Tobacco deal supports FTSE 100

The FTSE 100 was in the black, which was supported by further sterling weakness and deal making in the tobacco sector.

Public sector net borrowing, excluding public sector banks, in September rose by £1.3bn to £10.6bn compared to September 2015, according to the Office for National Statistics.

West Texas Intermediate (WTI) crude oil slid 0.4% higher to $50.86 and Brent crude oil rose 0.6% to $51.70 per barrel, respectively.

Gold and copper was flat at $1,265 per ounce and $4,607 per tonne, respectively.

FTSE 100 RISERS AND FALLERS

Cigarette manufacturer British American Tobacco (BATS) traded 3.5% higher to £49.73 after announcing a $47bn offer to buy the 57.8% of US peer Reynolds American (RAI) it does not already own. It also delivered a robust third quarter trading update, showing good growth and increasing market share.

The news boosted rival Imperial Brands (IMB) by 2.8%.

Intercontinental Hotels (IHG) failed to impress investors following concerns over slowing growth in the third quarter.

FTSE 250 RISERS AND FALLERS

Acacia Mining (ACA) delivered impressive third quarter results, as gold production climbed by a quarter to 204,726 ounces and sales of the metal jumped by 24%.

Gaming technology firm Playtech (PTEC) was flat after revealing a £14.9m deal to buy bingo software play ECM Systems.

Shares in Time Out (TMO) nudged higher following an all paper £2.4m deal for London-based booking platform YPlan.

IT infrastructure services provider Computacenter (CCC) confirmed it will hit 2016 expectations after a resilient third quarter, although this received a lukewarm response on the market.

SMALL CAP RISERS AND FALLERS

Shares in Trinity Capital (TRC) soared 142.8% to 4.25p on the disposal of its investments in Trinity Capital One and Trinity Capital Five for approximately £8.8m.

Asian Investment Management Services purchased over one million shares in Chagala (CGLO) representing 6.02% of the company.

Customer acquisition specialist Digital Globe Services (DGS) rallied 76% to 58p and Ibex Global Solutions (IBEX) gained 27% to 109p as a major shareholder in both, The Resources Group International, announced £18.1m and £44.3m deals respectively to take them private.

Recruiter RTC (RTC) was on the red following a warning on profits after delays to infrastructure projects. Shares in the firm plummeted 21.7% to 41.9p.

Brick maker Michelmersh (MBH) warned investors about full year profits, which it blamed on increased competition and pricing levels not reaching the levels anticipated, causing a drop of 17.4% to 52p.

Diagnostic testing kit maker Immunodiagnostic Systems (IDH) failed to arrest declining revenue (on a constant currency basis) in its first half, triggering a share price drop of 14.2% to 178p.

Story provided by StockMarketWire.com

 

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