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Other Articles:	02-09-201002-09-201001-09-2010

Wall Street tumbles to push FTSE 100 down, Oil, Gold and Silver slide on stronger US dollar

Overview: The FTSE 100 was flat for most of the day as energy and mining stocks were fluctuating around the opening levels until late afternoon, when the US market fell in early trade with the Dow Jones average declining as much as 1% after posting early gains, while the Nasdaq composite lost 0.5%, dragging down the Footsie. The US Dollar recovered from 14 month lows against the euro to weaken the commodities and push the stock markets down.

Investors had another batch of corporate reports to digest today. The second largest phone company in the US, Verizon (NYSE: VZ), reported a 30% decline in third quarter earnings on restructuring costs.

Publisher McGraw Hill (NYSE: MHP) reported a 14% decline in profits. Both these companies rose immediately after releasing the results. Oil & gas service company National Oilwell Varco (NYSE: NOV) said its profits fell 30%, which was a smaller fall than expected.

The FTSE 100 finished the day down about 1%, weighed down by big losses from partly nationalised banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS), which lost 7.4% and 6% respectively and cruise ship operator Carnival (LSE: CCL), which was down 4.5%.

British Airways (LSE: BAY) also made it to the leading fallers list after getting downgraded to “sell” from “hold” by Deutsche Bank ahead of its quarterly results, saying its merger with Iberia and anti-trust immunity with American Airlines were at risk. These comments came after the European Commission told BA, American Airlines and Iberia that they may have to cut take-off and landing slots for the merger to proceed.

Telecom group Cable & Wireless (LSE: CW), which has revived plans for a £3.6 billion demerger of its corporate telecoms division and its international business CWI, emerged atop the leaderboard with a 3.5% advance, while distribution group Bunzl (LSE: BNZL) and commercial property company Hammerson (LSE: HMSO) followed with gains of about 1.5%.

Commodities

Oil prices inched slightly higher today before falling late in the afternoon on a resurgent US dollar. US light, sweet crude for December delivery moved down to US$78.49/barrel, while December Brent Crude slipped to $77.15/barrel.

Supermajors BP (LSE: BP) and Shell (LSE: RDSB) did well nonetheless, tacking on 2% and 1.5% respectively. Fellow FTSE 100 constituents BG Group (LSE: BG) and Tullow Oil (LSE: TLW) also did well, adding 1% and 3% respectively. However, Petrofac (LSE: PFC) posted marginal losses.

All midcap oil and gas companies were in the red today as Dana Petroleum (LSE: DNX), Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) all shed less than 1%.

Mongolia-focused Petro Matad Ltd (AIM: MATD) and Eastern Europe focused junior Aurelian Oil & Gas (AIM: AUL), which unveiled a new strategy today, led the juniors, rallying 27% and 16% respectively.

Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) followed, advancing 7%.

EU operating Rome-based oil junior Mediterranean Oil & Gas (AIM: MOG), Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) and Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) went in the opposite direction, shedding 6%, 5% and 4% respectively.

Energy investor Xtract Energy PLC (AIM: XTR) slipped 3.5%.

Precious metals

Metal prices were at about the same levels as in the morning with Gold moving back to US$1,054/oz after failing to hold on to US$1,060/oz, while Silver slid back to US$17.60/oz after inching a few cents higher earlier in the day. Platinum was slightly lower at US$1,357/oz.

Major mining stocks mostly rose on Monday. Silver miner was in the lead in the FTSE 100 with a 2% advance, while platinum miner Lonmin (LSE: LMI) added 1.2%. However, specialty chemicals firm Johnson Matthey (LSE: JMAT) and gold producer Randgold Resources (LSE: RRS) posted marginal losses.

In the FTSE 250, gold miner Petropavlovsk (LSE: POG) climbed 1%, while silver producer Hochschild Mining (LSE: HOC) rose marginally. Aquarius Plaitnum (LSE: AQP) was in the lead with a 2.6 improvement.

Western Australia operating Norseman Gold (AIM & ASX: NGL) led the sector with a 9% gain, while commodity asset development company Mercator Gold (AIM: MCR) climbed 8%. Turkey focused gold miner Ariana Resources (AIM: AAU) followed with a 7% gain.

Nickel and platinum focused Australia and South Africa operating miner Braemore Resources (AIM: BRR) and South American based explorer Mariana Resources (AIM: MARL) gained more than 6%, while Philippines focused gold producer Medusa Mining (AIM&ASX: MML) advanced 5%.

Philippines focused Metals Exploration (AIM: MML) was among the leading fallers, declining 7%.

African focused nickel and gold exploration and development junior Nyota Minerals (AIM & ASX: NYO), Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF), Fiji focused gold miner Vatukoula Gold Mines (AIM: VGM) and Australian gold and copper prospector Solomon Gold (AIM: SOLG) all lost more than 5%.

Base metals

Zinc kept rising, getting close to US$1.06/pound, while Copper slid to US$3.01/pound, while Nickel declined to US$8.66/pound.

Base metals focused stocks didn’t show much movement on Monday. Rio Tinto (LSE: RIO) was in the lead, adding 1.7%. BHP Billiton (LSE: BLT) and Vedanta Resources (LSE: VED) added more than 1%, while Xstrata (LSE: XTA) and Antofagasta (LSE: ANTO) both rose about 1%.

Anglo American (LSE: AAL) and Kazakhmys (LSE: KAZ) posted small gains.

Eurasian Natural Resources (LSE: ENRC) went against the tide, sliding 1.3%.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) also inched lower, shedding about 1%.

Indonesia operating coal miner Churchill Mining (AIM: CHL) led the juniors with a 5.7% climb after announcing a maiden coal reserve of 956 million tonnes at its flagship East Kutai project. Australia focused coking coal producer Caledon Resources (AIM: CDN) added 3%.

South American focused junior miner Herencia Resources (AIM: HER) emerged as the leading faller, shedding 7%, while Uranium and copper explorer Kalahari Minerals (AIM: KAH) and Zinc mining and recycling specialist ZincOX (AIM: ZOX) both lost more than 4%.

Mineral sands producer Kenmare Resources (LSE: KMR) and Russia focused nickel and copper producer Amur Minerals (AIM: AMC) also declined.

Banks, insurance, private equity

All major financial stocks were in the red today. Bailed out banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS), which lost 6.5% and 5.5% respectively. Barclays (LSE: BARC) declined about 2.7%, while HSBC (LSE: HSBA) lost 1.7%. Standard Chartered (LSE: STAN) turned early gains into losses, moving down 1.3%.

Prudential (LSE: PRU) was the leading faller among the insurers with a 2.7% loss. Aviva (LSE: AV) and Old Mutual (LSE: OML) followed with losses of over 1.5%.

Legal & General (LSE: LGEN) shed 1.3%, while Standard Life (LSE: SL) lost 1%. Friends Provident (LSE: FP) and RSA Insurance Group (LSE: RSA) declined marginally.

Private equity group 3i (LSE: III) was down 2.4%.

Large and Mid Cap News

McBride Plc (LSE: MCB) released an Interim Management statement for the period from 1 July 2009 to 25 October 2009. In the statement the private label consumer goods manufacturer and distributor revealed that the group’s overall trading performance has exceeded the board’s expectations, with a 7% increase in group revenues.

Shire plc (LSE: SHP, NASDAQ: SHPGY) announced that the Food and Drug Administration (FDA), has affirmed its prior decision to grant five-year New Chemical Entity (NCE) exclusivity to lisdexamfetamine dimesylate. The treatment for Attention-Deficit Hyperactivity Disorder (ADHD) is currently marketed in the United States under the name VYVANSE®. The five-year exclusivity period for VYVANSE expires on February 23, 2012. VYVANSE is covered by United States patents which remain in effect until June 29, 2023.

Small Cap News

Amerisur Resources (AIM: AMER) announced that it had re-established production on the Platanillo Block in Colombia following the successful of a temporary contract. The company has also been granted an extension to its Phase II license for the Fenix exploration programme. The Platanillo block is located in the Putumayo Basin of southern Colombia, and is held 100% by Amerisur Resources through its subsidiary.

Avanti Communications Group plc (AIM: AVN) announced a contract win and major strategic partnership with Hughes Communications (Nasdaq: HUGH) subsidiary, Hughes Network Systems. According to Avanti, the deal aligns the company with a ‘powerful force’ to aid Avanti in filling the HYLAS ‘superfast’ broadband satellite, quickly through Europe.

Shares in Aurelian Oil & Gas (AIM: AUL) were lifted this morning by news of a gas sale agreement for its Siekierki field in Poland and encouraging results of testing the Voitinel-1 gas well at the Brodina concession in Romania. In yet another statement, the group outlined its strategy going forward following the recent management reshuffle.

Bluewater Bio International (AIM: BWB) announced that it has signed an exclusive representation agreement in South Africa with Headstream Water Holdings. The license agreement is for an initial three year period and the license can be extended for further two year periods in perpetuity if Headstream achieves certain sales targets.

Eco Animal Health Group (AIM: EAH) said its Aivlosin granules for oral solution for medicated drinking water for pheasants has secured approval from the European Madicines Evaluation Agency (EMEA), which will allow it to be marketed throughout the continent.

EMED Mining (AIM: EMED) updated investors on its activities over the past quarter, to the end of September 2009.  The European focused copper and gold exploration and development company said that the mining industry had continued to recover over recent months and as a result EMED’s projects have an increased economic importance in their respective regions.

Quadrise Fuels International (AIM: QFI) reported first revenues of £3.5 million from the sale of its MSAR oil in Lithuanian trials as its losses for the full year narrowed to £5 million from £22.5 million a year ago, which was in line with management expectations.

Caledon Resources Plc (AIM: CDN, ASX: CCD) released its quarterly operations report for the period ending 30 September 2009. The report affirmed that its primary mining activities remain on schedule to relocate and begin production at the new Argo pit bottom area of the Cook mine in January. Additionally the company re-iterated that discussions with potential acquirers are ongoing.

Provider of software and support services to financial and technology industries First Derivatives (AIM: FDP) has acquired New Jersey based software business Reference Data Factory (RDF) for up to £6 million to enhance the capabilities of its Delta software suite.

This morning, AIM listed software developer Intercede (AIM: IGP) released its latest identity and credential management system software suite, MyID® 8 Enterprise SR1. According to Intercede this latest version of the MyID system widens the scope of Intercede's target market.

Seeing Machines Ltd (AIM: SEE) said it has launched the TrueField Analyzer (TFA), a device for ophthalmic vision testing initially focused on the glaucoma market.  The TFA is available initially on limited release in the US. Following initial sales and independent clinical trials the company intends to pursue licensing the device to a medical devices Original Equipment Manufacturer.

Africa and FSU operating oil and gas junior Victoria Oil & Gas (AIM: VOG) is continuing its transition from an exploration to a development and production company, now armed with more funds to advance its operations in Cameroon, where the drilling of new appraisal wells is currently underway.

Berkeley Resources (AIM & ASX: BKY) announced that it has mobilised three diamond drilling rigs for the initial confirmatory drilling program at the Salamanca Uranium Project, Spain. The program plans to drill 5,000m over 60 holes.

Kalahari Minerals PLC (AIM: KAH) said Extract Resources Ltd (TSX, ASX: EXT), in which it holds 40.88 percent, has increased the exploration target for its Rossing South uranium deposit at the Husab project in Namibia to between 185 and 285 million pounds of triuranium octoxide (U3O8).

IP commercialisation company Fusion IP (LSE: FIP) noted the University of Sheffield’s last week’s announcement regarding its 22% owned modelling and simulation company Simcyp, which was ranked among the top 50 fast-growing UK companies by the Business XL magazine.

Chinese based provider of enterprise content management (ECM) GEONG International Limited (AIM: GNG) released an update ahead of its interim results, saying trading proceedings were in line with market expectations for the full year with an order book of £13.8 million at the end of September, up from last year’s £9.6 million and from £10.6 million in March.

Churchill Mining PLC (AIM: CHL) announced  its maiden reserve for the flagship East Kutai coal project (EKCP)  in Indonesia, in which it holds 75 percent, putting the JORC compliant probable in-situ reserve of 956 million tonnes of thermal coal. The news lifted shares in the group by nearly 5 percent in early London trade.

London listed wound-care specialist, Advanced Medical Solutions (AIM: AMS) announced today that the company’s distribution partner, Systagenix, has expanded its wound-dressing offering with Advanced Medical’s SILVERCEL Non-Adherent Hydro-Alginate dressing.  Silver is a “broad spectrum” antimicrobial that is effective against a wide range of micro organisms, including MRSA, while alginates absorb secretions from the wound whilst also maintaining a moist wound-healing environment.

Chaarat Gold Holdings Ltd (AIM: CGH) has appointed Tao Lua and David Tang- both directors of 19.9 percent shareholder China Nonferrous Metals International Mining Co Ltd (CNMI) - as non-executive directors with effect from October 23 2009.

West African Diamonds PLC (AIM: WAD) confirmed in reaction to press speculation that it has signed heads of terms to acquire Stellar Diamonds Ltd, a privately held West African diamond producer, constituting in a reverse takeover under AIM rules. Both boards plan to relist the combined venture on AIM.

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