Market Report: Drax loses power after decision to cut subsidies for the coal-fired power station
Friday 08 August 2014
Drax lost power yesterday after the Court of Appeal backed the Government’s decision to cut subsidies for the coal-fired power station.
The market had expected the power plant to win, after the High Court found in its favour last month and told the Government to award it a state subsidy for converting one of its coal-fired units to burning biomass. But the overturning of that decision yesterday pushed the shares down more than 8 per cent, or 58.5p, to 651.5p. The Yorkshire-based energy company was the worst faller on the mid-tier table.
The wider market was still in the red and fell 38.79 to 6,597.37.
Mike van Dulken, head of research at Accendo Markets, said: “The combined weight of geopolitical uncertainty and disappointing macro data – especially from Germany, the supposed eurozone powerhouse – is keeping a lid on any further advances.”
The worst faller on the benchmark index was a bottling business. Coca-Cola HBC, the second-largest bottler for the Coca-Cola Company and its brands, revealed that second-quarter net profits were 6 per cent up on a year earlier. But it warned that the “escalation of the geopolitical situation in Russia and Ukraine has affected consumer spending” and put trading at risk, and added that “unemployment levels remain high and disposable income is still constrained” in many of the regions where it operates. It tumbled 73p to 1,302p.
At the other end of the table, ARM Holdings rose 19p to 870.5p on a rumour about a new deal with Apple. Trustnet Direct’s market analyst, Tony Cross, said: “ARM has had a decent session, with some talk across the tech press that Apple could be plotting a move to replace Intel chips with those made by ARM in its new kit from 2016 onwards.
The software group Sage was also popular and it lifted 11.4p to 382.1p.
Shoppers snapping up cheap birthday cards helped Card Factory to post strong sales growth and deliver a 5p share price rise to 210p. But the shares are still below its May float price of 225p. It is one of a raft of companies that have listed this year but are still to make it past their offer price.
- 1 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 2 Have sex with your iPad thanks to the new sex toy no-one asked for
- 3 The 'sex selfie stick' lets you FaceTime the inside of a vagina
- 4 Adam Levine's biggest fan had a panic attack upon meeting him, so the singer laid down on the floor to get a photo with him
- 5 Why you're almost certainly more like your father than your mother
Out-of-touch MPs ‘don’t get it’, says ex-Civil Service chief
Mark Zuckerberg: Facebook CEO's one simple test for who to hire
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...