STOCKS NEWS UK-Ramco Energy slumps on blow to Iraq JV hopes
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09:02GMT 8Jul2009-Ramco Energy slumps on blow to Iraq JV hopes
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Shares in Ramco Energy ROS.L fall by over 40 percent after the Aberdeen-based oil explorer says its associate, the Mesopotamia Petroleum Company (MPC), missed a deadline for confirming funding was in place for its joint venture in Iraq with the state-owned Iraqi Drilling Company (IDC).
Under the terms of the deal, MPC was required to confirm it had funding of $44 million in place for initial drilling requirements in order to maintain its holding of 49 percent in the joint venture.
Ramco says the deadline passed without MPC having the funding in place and the IDC consequently terminated the agreement. However, MPC says it is entitled to an extension to the deadline and is continuing to work with its financial advisor, JP Morgan Cazenove to complete the fundraising.
"It's bad news and the share price reflects that," says one analyst who asked not to be named. "This is one of the risks of doing business in Iraq but, on the flipside, if they can pull it off there's a lot of potential upside."
To see Ramco's statement please click on [ID:nRnsH3087V]
Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net
08:40GMT 8Jul2009-Miners outperform helped by upgrades
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Share in miners outperform a dull blue chip market supported by broker comment, led by BHP Billiton (BLT.L) and Rio Tinto (RIO.L), up 1.7 and 1.4 percent respectively as Investec ups ratings for both to "buy" from "hold".
In a sector review, Investec points out that the miners are undergoing a correction, which it expects to continue in the near term, and it says recent share price weakness is providing some buying opportunities.
However, Investec adds, despite the pockets of value, it is hesitant to call the bottom for some firms, including the platinum producers and Anglo American (AAL.L), which is heavily leveraged to a very strong South African rand.
Citigroup also publishes a mining sector review, which sees its global commodities team upgrading commodity price forecasts.
The broker says it continues to forecast a short term pull back in prices as restocking in China comes to an end and imports slow. But further out the outlook for 2010 and beyond is improving and it expects higher prices in 2010/11.
Citigroup upgrades its ratings for Antofagasta (ANTO.L) and Vedanta Resources (VED.L) to "hold " from "sell", and raises First Quantum Minerals FQM.TO to "buy" from "hold".
Citigroup says its top pick from the UK majors is Rio Tinto.
Antofagasta gains 0.4 percent, First Quantum is untraded, while Vedanta Resources sheds 1.7 percent with the stock trading ex-dividend on Wednesday.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
08:33GMT 8Jul2009-UK Small Caps down 0.2 pct early
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The FTSE Small Cap index .FTSC slips 0.2 percent early on, just outperforming the blue chip .FTSE index, off 0.3 percent, with the mid cap .FTMC index falling 0.5 percent in fairly moribund trading conditions.
Anite (AIE.L) loses 5 percent as Cazenove cuts its EPS forecasts for the IT firm by 35 percent for fiscal year 2010 and by 13 percent for 2011 following the IT firm's recent full-year results.
The broker says it sees few positive catalysts in the near term to move the stock, given the disappointing outlook for the first-half of 2010.
Oxford Biomedica (OXB.L) adds 2.1 percent, extending gains seen earlier this week following news the findings by the U.S. Food & Drug Administration support further development of the gene therapy specilaists lead drug, Trovax.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
08:13GMT 8Jul2009-Booker climbs on better-than-expected Q1
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Shares in Booker (BOK.L) climb 3.7 percent to 35 pence after the British cash-and-carry retailer reports a better-than-expected 7.8 percent rise in first-quarter underlying sales.
"The sales growth achieved in the quarter is well ahead of both our half year assumption (up 6 percent on a like-for-like basis) and our full year sales assumption (up 4.8 percent)," says Singer analyst Matthew McEachran.
"Although management has indicated that profits and net debt remain in line with their expectations, we expect market forecasts to edge up on the back of this announcement, possibly in the order of 3-4 percent," he adds. McEachran's current full-year pretax profit forecast is 47.8 million pounds ($77.4 million).
For more double click on [ID:nL8470998]
Reuters Messaging: rm://mark.potter.reuters.com@reuters.net
