|CATEGORY: MARKET REPORT - MIDDAY SECTOR: SUPPORT SERVICES
Tue 15 May 2012
LONDON (SHARECAST) - - Eurozone GDP flat in first quarter
techMARK 1,963.58 +0.19%
FTSE 100 5,474.82 +0.17%
FTSE 250 10,813.97 0.00%
- German GDP surprises to the upside
- UK trade deficit narrows slightly
The FTSE 100 was registering only slight gains by Tuesday lunchtime as Greek concerns continue to dampen sentiment. The benchmark lost almost two per cent of its value yesterday on speculation that Greece could be heading for an exit from the Eurozone.
At yesterday's Eurogroup meeting, its President Jean-Claude Juncker insisted that Athens had the Eurozone’s full backing and considers that its possible exit from the euro is nothing more than “nonsense” and “propaganda”.
In other news, gross domestic product (GDP) for the Eurozone was unchanged over the first quarter of 2012, according to the latest estimates from Eurostat. This flat reading was better than the 0.3% contraction seen in the fourth quarter of 2011, meaning that the single-currency region narrowly avoided recession. However, the figures once again masked a two-speed economy.
German GDP increased by 0.5% over the first three months of the year, much better than the 0.1% gain expected by the consensus and the 0.2% contraction in the fourth quarter of 2011. "The unexpectedly strong GDP outcome for Q1 will most likely trigger upward revisions for the annual 2012 GDP outlook for Germany although downside risks stemming from the euro area sovereign crisis continue to loom large," said analysts at Barclays Capital.
French GDP was flat in the first quarter, in line with consensus forecasts, however fourth-quarter growth was revised down from 0.2% to 0.1%. Italy saw a 0.8% contraction, Spanish GDP fell 0.3%, while Holland shrank by 0.2%.
In domestic news, the UK's trade deficit closed slightly in March, as stronger exports to the US, China and Russia made up for flat trade with Europe. The trade deficit in goods and services was £2.7bn, compared to £2.9bn the month before, according to the Office for National Statistics.
FTSE 100: G4S, EVRAZ, SMITHS GROUP PLEASE WITH UPDATES
International security solutions firm G4S was a high riser despite saying that profits in the first three months of 2012 were, as expected, at similar levels to the corresponding period of last year. Looking forward, the company said organic growth has continued to improve in developed markets and remains strong in developing markets, and theorganic growth rate is expected to continue to improve during 2012.
Russian steel giant Evraz climbed despite saying that revenue, prices and sales volumes were all flat in the first quarter of 2012, with currency movements making operations more expensive.
Medical devices group Smiths Group was in demand after saying that full-year expectations remain in line with earlier guidance. Both sales and underlying headline operating profit in the nine months to April 28th were ahead of last year.
Telecoms titan BT Group rose after Espirito Santo upgraded its rating on the stock from sell to neutral, while airline firm IAG was under pressure after JP Morgan Cazenove downgraded its recommendation from overweight to neutral.
FTSE 250: Renishaw jumps, sees signs of electronics upturn
Precision tool maker Renishaw said despite continuing global macroeconomic headwinds, it has seen good growth over the year to date and has started to see signs of an upturn in the electronics market. Shares surged early on.
Also wanted was Babcock, the engineering support services company, as it said it expects earnings in the current year to be ahead of previous expectations, thanks to its bulging order book.
Oil exploration firm Afren rose after saying profits rose considerably in the first quarter after significant oil finds. The firm posted pre-tax profits of £143.2m, compared with £2m in the first quarter of 2011.
FTSE 100 - Risers
G4S (GFS) 276.40p +3.60%
Carnival (CCL) 2,026.00p +3.00%
Polymetal International (POLY) 811.50p +2.14%
Tullow Oil (TLW) 1,418.00p +1.79%
Petrofac Ltd. (PFC) 1,589.00p +1.66%
Evraz (EVR) 327.50p +1.21%
GKN (GKN) 192.10p +1.11%
RSA Insurance Group (RSA) 101.90p +0.99%
Smiths Group (SMIN) 1,036.00p +0.97%
Unilever (ULVR) 2,091.00p +0.87%
FTSE 100 - Fallers
International Consolidated Airlines Group SA (CDI) (IAG) 154.60p -3.01%
Serco Group (SRP) 526.50p -2.41%
Vedanta Resources (VED) 1,031.00p -2.09%
Aviva (AV.) 285.70p -1.72%
Barclays (BARC) 186.60p -1.69%
Experian (EXPN) 906.50p -1.57%
Sage Group (SGE) 261.50p -1.51%
United Utilities Group (UU.) 633.00p -1.40%
Standard Life (SL.) 206.10p -1.10%
Kazakhmys (KAZ) 729.50p -1.02%
FTSE 250 - Risers
Renishaw (RSW) 1,484.00p +10.66%
Soco International (SIA) 271.20p +6.39%
Babcock International Group (BAB) 843.50p +5.57%
Savills (SVS) 351.40p +2.96%
F&C Asset Management (FCAM) 68.05p +2.87%
Supergroup (SGP) 329.70p +2.87%
Fidelity China Special Situations (FCSS) 77.40p +2.45%
Laird (LRD) 188.20p +2.23%
Ferrexpo (FXPO) 244.10p +2.05%
Carpetright (CPR) 627.50p +2.03%
FTSE 250 - Fallers
Spirax-Sarco Engineering (SPX) 2,010.00p -6.90%
Aquarius Platinum Ltd. (AQP) 96.05p -5.37%
Petra Diamonds Ltd.(DI) (PDL) 135.20p -3.91%
Lonmin (LMI) 830.00p -2.81%
Logica (LOG) 67.80p -2.80%
Perform Group (PER) 302.30p -2.48%
Bodycote (BOY) 380.40p -2.46%
Shanks Group (SKS) 83.75p -2.16%
Inmarsat (ISAT) 426.80p -2.07%
Aberforth Smaller Companies Trust (ASL) 606.00p -2.02%
|Babcock International Group
|International Consolidated Airlines Group SA (CDI)
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