Market Report: Evraz echoes out-of-form Chelsea as Roman suffers

His Chelsea team has not exactly been at the top of its game recently, and yesterday another of Roman Abramovich's investments found itself under pressure. Evraz – the steelmaker which is part-owned by the Russian oligarch – was on the slide amid fears a lack of short-term demand for the metal will blow the whistle on its recent rally.

The group's share price has powered up around 25 per cent since becoming one of the first Russian firms to join the Footsie last November, but last night it closed in the red after Austria's Raiffeisen downgraded its rating to "hold".

Citing a rise in steel inventory levels, the broker's analyst, Iryna Trygub-Kainz, warned that the recent uptick in the metal's price had already been "priced in by the market" and – with another major increase not expected until the spring – Evraz "may have exhausted its potential to continue outperforming the stock market".

In response, the company was knocked back to a low of 428p during trading, although with Ms Trygub-Kainz saying she remained positive on its "development potential" long-term, Evraz ended up closing just 3p worse off at 442p.

In early trading the heavyweight miners attempted to rally, but many of them were unable to hold on to their gains. Kazakhmys was the best of the bunch, creeping up 5p to 1,165p, while BHP Billiton retreated 50p to 2,130p after announcing its first-half profits had dropped 7 per cent to $9.94bn (£6.27bn).

Still, following the recent deal to merge Glencore (down 8.8p to 434.45p) and Xstrata (down 2p to 1,198p), BHP boss Marius Kloppers did raise hopes of further M&A in the sector by saying there was "some capacity" on its balance sheet.

Meanwhile, market gossips were reviving vague speculation that Kenmare Resources could be a possible takeover target, with Rio Tinto (up 4p to 3,873.5p) one of the names put forward as a possible bidder, although – with City voices unimpressed by the rumours – the mid-tier Irish digger only ticked up 0.75p to 50.25p.

It was the same old story on the FTSE 100, as – without any news from Greece by the end of trading – the benchmark index eased down 14.33 points to 5,875.93, its third straight day of falls.

"No-one is interested until Greece is sorted," said one trader, summing up the mood after another quiet session in the Square Mile.

Despite Citigroup saying that analysis of other financial crises showed the bank's rally would continue, only Lloyds ended up rising. It was lifted 0.52p to 35.79p while Barclays was pegged back 3.2p to 233.6p ahead of its full-year results tomorrow.

The news that one of its significant shareholders is getting rid of its whole stake left Centrica 8.2p worse off at 294.5p. Malaysia's Petroliam Nasional Berhad is selling almost 200m shares in the British Gas-owner, which could net it as much as £594m.

On the FTSE 250, takeover rumours continued to push Inmarsat higher in early trading as the satellite telecoms firm advanced to a high of nearly 480p. Revived speculation earlier in the week suggested it may be in line for an approach, with US giant GE, private equity and Airbus-owner EADS all cited as possible bidders.

Reports that Inmarsat had not received any approaches took some of the shine off the move, but with Bank of America Merrill Lynch saying a move "could... make sense", its shares still finished 18p better off at 455.2p.

Misys was knocked back 8.46 per cent to 298.5p after Panmure Gordon cut its advice to "hold" following the software firm's announcement late on Tuesday that it had agreed several key terms with rival Temenos over their proposed merger.

It meant hopes that a rival aggressor could emerge with a cash offer looked rather optimistic, with the broker's analyst, George O'Connor, saying that the merger will now occur "on an accelerated basis... making a counterbid less likely".

SuperGroup was the clear loser on the mid-tier index, slumping a huge 17.21 per cent to 579.5p, after the fashion chain revealed a slowdown in sales growth over January.

TV production company DCD Media – whose shows include Bridezillas – was soaring as fellow AIM stock Timeweave (1.88p higher at 25.12p) announced it was snapping up a large portion of its convertible debt. The purchase of over £3m-worth of convertible loan notes saw DCD's share more than double, flying up by 126.28 per cent to 7.75p. It also prompted the group to release a statement saying it would meet with the horse racing broadcaster to "understand better [its] rationale and intentions in making this investment".

Bango jumped 39.59 per cent to 137.5p after the payment services firm announced it had signed a deal with Facebook, which comes in the wake of an agreement with Amazon reached at the end of last year.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA celebration of British elections
  • Get to the point
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

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living
Increasing numbers of homeless people in America keep their mobile phones on the streets

Homeless people keep mobile phones

A homeless person with a smartphone is a common sight in the US. And that's creating a network where the 'hobo' community can share information - and fight stigma - like never before