Gilts
Gilt futures ended the session more than a third of a point down after a rebound in stock markets weighed on bond prices and investors squared their books as the year draws to a close. Gilts lagged bunds for most of the session, despite a well-received sale of 30-year bonds. March gilt futures settled 37 ticks down at 117.88.
Rumour of the day
Shares in Aggreko ticked up 6½p to 768p after Oriel Securities talked up the temporay power group’s prospects in Afghanistan, with more US troops to be deployed. There have also been suggestions that the FTSE 250 group is in a strong position to win some new business in Bangladesh that could add as much as 3 or 4 per cent to group earnings.
Deal of the day
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Shares in Brightside eased 1½p to 29p despite raising £20 million in a share placing at 22p by Evolution. The funds will be used to develop the company’s insurance broking, premium finance and insurance related businesses. The group also plans to make some acquisitions to supplement organic growth.
Bet of the day
The price of cocoa was hovering near a 24-year high on the Liffe market yesterday amid concerns about supply. Cocoa hit a high of £2,211 a tonne in early trading edging ever closer to the record £2,285 level achieved in 1985. Will prices top that figure? Spreadex currently offers a March contract with a spread of £21.81-£21.87.
Tiddler to watch
Shares in Xcite Energy gained 7½p to 47p and could be in line for a good run. The group has a 100 per cent interest in the Bentley oilfield in the UK North Sea, which is one of the largest undeveloped oil projects in the region. Arbuthnot recently started coverage of the stock with a “buy” rating and a target price of 133p.