Market Report: Aggreko gains as bulls eye 'powerful potential'

Aggreko shot up to pole position as the blue chips shrugged off the weakness in the UK economy to stage a comeback last night.

The temporary-power provider ended with gains of more than 5 per cent, up 75p at 1,485p, after Goldman Sachs advised clients to pile in, highlighting the firm's "powerful potential". The broker's enthusiasm was fired by by the company's promising international power projects division, which provides temporary power stations around the world.

"We believe Aggreko will benefit from structural growth in its profitable international power projects business as power shortages in developing companies drive further demand for temporary power," Goldman said, echoing the view of other Aggreko bulls.

Adopting a "buy" view on the stock, the broker added that other parts of the company should draw steam from the economic recovery, particularly in North America, "which we estimate contributes about 20 per cent of group revenues".

Overall, the trials of the UK economy were far from traders' minds as investors switched their attention to the world's largest economy, helping to lift the FTSE 100 by 51.5 points to 5,969.21 and the FTSE 250 by 110.67 points to 11,612.27. In his set-piece State of the Union address this week, President Barack Obama called for lower corporate taxes in the US, boosting confidence in the country's prospects of recovery.

The benchmark index also received a shot in the arm from the US dollar, which eased ahead of a policy announcement from the US Federal Reserve. The pull-back pushed up commodity prices, as dollar-denominated metals became more attractive for overseas buyers.

Firm metals prices thus provided the perfect setting for a mining sector rebound, with Antofagasta climbing by more than 3 per cent, or 46p, to 1,436p. Kazakhmys, which was among the weakest on Tuesday, also did well, climbing by 33p to 1,533p. Of the others, Anglo American and Rio Tinto gained 80.5p to 3,155.5p and 110p to 4,400p respectively.

Xstrata was also higher, rising by 19p to 1,411p as speculation continued over the possible listing of Glencore, the commodities trader which owns about 35 per of the Anglo Swiss miner.

Liberum Capital analysts suggested that the trading house could be worth about $60bn (£38bn), a valuation which, if it comes about following a London listing, would place Glencore among the FTSE 100's top 15 companies.

BG was the strongest of the oil issues, rising by 45p to 1,372p as investors welcomed news that Petrobras, the UK group's partner in the Carioca area offshore Brazil, had made a new oil find. While BG rose, its smaller peer Heritage Oil slumped, sliding by nearly 30 per cent, after announcing a giant gas find in the Kurdistan region of Iraq.

The news disappointed the market, which had been hoping for the discovery of oil instead. "Clearly it is more challenging to monetise a gas discovery rather than [an] oil discovery in Kurdistan," the analysts at JP Morgan Cazenove said.

The broker did add that the receipt of requisite approvals from local authorities, coupled with an investment decision on an important gas pipeline, might mean that Heritage "could start selling gas into profitable European markets by 2015-16". Disheartened investors still pressed the sell button, leaving Heritage at 310p, down 126.6p.

Elsewhere, Premier Foods, the food producer which announced plans to trim its debt burden by agreeing the sale of its Quorn meat-free business earlier this week, shot up by nearly 8 per cent, more than making up the ground lost on Tuesday.

The stock gained 1.6p to 22.3p against the backdrop of recent reports that Premier was in advanced talks to offload its canning operations to a division of Japan's Mitsubishi Corp.

Like the wider market, housing stocks also enjoyed a rebound. The gains came despite new data showing that UK mortgage approvals had declined to their lowest level in nearly two years in December.

Ignoring the grim figures, Taylor Wimpey rose by 1.13p to 36.99p, while Barratt Developments gained 2.75p to 98.3p. Bellway was also higher, adding 6.5p to 649.5p.

Blacks Leisure took a beating, slumping by 9.1 per cent as investors digested news that offer talks had ended.

The operator of the Blacks Outdoor and Millets chains said that, while it had received a number of indicative proposals for all or part of its business, none had proved "sufficiently compelling" to warrant pursuing further.

"The board has therefore terminated these discussions to allow management to focus on completing the final stage of the turnaround plan," it said, triggering a sell-off that left its shares at 35.5p, down 3.5p, by the close. Earlier, they struck a session low of 33.5p.

Start your day with The Independent, sign up for daily news emails
New Articles
tvDownton Abbey Christmas special
Arts and Entertainment
Wolf (Nathan McMullen), Ian (Dan Starky), The Doctor (Peter Capaldi), Clara (Jenna Coleman), Santa Claus (Nick Frost) in the Doctor Who Christmas Special (BBC/Photographer: David Venni)
tvOur review of the Doctor Who Christmas Special
News
peopleIt seems you can't silence Katie Hopkins, even on Christmas Day...
News
news
PROMOTED VIDEO
News
i100
Arts and Entertainment
Left to right: Stanley Tucci, Sophie Grabol and Christopher Eccleston in ‘Fortitude’
tvSo Sky Atlantic arrived in Iceland to film their new and supposedly snow-bound series 'Fortitude'...
Arts and Entertainment
Jenna Coleman as Clara Oswald in the Doctor Who Christmas special
tvForget the rumours that Clara Oswald would be quitting the Tardis
Arts and Entertainment
Japanese artist Megumi Igarashi showing a small mascot shaped like a vagina
art
News
The Queen delivers her Christmas message
newsTwitter reacts to Her Majesty's Christmas Message
Arts and Entertainment
tv
Life and Style
fashion
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all