Market Report: RBC warning ruins Roman’s holiday

 

Manny Roman was having a good August until a warning from analysts at RBC Capital yesterday sent shares in the hedge fund he runs south again. The City had started to think that Mr Roman, the chief executive of Man Group, had got the struggling money manager to turn a corner.

At its recent first-half results, it reported the rate of funds leaving its fund had slowed and pre-tax profit came in at £122m, compared with a £163m loss last year. The shares jumped 18 per cent at the time. But scribblers at RBC yesterday reiterated their sell rating and said: “While net outflows slowed … they are still ongoing” and the business remains “in decline and is currently a story of cost-cutting”.

RBC is concerned that “cost cuts are necessary to offset a declining top line” and they warned that the stock is really only suited “for those with the ability to trade quickly”.

Man stumbled towards the bottom of the mid-cap index on RBC’s sell advice and the shares declined 3.8p to 88.65p. RBC said the share price is related to performance and a return to net inflows, so if “neither of these materialises” the shares will be worth 70p, “nearly 25 per cent below current levels”.

Across the wider market, disappointing Japanese GDP figures dented the FTSE 100 and it lost 9.05 points to 6,574.34. But the market was waiting for further macro data later this week.

Cevian – the investment firm whose UK arm is chaired by Lord Myners, the former government minister for UK financial services – emerged as having a 5.11 per cent stake in security giant G4S. This comes in the wake of June’s revelation that the Bill & Melinda Gates Foundation has a 3.2 per cent stake.

G4S has faced a series of problems since its Olympic Games security fiasco last year. The group started yesterday’s session in the red but after Cevian’s interest was confirmed it rose 8.6p to 244.1p.

There’s still a long way to go for the stock, however, and it remains more than 20 per cent lower than at the beginning of May.

Close to the top of the blue-chip table was Prudential. The insurer was boosted by good results at its Asian business and a 22 per cent surge in operating profits. It climbed a respectable 48p to 1,232p.

Punters took profit on some airline stocks after they recorded all-time highs earlier this month. IAG plunged 11.3p to 312.2p.

The boss of Experian sold shares in the credit-checking agency worth £1.2m. Don Robert sold 100,000 shares at 1,218.28p each last week, leaving him with 1.39 million shares in the Dublin-based group. Experian was 7p worse off at 1,216p.

Genel Energy, the oil explorer backed by Nat Rothschild and Tony Hayward, passed its 2011 float price of 1,000p during the day when it announced it had bought a 40 per cent stake in Ethiopia’s Adigala block from private group New Age. It jetted up 7.5p and finished the day level with its float price at 1,000p.

Ted Baker appeared out of fashion with the City yesterday and was bottom of the mid-cap index, down 86p to 1,825p.

Highland Gold Mining, a Russian gold producer partly owned by the oligarch Roman Abramovich, said it is on track to meet its full-year production target and was 5p brighter at 73p.

Top Level Domain Holdings said it would bid in a private auction for four internet domain names and it advanced 0.125p to 5.75p.

The tumbling gold price, fewer people flogging their gold jewellery and regulatory pressures hit the small-cap pawnbroker H&T. The group slashed its dividend and its shares fell more than 22 per cent – to their lowest level since 2006, down 38.5p to 132p.

Monitise has agreed a deal with Canada’s Desjardins for mobile payments and moved up 1.25p to 40.75p.

The technology expert BATM Advanced Communications revealed strong revenues and improved margins. The company said it was on track for good growth for the full year and it was 0.75p healthier at 15.375p. 

Zhongrun International Mining has invested in AIM-listed Vatukoula Gold Mines and Vatukoula shone 2.5p higher to 9.5p. The AIM-listed miner Firestone Diamonds appointed former De Beers veteran Stuart Brown. He is joining Firestone as executive director and will be chief executive when Tim Wilkes stands down at the end of November.Shares were flat at 2.5p.

Buy

Moneysupermarket.com

Snap up shares in Moneysupermarket.com, Jefferies suggests.  The broker thinks “better communication could have perhaps swerved” the bumps in the road for the comparison website recently. It says Moneysupermarket “should do better with communication; dare I say, hire an IR! [investor relations]” but rates it a buy with a 248p price target for shares that are 178.2p.

Sell

Laird

Flog shares in electronics group Laird, Investec advises. The broker said the timing and volumes of new products will be dictated by “customers and end user demand” but the strong share price recovery means Investec rates it a sell – although it raise its price target to 180p for shares that are 212.9p.

Hold

Capita

Hang on to Capita, Citi says . The broker has cut its rating to neutral because it does not see any reason for the share price to improve in the near term. Citi says it likes the UK outsourcing sub-sector but currently prefers Serco over Capita on valuation grounds. It raised the target price to 1,075p for shares that are 1,008p.

Start your day with The Independent, sign up for daily news emails
  • 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

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

'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
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
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
'Queer saint' Peter Watson left his mark on British culture by bankrolling artworld giants

'Queer saint' who bankrolled artworld giants

British culture owes a huge debt to Peter Watson, says Michael Prodger
Pushkin Prizes: Unusual exchange programme aims to bring countries together through culture

Pushkin Prizes brings countries together

Ten Scottish schoolchildren and their Russian peers attended a creative writing workshop in the Highlands this week
14 best kids' hoodies

14 best kids' hoodies

Don't get caught out by that wind on the beach. Zip them up in a lightweight top to see them through summer to autumn
Robert Fisk in Abu Dhabi: The acceptable face of the Emirates

The acceptable face of the Emirates

Has Abu Dhabi found a way to blend petrodollars with principles, asks Robert Fisk