Market Report: Traders were not willing to place bets and the market flatlined

 

The rights and wrongs of a rights issue for Standard Chartered were up for discussion in the City yesterday and some investors didn’t wait for the answer.

Last week The Independent revealed that the bank’s board is in disagreement about whether it needs a rights issue and yesterday analysts called time on the stock.

The bank lost 17p to 1,314p as Canaccord Genuity’s experts rated it a sell and admitted that unless its operating performance rebounds “the probability of an equity issue will grow”. Canaccord declared a rights issue could be problematic because the previous $5.2bn (£3.2bn) issue in 2010 was placed at 1,280p, with an ex-rights price of more than 1,800p – since then it has underperformed by over 25 per cent. Credit Suisse’s experts weren’t fans either and gave it a 1,250p target price.

Also in focus was bank HSBC which was said to be considering spinning off its UK arm and it edged back 1.6p to 657.7p.

The FTSE 100 ticked up just 7.49 points to 6551.99 as traders were not willing to place bets and the market flatlined.

Bottom of the blue chip index was African-focused explorer Tullow Oil after it disappointed with news of no oil at a “wild cat” well in Ethiopia and it declined 30p to 869.5p.

The FTSE is getting ready for its quarterly reshuffle tomorrow. Royal Mail should be taking a place in the blue chip index and added 2.5p to 597p while miner Vedanta Resources is expected to be demoted to the FTSE 250 and it lost 23p to 821.5p.

Mid-tier listed engineer Kentz is to buy Valerus Field Solutions in a $435m deal and it soared 75.5p to 657.5p – an all-time high.

Kazakhmys sold its remaining stake in Kazakhstan’s biggest power station for $1.3bn, as it announced costs at its copper mine had risen. It lost 8.2p to 209.55p.

Gulf Keystone Petroleum jetted 10.75p to 175p after Excalibur Ventures said it will not appeal September’s court ruling (over exploration rights in Kurdistan) and it agreed to pay £17.5m for legal costs.

Positive data for Scancell, the cancer specialist, helped it up 7.125p to 37.625p.

Start your day with The Independent, sign up for daily news emails
Voices
voices
News
general electionThis quiz matches undecided voters with the best party for them
Arts and Entertainment
Keira Knightley and Matthew Macfadyen starred in the big screen adaptation of Austen's novel in 2005
tvStar says studios are forcing actors to get buff for period roles
News
Prince William and his wife Catherine, Duchess of Cambridge show their newly-born daughter, their second child, to the media outside the Lindo Wing at St Mary's Hospital in central London, on 2 May 2015.
news
ebooks
ebooksA celebration of British elections
  • 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: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

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...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'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
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