FTSE mixed; BATS leads blue chips up on deal news

London equities opened mixed with British American Tobacco (BATS) leading blue-chips and tobacco issues north after exhaling an upbeat trading statement and plans to acquire the portion of Reynolds American it does not already own.

BATS rose 4.03% to 4996.75p after it proposed merging with Reynolds American by acquiring the 57.8% it does not already own at $56.5 a share in cash and shares. BATS added its year-to-date revenue was up 6.2% on an organic basis. Imperial Brands (IMB) firmed 2.49% to 3958p.

Soon after the open, FTSE 100 was up 7.94 points, or 0.11%, to 7034.84, while FTSE 250 fell 16.78, or 0.09%, to 17,928.3. At 8.36am, WTI crude was down 0.22% to $50.52/bbl and Brent was down 0.14% to $51.31/bbl. Gold was down 0.29% to $1263.8/oz.

Blue-chip risers and fallers were evenly split, with share price moves muted on both sides of the ledger. To the upside it was miners, consumer goods, leisure, financials and utilities providing direction, although some in these sectors ebbed.

Reckitt Benckiser (RB.) rose 0.95% to 7212p, St James’s Place (STJ) added 0.86% to 935.5p, Carnival (CCL) firmed 0.69% to 3799p, and Severn Trent (SVT) rose 0.38% to 2380p. Miners were led by Antofagasta (ANTO), up 1.02% to 517.75p, and Rio Tinto (RIO), up 0.7% to 2637.5p.

BHP Billiton (BLT), up 0.53% to 1223p, has rejected criminal charges against its Brazilian subsidiary over the Samarco dam disaster. It would defend the charges against both the company and the affected individuals.

To the downside, Direct Line (DLG) faded 1.55% to 349.3p, with more insurers following. Commerical property ebbed after Intu (INTU), lower 1.31% to 289.35p, while house builders were guided south by Barratt Developments (BDEV), off 0.61% to 481.25p.


Trinity Capital (TRC) rose 157.14% to 4.5p after signing an agreement with Immobilien Development Indien I GmbH & Co. KG and Immobilien Development Indien II GmbH & Co. KG, which, if and when fully implemented, should facilitate the realisation of all of the company’s remaining investments held jointly with the Immobilien Funds.

Digital Globe Services (DGS) was up 74.24% to 57.5p after it recommended a cash acquisition offer from The Resource Group International Ltd at 60p a share.

Chagala Group (CGLO) was up 60% to 2p after it received notification that Asian Investment Management Services Ltd has bought 1.256m depositary interests, representing 6.02% of the total voting rights the company, at $1.55 each.


RTC (RTC), down 26.17% to 39.5p, warns its FY results are expected to be lower than current market expectations, citing infrastructure project delays in H2. Immunodiagnostic Systems (IDH), down 19.28% to 167.5p, expects H1 revenues of £19.5m, from £19.4m last time.

Michelmersh Brick (MBH), down 16.27% to 52.75p, has revised its financial expectations for the current year and believes revenue and profit will be at or around a similar level to that report for the full year 2015.

Bagir (BAGR), up 10.71% to 3.88p, is trading in line with market views and making significant progress under its strategic plan to maintain this momentum across the business into 2017 and beyond.

Kolar Gold (KGLD), up 10.34% to 1.6p, has reported a significant increase in resource at Jonnagiri. It said the JORC-compliant resource had now been estimated at 351,000 ounces (indicated and inferred).

Providence Resources (PVR), up 4.26% to 12.25p, has to pay about £1.1m to Transocean Drilling UK Ltd after that firm brought litigation over Part 36 costs linked to the use of the semi-submersible drilling unit, Arctic III, on the Barryroe oilfield.

Sierra Rutile (SRX), up 2.9% to 31p, is delighted with its excellent production performance for Q3, showing the strength of its operations. Laura Ashley (ALY), up 2.47% to 20.75p, will cease to trade in its concessions within Homebase stores after their acquisition by Wesfarmers.

InterContinental Hotels Group (IHG), down 1.49% to 3177p, reports a solid Q3 performance, leveraging its global scale to drive 3.8% net system growth and 1.3% RevPAR growth.

Other stocks in the news included Xaar (XAR), Starcom (STAR), Dechra Pharmaceuticals (DPH), Time Out (TMO), Playtech (PTEC), Frontier Developments (FDEV), Firestone Diamonds (FDI), Stadium (SDM), Computacenter (CCC) and STM (STM).

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