Wednesday March 26, 02:56 PM
London afternoon: Miners lead attempted rally
LONDON (ShareCast) - Mining stocks spearhead an attempted rally, despite the failure overnight of miner Vale to buy Xstrata (LSE: XTA.L - news)
. Reports recently had suggested that concluding a deal was proving problematic, with Xstrata's board apparently turning down an offer of £40 per share consisting of cash-and-shares. Xstrata has fallen sharply, but other miners are doing well, as commodity prices rebound. South African miner Aquarius Platinum (LSE: AQP.L - news) receives an additional boost from HSBC, which has increased its price target to 710p from 680p. Sainsbury (LSE: SBRY.L - news) is better on news that the supermarket giant has formed a £1.2bn property joint venture with real estate firm British Land (LSE: BLND.L - news) . British Land is also higher on the announcement. Sainsbury also announced today that like-for-like sales in the fourth quarter rose 4.1%, including fuel it rose 6%. Total sales for the quarter rose 5.1% excluding fuel. Cairn Energy (LSE: CNE.L - news) is weaker on rumours that work in Rajasthan has stopped on a pipeline which is to transport Cairn's oil. Royal Dutch Shell (Amsterdam: RDSA.AS - news) , however, reacts phlegmatically to news that its oil production in Gabon has been suspended as a result of a strike by workers. Vodafone (LSE: VOD.L - news) is buoyant on reports that it will start receiving dividends again from its US joint venture Verizon Wireless. Elsewhere in the telecoms sector Cable & Wireless gets a lift from UBS (Virt-X: UBSN.VX - news) which has upgraded the stock to "neutral" from "sell", though it has cut its price target to 140p from 150p. In other broker comment, AstraZeneca (LSE: AZN.L - news) and GlaxoSmithKline (LSE: GSK.L - news) both ease after Morgan Stanley (SPU - news) cut its price targets for the stocks. Astra now has a price target of 2,150p (previously 2,450p) and GSK a price target of 1,161p (previously 1,391p). Friends Provident (LSE: FP.L - news) is on the rise after the FT reported that JC Flowers is working on a fresh approach to the embattled life assurer. Energy supplier Scottish Southern Energy said it would double the amount of energy it generates from renewable sources in the UK and Ireland in five years. Department store Debenhams (LSE: DEB.L - news) is friendless on market rumours that Merrill Lynch (NYSE: MER - news) has placed 47m shares at prices ranging from 60p to 66p. Housebuilder Bellway (LSE: BWY.L - news) posted lower interim profits and is battening down the hatches for a tough second half of the year. Oil and gas exploration firm Soco International (LSE: SIA.L - news) saw profits for the year rise despite production being slightly lower. United Utilities (LSE: UU.L - news) expects to deliver full-year results in line with forecasts and said it remains on track to meet the tougher leakage target set by water regulator Ofwat for 2007/08. Tile retailer Topps Tiles (LSE: TPT.L - news) will report a small decline in underlying interim sales this year, adding the consumer market is getting "increasingly challenging". Photographic retailer Jessops (LSE: JSP.L - news) said like for like sales for the 25 weeks to 22 March is down 5.1% with total sales falling 24.6%, reflecting the closure of 81 stores last year. Sofa retailer ScS Upholstery (LSE: SUY.L - news) moved to a first half pre-tax loss after a 'challenging' trading period, but said it remains confident of a profitable second half. Strong food sales helped wholesaler Booker lift sales in the last quarter despite a further decline in tobacco revenues. Chrome and nickel miner Oriel Resources (LSE: ORI.L - news) has agreed to a £749m takeover from Russian mining and metals firm Mechel. Stockbroker Hichens, Harrison falls back despite confirming it is bid talks with Religare Enterprises. The New Delhi-based retail brokerage is considering a cash offer for the UK stockbroker at a proposed price of 285p per share. Metal-Tech plunged on news that the speciality metal and metal-based chemicals firm expects to fall "significantly" short of full year profit expectations. Lighting equipment manufacturer FW Thorpe said its group companies performed well during the first six months, encouraging it to increase dividends by 20%. Architect firm SMC (Frankfurt: 874794 - news) said the restructuring steps it took during 2007 has helped increase second half revenues and EBITDA compared with the first half. CAP-XX is wanted after signing a letter of intent to establish a partnership with Japanese electronic components company Murata to provide high performance super-capacitors to the mobile hand-set industry and for other applications. Outsourced car valeting and vehicle preparation provider Autoclenz is firmer despite reporting lower profits. The company said it is making progress on reducing its dependence on the automotive sector and expanding its presence in the car rental market. Automation specialist Robotic Technology saw losses widen in 2007 as exceptional charges took their toll, though that did not stop the company from declaring a special final dividend.
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