The FTSE 100 kicks off the week with a bang, mirroring stock market gains seen in Tokyo, Hong Kong, Shanghai and Sydney on Monday. The UK blue chip index moves 10 points higher to 7,268, driven by the mining and financial sectors.
The commodities sector is in focus amid a 6% rise in iron ore prices and a 1.2% gain in the price of copper. Higher metals prices trigger a rally in many parts of the natural resources industry with notable gains including Antofagasta (ANTO), up 3.1%; Anglo American (AAL) which rises 3%; and Glencore (GLEN), 2.8% higher.
FTSE 100 outsourcing group Capita (CPI) has sorted out problems on its mortgage processing contract with Co-operative Bank, having previously flagged this as a risk. It will continue to provide administration services to the bank - which has today put itself up for sale - but work on IT system upgrades will cease.
Defence contractor Chemring (CHG) has won a new contract with the US Army for 10 ground penetrating radar trial systems, triggering a 1% rise in its share price to 193p. If successful, Chemring says the contract could lead to upgrades of the client’s control systems.
Financial industry software specialist Fidessa (FDSA) is proposing to pay 50p special dividend, in addition to 28.2p final dividend, as a result of being highly cash generative and having no debt. The news coincides with full year results which show 25% increase in pre-tax profit to £48.8m. Its shares advance 1.7% to £24.40.
Georgian Mining (GEO:AIM) has reported some very good copper grades in exploration drilling at its 50%-owned Kvemo Bolnisi project in Georgia. Importantly, the copper is located fairly close to surface, implying the company could develop the project as an open-pit mine assuming further drilling continues to find decent levels of mineralisation. Its shares jump 11.4% to 9.75p.
Carpet specialist Victoria (VCP:AIM) has moved into the artificial grass market with the acquisition of two businesses for £9.7m upfront and a further £4.4m depending on how they perform.
There is robust self-storage demand in the UK, according to how Lok’nStore (LOK:AIM) is trading at its 26 sites. Occupancy rates have increased by 4.6% as of 31 January, which is the middle of its financial year. First half revenue increased by 3.9% year on year. Lok'nStore's shares rise 2.2% to 470p on the news.
Hytera’s planned acquisition of walkie talkie group Sepura (SEPU) has stumbled as it looks like authorities in Germany will take a closer look at competition issues. Sepura’s shares fall 2.6% to 18.5p.
A discounted fundraising drags down KEFI Minerals (KEFI:AIM) 14% to 0.34p despite the £5.6m cash injection providing enough money to support the miner’s requirements for the whole of 2017. KEFI is trying to build a gold mine in Ethiopia.
