London pre-open: Small drop seen after Monday's rally

3rd Aug 2010 07:34

London's top stock are expected to open around 10 points lower after posting triple-digit gains yesterday. Miners could be in focus after Xstrata reported half year results.Anglo-Swiss mining leviathan Xstrata saw profits soar in the first half as the company remained on track to hit its production volumes and cost cutting targets. Revenue in the first half of 2010 rose 43% to $13,608m from $9,541m in the first half of 2009. Operating earnings before interest, tax, depreciation and amortisation jumped 67% to $4,494m from $2,685m the year before, while adjusted attributable profit soared 153% to $2,299m from $909m, as demand from China grew rapidly and the US economy continued its recovery.New ITV chief executive Adam Crozier has unveiled a five-year transformation plan for the embattled TV broadcaster involving a move in to Pay-TV to halve its dependence on advertising. Crozier also revealed a sharp upturn in ITV's financial fortunes over the past six months, as lower costs and a revival in ad revenues lifted turnover 8.6% to £987m in the six months to June. Engineering firm Rotork notched up record half year sales and profits in the first six months of 2010 as market conditions improved. "We remain cautious with regard to currency movements, commodity price increases and the resulting impact these may have on the competitive landscape. However, our lean business model, strong balance sheet and existing order book provide us with confidence in achieving further progress in the full year," said chief executive Peter France.Coal-fired plant operator Drax announced a 23% increase in earnings but said it remains cautious in its outlook for the commodity markets in which it trades. Drax also said that development work to convert one of its units to burn biomass-only will now continue into 2011 before an investment case can be proven, citing regulatory uncertainty. The group was originally targeting the end of 2010 to prove the investment case for the plant.