The FTSE 100 is down slightly by 7 points to 7,627 as trade war fears are once again brought to the fore. Also German chancellor Angela Merkel’s stance over her open door immigration policy has put her in a precarious position which is weighing on investor sentiment.
Miner South32 (S32) which spun out of mining behemoth BHP Biliton (BLT) gains 1.2% to 214.2p on news it is acquiring Arizona Mining for $1.3bn. Arizona Mining owns the Hermosa project which contains high grade base metals such as zinc, manganese and silver.
Challenger bank Virgin Money (VM.) is up 1.5% to 360.3p after agreeing to the terms peer bank CYBG (CYBG) made for its all share offer for the company. The deal values Virgin at £1.7m and when the deal closes the bank will trade as Virgin Money after an agreement between CYBG and Virgin Enterprises. CYBG’s shares are flat on the news.
International packaging business DS Smith (SMDS) loses 1.4% to 556p as despite releasing a strong set of results reveals that its debt levels have reached 2.2-times debt divided by earnings before interest, tax, depreciation and amortisation. The company’s medium term goal is to reduce that to less than 2-times. It is also conducting a strategic review of its plastics division.
Pharma company Indivior (INDV) ticks up 3.8% to 374.1p after winning a temporary restraining order against US rival Dr Reddy producing its own version of Indivior’s opiate addiction medication Suboxone film.
AIM listed oil and gas producer President Energy (PPC:AIM) is up 1.1% to 9.25p after bringing oil fields in Argentina back on line after being repaired. The work was completed below budget and production is now 50% over the level it was on acquisition.
Retailer Koovs (KOOV:AIM) shoots up 22.9% to 13.95p after announcing it has entered into a 2-year £24m deal with Indian media company HT Media which owns the Hindustan Times. The agreement is conditional on a cash raise of at least £6m from its shareholders. Once this is met. HT will provide Koovs with £16.8m if media and advertising services.
