London midday: Gains fade as Bank warns on risks

24th Jun 2011 12:01

Shares are still going well after a strong start but have given up some of their earlier gains as nerves linger over the eurozone situation. With Greece and the European Union settled on the contents of the austerity package to be put before the Greek parliament next week, hopes have risen that the prospect of a default by Greece on its loans can be put to bed. As news broke of the agreement late yesterday, the US markets performed an abrupt volte-face, wiping out earlier losses.However, a report from the Bank of England's Financial Stability Report puts a dampener on things slightly, warning of continuing sovereign and banking risks.Back on the home front, London and south-east house builder Berkeley Group surged on the FTSE 250 after reporting forecast-beating figures, on both the sales and the profit level, but investors will have to wait a little longer before they can benefit from the resumption of a dividend. Sector peers Barratt Developments, Persimmon and Bellway were also in demand.Miners, on the whole, are wanted, recovering from the broad sector sell-off experienced on Thursday. Blue chips Antofagasta, Randgold, Xstrata, Kazakhmys, Fresnillo and Rio Tinto are among the big gainers. Rolls-Royce motors ahead after saying it and Daimler have secured full control German diesel engine-maker Tognum. The two companies want to take over Tognum to create a joint venture that will be a "leading industrial engine systems and solutions provider."Distribution and outsourcing firm Bunzl opened higher after saying that it is trading in line with expectations, despite tough times in its UK and Irish markets. At constant exchange rates group revenue in the six months to the end of April is expected to have increased 6%, due to underlying growth of 3% and the positive impact from acquisitions, with a slight improvement in operating margin. Gold miner African Barrick Gold has had further success with its in-fill drilling at its Tusker resource area at the Nyanzaga project in Tanzania.FTSE 100 - RisersAntofagasta (ANTO) 1,292.00p +4.45%GKN (GKN) 214.30p +3.58%Xstrata (XTA) 1,282.00p +3.10%Eurasian Natural Resources Corp. (ENRC) 716.50p +3.02%ARM Holdings (ARM) 583.50p +3.00%Randgold Resources Ltd. (RRS) 5,020.00p +2.87%Rio Tinto (RIO) 4,274.00p +2.83%Rolls-Royce Group (RR.) 606.00p +2.71%Glencore International (GLEN) 478.60p +2.56%Wolseley (WOS) 1,969.00p +2.50%FTSE 100 - FallersLloyds Banking Group (LLOY) 44.05p -2.71%Barclays (BARC) 239.15p -1.73%Royal Bank of Scotland Group (RBS) 36.18p -1.52%Inmarsat (ISAT) 559.50p -1.32%Land Securities Group (LAND) 826.00p -0.72%Hargreaves Lansdown (HL.) 586.00p -0.68%Essar Energy (ESSR) 391.70p -0.58%Tate & Lyle (TATE) 629.50p -0.55%Autonomy Corporation (AU.) 1,637.00p -0.55%ICAP (IAP) 435.20p -0.46%FTSE 250 - RisersBerkeley Group Holdings (BKG) 1,245.00p +10.08%Imagination Technologies Group (IMG) 369.80p +5.78%Kenmare Resources (KMR) 56.05p +4.28%Cable & Wireless Worldwide (CW.) 52.45p +4.07%Barratt Developments (BDEV) 110.20p +3.96%Bovis Homes Group (BVS) 423.60p +3.80%Fidelity China Special Situations (FCSS) 96.35p +3.60%Stagecoach Group (SGC) 252.30p +3.36%Carpetright (CPR) 692.50p +3.28%Brown (N.) Group (BWNG) 272.30p +3.22%FTSE 250 - FallersHome Retail Group (HOME) 156.50p -2.98%Betfair Group (BET) 720.00p -2.04%RPC Group (RPC) 345.10p -1.76%ITE Group (ITE) 206.30p -1.72%Lancashire Holdings (LRE) 629.50p -1.56%Salamander Energy (SMDR) 249.60p -1.54%COLT Group SA (COLT) 142.50p -1.38%Stobart Group Ltd. (STOB) 139.60p -1.20%Exillon Energy (EXI) 395.70p -1.07%Kofax (KFX) 448.30p -1.02%