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US equities continue their slide

Published: 10:21 15 May 2014 EDT

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US stocks have opened lower, adding to yesterday’s losses, when traders banked profits after benchmarks hovered near all-time highs.

The Dow Jones index is off 99 (0.6%) at 16,535, dragged down by Wal-Mart, which is down 2.5% after its second-quarter profits forecast completely underwhelmed the market.

The index’s tumble would be worse still were it not for networking equipment maker Cisco Systems, which is up 6.5% after it second revenue in the current quarter will be ahead of market expectations.

The S&P 500 is down 6 (0.3%) at 1,883 while the tech-heavy NASDAQ Composite makes a better fist of things, down 7 (0.2%) at 4,094

In the UK, Footsie remains in subdued form despite a torrent of corporate data today.

The engagement between retailers Dixons Retail (LON:DXNS) and Carphone Warehouse (LON:CPW) is now official, with the pair set to merger through a scheme of arrangement.

Both shares are sharply lower, suggesting this is a “merger of weakuals”; Dixons is off 6.9% and Carphone is down 4.4%.

The FTSE 100 is down 30 ().4%) at 6,848., with London Stock Exchange Group (LON:LSE), up 2.4%, doing its bit to shore up the benchmark index.

The LSE’s full-year results got a good response as it reported a 50% increase in revenue. Adjusted pre-tax profit was up 17% at 514.7 million.

Meanwhile, there were also some notable small cap movers.

CEPS (LON:CEPS) is the day’s best performer, up 42%, as the holding company said the performance of its Sunline investment had perked up so much that it would probably reverse some of the £2.5mln impairment to goodwill it logged in last year’s accounts if accounting practices allowed it.

Recruiter Staffline (LON:STAF) is up 16% after a bullish AGM statement and the announcement of the acquisition of Avanta Enterprise, a recruitment and outsourcing outfit.

Kalibrate Technologies (LON:KLBT), the developer of petrol pricing and forecourt planning software, is pumped up after its trading update.

Shares are 11% higher after the company said it had seen strong demand for its products in the second half of its financial year and remains confident its performance will meet “management expectations”.

In Finland it has been selected by St1, a major retailer, to provide its pricing and planning solutions, while in Germany, Kalibrate has won a pricing contract with Deutsche Tamoil.

Premier African Minerals (LON:PREM) soared nearly 28% after it concluded the sale of its stake in the Danakil potash project in Ethiopia after Circum Minerals exercised its option.

Circum, a private company run by Brad Mills and founded by the hugely successful team of Steve Dattels and Mike Beck, already owns 70% of Danakil and will now assume full control.

Following Circum’s decision, Premier will no longer have to repay a US$2.5 mln net bridging loan; will be issued with 2mln shares in Circum worth an estimated US$1.4mln; and receive a further US$1 mln on the 15 of each of July, September and November 2014 and 15 January 2015.

To the biotech sector and ValiRx’s (LON:VAL) shares surged over 5% as it said the new joint venture, Valiseek, has made an encouraging start with its lung cancer treatment.

The treatment is being well tolerated in early stage studies, the drug development firm said.

Valiseek was set up in April to speed the progress of partner Tangent Reprofiling’s lung cancer treatment, now called VAL401, towards phase II trials.

Caza Oil & Gas (LON:CAZA, TSE:CAZ) shares were wanted today - rising 15% after it unveiled sparkling first quarter results.
The company continues to reap the rewards of its drilling successes in the Bone Springs play in New Mexico, as revenues increased by 259% in the first quarter.

The company reported revenues of US$4.59mln in the three months to March 31, compared to US$1.27mln in the same period of 2013. Quarter-on-quarter, revenue was up 36% from US$3.38mln in the final three months of last year.

Adjusted earnings rose to US$2.1mln, up 695%, compared with a US$359,576 loss in the first quarter of 2013.

Range Resources (LON:RRL) rises 12% after it said US$12mln of financing has been secured from a Hong Kong private institutional investor.

SyQic plc (LON:SYQ), a mobile video content provider, is under the cosh after its 2013 results. The shares lost almost a quarter of their value after profit before tax sank to £0.1mln from £0.63mln the year before, with much of the decline down to flotation costs of £471,000.

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