Market Report: Investors count cost of Lonmin strike

As Lonmin's miners returned to work, investors were counting the costs of the six weeks of bloodshed. A total of 46 lives were lost during the unrest in South Africa's mining belt as poorly paid miners fought for more in their pay packets each month. But shareholders will be more concerned about the cost of the strike to Lonmin's balance sheet and when the company expects to raise fresh cash through a rights issue. Lonmin tumbled 41.0p to 610.5p as the price of platinum began to fall.

A return to work will mean a rise in production, and therefore supply. During the strikes the price of platinum jumped by 20 per cent, but has fallen 5 per cent this week.

Traders following the platinum price fall also sold out of fellow mid-cap miner Aquarius Platinum, which was down 1.75p to 45.0p.

Although workers have returned at Lonmin's Marikana mine, safety checks could mean that it will be two weeks before a return to full-scale production.

The Lonmin pay deal has brought peace, but conflict in the area could return. Anglo American's Amplats is yet to reach agreement with workers at its Rustenberg mines.

Weak manufacturing data from China put the kibosh on the entire mining sector yesterday. They loitered around the bottom of the FTSE 100 and FTSE 250, with copper digger Evraz, down 16.7p to 260.8p, and mid-cap Ukrainian-focused iron ore producer Ferrexpo, down 8.5p to 209.8p.

Data from China showed that private-sector manufacturing fell again in September, confirming fears that demand will continue to fall, as the FTSE 100 index lost 33.84 points to close at 5,854.64.

Liberum Capital's Richard Knights thinks BHP Billiton, down 45.5p to 1954.5p, looks attractive due to its low gearing and the likelihood of excess capital from 2014.

But the red pen was out for the Australian mining giant Rio Tinto and Anglo American. Mr Knights thinks Rio Tinto's cashflow is "impacted by heavy iron ore investment" and it lost 84.5p to close at 3077p. For Anglo, Mr Knights says "swapping copper for diamonds and coal leaves a cashflow void", and it dug up a 90p loss to 1944p.

On a downbeat day for the benchmark index, analysts watching the UK's property stocks have grown tired of a lack of merger activity compared to their European rivals.

Analysts at Société Générale have decided to play matchmaker with Hammerson and Capital Shopping Centres. The latter, which owns the Lakeside and Metro Centre malls, is tapping the bond market to refinance its short-term borrowings, and is said to be a good match for Birmingham's Bullring owner Hammerson as the most obvious combination of the UK real-estate investment trusts. Scribes at Société Générale reckon that the combined pair "would create a clear leader in the UK with 19 of the top 35 shopping centres".

Hammerson built up a 5.7p loss to 453.8p, and Capital Shopping Centres lost 14.2p to 332.4p.

Petards, the Aim-listed security, surveillance and engineering group, has received a bid from Water Hall "that may or may not lead to an offer being made". Water Hall, the waste management group, built up a 29.9 per cent stake in the company in 2010. Shares in Petards blasted up 3.5p, or 12.7 per cent, to 31.0p.

Ghanim al-Saad, Qatar's man behind its investments in London developments The Shard and Chelsea Barracks, has taken on his first board-level position on a listed company. The Qatar Investment Corporation director joins the board of Creon Resources, the Aim-listed oil infrastructure investor. He has a 73 per cent stake in Creon, whose shares edged down 0.05p to 0.7p.

Following the previous day's news from fellow Irish oil explorer Europa Oil & Gas, Aim-listed Petrel Resources has updated the market on its finds from a study. This caused its shares to gush up by 0.75p, or 12.0 per cent, to close at 6.625p.

Finally, as the boards of Xstrata and Glencore met to discuss the potential for a tie-up, Liberum Capital became the latest broker to assume the deal will happen. Xstrata's independent board members have until Monday morning to recommend the improved terms offered by Glencore, but analysts are assuming the deal is all but done.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Books should be for everyone, says Els, 8. Publisher Scholastic now agrees
booksAn eight-year-old saw a pirate book was ‘for boys’ and took on the publishers
Life and Style
Mary Beard received abuse after speaking positively on 'Question Time' about immigrant workers: 'When people say ridiculous, untrue and hurtful things, then I think you should call them out'
tech
Life and Style
Most mail-order brides are thought to come from Thailand, the Philippines and Romania
life
News
i100
Life and Style
tech
Voices
Margaret Thatcher, with her director of publicity Sir Gordon Reece, who helped her and the Tory Party to victory in 1979
voicesThe subject is being celebrated by the V&A museum, triggering some happy memories for former PR man DJ Taylor
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

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Recruitment Genius: Administrator - IFA Based

£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...

Day In a Page

General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence
Public relations as 'art'? Surely not

Confessions of a former PR man

The 'art' of public relations is being celebrated by the V&A museum, triggering some happy memories for DJ Taylor
Bill Granger recipes: Our chef succumbs to his sugar cravings with super-luxurious sweet treats

Bill Granger's luxurious sweet treats

Our chef loves to stop for 30 minutes to catch up on the day's gossip, while nibbling on something sweet
London Marathon 2015: Paula Radcliffe and the mother of all goodbyes

The mother of all goodbyes

Paula Radcliffe's farewell to the London Marathon will be a family affair
Everton vs Manchester United: Steven Naismith demands 'better' if Toffees are to upset the odds against United

Steven Naismith: 'We know we must do better'

The Everton forward explains the reasons behind club's decline this season
Arsenal vs Chelsea: Praise to Arsene Wenger for having the courage of his convictions

Michael Calvin's Last Word

Praise to Wenger for having the courage of his convictions