Market Report: Fresnillo left with a free float dilemma

How will punters be able to get their hands on shares in the world's largest silver producer? Mexico's Fresnillo was discussing just that today. The miner is one of a handful of groups on the benchmark index facing a ticking clock – the deadline for their free float to reach 25 per cent is the end of the year.

Fresnillo reported a 24 per cent drop in pre-tax profit, but the City was interested in its plans to let other investors get their hands on the stock.

FTSE Group changed the rules for free floats for companies listing in London in 2011. Now all groups must have at least 25 per cent of their shares publicly available and five commodities groups – ENRC, Essar Energy, Evraz, Ferrexpo and Fresnillo – were given 24 months from 1 January 2012 to comply.

Fresnillo said it is considering two options to manage the change. Its largest shareholder, Mexico's Industrias Penoles, which owns 77.14 per cent, could sell down some of its stake. But due to a huge tax bill the more likely option could be a rights issue to raise funds for new projects – funds of around £229m could be raised if it pursued this option. Currently 22.8 per cent of the group is publicly available. Following its update and the hit from falling silver prices the shares dipped 9p to 1,481p.

Kazakhstan's copper giant Kazakhmys, a perennial faller, topped the benchmark index with its first rise in five days and the shares added 31.5p to 552p. Kazakhmys is the single largest investor in fellow miner ENRC with 26 per cent. ENRC, up 0.1p to 346.1p, will release its full-year results next week.

The benchmark index failed to fall despite expectations that profit takers would push it back after its recent rally.

UK manufacturing data for January disappointed but the FTSE 100 still managed to add 6.99 points to 6,510.62, a five-year-plus high.

Fashion followers at Société Générale took a look at the luxury goods sector and rated it overweight, but said slower top line growth and flat margins have produced more "risk and less upside".

London Fashion Week darling Burberry was issued with a hold rating. SocGen said it expected Burberry to deliver "above sector revenue growth over the coming three years" but its management is now "facing new obstacles and challenges". Burberry's shares were static at 1,433p.

Property giant British Land raised cash to fund new purchases and placed 90 million new shares representing 9.9 per cent of British Land's existing share capital at 550p a share. The shares finished the day down 25.5p to 555p.

Over on the mid-tier FTSE 250 index, translation software group SDL disappointed investors with a 19 per cent fall in profits. The shares dipped 55.1p to 444p, taking the wooden spoon.

The return of winter may herald a rush of holiday bookings, and punters warmed up travel group Thomas Cook's share price ahead of its City update today. The City is expecting the holiday group's management, led by chief executive Harriet Green, to be bullish at its Capital Markets Day and the shares travelled up 4p to 87p.

Despite the City's keenness on the stock, Bank of America Merrill Lynch scribblers said they prefer rival TUI Travel. They rate it a buy with a 355p price target and the shares journeyed up 9.2p to 320.3p.

After the market closed Royal Bank of Scotland said it plans to sell a part of its stake in motor insurer Direct Line Group through an offering of 229.4 million Direct Line shares. Direct Line shares closed down 0.1p to 210.2p and RBS added 5p to 306.3p.

Gem Diamonds' shares lost their sparkle, down 5p to 158p, after revealing a 61 per cent fall in revenues caused by weak diamond prices. But analysts at Liberum Capital said the outlook for the group is better for 2013.

AIM-listed explorer Berkeley Mineral Resources was one step closer to production and its shares ticked up 0.12p to 2.55p.

US-focused oil and gas producer Nostra Terra will today announce a deal to buy a 5 per cent working interest in a field in Texas. The shares edged down 0.01p to 0.5p.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Buttoned up: Ryan Reynolds with Helen Mirren in ‘Woman in Gold’
filmFor every box-office smash in his Hollywood career, there's always been a misconceived let-down. Now he says it's time for a reboot
News
people
News
Actress Julianne Moore wins the Best Actress in a Leading Role Award for 'Still Alice' during the 87th Annual Academy Awards in Hollywood, California
people
Sport
Ross Barkley
footballPaul Scholes says it's time for the Everton playmaker to step up and seize the England No 10 shirt
News
'We will fix it': mice in the 1970s children’s programme Bagpuss
science
Life and Style
2 Karl Lagerfeld and Choupette
fashion
ebooks
ebooksA special investigation by Andy McSmith
  • 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: Graduate Recruitment Resourcer

£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...

Recruitment Genius: Telesales Executive - OTE £32,000+

£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Day In a Page

War with Isis: Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria's capital

War with Isis

Iraq declares victory in the battle for Tikrit - but militants make make ominous advances in neighbouring Syria
Scientists develop mechanical spring-loaded leg brace to improve walking

A spring in your step?

Scientists develop mechanical leg brace to help take a load off
Peter Ackroyd on Alfred Hitchcock: How London shaped the director's art and obsessions

Peter Ackroyd on Alfred Hitchcock

Ackroyd has devoted his literary career to chronicling the capital and its characters. He tells John Walsh why he chose the master of suspense as his latest subject
Ryan Reynolds interview: The actor is branching out with Nazi art-theft drama Woman in Gold

Ryan Reynolds branches out in Woman in Gold

For every box-office smash in Ryan Reynolds' Hollywood career, there's always been a misconceived let-down. It's time for a rethink and a reboot, the actor tells James Mottram
Why Robin Williams safeguarded himself against a morbid trend in advertising

Stars safeguard against morbid advertising

As film-makers and advertisers make increasing posthumous use of celebrities' images, some stars are finding new ways of ensuring that they rest in peace
The UK horticulture industry is facing a skills crisis - but Great Dixter aims to change all that

UK horticulture industry facing skills crisis

Great Dixter manor house in East Sussex is encouraging people to work in the industry by offering three scholarships a year to students, as well as generous placements
Hack Circus aims to turn the rule-abiding approach of TED talks on its head

Hack Circus: Technology, art and learning

Hack Circus aims to turn the rule-abiding approach of TED talks on its head. Rhodri Marsden meets mistress of ceremonies Leila Johnston
Sevenoaks is split over much-delayed decision on controversial grammar school annexe

Sevenoaks split over grammar school annexe

If Weald of Kent Grammar School is given the go-ahead for an annexe in leafy Sevenoaks, it will be the first selective state school to open in 50 years
10 best compact cameras

A look through the lens: 10 best compact cameras

If your smartphone won’t quite cut it, it’s time to invest in a new portable gadget
Paul Scholes column: Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now

Paul Scholes column

Ross Barkley played well against Italy but he must build on that. His time to step up and seize that England No 10 shirt is now
Why Michael Carrick is still proving an enigma for England

Why Carrick is still proving an enigma for England

Manchester United's talented midfielder has played international football for almost 14 years yet, frustratingly, has won only 32 caps, says Sam Wallace
Tracey Neville: The netball coach who is just as busy as her brothers, Gary and Phil

Tracey Neville is just as busy as her brothers, Gary and Phil

The former player on how she is finding time to coach both Manchester Thunder in the Superleague and England in this year's World Cup
General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?