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FTSE 100 leaps like a salmon while Aqua Bounty boosts AIM

Last updated: 09:00 20 May 2016 EDT, First published: 04:50 20 May 2016 EDT

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Leaping like the proverbial, Aqua Bounty Technologies (LON:ABTU) was the star turn In London today.

Shares in the salmon supplier jumped 267% as Health Canada approved AquAdvantage salmon for commercial sale in Canada.

Last November the US Food and Drug Administration (FDA) approved the genetically enhanced salmon for production, sale and consumption.

The fish is an Atlantic salmon with the addition of genes from a Chinook salmon and an eel known as an ocean pout.

Elsewhere, London’s blue chips gave back some of their early gains early charge but the index was still heading into the weekend in good shape.

The FTSE 100 was up 82 points, or 1.4%, at 6,135, with its AIM equivalent 24 points to the good at 3,395.

Bookmaker Ladbrokes PLC (LON:LAD) shot up almost 8% to 128.6p, as news broke that its merger with Gala Coral will probably be waved through if the combined group offloads around one-tenth of the 4,004-strong betting shop estate.

Travel group Thomas Cook Group PLC (LON:TCG) was steady after yesterday’s profit even though brokers were busy reducing forecasts and target prices. Goldman and Citigroup now are on 72p and 62p respectively.

Merchant bank Close Brothers Group PLC (LON:CBG) climbed 4% to 1,273p after its fiscal third quarter update.

The loan book increased 4.0% in the quarter and is up 8.2% year to date to £6.2 billion, having stood at £6bn at the end of January.

In contrast, instruments and controls group Spectris plc (LON:SXS) hit the skids after its trading update. The shares retreated 5% from last night's to 1,686p as it reported a like-for-like sales decline of 4% year-on-year in the first four months of the year.

Greka Engineering & Technology Ltd (LON:GEL) shot up 28% to 0.8p as the company announced plans to delist from Aim.

Going the other way was Circle Oil PLC (LON:COP) after it published an update on its strategic review process.

The shares slumped 66% to 0.68p as it said that although it had received numerous proposals to rescue the company, none of them are likely to value the shares at much above zero.


Blue-chips quick out of the stalls as punters go long on Ladbrokes

The Footsie got off to a flying start with financial stocks to the fore, as the interest rate environment looks set to change sooner than expected.

The FTSE 100 was up 94 points, or 1.6%, at 6,148, leaving the FTSE Aim 100 index, up 17 points (0.5%) at 3,388, in its wake. The FTSE Aim All-Share edged 2.4 points (0.3%) higher at 725.

Bookmaker Ladbrokes PLC (LON:LAD) shot up almost 11% to 132.4p, as news broke that its merger with Gala Coral will probably be waved through if the combined group offloads around one-tenth of the 4,004-strong betting shop estate.

Merchant bank Close Brothers Group PLC (LON:CBG) climbed 4.3% to 1,278p adter its fiscal third quarter update. The loan book increased 4.0% in the quarter and is up 8.2% year to date to £6.2 billion, having stood at £6bn at the end of January.

In contrast, instruments and controls group Spectris plc (LON:SXS) hit the skids after its trading update. The shares retreated from last night's close of 1,770p to 1,654p as it reported a like-for-like sales decline of 4% year-on-year in the first four months of the year.

Far and away the best performer in London was biotechnology company Aqua Bounty Technologies (LON:ABTU), up 370%, after Health Canada concluded its review of the AquAdvantage Salmon, approving it for commercial sale in Canada.

Greka Engineering & Technology Ltd (LON:GEL) shot up 28% to 0.8p as the company announced plans to delist from Aim.

Going the other way was Circle Oil PLC (LON:COP) after it published an update on its strategic review process. The shares slumped 72% to 0.55p as it said that although it had received numerous proposals to rescue the company, none of them are likely to value the shares at much above zero.


Snapshot

The FTSE 100 rose sharply just over 1% or 74 points to 6,127, higher than anticipated by spread betting firms, as markets begin to adjust to the prospect of the US interest rate rise next month.

The top winner was Coca-Cola HBC AG (LON:CDI) after it announced an AGM yesterday brokers updated their ratings, shares were up almost 5% to 1,346p. The biggest loser was Burberry Group (LON:BRBY), continuing its trend this week, down 0.5% to 1,073p.

Ladbrokes and Gala Coral have been told by the UK's competition authority that they will likely have to sell up to a tenth of their shops (400) to allow the £2.2bn merger.

Asian shares edged up on this morning but were on track for a weekly loss. The dollar was poised for a winning week on bets the U.S. 


Preview at 6.52am

The FTSE 100 is predicted to rise strongly on opening with markets slowly coming to terms with the prospect of an imminent US interest rate hike.

The index is of blue chip stocks is predicted by the spread betting firms to rise 49 points to shortly after the opening bell to 6,102.35.

While the Dow was off 0.5% and the broader based S&P 500 lost 0.4% Thursday, the stocks ended the session off rock bottom.

There was a feeling that American investors at least are getting its heads around an era of higher borrowing costs after New York Fed president William Dudley hinted a quarter point rise could come next month or in July.

In Asia overnight the picture was mixed, with the Hang Seng up almost 1%. Shanghai was flat, while the Nikkei 225 was down 0.4%.

Here in the UK it is likely to be a fairly quiet day for corporate news after a flurry of updates on Thursday.

Results are expected from the financial services group Close Brothers (owner of the Winterflood market-making operation, which oils the cogs of share trading) and instruments firm Spectris.

*Brent crude is trading 43 cents higher at $49.24 per barrel.

*Gold is up 90 cents at $1,255.70.

City Headlines

*Saudi Arabia is advancing plans for its first international bond sale as the kingdom seeks to address damage caused to its public finances by lower oil prices – FT.

*3i, Britain’s biggest listed private equity group, has warned that the country’s impending vote on whether to leave the EU has dealt a blow to buyout markets, and said its focus will remain on exiting investments – FT.

*Bayer has made an unsolicited takeover bid for Monsanto, the American sustainable agriculture giant and pioneer of genetically modified seeds – Times.

*British shoppers have provided a glimmer of good news for the economy after retail sales rebounded in April – Times.

*The Bank of England must stand ready to slash interest rates towards zero if the economy does not bounce back quickly from its current malaise – Telegraph.

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