London afternoon: Stocks stuck at lower levels

22nd Oct 2009 14:10

The Footsie finished the lunch-time session little changed from where it started it, despite mining stocks trimming losses sustained in the morning.Mining giant Anglo American is actually higher on the day after it announced plans to divest assets, including its zinc and tarmac operations, as it seeks to focus on its core operations.Platinum miner Lonmin is faring less well after it saw a 20% decline in production of the precious metal in the fourth quarter after having to shut down mines for safety reasons and for maintenance. The firm, which operates in South Africa, the source of most of the world's platinum, mined 2.6m tonnes during the quarter.Insurer Aviva has announced that it is restructuring its European operations, turning its 12 separate continental businesses into a single pan-European unit. Elsewhere in the insurance sector Old Mutual, Prudential and Standard Life are friendless. Credit checking firm Experian is one of the few blue-chips to advance, after Goldman Sachs upgraded the stock from 'neutral' to 'buy'. Pub groups are the star performers as they celebrate a victory over pressure group the Campaign For Real Ale (CAMRA) after the Office of Fair Trading found no evidence to support CAMRA's assertion that the beer tie arrangement inflates the price of a pint of beer by around 50p.Enterprise Inns and Punch Taverns are the major beneficiaries of the verdict, while the likes of Greene King and Marstons, both of which are less dependent on their pub estates because of their brewing interests, advance less briskly. Bus and rail group National Express, which is facing a merger approach from rival Stagecoach, warned that full year pre-tax profits will be 'slightly' below previous expectations. Oilfield services firm Petrofac said it is increasingly confident that the group will deliver earnings growth for the full year of at least 20%. Engineering Services and Training Services activity levels continue to be somewhat depressed, however, although business development activity has improved over recent weeks.Sportswear retailer Sports Direct still expects, at current exchange rates, to achieve underlying EBITDA of at least £150m this financial year. The sportswear retailer said trading continues to be in line with expectations.Telecom operator Colt Telecom reported a 3.7% increase in quarterly EBITDA as revenue fell 4.9%. For the quarter ended 30 September 2009 EBITDA rose to €79.5m from €76.7m the same time a year before as demand improved in Data and Managed Services and as the group tightened costs. Newspaper and magazine wholesaler Smiths News revealed a 44% drop in annual pre-tax profit after was hit by a number of charges but said revenue improved during the year. Transport and logistics group Stobart saw pre-tax profits rise to £12.4m in the six months to August 31 from £11m over the same period the previous year as turnover climbed to £218.2m from £199.2m. Respiratory inhaler firm Vectura expects to receive a milestone payment of $7.5m as a result of the initiation of Phase III studies relating to QVA149, its chronic obstructive pulmonary disease (COPD) treatment, but it won't be until the financial year to 31 March 2011.Construction and housebuilding group Galliford Try received acceptances in respect of 91.54% of the shares offered in its rights issue. The rump of the rights issue shares has been placed in the market at 350p per share, a premium of 65p over the rights issue price.Indonesian-focused coal miner Churchill Mining dug itself deeper into the red in the year to end June, with the pre-tax loss expanding to $14.1m from $2.3m the year before, on zero revenues.After issuing a profit warning last month, night club operator Luminar said current trading continues to be weak. Same outlet sales in the 7 weeks to 15 October were 14% lower than a year earlier, the company said, as it announced interim results which showed exceptional charges of £5.2m wiped out profits of £4.9m.