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CFD Traders DiaryMiners fall on Lonmin disappointment16/1/2007
The
mining sector was again in the spotlight as Lonmin led the fallers in London this morning. The company announced that it would
completely rebuild its number one furnace following a leak in December. There have been several problems at its
furnaces over the last few years, and following its detailed review it decided
the best result would be a full rebuild of the furnace to restore it to its
original design condition.
The losing board was headed by the rest of the mining sector with typical falls
of around 2%. Overall, the FTSE 100
index was down around 7 points with little action of note elsewhere, with UK inflation as measured by
the CPI hitting a new high in December as
expected, although the rise was not quite sufficient to require the Bank of
England to pen a letter explaining the surge to Gordon Brown.
There
were plenty of results early on, which on the whole presented few surprises. Tesco said that group sales, excluding
petrol, increased by 9.9% in the six weeks to 6
January 2007. Enterprise Inns said it had traded
well during the first quarter as it reiterated its plan to buy back yet more
shares. Burberry reported a strong third quarter to December with total
revenue increased by 25% on an underlying basis. Ted Baker's sales rose by 11% between 1 November and 24 December
compared to the same period a year before.
Debenhams however warned
that the retail market remains challenging with sales down on poor clothing
sales. Northern Foods also said that trading conditions remain tough, but
results are expected to be in line with its expectations.
In other news, the Baker report into the fire that
killed 15 people at BP's
refinery in Texas is due shortly and is expected to be scathing about
the safety procedures. Shares in Neteller
have been temporarily suspended following the detaining of two of its
founders and former directors in the US. |
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