Charter International adds 20 percent on bids discussions

| August 23, 2011 | 0 Comments
Charter International adds 20 percent on bids discussions

Most European equities markets were higher Tuesday, helped by speculation that the Federal Reserve will move to support the US economy and after a purchasing managers’ index in China indicated that manufacturing there is in better shape than expected, although gains were tempered as investor confidence declined more than expected in Germany.

The FTSE 100 was up 0.67 percent to 5,129.42 in London, while the FTSE 250 added 0.68 percent to 9,922.1.

Charter International (LSE: CHTR) added 20.1 percent to lead gains on the 250 after the engineering group said it is in bids talks but would not identify which company it is talking to except to say that it is not Melrose plc (LSE: MRO), which has made two unsuccessful bids for Charter recently, while security services specialist G4S (LSE: GFS) was the best performer on the 100, gaining 8.54 percent on a 15 percent gain in net income in the first half.

Gold and silver miner Fresnillo (LSE: FRES) was the biggest decliner on the 100, dropping 7.21 percent as silver prices were down in London trade, while the mixed mining sector had two other constituents among the five biggest decliners on the 100 as Randgold Resources (LSE: RRS) was down 3.35 percent and Vedanta Resources was 1.37 percent lower.

Oil and gas explorer Afren (LSE: AFR) was down most on the 250 and in the energy sector as it dropped 4.98 percent, while oil and gas services provider John Wood Group (LSE: WG) added 4.63 percent for the best performance in the energy sector.

ARM Holdings was up 4.47 percent after media reports that the chipmaker could be a bids target.

The FTSE Eurofirst 300 was up 0.65 percent to 922.71 while the Dax added 1.07 percent to 5,532.38 and the CAC-40 gained 1.08 percent to 3,084.37, but the IBEX was 0.17 percent lower to 8,279.8.

Markets in the Asia-Pacific region were higher on hopes that the US Federal Reserve will say it is going to put more stimulus measures in place to help support the US economy, with expectations that an announcement could come later this week.

The Nikkei 225 was up 1.22 percent to 8,733.01 in Tokyo, while the Topix index added 1.02 percent to 750.39 and the Mothers market gained 0.86 percent to 432.53 as utilities saw advances after Japan’s Finance Minister said that the nation might not be able to do completely without nuclear power, with Chubu Electric Power (TYO: 9502) up 1.9 percent while Kansai Electric Power (TYO: 9503) added 2.8 percent.

Toyota Motor (TYO: 7203) gained 3 percent after it announce a collaboration with US carmaker Ford Motor Company (NYSE: F) to develop hybrid pickup trucks.

India’s Sensex was up 0.96 percent to 16,498.5, the Straits Times Index added 1.22 percent to 2,765.15 in Singapore, the Shanghai Composite was 1.52 percent higher to 2,554.02, Hong Kong’s Hang Seng gained 1.99 percent to 19,875.5, Australia’s markets were up as the Sydney Ordinaries added 2.14 percent to 4,239.8 and the S&P/ASX200 was 2.23 percent higher to 4,173.4, Taiwan’s Taiex was up 3.25 percent to 7,550.23, and the Kospi gained 3.86 percent to 1,776.68.

New York equities markets were higher in midday trade there, with the Dow Jones Industrial Average up 1.79 percent to 11,049.1, while at the same time the S&P 500 had added 1.94 percent to 1,146.01 and the Nasdaq Composite was 2.42 percent higher to 2,402.21.

Crude oil prices were higher in New York and London as West Texas Intermediate traded $1.50 higher to $85.92 per barrel on the New York Mercantile Exchange, while the most recent reports had Brent crude up $1.14 to $109.50 per barrel on the ICE Futures Europe exchange in London.

Gold was $24.60 lower to $1,867.30 per troy ounce in New York trade as investors took profits after recent gains for the precious metal and as equities markets made gains, while silver was down 52 cents to $48.85 per troy ounce, but copper prices were higher on better news on manufacturing from China and on new data showing that China is importing more copper.

Copper prices were up 3 cents to $4.01 per pound in midday trade in New York, while three-month contracts added $147 to $8,867 per tonne on the London Metal Exchange.

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