Market report: Monitise shares tumble as Visa turns on its investment


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Et tu Visa? The patron of the mobile payments specialist Monitise turned into competition yesterday, as the credit card giant decided to reduce its investment and focus on its own in-house technology.

Monitise tumbled 34 per cent after its key shareholder and largest client announced plans to cut its 5.5 per cent stake and spend more on its own “capabilities”, lessening its “dependence on external mobile development resources”.

Monitise investors have already suffered two revenue warnings this year and Ali Farid Khwaja at Berenberg bank said Visa’s move raises “serious questions about the sustainability of Monitise’s business model”. It lost 14.75p to 27.75p.

Despite the fears over the Scottish referendum, the FTSE 100 enjoyed a rally on the day of the vote, putting on 38.39 points to 6,819.29. TUI Travel was the star performer, adding 17.1p to 384p after an upgrade from Morgan Stanley. The bank believes the travel agent’s pending merger with parent company TUI could reap a handsome dividend by 2016.

Goldminers suffered as the precious metal dipped: Randgold Resources lost 116p to 4,430p, Fresnillo gave up 15.5p at 782.5p, Centamin was 1.2p lower at 58.9p and Petropavlovsk slid 3.25p to 32.5p.

The publisher and trade-show group UBM confirmed it is in talks to acquire US rival Advanstar, which runs the Progressive International Motorcycle Show. The news helped UBM climb 12p to 613.5p, and had a halo effect on other publishers, with Trinity Mirror up 12.25p at 182.25p and Johnston Press 0.23p better at 3.91p.

A 3.1 per cent rise in non-tobacco sales at the cash- and-carry specialist Booker helped it jump 9.1p to 125.4p.

WANdisco, the AIM operator whose software allows computers across the world to work on a project simultaneously, lost 20p to 367.5p after it admitted that first-half losses ballooned from $7.5m (£4.6m) last year to $18.5m. The losses were put down to increased investment in new markets and technologies.

After announcing a $6m investment 24 hours earlier, Mariana Resources climbed 0.92p to 2.77p as it revealed a deal to take over Canada’s Aegean Metals Group, which has gold, copper and silver projects in Turkey and Chile.