Market Report: Evraz echoes out-of-form Chelsea as Roman suffers

Suggested Topics

His Chelsea team has not exactly been at the top of its game recently, and yesterday another of Roman Abramovich's investments found itself under pressure. Evraz – the steelmaker which is part-owned by the Russian oligarch – was on the slide amid fears a lack of short-term demand for the metal will blow the whistle on its recent rally.

The group's share price has powered up around 25 per cent since becoming one of the first Russian firms to join the Footsie last November, but last night it closed in the red after Austria's Raiffeisen downgraded its rating to "hold".

Citing a rise in steel inventory levels, the broker's analyst, Iryna Trygub-Kainz, warned that the recent uptick in the metal's price had already been "priced in by the market" and – with another major increase not expected until the spring – Evraz "may have exhausted its potential to continue outperforming the stock market".

In response, the company was knocked back to a low of 428p during trading, although with Ms Trygub-Kainz saying she remained positive on its "development potential" long-term, Evraz ended up closing just 3p worse off at 442p.

In early trading the heavyweight miners attempted to rally, but many of them were unable to hold on to their gains. Kazakhmys was the best of the bunch, creeping up 5p to 1,165p, while BHP Billiton retreated 50p to 2,130p after announcing its first-half profits had dropped 7 per cent to $9.94bn (£6.27bn).

Still, following the recent deal to merge Glencore (down 8.8p to 434.45p) and Xstrata (down 2p to 1,198p), BHP boss Marius Kloppers did raise hopes of further M&A in the sector by saying there was "some capacity" on its balance sheet.

Meanwhile, market gossips were reviving vague speculation that Kenmare Resources could be a possible takeover target, with Rio Tinto (up 4p to 3,873.5p) one of the names put forward as a possible bidder, although – with City voices unimpressed by the rumours – the mid-tier Irish digger only ticked up 0.75p to 50.25p.

It was the same old story on the FTSE 100, as – without any news from Greece by the end of trading – the benchmark index eased down 14.33 points to 5,875.93, its third straight day of falls.

"No-one is interested until Greece is sorted," said one trader, summing up the mood after another quiet session in the Square Mile.

Despite Citigroup saying that analysis of other financial crises showed the bank's rally would continue, only Lloyds ended up rising. It was lifted 0.52p to 35.79p while Barclays was pegged back 3.2p to 233.6p ahead of its full-year results tomorrow.

The news that one of its significant shareholders is getting rid of its whole stake left Centrica 8.2p worse off at 294.5p. Malaysia's Petroliam Nasional Berhad is selling almost 200m shares in the British Gas-owner, which could net it as much as £594m.

On the FTSE 250, takeover rumours continued to push Inmarsat higher in early trading as the satellite telecoms firm advanced to a high of nearly 480p. Revived speculation earlier in the week suggested it may be in line for an approach, with US giant GE, private equity and Airbus-owner EADS all cited as possible bidders.

Reports that Inmarsat had not received any approaches took some of the shine off the move, but with Bank of America Merrill Lynch saying a move "could... make sense", its shares still finished 18p better off at 455.2p.

Misys was knocked back 8.46 per cent to 298.5p after Panmure Gordon cut its advice to "hold" following the software firm's announcement late on Tuesday that it had agreed several key terms with rival Temenos over their proposed merger.

It meant hopes that a rival aggressor could emerge with a cash offer looked rather optimistic, with the broker's analyst, George O'Connor, saying that the merger will now occur "on an accelerated basis... making a counterbid less likely".

SuperGroup was the clear loser on the mid-tier index, slumping a huge 17.21 per cent to 579.5p, after the fashion chain revealed a slowdown in sales growth over January.

TV production company DCD Media – whose shows include Bridezillas – was soaring as fellow AIM stock Timeweave (1.88p higher at 25.12p) announced it was snapping up a large portion of its convertible debt. The purchase of over £3m-worth of convertible loan notes saw DCD's share more than double, flying up by 126.28 per cent to 7.75p. It also prompted the group to release a statement saying it would meet with the horse racing broadcaster to "understand better [its] rationale and intentions in making this investment".

Bango jumped 39.59 per cent to 137.5p after the payment services firm announced it had signed a deal with Facebook, which comes in the wake of an agreement with Amazon reached at the end of last year.

Independent Comment
blog comments powered by Disqus
Career Services

Day In a Page

The 50 Best beachwear

The 50 Best beachwear

The hottest summer gear for men and women
Still standing: George Galloway reveals why his staunchly Leftist outlook is still invariably right

Still standing: George Galloway

Written off, ridiculed, wrongly accused of taking bribes the honourable member for Bradford West, has never bowed to the critics.
How will Daniel Radcliffe's fans react to his latest turn - as a damaged, drug-taking Beatnik poet?

Daniel Radcliffe as drug-taking Beatnik poet

His decade as the boy wizard may be over, but that hasn't hexed Daniel Radcliffe's enchanted life.
For whom the bell tolls: £20m 'Memo' project takes shape on Dorset's Jurassic coast

'Memo' project takes shape on Dorset coast

It started as a stonemason's visionary idea – to commemorate all the species that have ever existed and are now extinct.
Just add sunshine: Bill Granger's Turkish delights

Just add sunshine: Bill Granger's Turkish delights

Turkish cuisine is perfect for those long, sociable weekend meals with friends. It's just a shame that money can't buy the key ingredient.
Objets czar: David Usborne’s collection of myriad objects is quite the mystery

Objets czar: David Usborne’s collection of myriad objects

To others, they're junk. To David Usborne, they are his life: useful gizmos, mysterious thingamajigs and anonymous articles that dominate his home.
The iron ore lady: Why the world's richest woman is mired in controversy

World's richest woman: Gina Rinehart

Family feuds, attempts to control the Australian media and bitter public disputes are keeping the mining magnate in the headlines.
We just click: How Lego keeps building on its success

How Lego keeps building on its success

This year, Lego announced record profits. Gerard Gilbert visits its Denmark HQ.
The other bits: Mark Hix creates delicious and economical meals with cheaper cuts of meat

Mark Hix cooks with cheaper cuts of meat

Our chef creates delicious and economical meals on a budget
Strokes of genius: How to create summer's bold make-up look

Strokes of genius: Summer's bold make-up

From coral lips to fly-away fringes, make-up artist Kim Brown and hair stylist Richard Scorer reveal how to create the look
Marking his territory: Kilian Hennessy creates fragrances designed to provoke the senses

Marking his territory: Kilian Hennessy

The perfumer creates fragrances designed to provoke the senses
Photo essay: Britain's 1948 Olympians today

Britain's 1948 Olympians today

Photo essay
The top five E3 2012 triumphs: From Ubisoft's suite of titles to Dishonored and The Last of Us

The top five E3 2012 triumphs

The games and moments that left us grinning like the Cheshire Cat
The green movement at 50: Can the world be saved?

Can the world be saved?

Population growth and climate change are the big problems facing the earth in the next 50 years. But are there any solutions?
France: Will xenophobia go mainstream?

France: Will xenophobia go mainstream?

In the beautiful Rhone delta, John Lichfield visits a village where a dangerous new political landscape is taking shape