UK Miners Rise; Elan Drops on Court Ruling

123jump.com Staff
04 Sep, 2009
New York City

Mining companies gained for the second day in a row on a rise in gold and silver related stocks. Wellstream Holdings sold its pipe technology division to focus on off-shore pipe business. Elan Corp violated a contract with Biogen after it agreed to sell a stake in the company to Johnson & Johnson.

[R]4:00PM London, 11:00 AM New York – Mining companies gained for the second day in a row on a rise in gold and silver related stocks. Wellstream Holdings sold its pipe technology division to focus on off-shore pipe business. Elan Corp violated a contract with Biogen after it agreed to sell a stake in the company to Johnson & Johnson.[/R]

UK stocks higher for the second day in a row after mining and exploration companies advanced. Analysts upgrade after the surge in gold and silver prices lifted Fresnillo, Lonmin and Kazakhmys.

In London FTSE 100 Index closed higher 56.59 or 1.1% to 4,855.44 and the pound closed at $1.62 and unchanged at 1.14 euros.

Gainers & Losers

Ark Therapeutics Group Plc the wound care and cancer specialist closed unchanged at 40.50 pence.

Connemara Mining Company plc surged 22.5% to 19.00 pence after the Irish zinc explorer said that the initial results of exploration project in County Limerick indicate larger deposit of zinc and lead grades than the earlier discovery 1.5 kilometer southeast of the new location.

Frontera Resources Corporation surged 21.1% to 10.90 pence after the oil and gas company is in the final stages of raising $6 million.

Elan Corp said that the federal court ruled that the company violated its agreement with Biogen Idec after it sold a stake in the company to Johnson & Johnson and struck a separate deal to collaborate. Elan shares dropped 2.8%.

Fyffes declined 0.6% to 4.50 pence after the banana and melon importer lifted its operating earnings outlook to between €18 million and €22 million from €16 million to €20 million.

Horizonte Minerals Plc surged 13.3% to 9.49 pence after the mining and exploration company said it has formed an exploration alliance with AngloGold Ashanti Ltd focused on the discovery of new gold mineralization in Brazil.

Hydrogen Group plc increased 1.3% to 56.76 pence after the recruitment firm said full-year revenues fell 30% to £34.9 million from £49.9 million a year ago. Net loss for the full-year was £5.9 million or 26.07 pence per diluted share compared to net profit of £2.1 million or 8.85 pence per share a year ago.

Red24 Plc increased 1.2% to 5.19 pence after the personal security and training group said its contract with AIG Travel Assist has been extended for five more years.

Rio Tinto plc added 2.7% to 2,409.00 pence after the mining company halted iron ore talks with China. China has arrested Rio Tinto’s head of sales and three others on the charges of spying and commercial theft.

The Royal Bank of Scotland Group plc increased 1.7% to 55.95 pence and the bank said today that it would not be calling four of its subordinated debt securities in October after Financial Services Authority did not approve the move.

Sigma Capital Group plc surged 17.6% to 17.64 pence after the asset manager said it expects first-half results to be significantly ahead of current market expectations.

Southern Cross Healthcare Group PLC increased 0.5% to 129.75 pence after the home care operator said it had raised £13.3 million from the sale of two freehold properties and the transfer of business and assets of its Sunchoice healthcare distribution unit.

Verona Pharma plc increased 5.0% to 10.50 pence after the drug discovery company reported net loss after tax of £0.77 million or 36 pence per ordinary share.

Wellstream Holdings PLC added 1.1% to 505.50 pence after the pipeline products maker for the oil and gas industry agreed to sell an onshore pipeline technology unit as part of plans to focus on its offshore operations.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 89 increased, 12 declined and 1 were unchanged.

Royal Dutch Shell Plc decliners in the FTSE 100 index with a loss of 0.73% followed by losses in Wm Morrison Supermarkets Plc of 0.70%, in Astrazeneca Plc of 0.61%, in Serco Group Plc of 0.49%, in Cadbury Plc of 2.16%.

Lonmin Plc led gainers in the FTSE 100 index with a rise of 9.43% followed by increase in Schroders Plc-NV of 5.47%, in Invensys Plc of 4.34%, in Schroders Plc of 4.22%, in Legal and General Group Plc of 4.19%.