logo-loader

FTSE 100 falls as Crimean crisis rumbles on

Last updated: 11:00 05 Mar 2014 EST, First published: 12:00 05 Mar 2014 EST

stock_market_chart_350_531758f6dcb0c

Britain’s blue chip shares failed to build on Tuesday’s rally, edging lower after some less than impressive earnings reports.

The Footsie lacked direction as the Crimean crisis drags on, closing 0.7% lower at 6,775.

Efforts are being made to ease tensions between Kiev and Moscow, with US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov set to hold talks in Paris.

Russian troops are still in control of Crimea and a resolution is yet to be reached.

Melrose Industries (LON:MRO) was by far the biggest faller, down 7.8% at 302.4p as it warned of tough market conditions and said sales growth would be difficult to achieve in 2014.

Legal & General (LON:LGEN) fell 1.9% to 236p as the life insurance firm fell just short of analyst estimates in its full-year figures.

Persimmon (LON:PSN) joined it 2.5% lower at 1,433p after a downgrade from Credit Suisse to ‘neutral’. The broker in fact cut its ratings on a number of stocks in the sector as it called an end to the strong run enjoyed by the housebuilders.

Barratt Developments (LON:BDEV) fell 1.8%, Bellway (LON:BWY) dropped 1.7% and Taylor Wimpey (LON:TW.) dipped 2.8% as the trio joined Persimmon on the list of stocks rated ‘neutral’ by Credit Suisse.

Though they retained their ‘neutral’ recommendations, Berkeley Group (LON:BKG) and Bovis Homes (LON:BVS) also retreated as the broker cast a shadow over the sector.

“To be absolutely clear we are not calling the top of the UK housing cycle, rather we are calling the top of the equity story, as we believe current valuations already factor in substantial future growth in the next two years,” the broker said.

Miners were also on a downer, as were banking stocks. 

Admiral (LON:ADM) was the shining light on the top flight as it rose 7.5% higher despite reflecting on the “year of the baked potato”.

By that chief executive Henry Engelhardt meant it was a solid year, “something on the plate that is appreciated but doesn't really grab the spotlight”. It is “a comfort food set of results”, he added.

But as Toby Morris, Senior Sales Trader at CMC Markets, noted, the market lapped it up.

“Clearly investors are more than content with tucking into a baked potato on a cold March morning,” he quipped.

In the small-cap sector, Central Rand Gold (LON:CRND) shot up 27% to 15.9p, along with Kea Petroleum (LON:KEA) and Cambridge Cognition (LON:COG).

Independent Oil & Gas (LON:IOG) rose 14% to 28.3p after it said it is adding to its potential value with the low-cost acquisition of a gas licence close to its Blythe Field in the North Sea.

It will pay an initial £468,000 for block 48/22a, which will be renamed Cronx.

An independent report estimates it contains a recoverable 2C resource of 17.6bn cubic feet of gas, the equivalent in oil of 3.4mln barrels.

The acquisition follows the group’s strategy of building production hubs, where smaller fields are developed and connected to nearby infrastructure, and will see the company become an operator.

ServicePower Technologies (LON:SVR) motored 11% higher to 7.5p as the field management specialist landed a multi-year contract with Electrolux, which it said will “deliver significant revenues”.

The white goods manufacturer will deploy the AIM-listed firm’s ServiceOperations, ServiceStats and ServiceScheduling software.

Marcelo Bravo, founder and previous chief technological officer, is now at the helm of drug reformulation specialist Oxford Pharmascience (LON:OXP).

He replaces Nigel Theobald as chief executive to lead the firm as it enters the commercial phase. Theobald is pursuing new business interests but will continue to provide support to the group's over-the-counter business.

The company continues to see strong sales in its soft chews in Brazil, helping it to post a 121% rise in revenues to £1.03mln in the 12 months to end-December.

The share price picked up a touch to 4.4p.

Oil group SOCO International (LON:SIA) tanked 9% as the E&P reported a dip in revenues and earnings from the new company records set last year.

It came after production was constrained from Soco’s flagship TGT field in Vietnam as FPSO capacity was squeezed when a neighbouring operation came online.


Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 37 minutes ago