STOCKS NEWS UK-Red Rock surges on deal, Australian update
STOCKS NEWS Reuters Results diary
Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]
UK [STXNEWS/UK] Stocks on the move [HOT-RTRS]
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09:06GMT 18Sept2009-Red Rock surges on deal, Australian update
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Shares in Red Rock Resources (RRR.L) soar as much as 40 percent after the company struck a deal on Thursday to acquire a stake of up to 60 percent in Kenyan gold explorer Mid Migori Mining. [ID:nRnsQ2560Z]
The shares are also boosted by a positive exploration update overnight from Australia's Jupiter Mines, in which it holds a 28 percent stake. [ID:nASX9PxGYG]
"It's a penny share that's been dormant for a while but is now attracting interest," says one trader. "The news of the Kenyan deal has just fed through to the retail investors, hence the demand this morning. Jupiter Mines is up as well and that has an effect on Red Rock's shares."
Reuters messaging rm://matthew.scuffham.reuters.com@reuters.net
08:41GMT 18Sep2009-Tristel climbs on foriegn exposure
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Shares in Tristel (TSTL.L) climb 4.8 percent after the specialist infection and contamination control company, announces a licensing agreement in America and also establishes its presence in China.
The company says it has licensed its proprietary chlorine dioxide chemistry to U.S.-based company Clorox and it has created a Chinese subsidiary, Shanghai Stella Medical Equipment, which has entered into its first distribution agreement.
Daniel Stewart, which has a "buy" rating on the stock, says "as a result of these developments and to reflect the group's improved long term growth profile we increase the Terminal growth rate in our discounted cash flow model to 3 percent from 2 percent", resulting in an upgrade to its target price to 64 pence from 55 pence.
Tristel also reports that results for full-year 2009 will be broadly in line with market expectations, with Daniel Stewart forecasting turnover of 6.9 million pounds, pretax profit of 1.5 million pounds and EPS of 3.8 pence.
For more double click on [ID:RnsR2836Z]]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
08:26GMT 18Sep2009-SABMiller up; UBS upgrades to "buy"
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Shares in SABMiller (SAB.L) gain 1.8 percent as UBS raises its rating for the brewer to "buy" from "neutral" with an increased target price of 1,700 pence, up from 1,300 pence.
The broker says, in a note, that it believes economic recovery in SABMiller's key markets in the second half of 2009 and into 2010 should lead to a turning point for volumes.
UBS says it expects emerging markets to recover faster than mature markets, putting SABMiller in the best position to benefit from this trend, given its more than 80 percent emerging market exposure at the EBIT level.
The broker says given improved earnings momentum, it sees upside potential to consensus estimates for SABMiller with its EPS forecasts now around 10-11 percent above concensus following upgrades of around 6 percent for full-year 2011 and around 8 percent for full-year 2012.
UBS points out that SABMiller's around 10 percent outperformance versus the market since the March lows has been due to the improved appetite for emerging market risk, though in the past three months the stock has underperformed the beverage sector by around 5 percent.
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
08:21GMT 18Sep2009-Standard Life higher; Goldman upgrades
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Shares in Standard Life (SL.L) gain 1.9 percent , outperforming a moribund FTSE 100 .FTSE index as Goldman Sachs raises its rating for the life insurer to "buy" from "neutral" in a review of the European insurance sector.
Goldman Sachs says its upgrade reflects Standard Life's gearing to rising asset balances coupled with solid cash flow and low valuation.
The broker also upgrades mid cap wealth manger St James's Place Capital (SJP.L) to "neutral" from "sell" but cuts its stance on Lloyds' undwriter Amlin (AML.L) and Italy's Banca Generali (BGN.MI) to "neutral" from "buy".
St James's Places shares gain 1.1 percent, Amlin falls 2.9 percent and Banca Generali falls 2.1 percent.
Goldman Sachs says the improved macro economic outlook should be broadly supportive for the insurance sector, both in terms of balance sheet gearing and operational benefits from rising asset balances in life.
Nevertheless, the broker adds operating headwinds remain, most notable in Property & Casualty where the pricing outlook appears challenging, with a likely reduction in reserve releases and continued pressure on investment yields.
The broker says while life stocks have justifiably rallied on the back of improving markets, it remains somewhat sceptical of the sustainability of this for all, "given the low velocity of balance sheets, and ongoing challenges from limited capital generation and limited financial flexibility in the face of an uncertain regulatory outlook."
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
08:00GMT 18Sep2009-Domino Printing up as order intake rises
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Shares of Domino Printing (DOPR.L) rise 4.8 percent after the printer of barcodes and best before dates says orders improved in the second half and it expects full-year results to meet its estimates.
"While output levels in some industrial sectors remain depressed, the group's improvement in trading is due to a pick up in consumer goods sectors, as they return to more normal levels of demand," Altium Securities analyst Steve Medlicott says in a note.
Altium raises its target price on the stock to 277 pence from 260 pence, while retaining its "hold" rating.
For more click on [ID:nLI111302]
Reuters messaging rm://kumar.alagappan.reuters.com@reuters.net
07:50GMT 18Sep2009-UK small caps fall 0.1 pct at the open
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The FTSE small cap index .FTSC is 0.1 percent lower in early trade, as the UK market starts the final trading session of the week in subdued fashion, with the FTSE 100 .FTSE flat, while the FTSE 250 .FTMC dips 0.5 percent.
San Leon Energy (SLEN.L) falls 10.5 percent as the AIM-listed oil and gas company announces a placing of around 42 million shares to raise 6.3 million pounds, offsetting news it has entered into a seismic services agreement with PGS Ventures AS, which owns the world's most extensive data library. [ID:nRnsR2706Z]
Tristel TST.L adds 4.8 percent after the specialist infection and contamination control company announces a licensing agreement in America and establishes its presence in China.
The company says it has licensed its proprietary chlorine dioxide chemistry to American company Clorox and it has created a Chinese subsidiary, Shanghai Stella Medical Equipment Co. Ltd, which has entered into its first distribution agreement. [ID:nRnsR2836Z]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
