in it.

Tullow Oil
UK-based Tullow Oil has announced it will begin pumping its first oil in Kenya as soon as next year, and that Kenya will begin exporting in 2016. Despite the looming impatience since Kenya’s first massive discovery by Tullow only last year, the pace of Kenya’s transformation has been rapid. It’s a much quicker pace than in neighbouring Uganda, where Tullow struck oil over seven years ago. If the Tullow’s production timetable is realized, it will mean that Kenya will soar past Uganda, and the pressure for Uganda will be increased significantly.

Petrofac
PETROFAC, which employs 4200 people in Scotland, highlighted increasing activity levels in the North Sea and said it was on track for dramatic growth in earnings in coming years. While the oil and gas services and investment group reported a 25% fall in first-half net profit, chief executive Ayman Asfari said Petrofac was on course to achieve its target of $862 million (£560m) net profits in 2015, more than double the level recorded in 2010.

888 Holdings
888 Holdings has seen its net profit more than double to $32.1m for the first half of 2013 following a record revenue performance led by the continued strength of its core online casino and poker products. Total revenues were up 7 per cent to $200.1m, with both casino and poker posting year-on-year growth of 13 per cent to $94.1m and $46.9m respectively.

Metminco
Metminco have benefited hugely from the impressive surge in the price of Copper. Sold off strongly in the first six months of the year for good reason (the copper price tanked 16 per cent to a low of $US3.02 a pound on June 24), copper stocks have since been putting on some big gains in response to a price recovery to about $US3.37 a pound, more if the impact of the fall in the Aussie dollar is factored in.

Fallers

Antofagasta
COPPER miner Antofagasta dampened hopes of a special dividend for 2013 yesterday after posting a drop in first-half profit and forecasting challenging market conditions. Shares in London-listed, Chile-focused Antofagasta have long traded at multiples at the top end of the sector, not least because of its generous shareholder rewards. The company has paid special dividends in nine of the last 10 years. But less cash coming from its core operations, increased spending on growth projects and comments on short-term copper weakness dented market expectations of another one-off payment, weighing on the stock which fell as much as five per cent.

Glencore Xstrata
Glencore Xstrata shares have plunged after CEO Glasenberg admitted that he had paid $8.8 billion too much to secure the-then Glencore International plc's $34 billion acquisition of Xstrata plc. New investment by the big mining companies has fallen off a cliff, and with it deal making, as they tighten their belts and crimp production in the face of slowing demand. Cash once earmarked for acquisition and development is now being funnelled into debt reduction - and to a lesser extent dividends - as companies seek to appease stockholders following tens of billions of dollars of asset write-downs.

Polymetal
Polymetal swung to a first half net loss of $255 million, from a profit of $157 million a year earlier. Revenue totalled $721 million, from $767 million. It proposed an interim dividend of 31 cents a share, from 20 cents in the same period a year earlier. Looking ahead, Polymetal maintained its full-year Total Cash Cost guidance of $700-750 an ounce of gold equivalent ounce and annual production guidance of 1.2M oz of gold equivalent.

Kenmare Resources
Kenmare Resources Plc. reported that net loss for the first-half of 2013 was $10.23 million, compared to profit of $38.79 million in the year ago period. Loss per share was 0.40 cents, compared to profit of 1.60 cents last year. Loss before tax was $9.23 million, compared to profit before tax of $38.79 million in the same period last year. Operating profit for the period fell to $6.9 million from the previous year's $47.0 million.

Oilex
Oilex Limited holds a diversified onshore oil and gas portfolio with a near-term drilling program that could increase its production in India. Oilex is set to increase its cash position after announcing a capital raising, with the ASX granting the company a trading halt - with its shares placed in pre-open.