London open: Stocks ease but Rolls-Royce takes off

13th Oct 2011 08:42

Stocks have edged back in early dealings, giving back yesterday's gains in a continuation of the volatility stoked by uncertainty over the Eurozone situation.ASIAN CONTAGIONSlovakia is expected to approve its participation in an enhanced bail-out package for stricken fellow Eurozone countries, despite parliament voting against it earlier this week, but worries over the Eurozone continue.Concerns over the Eurozone helped convince the International Monetary Fund (IMF) to lower its growth forecasts for Asia for this year and next. The reduced forecasts come amid worries over economic growth in Europe and the US, two key export markets for Asian countries. The IMF now sees Asia growing 6.25% this year and 6.75% next year, having earlier this year predicted GDP growth of close to 7% in both years. ON A ROLLIn UK company news, Rolls-Royce has motored higher following news that the aero-engineer is to be bought out of a joint venture to build engines for Airbus, by partner Pratt & Whitney for $1.5bn. The deal resolves disagreements between the partners over the direction of the venture.Ashmore Group the asset management firm, falls after saying total assets under management (AuM) decreased 10.5% to $58.9 billion in the third quarter of 2011. The firm said a $7.1bn decline in AuM was largely due to "adverse investment performance" that was only partially offset by net inflows to the group of $0.2bn.Investors are stocking up on cash and carry outfit Booker after it saw total sales rise 8.5% from a year earlier in the 23 weeks to September 8th. Like-for-like sales (LFL) were up 6.5% from the year before, with LFL tobacco sales up 8.8% and LFL non-tobacco sales up 5.1%. Profit before tax jumped 22.0% to £45.0m from £36.9m the year before.Ladbrokes is attracting punters. The bookmaker saw net revenue rise 2.5% in the three months to the end of September. Group profits, however, shrank 2.7% compared to the same quarter last year. Ophir Energy takes a tumble after saying it is to snap up smaller rival Dominion for about £120m as it seeks to beef up its East African operations. The two companies have agreed an offer valuing each Dominion share at 5.9p. Dominion's shares have jumped.The market shake-out in August had a predictable effect on assets under management (AuM) at Hargreaves Lansdown in the third quarter of 2011. The wealth manager saw AuM slide to £22.3bn from £24.6bn at the end of June, but was pleased to report net new business inflows of £0.68bn, up 24% on the corresponding quarter of last year, in what is traditionally the firm's quietest period of the year. Revenue was up 27% on a year earlier to £57.2m. The number of clients using the firm's Vantage service rose by 8,000 to 388,000. The number of active accounts held by these clients increased from 585,000 to 597,000.Newsagents WH Smith reported a record profit performance from its Travel segment in the year to the end of August. Profit before tax rose 4% to £93m from £89m the year before. Total group sales were £1,273m (2010: £1,312m) with like-for-like (LFL) sales down 5%. Travel sales grew by 1% to £455m, down 3% on a LFL basis. High Street sales were down 5% at £818m and down 6% on a LFL basis (excluding entertainment, LFL sales were down 3%).FTSE 100 - RisersRolls-Royce Group (RR.) 672.50p +7.43%International Consolidated Airlines Group SA (IAG) 170.50p +2.83%Royal Bank of Scotland Group (RBS) 26.37p +2.17%Barclays (BARC) 189.60p +1.39%Lloyds Banking Group (LLOY) 36.73p +1.34%GKN (GKN) 191.60p +0.84%Capital Shopping Centres Group (CSCG) 342.80p +0.82%Admiral Group (ADM) 1,248.00p +0.81%BAE Systems (BA.) 284.20p +0.78%Smith & Nephew (SN.) 585.50p +0.77%FTSE 100 - FallersAshmore Group (ASHM) 309.90p -6.49%Anglo American (AAL) 2,353.50p -2.75%Antofagasta (ANTO) 1,131.00p -1.74%Xstrata (XTA) 965.80p -1.57%Glencore International (GLEN) 418.90p -1.54%Vedanta Resources (VED) 1,250.00p -1.03%Old Mutual (OML) 110.60p -0.98%BP (BP.) 408.05p -0.95%Kazakhmys (KAZ) 923.50p -0.91%Lonmin (LMI) 1,119.00p -0.89%FTSE 250 - RisersLadbrokes (LAD) 131.60p +2.81%Booker Group (BOK) 75.45p +2.65%Travis Perkins (TPK) 887.50p +2.60%BH Global Ltd. USD Shares (BHGU) 12.05 +2.55%Imagination Technologies Group (IMG) 456.00p +2.47%Kenmare Resources (KMR) 40.66p +2.29%Allied Gold Mining (ALD) 171.50p +2.21%Henderson Group (HGG) 122.50p +2.00%Regus (RGU) 68.20p +1.79%Perform Group (PER) 210.00p +1.74%FTSE 250 - FallersOphir Energy (OPHR) 225.10p -7.06%Telecom Plus (TEP) 710.00p -2.54%Jupiter Fund Management (JUP) 207.30p -2.45%Northgate (NTG) 245.60p -2.27%Paragon Group Of Companies (PAG) 167.00p -1.76%Jardine Lloyd Thompson Group (JLT) 662.50p -1.71%Tullett Prebon (TLPR) 358.20p -1.62%Filtrona PLC (FLTR) 338.30p -1.49%Afren (AFR) 89.35p -1.49%Aquarius Platinum Ltd. (AQP) 201.90p -1.46%---RG