Gilts
Gilt futures were lower, tracking bunds, after the European Central Bank said it would start unwinding some of its extraordinary liquidity measures. The March gilt future settled 33 ticks down at 117.55, worse than the equivalent bund, which fell 24 ticks. In the cash market, the yield on ten-year gilts rose four basis points at 3.63 per cent.
Rumour of the day
Shares in International Power gained 3p to 284¼p amid further talk that GDF Suez was considering making an offer for the electricity generator. The latest twist in the tale is that Suez has appointed two unnamed French banks to look at such a deal in more detail. Recent speculation has suggested an offer at more than 400p per share.
Deal of the day
Advertisement
Petra Diamonds rose 3½p to 62½p after the miner raised $120 million (£72 million) in a share placing at 60p per share by Canaccord Adams and RBC. The money will be used to pay off debts and invest further in its Cullinan mine. Ambrian said Petra remained one of its top picks in the small-cap mining space because of continuing production increases.
Bet of the day
Shares in Associated British Foods rose 3p to 800p after a positive research note from Evolution, noting the potential of its Primark business in the UK and Europe and growing demand for its sugar in Africa and China. Will the management be as upbeat at today’s annual meeting?
IG Index currently offers a March quote of 799.1–805.8.
Tiddler to watch
Advertisement
Amerisur Resources added 1.12p to 10¾p after the oil and gas group reported upbeat initial test results from its Iguasa-1 well at its Fenix asset in Colombia. Astaire Securities said results from the well so far had been highly encouraging and that the latest news provided another positive ahead of further drilling in the new year.