Thursday May 15, 12:17 PM
UK small caps lower midday; Somero Enterprises down after FY profit warning
LONDON (Thomson Financial) - UK small caps remained lower midday, bucking the blue chip trend, with Somero Enterprises (LSE: SOM.L - news) the worst performer on the back of a full-year profits warning.
At 11.46 a.m., the FTSE Small Cap index was down 5.20 points to 3,207.80, while the FTSE 100 was up 13.6 points to 6,229.6.
Somero Enterprises headed up the list of small-cap fallers, plunging 45 pence to 40.
It said that, taking a cautious view on any potential recovery of large line US sales, it would expect total revenue for the year to end-December 2008 to decline by about 10 to 15 percent compared with the previous year and as a consequence it expects results for 2008 to be materially below market expectations.
A disappointing drilling update saw Matra Petroleum (LSE: MTA.L - news) shares shed 2 to 5.125, while specialist pharmaceuticals company Meldex retreated 9 to 49-3/4 as news of its maiden full-year profits was offset by the absence of any concrete news on bid talks.
Interim losses saw Blinkx (LSE: BLNX.L - news) cede 3-1/4 at 30.
Shares in orthopaedic devices maker Corin Group (LSE: CRG.L - news) fell 91 to 259 as Stryker's decision not to re-order any new products until December 2008 triggered analysts' downgrades.
Investec (LSE: INVP.L - news) slashed its 2008 earnings-per-share forecast by nearly 60 percent, telling clients the forecast risk remains high and Stryker will not make a bid in the short term. The broker shifted its stance on the stock to 'sell' from 'hold' with a new 300 pence price target.
At Brewin Dolphin, Chris Glasper downgraded his 2008 earnings per share estimate to 8.7 pence and next year's to 12.2. The analyst moved his recommendation to 'reduce' from 'hold'.
Tower Resources (LSE: TRP.L - news) took top-spot among small-cap gainers, advancing 2-1/4 to 5.375 on the back of an upbeat update on the company's exploration activities in Namibia and Uganda.
Shares in Persian Gold (LSE: PNG.L - news) , the Republic of Ireland-based Iranian gold explorer, edged up 1 to 11 following news the Chah-e-Zard gold discovery is advancing to pre-feasibility stage.
Emerald Energy (LSE: EEN.L - news) gained 11-1/4 to 358 after the group said its pretax profit for the quarter to end-March was $6.20 million, while its revenues from oil sales in the period were $12.96 million.
Works Media gained 15 percent -- or 0.25 to 1.875 -- following news director Crispin Barker has vacuumed up 75,000 shares at a price of 1.60 pence each, and now speaks for 22.9 percent of the equity.
European Minerals (EPM.TO - news) resumed trading at 46, up 3-1/2, following the appointment of Grant Thornton Corporate Finance as the company's nominated adviser.
European Minerals on Wednesday signed a joint venture deal with Lero Gold (LER.V - news) .
After earnings news, CLS Holdings (LSE: CLI.L - news) shares were 8 higher at 344-3/4 after the group said underlying profit for the first quarter had been strong, with increased net rental income and tightly controlled costs.
New Star Asset Management Group gained 2 at 118 after a trading update that Evolution Securities said looked 'in line to slightly better' and reiterated its 'buy' stance and price target of 130 pence.
Shares in Anglo-Eastern Plantations rose 10 to 610 after it reported strong trading and said the prospects for 2008 remain 'very positive'.
The company said for the first quarter to end March 31, its revenues at over $49 million was more than double that of the first quarter last year, helped by high crude palm oil (CPO) prices.
Meanwhile, share buying by the chief financial officer lifted Hellenic Carriers 15 to 236.
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