Eurasian Natural Resources leads 100 on bids rumors

| June 13, 2011
Eurasian Natural Resources leads 100 on bids rumors

London markets were mixed Monday, with the FTSE 100 up 0.13 percent to 5,773.46 while the FTSE 250 dropped 0.06 percent to 11,779.5, while other markets in the region were also mixed on the session.

Miner Eurasian Natural Resources (LSE: ENRC) led gains on the 100, adding 4.65 percent, on reports that commodity trader Glencore International (LSE: GLEN), up 2.75 percent, could offer £12 billion ($19.5 billion) for the miner, although neither company would comment, while Kenmare Resources led gains in the mining sector and on the 250 as it gained 4.66 percent.

Aggreko (LSE: AGK) was the worst performer on the 100 as it fell 3.15 percent after Numis Securities Ltd cut its recommendation on the power generator rental specialist from “hold” to “sell”, while food manufacturer Premier Foods was 6.03 percent lower to lead gains in the foods and beverages sector and on the 250.

Banks saw gains except for a 0.07 percent decline for Royal Bank of Scotland Group (LSE: RBS), while most other sectors were mixed, although the chemicals sector was mostly lower, utilities were mostly higher and the retail sector was mixed but with more gainers than decliners.

Engineers Invensys (LSE: ISYS) added 1.14 percent on media reports that it might sell its pension program for £4.2 billion to one of three companies making offers.

Most other markets in Europe saw gains as the FTSE Eurofirst 300 was up 0.28 percent to 1,092.64 while the CAC-40 added 0.07 percent to 3,807.61 and the Dax gained 0.22 percent to 7,085.14, but the IBEX dropped 0.05 percent to 9,946.2.

Markets in the Asia-Pacific region were mostly lower on concerns that economic recovery is slowing around the world.

The Nikkei 225 was 0.7 percent lower to 9,448.21 in Tokyo, while the Topix index was down 0.63 percent to 812.26 and the Mothers market dropped 0.28 percent to 458.36 after factory orders were reported down 3.3 percent in April from March, against an expected gain of 1.7 percent.

Japan Tobacco (TYO: 2914) was down 3.5 percent as it reported that cigarette sales by volume were down 38 percent in May, while tiremakers and oil-related shares were also lower and carmakers dropped after Toyota Motor (TYO: 7203) after it said profits will be down by nearly a third this year due to interruptions caused by the 11 March earthquake and tsunami.

Tokyo Electric Power (TYO: 9501) managed a gain of 4.7 percent after being down by as much as 6.3 percent during the session.

Other decliners in the region included the Sensex, which was 0.01 percent lower to 18,266 in India while the Shanghai Composite fell 0.18 percent to 2,700.38, the Straits Times Index was 0.63 percent lower to 3,059.04 in Singapore and Taiwan’s Taiex dropped 1.41 percent to 8,712.85.

South Korea’s Kospi added 0.1 percent to 2,048.74 while the Hang Seng gained 0.39 percent to 22,508.1 in Hong Kong, while Australia’s markets were closed in observance of the Queen’s Birthday.

New York equities markets were mixed in midday trade there, with the Dow Jones Industrial Average up 0.1 percent to 11,964.2 while the S&P 500 was down 0.02 percent to 1,270.78 and the Nasdaq Composite was 0.21 percent lower to 2,638.31.

Crude oil prices were lower, with West Texas Intermediate down $1.75 per barrel in midday trade in New York while Brent crude was last reported 21 cents lower in London after being up earlier in the session.

Metals prices were also lower in New York, with gold down by nearly $5 per troy ounce while silver had dropped $1.17 per troy ounce, a decline of 3.23 percent, and copper was 3 cents per pound lower.

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