Gilts
Kate Barker, a member of the Bank of England’s Monetary Policy Committee, hinted that interest rates could stay low into next year, lifting two-year gilt prices. Longer-dated gilts fell, driven by strong UK industrial output figures. The September gilt future fell 58p to £115.85. The ten-year gilt yield rose six basis points to 3.91 per cent.
Rumour of the day
The chances that Pan Andean Resources, down ¼p at 10p, will find a partner to help to fund drilling of its Antorcha field in Colombia this year have been increased since Comtrol, a private Colombian company, is said to have struck paydirt next to its block in the past few days and is pumping about 150 barrels a day from each well.
Deal of the day
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Advanced Medical Solutions, the medical technology company, rose 1¼p to 26¼p after three directors, including Don Evans, the chief executive, bought 124,000 shares at between 25p and 25½p — a total investment of £31,292. The price has fallen from 35p since the group said in early April that it had abandoned plans for a big acquisition.
Bet of the day
Home Retail Group, the owner of Argos and Homebase, rose another 7¾p to 266p before results today. The shares have rallied sharply from 184p in February. It is thought that sales figures will indicate that, as summer approaches, the steep collapse in customer demand has eased. Cantor Index offers a June-related contract spread of 267.1p to 268.4p.
Tiddler to watch
Firestone Diamonds rose 2p to 40p after Mirabaud and Evolution issued “buy” notes, with 62p and 60p price targets, respectively. Firestone is processing samples from its site in Botswana before deciding in September about full-scale production. Prices of uncut stones have risen up to 30 per cent from a low point in March.