London open: Mixed start; African Barrick jumps

16th Aug 2012 08:39

- African Barrick up as China Gold shows interest- Markets continue to sift through global economic data- Wen sees 'growing room for policy operation'London's benchmark index was broadly flat on Thursday morning as investors continue to digest a raft of economic data that has been released over the past few days.In the UK, minutes from the latest Monetary Policy Committee meeting showed that members voted unanimously this month in favour of maintaining the Bank of England Bank Rate at 0.5% and the asset purchase programme at £375bn. Unemployment in the UK fell from 8.1% to 8.0% in July, versus economists' expectations of no change. Market analyst Michael Hewson from CMC Markets said this morning that the figures "raise more questions than answers" with respect to the UK economy: "How can it be that unemployment is falling while the economy is in the grip of three successive quarters of economic contraction, and it is this apparent contradiction that is causing a lot of debate."Meanwhile, US data out yesterday afternoon came in mixed, with industrial output improving and New York manufacturing falling. Jobless claims and the Philly Fed index are due for release later today.Also in focus early on was the news of slowing inward investment in China in July. Foreign direct investment in China fell 8.7% to a two-year low of $7.58bn last month. Yesterday, Chinese Premier Wen Jiabao said that he sees "growing room for monetary policy operation" as inflation slows down.ABG jumps on takeover speculationAfrican Barrick Gold (ABG) jumped after announcing its holding company, Barrick Gold, is in talks with China National Gold Group about the possibility of selling its stake in the London-listed miner to China's largest gold producer. Should China Gold buy up more than 30% of the voting interest in ABG from Barrick Gold, it would then be required to make an offer for the whole of ABG's issued ordinary share capital. Pharmaceuticals group Hikma was a high riser after first-half revenues rose 34.8%, helped by contributions from recent acquisitions. Organic revenue growth was still a solid 7.6%.Software specialist Micro Focus edged higher after revealing news of a 50p-a-share cash return and share consolidation. The firm also said that first-quarter financials were in line with expectations, with adjusted earnings flat year-on-year on a constant currency basis. Engineering support services firm Babcock was in the red after Espirito Santo downgraded its rating on the stock to 'neutral', while natural gas giant BG Group fell after Morgan Stanley cut its rating to 'equal weight'.Publishing group Reed Elsevier was in demand after announcing the appointment of Duncan Palmer as its Chief Financial Officer, having lured him away from US company Owens Corning. Palmer will take over from Mark Armour, who is retiring at the end of the year. FTSE 100 - RisersWeir Group (WEIR) 1,747.00p +2.16%Polymetal International (POLY) 920.00p +1.55%Evraz (EVR) 266.20p +1.45%IMI (IMI) 896.50p +1.36%Vedanta Resources (VED) 931.00p +1.25%Kazakhmys (KAZ) 722.00p +0.98%Randgold Resources Ltd. (RRS) 6,180.00p +0.82%Capital Shopping Centres Group (CSCG) 332.80p +0.82%ITV (ITV) 85.85p +0.76%Tesco (TSCO) 335.10p +0.75%FTSE 100 - FallersAdmiral Group (ADM) 1,162.00p -1.69%Carnival (CCL) 2,158.00p -1.51%Eurasian Natural Resources Corp. (ENRC) 374.80p -1.26%BG Group (BG.) 1,305.50p -1.17%International Consolidated Airlines Group SA (CDI) (IAG) 146.00p -1.08%ICAP (IAP) 330.20p -0.90%Standard Life (SL.) 273.00p -0.84%ARM Holdings (ARM) 579.50p -0.77%Prudential (PRU) 817.00p -0.73%Vodafone Group (VOD) 187.40p -0.72%FTSE 250 - RisersAfrican Barrick Gold (ABG) 432.30p +9.83%Hikma Pharmaceuticals (HIK) 767.00p +5.79%Avocet Mining (AVM) 92.10p +4.24%Savills (SVS) 389.20p +2.99%NMC Health (NMC) 197.00p +2.18%New World Resources A Shares (NWR) 294.00p +2.05%Petra Diamonds Ltd.(DI) (PDL) 104.00p +1.96%Petropavlovsk (POG) 439.80p +1.62%Centamin (DI) (CEY) 70.50p +1.44%Jupiter Fund Management (JUP) 218.90p +1.39%FTSE 250 - FallersTalvivaara Mining Company (TALV) 134.10p -4.42%Balfour Beatty (BBY) 286.80p -3.14%CSR (CSR) 322.90p -3.00%Salamander Energy (SMDR) 208.00p -2.30%Bumi (BUMI) 354.10p -1.88%JD Sports Fashion (JD.) 664.92p -1.86%Galliford Try (GFRD) 626.50p -1.80%Wetherspoon (J.D.) (JDW) 465.10p -1.75%Redrow (RDW) 135.90p -1.74%Home Retail Group (HOME) 87.90p -1.62%BC