Wednesday May 14, 05:25 PM
UK small caps close lower; Eicom stays biggest faller on AIM de-listing plan
LONDON (Thomson Financial) - UK small caps closed lower, but pulled back off session lows, bucking a blue chip rise, with Eicom (LSE: EIC.L - news) shedding more than 40 percent following its proposal to cancel its AIM listing.
At the close, the FTSE Small Cap index was 8.9 points down to 3,213.0, while the FTSE 100 index rose 4.1 points to 6,216.0.
Eicom dropped 1 to 1-1/4 as it proposed to cancel its AIM listing. The company's directors believe they would be best able to implement a merger and acquisition strategy as an unquoted company.
Runner-up among the fallers was London Asia Capital (LSE: LDC.L - news) , 1.375 adrift to 2.875 after it said it sees a loss for 2007 on significant provisions, a fall in the value of a number of the company's listed holdings and a decline in the performance of China Financial Services Inc.
Greatland Gold (LSE: GGP.L - news) lost 1/2 a penny to 1.65 following an exploration update.
In other news, Corin Group (LSE: CRG.L - news) fell 100 to 350 as Nomura Code Securities downgraded the orthopaedics maker to 'neutral' from 'buy' following a trading statement where the company said it does not expect revenue from its U.S. business for the year to Dec 31, 2008 to be more than 10 million pounds.
Humberts Group (LSE: HUM.L - news) lost 0.875 a penny to 3.875 as investors learned that certain conditions necessary for it to carry out its intended 2.25 million pounds placing may be difficult or impossible to meet.
ScS Upholstery (LSE: SUY.L - news) remained hard hit, 7 down to 47, as it issued a profit warning, prompting Numis Securities to cut the stock to 'sell' from 'reduce' in reaction.
Across the sector, Land of Leather (LSE: LAN.L - news) lost 5 to 37-1/2 on the back of the news.
Oxus Gold (LSE: OXS.L - news) was among the risers, up 5-1/4 to 28 as it raised $18.5 million to help fund the Amantaytau Goldfields (AGF (Paris: FR0000125924 - news) ) project by placing 8.0 percent unsecured convertible loan notes with existing institutional and strategic shareholders and to new institutional investors.
Allergy Therapeutics (LSE: AGY.L - news) , which had led the risers, finished up 6 at 34-3/4 as it disclosed positive results from its Pollinex Quattro Grass Phase III study, G301, the largest controlled allergy vaccine study ever conducted.
Landsbanki retained its 'buy' recommendation on Allergy following the data release.
In deal news, Renesola (LSE: SOLA.L - news) dropped 90 to 610-1/2 as it signed a six-year, 525-megawatt wafer supply agreement with Gintech Energy Corp.
Financial details were not disclosed.
Absolute Capital Management (Frankfurt: A0JEGU - news) rose 6 to 41-1/2 on plans to demerge its Argo businesses.
In numbers news, KBC Advanced Tech climbed 7 to 52-1/2 as it predicted full-year results 'significantly ahead' of market forecast.
A positive update saw Pan Andean Resources (LSE: PRE.L - news) close 1-1/2 up at 14-1/2, while UK pawnbroker H&T Group's in-line update led Numis Securities to raise its estimates for the group as it kept a 'buy' rating.
Shares rose 1 to 175-1/2.
In a similar vein, Tangent Communications (LSE: TNG.L - news) remained 1/4 a penny up to 9.125 on rising full-year pretax profits, while narrowed full-year losses and a new finance director lifted Leisure & Gaming 0-1/2 a penny to 7-1/4.
Finally, Northbridge Industrial Services (LSE: NBI.L - news) rose 5 to 169 as it gave a positive trading update, which prompted Charles Stanley Securities to keep a 'buy' rating on the stock.
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