Market Report: ENRC back in favour after terrible year

 

Admirers of miners with corporate governance issues have been thin on the ground, but today analysts and investors started to appreciate Eurasian Natural Resources Corporation's attributes. ENRC was certainly out of favour last year. Its shares declined more than 50 per cent during 2012, and even last month Goldman Sachs scribblers cut their buy rating to hold.

But today Credit Suisse's mining specialists outed themselves as fans of the Kazakhstan and African-focused digger. They claim its "downside risks" are limited. Why? They think it will move on from development to the actual production of its assets, and may even start to sell some of its smaller projects.

They now rate the shares outperform, up from neutral. The share price followed suit, and was the biggest riser on the benchmark index, up 11.4p to 334p. Credit Suisse gives the shares a price target of 400p, up from 350p, and added that the "growth delivery" could even see the shares rise to around 500p.

A blue-chip mover is always accompanied by gossip, and today some traders speculated that ENRC's shareholders could be thinking of splitting or buying out the company. Last year there were rumours that the miner could split its African holdings from its Kazakh assets. This time around vague chat suggested that the founding shareholders could be assessing their holdings, while the fellow FTSE 100-listed miner and 26 per cent owner Kazakhmys is also said to be weighing up its options. But most traders dismissed the vague bid babble as way off the mark, for now.

Kazakhmys, in which the government of Kazakhstan has a 26 per cent stake, was itself out of favour. Analysts at Barclays rated it underweight and the shares fell to the bottom of the blue-chip index, down 23p to 785.5p.

Traders with an eye for fashion speculated that the British luxury brand Burberry could produce a better than expected third-quarter update today. The shares, which suffered at the hands of profit warnings last autumn, strutted up 20p to 1,325p.

Banks were still in favour with investors, even after last week's steady gains prompted by the relaxation of the Basel III liquidity rules. Lloyds Banking Group was already 2012's best performer, and it jumped more than 8 per cent last week. An earnings forecast upgrade from analysts at Redburn accompanied another 0.88p rise to 54.92p today.

The top-flight index continued last week's rise during morning trade, but worse than expected news from company updates in the US toppled investor sentiment by the afternoon. In the US Apple shares were one of the big fallers when it emerged that there was reduced demand for its iPhone 5. With sentiment weakened the FTSE 100 ended off 13.72 points to 6,107.86.

The software group Sage was one of the losers on the blue-chip index after analysts at Barclays cut their rating to sell, from hold. The shares lost 3.6p to 310p.

The telecom group Cable & Wireless edged down 1.68p to 40p on the mid-cap index after it confirmed it had sold 51 per cent of its Macau operation to Chinese state-owned Citic Telecom.

Competition regulators postponed their decision on the proposed merger of the fizzy drink firms AG Barr and Britvic. The groups said they expected the Office of Fair Trading to make a decision next month. AG Barr trickled down 5.3p to 490p and Britvic gurgled down 1.1p to 413.1p.

News of a strong Christmas helped shares in Moss Bros to a five-year high. The men's suit and formalwear retailer said it expected annual profits to "exceed" market expectations, and analysts upgraded their profit forecasts to £2m for the current year. The shares lifted 4.5p to 71p.

The serial entrepreneur and resources specialist Algy Cluff's fifth company, Cluff Natural Resources, soared 0.75p to 4.38p on AIM after winning two licences for Underground Coal Gasification in the Loughor estuary in Wales and the Dee estuary in Merseyside. He thinks the UK could avoid the controversial use of fracking – hydraulic fracturing to produce energy for the UK. The licences have been awarded by the UK Department of Energy & Climate Change, and Mr Cluff will now apply to develop the sites, which he said have the "potential to do much to address the UK's future energy needs".

Also on AIM, Afferro Mining said an exclusivity period with International Mining and Infrastructure Corporation has ended. It said talks will continue, but it will also entertain discussions with other potential bidders. Its shares lost 6.25p to 93.5p.

Buy: JD Sports

Snap up shares in JD Sports, Seymour Pierce urges. The broker says that the sportswear retailer's shares "are currently the lowest rated in our universe" and that "the potential for restructuring has been overlooked". It even thinks an "opportunistic bid from majority owner, Pentland" could be on the cards and any drag caused by its Blacks business "is fully discounted". It gives a target price of 1,000p for shares presently at 720p.

Sell: TUI TRAVEL

Panmure Gordon has Tui Travel in its sights and advises dumping its shares. It says that the travel agent's "current trading is strong" but adds that it is still able to detect "headwinds in continental Europe. The company's shares at present are 282.3p but Panmure gives a target of 245p.

Hold: RENTOKIL

Hang on to shares in Rentokil, says Investec. The broker feels that, "after a prolific share run" last year the pest controller is now "poised for investor scrutiny". It says the company's parcel business, City Link, "continues to disappoint", but the core business "has recovered its organic poise". Shares are 91.3p; Investec gives a target of 94p.

Suggested Topics
Sport
Mourinho lost his temper as well as the match
sportLiverpool handed title boost as Sunderland smash manager’s 77-game home league run
Voices
Sweet tweet: Victoria Beckham’s selfie, taken on her 40th birthday on Thursday
voices... and her career-long attack on the absurd criteria by which we define our 'betters', by Ellen E Jones
Arts & Entertainment
Billie Jean King, who won the women’s Wimbledon title in 1967, when the first colour pictures were broadcast
tv
News
Snow has no plans to step back or reduce his workload
mediaIt's 25 years since Jon Snow first presented Channel 4 News, and his drive shows no sign of diminishing
VIDEO
Life & Style
food + drinkWhat’s not to like?
Voices
Clock off: France has had a 35‑hour working week since 1999
voicesThere's no truth to a law banning work emails after 6pm, but that didn’t stop media hysteria
Arts & Entertainment
Maisie Williams of Game of Thrones now
tvMajor roles that grow with their child actors are helping them to steal the show on TV
Life & Style
Lana Del Rey, Alexa Chung and Cara Delevingne each carry their signature bag
fashionMulberry's decision to go for the super-rich backfired dramatically
Arts & Entertainment
Kingdom Tower
architecture
Life & Style
Sampling wine in Turin
food + drink...and abstaining may be worse than drinking too much, says scientist
Arts & Entertainment
Game of Thrones writer George R.R. Martin has been working on the novels since the mid-Nineties
books
News
Easter a dangerous time for dogs
these are the new ones. Old ones are below them... news
News
Brand said he
people
Voices
Actor Zac Efron
voicesTopless men? It's as bad as Page 3, says Howard Jacobson
Sport
Roger Federer celebrates his victory over Novak Djokovic in the Monte Carlo Masters
sport
Arts & Entertainment
The monster rears its head as it roars into the sky
film
Voices
For the Love of God (2007) The diamond-encrusted skull that divided the art world failed to sell for
its $100m asking price. It was eventually bought by a consortium
which included the artist himself.
voicesYou can shove it, Mr Webb – I'll be having fun until the day I die, says Janet Street-Porter
Have you tried new the Independent Digital Edition iPad app?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

1st Line Helpdesk Engineer Apprentice

£150.00 per week: QA Apprenticeships: This company has been providing on site ...

Telesales & Sales Support Apprentice

£221.25 per week: QA Apprenticeships: This company is a well established Inter...

Client Relationship Manager - SQL, Python

£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...

**Financial Services Tax**

£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...

Day In a Page

How I brokered a peace deal with Robert Mugabe: Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC

How I brokered a peace deal with Robert Mugabe

Roy Agyemang reveals the delicate diplomacy needed to get Zimbabwe’s President to sit down with the BBC
Video of British Muslims dancing to Pharrell Williams's hit Happy attacked as 'sinful'

British Muslims's Happy video attacked as 'sinful'

The four-minute clip by Honesty Policy has had more than 300,000 hits on YouTube
Church of England-raised Michael Williams describes the unexpected joys in learning about his family's Jewish faith

Michael Williams: Do as I do, not as I pray

Church of England-raised Williams describes the unexpected joys in learning about his family's Jewish faith
A History of the First World War in 100 moments: A visit to the Front Line by the Prime Minister's wife

A History of the First World War in 100 moments

A visit to the Front Line by the Prime Minister's wife
Comedian Jenny Collier: 'Sexism I experienced on stand-up circuit should be extinct'

Jenny Collier: 'Sexism on stand-up circuit should be extinct'

The comedian's appearance at a show on the eve of International Women's Day was cancelled because they had "too many women" on the bill
Cannes Film Festival: Ken Loach and Mike Leigh to fight it out for the Palme d'Or

Cannes Film Festival

Ken Loach and Mike Leigh to fight it out for the Palme d'Or
The concept album makes surprise top ten return with neolithic opus from Jethro Tull's Ian Anderson

The concept album makes surprise top ten return

Neolithic opus from Jethro Tull's Ian Anderson is unexpected success
Lichen is the surprise new ingredient on fine-dining menus, thanks to our love of Scandinavian and Indian cuisines

Lichen is surprise new ingredient on fine-dining menus

Emily Jupp discovers how it can give a unique, smoky flavour to our cooking
10 best baking books

10 best baking books

Planning a spot of baking this bank holiday weekend? From old favourites to new releases, here’s ten cookbooks for you
Jury still out on Manchester City boss Manuel Pellegrini

Jury still out on Pellegrini

Draw with Sunderland raises questions over Manchester City manager's ability to motivate and unify his players
Ben Stokes: 'Punching lockers isn't way forward'

Ben Stokes: 'Punching lockers isn't way forward'

The all-rounder has been hailed as future star after Ashes debut but incident in Caribbean added to doubts about discipline. Jon Culley meets a man looking to control his emotions
Mark Johnston: First £1 million jackpot spurs him on

Mark Johnston: First £1 million jackpot spurs him on

The most prize money ever at an All-Weather race day is up for grabs at Lingfield on Friday, and the record-breaking trainer tells Jon Freeman how times have changed
Ricky Gervais: 'People are waiting for me to fail. If you think it's awful, then just don't watch it'

Ricky Gervais: 'People are waiting for me to fail'

As the second series of his divisive sitcom 'Derek' hits screens, the comedian tells James Rampton why he'll never bow to the critics who habitually circle his work
Mad Men series 7, TV review: The suits are still sharp, but Don Draper has lost his edge

Mad Men returns for a final fling

The suits are still sharp, but Don Draper has lost his edge
Google finds a lift into space will never get off the ground as there is no material strong enough for a cable from Earth into orbit

Google finds a lift into space will never get off the ground

Technology giant’s scientists say there is no material strong enough for a cable from Earth into orbit