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Today’s market overview

Equities have started the week on a circumspect note as the debt negotiations in Washington continue to ebb and flow but the Trader Dominic Picarda thinks we are still in an uptrend which could be given some wings should the US sort itself out later this week.

IC TIP UPDATES:

Genel Energy (GENL) has commenced production from a horizontal sidetrack well at the Tawke prospect in Kurdistan, which is now producing 32,500 barrels of oil per day. Genel has a 25 per cent interest in the licence. Buy.

Software Radio Technology (SRT) says that trading is in line with expectations, although meeting them will require various mandates coming through from potential customers. The company has also agreed to acquire 3D visualisation business GeoVS for £955,000 worth of shares. We keep our buy rating.

Carillion (CLLN) is part of a consortium which has been appointed development manager on the substantial Manchester Airport City scheme. This regeneration scheme will try to establish the area around the airport as a major Enterprise Zone. Carillion will deliver £580m of construction work over the 15 year life of the build. We maintain ourbuy recommendation.

Development Securities (DSC) has moved back into the recovering Irish market through the acquisition of a €2.4m mixed use development site in Dublin. Buy.

KEY STORIES:

Kentz (KENZ) has been appointed to deliver an enhancement programme at the Pearl Gas to Liquids project in Qatar.

Balfour Beatty (BBY) has won a £77m contract to build a by-pass at Wilmington, North Carolina.

Recruiter Michael Page International (MPI) says it delivered a ‘robust’ performance in the third quarter of the year as market conditions gradually recovered. A 5 per cent recovery in UK gross profits and a 13 per cent uplift in the US more than made up for more disappointing performance in Asia Pacific. Meanwhile Kelvin Stagg has been appointed as acting chief financial officer following the resignation of Andrew Bracey on Friday.

Capital & Regional (CAL) has sold the Great Northern Warehouse in Manchester for £71.1m, a deal which will allow the company to pay down all existing debt on its balance sheet.

Private label household goods specialist McBride (MCB) says group revenues have declined by 3 per cent over the period since July, although this was expected due to the wind down in contract manufacturing. Private label revenue grew by 1 per cent, which was slightly below the level expected.

OTHER COMPANY NEWS:

Results for the year to July at Lok ‘n’ Store (LOK) saw a marginal increase in revenues at £12.97m and a 4.1 per cent increase in cash profits at £4.14m. The annual dividend is increased by 20 per cent to 6p a share.

Quantum dots specialist Nanoco (NANO) increased revenues from £2.95m to £3.93m in the year to July as it earned payments from partners including Dow Chemical, which is to build a commercial scale quantum dot production plant in the first half of next year.

A second graphene company, Applied Graphene, is planning to list on Aim following the successful float of Graphene Nanochem (GRPH) earlier this tear. Applied spun out of Durham University and is 22 per cent owned by IP Group (IPO).

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