London open: Footsie nudges higher, Old Mutual rockets

15th Dec 2011 08:25

The Footsie opened moderately higher on Thursday morning, as the market attempts to claw back from yesterday's 2.25% sell-off. In economic news, the HSBC "flash" purchasing managers' index for the Chinese manufacturing sector rose to 49.0 in December from 47.7 the month before, according to the latest data just published by Markit.Meanwhile, Fitch Ratings last night cut its long-term debt ratings for five large European banks because of the "stronger headwinds" that the financial sector is now encountering. Specifically, the credit rating agency downgraded French banks Crédit Agricole (to A+ from AA-) and Banque Federative du Crédit Mutuel (to A+ from AA-), Finnish Pohjola Group (to A+ from AA-), Holland's Rabobank (to AA from AA+) and Denmark's Danske Bank (to A from A+). In company news in London, savings and investment group Old Mutual rocketed higher early on after announcing that it is to sell its Nordic business Skandia AB for £2.1bn in an effort to "reduce complexity" and pay down debt. Shares jumped over 9%.The deal, which still needs regulatory and shareholder approval, is expected to complete during the first quarter of 2012. "The creation of a strong and efficient Nordic champion represents a valuable opportunity for Old Mutual's shareholders and Skandia Liv's policyholders, said Group Chief Executive Julian Roberts.Industrial engineer Weir rose by a lesser 1.3% after completing the acquisition of wellhead solutions provider Seaboard Holdings for $675m. Weir has previously said that it believes that "Seaboard's range of high-end surface equipment is directly adjacent to Weir's market leading portfolio of frac pumps and other well completion equipment." Business software group Sage edged higher after announcing that it is to say goodbye to its Director of Strategy and Corporate Development, David Clayton, in February next year.The high riser on the FTSE 250 was high street sports retailer Sports Direct, which saw revenue rise 8.4% in the first half, despite some tough comparatives last year when sales were boosted by the FIFA World Cup. Meanwhile, the firm was able to cut its net debt by 23.2%.Heading in the other direction was doorstep lending firm International Personal Finance which revealed that the significant volatility in foreign exchange markets will have a 14% negative impact on profits in 2011.Construction firm Balfour Beatty rose after announcing that it is the preferred bidder for a £500m joint venture to build an energy-from-waste facility. Suit hire specialist Moss Bros nudged higher after saying like for like sales for the first 19 weeks of the second half rose 10.5% on last year, and while it is mindful of the uncertain macro-economic environment it remains confident in the outlook for the full year.BCFTSE 100 - RisersOld Mutual (OML) 121.40p +9.37%Serco Group (SRP) 465.80p +1.70%Aggreko (AGK) 1,824.00p +1.45%Weir Group (WEIR) 1,892.00p +1.28%Pearson (PSON) 1,140.00p +1.15%Admiral Group (ADM) 795.50p +1.08%Standard Life (SL.) 195.30p +0.98%British American Tobacco (BATS) 3,036.00p +0.95%Xstrata (XTA) 947.00p +0.91%National Grid (NG.) 610.50p +0.83%FTSE 100 - FallersARM Holdings (ARM) 541.50p -1.19%Hargreaves Lansdown (HL.) 418.30p -0.74%Glencore International (GLEN) 381.20p -0.61%Essar Energy (ESSR) 192.00p -0.57%Schroders (SDR) 1,259.00p -0.55%Morrison (Wm) Supermarkets (MRW) 315.30p -0.50%BG Group (BG.) 1,322.00p -0.45%Ashmore Group (ASHM) 310.70p -0.42%Eurasian Natural Resources Corp. (ENRC) 608.50p -0.41%Royal Bank of Scotland Group (RBS) 19.42p -0.41%FTSE 250 - RisersSports Direct International (SPD) 208.20p +4.36%TUI Travel (TT.) 154.50p +3.41%Stagecoach Group (SGC) 263.20p +3.05%Thomas Cook Group (TCG) 14.95p +2.96%DS Smith (SMDS) 191.70p +2.79%Regus (RGU) 79.85p +2.63%Morgan Crucible Co (MGCR) 249.70p +2.34%Aveva Group (AVV) 1,469.00p +2.23%Bwin.party Digital Entertainment (BPTY) 131.90p +2.01%Capital & Counties Properties (CAPC) 173.30p +1.35%FTSE 250 - FallersInternational Personal Finance (IPF) 174.50p -4.02%Wood Group (John) (WG.) 616.00p -3.14%COLT Group SA (COLT) 84.05p -2.89%Fidessa Group (FDSA) 1,497.00p -2.79%Premier Foods (PFD) 5.66p -2.67%Kenmare Resources (KMR) 39.81p -2.23%Tullett Prebon (TLPR) 261.30p -2.13%Centamin Egypt Ltd. (CEY) 84.50p -2.09%Millennium & Copthorne Hotels (MLC) 382.70p -1.97%Ultra Electronics Holdings (ULE) 1,418.00p -1.80%