Market Report: Kazakhmys quiet on fate of ENRC stake

A 23-page trading update from Kazakhmys contained a mine of information, but the burning question that every City trader wanted to know was left unanswered. What will happen with Kazakhmys's stake in rival miner Eurasian Natural Resources Corporation?

The copper miner Kazakhmys, the single largest investor in ENRC with 26 per cent, said it would write down the value of the holding to close to the market value, implying an impairment of at least $1.5bn. It said that the value dropped to $1.55bn at the end of 2012 from $3.29bn at the end of 2011.

Its chief executive Oleg Novachuk's only comment on the subject was: "We are open to all possible options. As soon as we see an opportunity, we will use it, but currently it is difficult to see what will be the next step."

The Kazakhstan-focused miners have been surrounded by bid rumours for months. Despite a lack of news on the stake sale front, there was plenty of other detail for investors to study.

Kazakhmys's full-year profits dropped by more than 30 per cent to $1.36bn (£899m) because of weak prices and rising costs. Revenues fell 5.9 per cent to $3.35bn as the price of copper declined by 10 per cent over the year.

As expected, billionaire Vladimir Kim – Kazakhstan's richest man – stood down as chairman, and the former London Metal Exchange boss Simon Heale has come on board. But he was welcomed with a tumbling share price. As the biggest fallers in the benchmark index, the shares lost 58p to 619p.

Kazakhmys's decision on the future of its stake is a key issue for the miner, which is seeking to increase its free float to comply with London regulations. ENRC's shares dipped 8.6p to 338.4p.

At the other end of the spectrum, Kazakh's AIM tiddler Sunkar Resources updated the market with a detailed feasibility study on its Chilisai phosphate project in the country and the shares rocketed 9.62p to 13.75p.

Back on the FTSE 100 index, and joining Kazakhmys at the bottom of the table was Royal Bank of Scotland, down 22.9p to 323.9p as its £5.1bn full-year loss was more than analysts expected.

The index managed to hang on to the gains, and added another 34.9 points to 6,360.81.

City scribblers thought National Express was travelling in the right direction after its 2012 results, and the shares journeyed to the top of the mid-cap index, up 24.7p to 220p.

Howden Joinery results were also solid and it raised its dividend to 3p, which accompanied a share-price rise of 23.6p to 214p. Final results at the hedge fund Man Group were ahead of market expectations, but the performance on asset growth is a big worry for investors, and the shares declined 2.7p to 100.3p.

Nigel Wray, chairman of Saracens Rugby Union Club, decided to sell another slice of his shareholding in the pizza maker Domino's. He offloaded 5.6 million shares at 518p, reducing his stake to just under 3 per cent. He sold around £22m of shares last year. Stephen Hemsley, non-executive chairman, disposed of 1.1 million shares. Domino's share price topped up with another 18p to 537p.

Investors continued their demolition job on the small-cap steel contractor Severfield-Rowen's share price as it launched a £48m rights issue. Britain's biggest structural steel group has gone cap-in-hand to shareholders to raise £50m to put it on a firmer footing after a series of contract cost overruns damaged profits.

The contractor has been hit by £20m of cost overruns – British Land's Cheesegrater in Leadenhall Street was one of eight problem contracts that emerged last month when the chief executive Tom Haughey was ousted. But analysts think its £209m order book "remains robust". Jefferies' Andy Douglas rates the group a "hold" with a 107p price target.

Details of the rights issue and its full-year results today sent the share price south, down 3.5p to 68p.

Over on AIM, the cake maker Finsbury Food sold its Free From business to Edinburgh-based Genius Foods, founded in 2009 to specialise in gluten-free baked goods. Finsbury shares packed in a 7.5p rise to 51p.

The AIM tiddler Central Rand Gold completed a positive scoping study on its Crown West mining project, and the South African gold miner's shares glinted up 0.06p to 0.58p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Jeremy Clarkson
Ben Little, right, is a Labour supporter while Jonathan Rogers supports the Green Party
general election 2015
The 91st Hakone Ekiden Qualifier at Showa Kinen Park, Tokyo, 2014
Life and Style
Former helicopter pilot Major Tim Peake will become the first UK astronaut in space for over 20 years
food + drinkNothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
Kim Wilde began gardening in the 1990s when she moved to the countryside
peopleThe singer is leading an appeal for the charity Thrive, which uses the therapy of horticulture
Alexis Sanchez celebrates scoring a second for Arsenal against Reading
Life and Style
An easy-peel potato; Dave Hax has come up with an ingenious method in food preparation
voicesDave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Japan's population is projected to fall dramatically in the next 50 years (Wikimedia)
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

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

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders
Heston Blumenthal to cook up a spice odyssey for British astronaut manning the International Space Station

UK's Major Tum to blast off on a spice odyssey

Nothing but the best for British astronaut as chef Heston Blumenthal cooks up his rations
John Harrison's 'longitude' clock sets new record - 300 years on

‘Longitude’ clock sets new record - 300 years on

Greenwich horologists celebrate as it keeps to within a second of real time over a 100-day test
Fears in the US of being outgunned in the vital propaganda wars by Russia, China - and even Isis - have prompted a rethink on overseas broadcasters

Let the propaganda wars begin - again

'Accurate, objective, comprehensive': that was Voice of America's creed, but now its masters want it to promote US policy, reports Rupert Cornwell
Why Japan's incredible long-distance runners will never win the London Marathon

Japan's incredible long-distance runners

Every year, Japanese long-distance runners post some of the world's fastest times – yet, come next weekend, not a single elite competitor from the country will be at the London Marathon
Why does Tom Drury remain the greatest writer you've never heard of?

Tom Drury: The quiet American

His debut was considered one of the finest novels of the past 50 years, and he is every bit the equal of his contemporaries, Jonathan Franzen, Dave Eggers and David Foster Wallace
You should judge a person by how they peel a potato

You should judge a person by how they peel a potato

Dave Hax's domestic tips are reminiscent of George Orwell's tea routine. The world might need revolution, but we like to sweat the small stuff, says DJ Taylor
Beige is back: The drab car colours of the 1970s are proving popular again

Beige to the future

Flares and flounce are back on catwalks but a revival in ’70s car paintjobs was a stack-heeled step too far – until now
Bill Granger recipes: Our chef's dishes highlight the delicate essence of fresh cheeses

Bill Granger cooks with fresh cheeses

More delicate on the palate, milder, fresh cheeses can also be kinder to the waistline
Aston Villa vs Liverpool: 'This FA Cup run has been wonderful,' says veteran Shay Given

Shay Given: 'This FA Cup run has been wonderful'

The Villa keeper has been overlooked for a long time and has unhappy memories of the national stadium – but he is savouring his chance to play at Wembley
Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own