Wellstream Holdings adds 29 percent on approaches

| September 21, 2010
Wellstream Holdings adds 29 percent on approaches

European equities markets were mostly lower Tuesday as investors hesitated to make moves ahead of the US Federal Reserve’s decision on interest rates, due later in the day, and after Deutsche Bank (FWB: DBK) warned on 3rd-quarter losses while Finland-based phone manufacture Nokia (OMX: NOK1V) denied reports that it will delay shipment of its newest smartphone.

All of this overshadowed the news of successful bond sales in Ireland, Spain and Greece.

The FTSE 100 was down 0.47 percent to 5,576.19 in London, while the FTSE 250 dropped 0.03 percent to 10,545.07.

Wellstream Holdings (LSE: WSM), which makes pipeline systems for the oil and gas industry, was by far the biggest gainer in London, adding 29.15 percent for its biggest one-day percentage gain ever, after it said it has received “preliminary” enquiries from several potential bidders.

Also in the energy sector, Cairn Energy (LSE: CNE) added 2.27 percent on the news that it has made its first oil discovery since beginning to drill off Greenland.

Miner Vedanta Resources (LSE: VED) was the biggest gainer on the 100, adding 2.28 percent on the session, but most miners were down as constituents of the sector led declines on both the 100 and 250.

Eurasian Natural Resources (LSE: ENRC) was down 2.73 percent for the worst performance on the 100, while both African Barrick Gold (LSE: ABG), with a decline of 2.09 percent, and Xstrata (LSE: XTA), which dropped 1.97 percent were among the five biggest losers on that index, while Centamin Egypt (LSE: CEY) dropped the most in the sector and led declines on the 250, falling 4.55 percent.

The FTSE Eurofirst 300 was down 0.32 percent to 1,083.95 while the CAC-40 fell 0.1 percent to 3,784.4 and the Dax dropped 0.3 percent to 6,275.98, but the IBEX managed an 0.18 percent gain to 10,762.5 in Madrid.

Most markets in the Asia-Pacific region were higher Tuesday, but Tokyo’s markets were lower on continuing concerns about the yen and after diplomatic tensions with China continued after Japan continued the detention of the captain of a Chinese boat which hit two ships of the Japanese coast guard near disputed islands in the South China Sea on 7 September.

The Nikkei 225 was down 0.25 percent to 9,602.11 while the Topix index was also 0.25 percent lower, to 849.94, but the Mothers market managed to add 0.34 percent to 374.81.

Shares related to China were hurt by the diplomatic row between the two Asian nations, with Hitachi Construction Machinery (TYO: 6305) down 0.9 percent while Komatsu (TYO: 6301) dropped 1 percent.

Exporters were mostly lower after the yen again strengthened versus the US dollar, but camera and printer maker Canon (TYO: 7751) added 1.4 percent on its plans to build a printer plant in Thailand.

Toyota Motor (TYO: 7203) and Honda Motor (TYO: 7267) each dropped 0.5 percent, while consumer electronics manufacturer Sony Corp (TYO: 6758) was down 1.5 percent.

Australia’s markets were also hurt by currency concerns as the Australian dollar remained strong as the Sydney Ordinaries dropped 0.26 percent to 4,664.9 and the S&P/ASX200 fell 0.3 percent to 4,617.5.

Elsewhere in the region the Shanghai Composite and Hong Kong’s Hang Seng each added 0.11 percent, to 2,591.55 and 22,002.59 respectively, while the Taiex was up 0.12 percent to 8,196.4 in Taiwan, the Straits Times Index was 0.47 percent higher to 3,095.39 in Singapore and India’s Sensex gained 0.48 percent to 20,001.55.

South Korean markets were closed for its traditional Harvest Festival, with trade not scheduled to resume until Friday.

New York markets were lower in midday trade as investors waited for the Fed’s decision on interest rates, with the Dow Jones Industrial Average down 0.09 percent to 10,744.16 while the S&P 500 fell 0.27 percent to 1,139.57 and the Nasdaq Composite was 0.24 percent lower to 2,350.26.

The declines came even though the Commerce Department reported that US housing starts were up 10.5 percent in August for their biggest gain in nearly a year, while permits for new construction added 1.8 percent in the same month, both a hopeful sign that the US housing market is beginning to recover.

Crude oil prices were lower in New York, with West Texas Intermediate crude trading just above $73 per barrel at midday, while metals prices were also lower.

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