Market Report: Short squeeze at miner Kazakhmys pushes stock up
Friday 28 February 2014
Restructuring plans and a short squeeze at miner Kazakhmys pushed the stock up nearly 39 per cent yesterday.
The FTSE 250-listed copper miner plans to spin off some of its mines to focus on the most profitable. But hedge funds shorting the stock – borrowing shares and hoping the share price will fall – have been squeezed and the rocketing share price was forced higher by those investors trying to cover their positions. The biggest shareholder, former chairman Vladimir Kim, yesterday said he would personally buy its mature, high-cost deep mines that have been a drag on profitability and Kazakhmys will be left owning only the efficient open cast mines.
Kazakhmys finished the day up 86.6p – or 38.7 per cent – to 310p.
The wider market spent most of the day in the red as traders were concerned with Ukraine. But the FTSE 100 picked up towards the close and finished ahead 11.12 points to 6810.27.
Retail analyst Kate Calvert at Investec maintained her gloomy stance on department store group Debenhams and rated it a sell as this year is forecast to be the fourth "of profit decline". She expects management to come up with a new strategy at its half-year results next month but a focus on "product quality and… fewer promotions" will hit mid-term profit and it eased 0.8p to 73.7p.
Jupiter Fund Management revealed record assets under management of £31.7bn and Numis predicted the move by retail investors into equities – a "structural growth opportunity in the retail savings market" – is an opportunity for Jupiter. It reported a strong 2013 with pre-tax profit up 55 per cent to £114.1m and it jumped more than 7 per cent – up 32p to 434p.
Online electrical retailer AO World surged 33 per cent on its first day of trading but fell back slightly, down 11p to 367p.
Aim-listed pawnbroker H&T Group said pre-tax profit fell 60.6 per cent to £6.7m but the outlook has improved and shares ticked up 4p to 181.5p.
Surveillance specialist Digital Barriers issued a profit warning because of product delays and it tumbled 26.5p to 115p.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...