It’s not all doom and gloom in Russia. The recent collapse of the rouble could be good news for the country’s metal and mining industries, according to Deutsche Bank.
When companies are converting back into the local currency the dollars they’ve made flogging their wares abroad, they’ll get more bang for their buck, the bank said in a note yesterday. That means with more cash to pay their way in Russia, coupled with falling oil prices, profits won’t be squeezed as badly as previously thought by lower metal prices.
The analysis sent Roman Abramovich’s steel company Evraz soaring 10.9p to 129.1p, as Deutsche also hiked its target price from 123p to 164p. But the bank urged a degree of caution, noting that Evraz is “among the most vulnerable to weaker domestic market and premiums outlooks”.
The FTSE 100 continues to chop and change. The index closed broadly flat, up 4.65 points at 6,336.48, but not for lack of activity. Instead, big swings up and down largely cancelled each other out. A revival among oil companies tipped the balance ever so slightly, with Tullow Oil the biggest riser up 13.7p at 395.1p.
Christmas is a week away but the City’s dealmakers are still hard at work. Lloyds of London specialist insurer Catlin confirmed yesterday it has received a takeover approach from XL Group. The offer on the table values Catlin at £2.5bn, equivalent to 699p a share. Catlin rose 63p to 645p.
Investors in Cambridge-based digital printing company Xaar were treated to a rare sight yesterday – a profits upgrade. Share- holders have suffered through three profit warnings this year but the company said a pick-up in demand from China and the completion of its cost-cutting drive means profits for the year are set to be higher than expected. Xaar climbed 35.75p to 299.75p.
Crisis-hit Australian online fashion site MySale, up 3.5p at 69.5p, moved to prop up its share price as it announced chief executive Carl Jackson is looking into buying up to £3m of shares in the business. MySale, backed by Top Shop tycoon Sr Philip Green, has fallen by 60 per cent since the start of the week following a profit warning.Reuse content