On the anniversary of the Brexit vote the FTSE 100 is down by over 30 points to 7408.85 as bluechip companies feel the pain of sterling’s gains against both the euro and the dollar. Some of the large pharma and mining stocks are particularly exposed to a stronger pound as they derive a large proportion of their revenue from overseas.
Mining giant Rio Tinto (RIO) has completed its programme of reducing gross debt by $2.5bn. The company says that this is expected to reduce earnings by around $180m and cash flow from operating activities by approximately $260m in the first half of the 2017. Market reaction is muted, its share price slightly up at £30.39.
Another mining firm Antofagasta (ANTO) drifts down by almost 1.5% to 763p as the company reports the taxes it has paid to governments in 2016. As it operates in Chile, the company says this is where ’99.9%’ of its taxes went. The total money paid to the Chilean government came to over $74m.
Publishing power house Trinity Mirror (TNI) enjoys a share price hike of 3.15% to 90p as it announces changes to directors’ responsibilities. David Kelly is taking over from Helen Stevenson as chairman of the remuneration committee. Stevenson will continue to act as a senior independent director.
Crystal Amber Fund (CRS:AIM), which invests in small and mid cap UK equities has issued a statement regarding the recent decline in its share price. The fund this is was due to the decline in the price of its largest investment Hurricane Energy. The fund’s share price is up by over 5% to 211.62p on the admission.
Maritime technology firm SRT Marine Systems (SRT:AIM) sees it shares price rise by almost 5% to 50.35p as it announces a new contract. The United Nations Food and Agriculture awarded the contract to SRT to provide it with specialist AIS Class B transceivers and communication devices, satellite AIS data and a vessel tracking display system in Somalia. It will be used to combat piracy in Somalia.
Oil and gas producer Zenith Energy (ZEN) sees it shares collapse by 13.64% to 7.12p as it releases an operational update. The company says Italian coiled tubing company Smape Srl is to perform several well interventions in the Muradkhanli, Jafarli and Zardab fields, the first of which will be well M-195.
