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Today’s market overview

Equities in London have bounced out of the blocks this morning, but The Trader Dominic Picarda feels that the seasonal sell off in equities may not be over yet.

IC TIP UPDATES:

Vodafone (VOD) is expected to update investors today on the financial details of its deal to sell its 45 per cent stake in its US joint venture Verizon Wireless to its partner. The deal is believed to be worth in the region of $130bn and Vodafone investors will be keen to discover how much will come back to them in the form of a cash return. Buy.

Housebuilder Berkeley Group (BKG) says trading is in line with expectations and forward sales now total in the region of £1.5bn. This leaves the company on track to pay back £568m to shareholders by 2015 as planned. The next dividend of 59p will be paid in late September with a further 360p a share over the next two years. We maintain ourlong term buy rating.

Rolls Royce (RR.) has sold its 50 per cent share in the RTM322 helicopter engine programme to Turbomeca for €293m. We keep our buy recommendation.

Quintain Estates & Development (QED) confirmed it is in talks with Palace Capital over the sale of its SeQuel regional property portfolio for around £40m as it concentrates on opportunities in the capital. Buy.

KEY STORIES:

Tullow Oil (TLW) has admitted that the Buzio-1 well offshore Mozambique has failed to find any hydrocarbons.

Recently listed retailer Conviviality (CVR), which owns the Bargain Booze chain amongst others, has extended its reach into the south of England with the £1.65 acquisition of the Wine Rack chain of 22 stores in the Greater London area.

OTHER COMPANY NEWS:

International Mining Infrastructure Corporation (IMIC) has sealed a deal with Hebei Iron & Steel Company of China to bring it into a strategic collaboration deal alongside China Railway Materials which should secure future offtake agreements.

Trap Oil (TRAP) has brought in Japan Petroleum as an additional partner in its strategic consortium formed to look at opportunities in the forthcoming 28th licensing round for UK oil and gas prospects.

Stratex International (STI) says that four of the five target areas tested at its Madina Bafe gold prospect in Senegal produced promising results.

Sula Iron & Gold (SULA) has had similar success in its drilling for iron ore in Sierra Leone, announcing today that the project ‘appears to host consistently high grade iron mineralisation’.

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