Market Report: US profit warning fallout hits Aggreko

Woe on Wall Street was causing sorrow in the Square Mile yesterday. In the wake of a number of profit warnings from the US, where the latest results season has just begun, Aggreko was one of the stocks to be hit on the read-across.

The temporary power supplier – which is tasked with providing emergency energy for the Olympics – was knocked back following a profits warning from a major supplier. Cummins, an Indiana-based maker of engines, slashed its sales expectations late on Tuesday and blamed a drop in demand, including for its power-generation equipment.

The announcement prompted punters in Aggreko to pull out, leaving the company 89p weaker at 1,993p.

With Cummins also announcing that demand from the truck industry for its products had dipped, Johnson Matthey – which makes catalytic converters for vehicles – was another left weaker by the update, dropping 64p to 2,103p.

In addition, the speciality chemical company was hurt by UBS's Thomas Gilbert downgrading his rating to "neutral" in the wake of the stock's recent strong run.

Despite the bad news from across the Atlantic, the FTSE 100 still managed to recover after spending much of the trading session in the red to creep up ever so slightly, closing a mere 0.41 points higher at 5,664.48.

While the fall-out of the Libor scandal has seen Barclays' and Royal Bank of Scotland's share prices dive, Lloyds has so far been relatively unmoved.

Yesterday, however, Liberum Capital's Cormac Leech warned investors they were "too sanguine regarding Lloyds' potential exposure", and argued that the idea the bank was protected because its interest rate derivative trading book was smaller than those of Barclays and RBS was "mistaken".

Saying his forecasts assumed an impact of £1.5bn for Lloyds, he changed his "buy" rating to "sell", while also warning about the impact of a worsening economic climate in the UK and the eurozone. The bank ended up sliding back 0.29p to 30.45p, while Barclays and RBS dipped 2.35p to 164.65p and 0.3p to 207.9p.

Despite analysts at JP Morgan Cazenove warning that Arm Holdings was one of a number of stocks in the semi-conductor sector "at risk of lowering guidance", the chip designer still managed to tick up 7.5p to 488p, having shed nearly eight per cent over the past three sessions.

Meanwhile, GlaxoSmithKline ticked up 11p to 1,465p following the news that a new AIDs drug it is developing together with Japan's Shionogi had performed better in a study than the current best-seller.

At the other end of the benchmark index, Polymetal International slumped 43p to 834p after being told by Russia's supreme arbitration court to stump up $27m (£17.3m) in taxes and fees over the pricing of silver contracts.

Even though Merchant Securities' Roger Phillips was claiming that the software group could become a "potential target" if the growth plans of its chief executive, Guy Berruyer, fails, Sage finished the day unmoved at 282.7p.

The scribe added that he "would not be surprised ultimately to see a resumption of interest in Micro Focus", but the mid-tier company slipped back 4p to 542p after UBS removed its "buy" recommendation following an analyst and investor day.

The real shocker was Britvic which plummeted 40.1p to 260.1p following its admission that the recall of its Fruit Shoot drinks will now end up costing it as much as £25m.

Having seen its share price dive earlier in the week thanks to further fears over the political situation in Egypt, Centamin rose 0.7p to 69.1p on the news that chief executive Josef El-Raghy had taken advantage of the stock's fall. The gold digger's boss snapped up half a million shares at 69.62p-a-pop, costing him almost £350,000.

Another company being helped by director buying was San Leon. The Aim-listed energy explorer spurted up 0.33p to 9.94p after announcing that its exploration director, John Buggenhagen, had spent almost £50,000 on shares.

Elsewhere among the drillers, Gulf Keystone Petroleum was pegged back 2.25p to 206.75p despite HSBC changing its opinion on the punters' favourite to "overweight".

Start your day with The Independent, sign up for daily news emails
Barn owls are among species that could be affected
charity appeal
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas