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London midday: Flat so far for Footsie

London midday: Flat so far for Footsie

Mon 08 February 2010 12:20

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Footsie is now flat with support for the miners just about helping to keep a disappointing day for financials and oil stocks at bay. Randgold Resources leads the risers as it hiked its dividend by 30% after profits soared in the fourth quarter. The West Africa-focused gold miner lifted profit in the three months to December to £38.7m from £9.3m. Silver miner Fresnillo is close behind among the risers. Xstrata has eased back after early gains. It is to resume dividend payments despite earnings sliding last year after heavy one-off costs and weak commodity prices. Net profits in 2009 fell to $661m from $3.66bn after one-off charges nearly doubled to $2.1bn. On an underlying basis earnings fell to $2.77bn from $4.7bn while revenue dipped 16% to $23.5bn. Anglo American will subscribe in full to its entitlement to the rights offer announced today by its subsidiary company, Anglo Platinum, costing it $1.3bn. ICAP has rallied after its pounding on a profit warning on Friday. Rival Tullet Prebon is up as well. On the downside, oil groups are under pressure as the price of crude slipped to $71 last week. Cairn and Tullow are off the pace today. Elsewhere, Spanish banking giant Santander is reportedly mulling a flotation of its British operations on the London Stock Exchange. If the plans are to go ahead, the demerged business would go straight into the FTSE 100 with a value of more than £15bn, according to a report in the Sunday Times. The money could be used to buy parts of Royal Bank of Scotland, reports today suggested. Property developer St Modwen Properties posted a decline in full year revenue and widening losses as property values continued to suffer. However the group said it was confident that 2010 will see the company returning to growth in profits and NAV. Shares in aim listed CCTV company Petards flew off the shelf after it said profit before tax for the full year is set to come in higher than market expectations. Cash generation in the second half was also stronger than expected due to lower working capital. BATM Advanced Communications, which supplies broadband data and telecommunications systems and medical laboratory equipment, posted a fall in profits in the year to 31 December as subdued economic conditions kept revenues flat.
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