London pre-open: Hesitantly firmer

28th Jul 2009 07:44

Interest is focused on whether the Footsie can set a new record for consecutive gains today, and the initial signs are promising with the blue-chip index set to open up 8 points higher at 4,594.Oil giant BP announced second quarter replacement cost profits towards the top end of market expectations. Replacement cost profit rose to $3.14bn from $2.39bn in the first quarter, but was less than half the $6.75bn achieved in the second quarter of last year. Earnings per share rose to 16.76 cents from 12.75 cents in the first quarter. Earnings per share a year earlier had been 35.83 cents.Software giant Sage said results for the year ended 30 September 2009 is in-line with market expectations but warned that markets remain testing. The group said market conditions in the quarter ended 30 June 2009 have remained challenging but largely unchanged.Miner Xstrata said ferrochrome production was 60% lower in the first half of 2009 compared with the same period last year, but the group saw increased production volumes of copper, thermal coal, mined nickel and zinc compared to the first half of 2008.Elsewhere in the mining sector gold miner Randgold Resources is to tap shareholders for almost £200m following a surge in profits in the three months to June. Randgold, which has seen its share price jump by nearly 70% over the past 12 months, will offer 5m shares to fund the feasibility studies and development of its Gounkoto and Massawa projects.South Africa-based bank Investec is another on the fund raising trail. It is to raise up to £90m through a placing of 22m new shares. The placing, representing 4.92% of the existing shares, will be used to fund the repurchase of existing debt at a discount to par. The price at which the shares will be placed will be determined at the end of the book-building process.