Market Report: Barclays analysts were cautiously impressed with RSA's Stephen Hester
Thursday 13 March 2014
RSA has been doing the rounds with investors after last month's "disappointing" set of results and Barclays are cautiously impressed.
New boss Stephen Hester lifted the bonnet on the insurer at an investor day in New York recently, clarifying a few key points from its annual report. He told Barclays analysts that despite emergency measures announced in the report to plug a capital shortfall, he is "confident" of hitting a 12-15 per cent return on tangible equity target – a measure of shareholder returns – over the medium term, but wouldn't say when this is likely to be beaten.
Barclays' number crunchers were satisfied, but kept RSA, down 1.85p at 92.95p, as a neutral.
Tensions in Ukraine and fears over slowing Chinese growth continued to weigh on the markets yesterday. Rumours of more Chinese defaults after last week's landmark default on bond payments by Chaori Solar also hit mining stocks.
Ishaq Siddiqi at ETX Capital commented: "Commodities, particularly metals like copper, declined sharply on the China concerns – gold, however, has managed to book gains thanks to its "safe-haven" label."
The precious metal miners Fresnillo, up 18p at 900p, Randgold Resources, 57p higher at 4,927p, and African Barrick Gold, 10p better at 260p, all benefited.
The benchmark index wasn't helped by major stocks going ex-dividend, with British American Tobacco falling 116.5p to 3,218p, HSBC off 17.4p at 599.2p and Standard Chartered down 46p at 1,203p.
The FTSE 100 closed down 64.62 points at 6,620.90, a one-month low.
Vodafone, up 3.3p to 229.55p, was among the few risers. The telecoms giant will hear today whether its revised bid for the Spanish cable operator Ono has been successful.
William Hill, up 5.3p to 381.4p, also galloped higher after Jefferies predicted that the bookie's share price could double in the next three years.
On the mid-cap index, Hikma Pharmaceuticals, up 54p at 1,527p, was top of the table after revealing its full-year profit more than doubled to $212m.
- 1 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 2 The secret report that helps Israel hide facts
- 3 Is Ebola coming to Britain? UK health officials issue warning to doctors as outbreak fears grow
- 4 Richard Dawkins says 'date rape is bad, stranger rape is worse' on Twitter
- 5 Danish TV reporter is all business up top, all party down below
The secret report that helps Israel hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per annum + competitive: Orgtel: Project Manager (specializing in ...
£25000 per annum + OTE £40,000: SThree: Orgtel are seeking Graduate Trainee Re...
£45000 per annum + Benefits: Ashdown Group: ** HR Business Partner - Senior H...
£28000 - £32000 per annum + Benefits: Ashdown Group: PA / Team Secretary - Mat...