Market Report: Gold miners drop some clangers

All that glisters wasn't gold for investors yesterday. Two gold miners, one with a decidedly more boring name than the other, proffered some news to the market, and neither went down very well.

First up was Shanta Gold, down 3.125p at 16.75p after the East Africa-focused goldminer unveiled a placing to raise $30m. The cash, Shanta said, will be used to meet "short term financing requirements" while it ramps up its New Luika mine in Tanzania. The phrase sent alarm bells ringing with investors, and shares in the Aim-listed miner went a-tumbling.

Meanwhile, Polymetal International, the Russian-focused business controlled by entrepreneurs Alexander Nesis and Alexander Mamut, warned it had suffered a delay in launching production at a gold deposit in the Chukotka peninsula in Russia's far east. Polymetal had to cut its forecasts for gold production next year by 100,000 troy ounces, about 8 per cent.

Shares in the company, which joined the benchmark index last year, fell 5p to 1,155p. Still, investors have been enjoying a strong ride: the shares have risen 53 per cent since June, thanks to soaring gold prices.

Elsewhere, Bumi, the miner which saw its co-founder and most famous backer, Nathaniel Rothschild, quit the board amid a row with Indonesia's influential Bakrie family this week, was back in focus. The company said an independent investigation into financial irregularities at its Indonesian operations was ongoing, despite a proposal from the Bakrie family to unwind the business.

"The board will not make any recommendations regarding the [Bakrie] proposals until the investigation is appropriately advanced," Bumi said. The miner's shares ticked up 4.7p to 254p.

In total, the miners added 21 points to the FTSE 100 index, amid hopes that China is about to embark on more stimulus measures to lift its economy, providing a boost for commodities. GDP figures for the country today are expected to show growth slowing to 7.4 per cent in the third quarter.

With no major eurozone worries, decent employment numbers and no other obvious reason for panic, the benchmark FTSE 100 ended up 40.37 points heavier at 5,910.91 – above the 5,900 mark for the first time in a month, despite a string of stocks going ex-dividend. BAE Systems was one of them; down 7.3p at 321.6p. Capital Shopping Centres, Close Brothers and Ted Baker were also trading ex-divi.

BP, up 13p at 448.35p , accounted for nearly a quarter of the Footsie advance as expectations grew it is about to unveil a tie-up with Rosneft as the Russian state oil giant takes over BP's TNK-BP joint venture.

Meanwhile, UBS sent out a Tannoy announcement to Tesco investors: it's not that bad. The supermarket did indeed admit to its first fall in profits for nearly 20 years this month, and yes, a lot of people hate it and sport witty T-shirt slogans such as "Tescopoly". But Tesco is still a massive money-making machine – with scope to return £8bn in buybacks – that investors would do well to check into, UBS analysts said. UBS slapped Tesco with a buy rating – from neutral – and helped to send the shop's shares up 8.4p to 316.3p. Rivals J Sainsbury and Morrison clung on to its momentum, respectively up 1.3p to 357.7p and 1.9p to 269.1p.

Royal Bank of Scotland's announcement that it is coming out of the £282bn state-backed insurance scheme set up when it was bailed out four years ago saw it gain 6.1p to 286.1p. The Footsie's other bailed-out lender, Lloyds Banking Group, which also joined the Asset Protection Scheme before leaving it in late 2009, lost 0.62p to 42.14p.

Elsewhere, a week after RBS successfully floated 30 per cent of its Direct Line insurance unit, analysts were invited to a meeting with management. The biscuits can't have been up to much, because Joy Ferneyhough at Espirito Santo moaned: "The presentation last[ed] 100 minutes and Q&A 15 [minutes] … pretty disappointing given the presentation was 60+ pages of marketing, with very little focus on financials." But Numis's Nick Johnson flagged up the "clear path to profit growth" and shares responded, rising 3.75p to 193p.

The online gambling group 888 was riding high following a positive update. The company expects full-year earnings to beat expectations after a booming third quarter, and analysts rushed to raise their forecasts. Canaccord Genuity's Simon Davies said: "Poker was the star performer". Its shares rose 16.75p to 109p.

Suggested Topics
A model of a Neanderthal man on display at the National Museum of Prehistory in Dordogne, France
Richard Dawkins dedicated his book 'The Greatest Show on Earth' to Josh Timonen
newsThat's Richard Dawkins on babies with Down Syndrome
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
ebooksAn evocation of the conflict through the eyes of those who lived through it
Dinosaurs Unleashed at the Eden Project
Arts and Entertainment
Life and Style
This month marks the 20th anniversary of the first online sale
techDespite a host of other online auction sites and fierce competition from Amazon, eBay is still the most popular e-commerce site in the UK
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

iJobs Job Widget
iJobs Money & Business

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Application Support Engineer (C++, .NET, VB, Perl, Bash, SQL)

Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...

AIFMD Business Analyst / Consultant - Investment Management

£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...

Business Analyst Solvency II SME (Pillar 1, 2 & 3) Insurance

£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home