Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FTSE 100 ticks up; Rothschild quits Bumi

FTSE 100 ticks up; Rothschild quits Bumi

Britain’s markets rose following overnight gains in Asia and the US as risk appetite increased amid stronger US economic data.

The FTSE 100 opened up 0.43%, or 25 points, to 5,830 and the Mid-250 index took on 0.39%, or 46 points, to 11,901.

The Financial Times reports that Spain is preparing a bailout request. However, the country has not yet formally applied for a rescue package, which would see the European Central Bank (ECB) buy its sovereign bonds, and is waiting for a solution to minimise the impact of a request on other eurozone countries teetering on the brink of a bailout request, such as Italy.

The yield on benchmark 10-year Spanish bonds narrowed seven basis points to 5.795% in Tuesday morning trade.

Other stock markets in Europe also made gains: Germany’s DAX index added 0.61% to 7,305, France's CAC 40 index gained 0.56% to 3,440, and the FTSEurofirst 300 index of top European shares rose 0.45% to 1,103.

Oil prices rose as the European Union placed sanctions on 30 Iranian oil and gas companies in an effort to curb the country’s ability to fund its nuclear development programme.

Brent crude for delivery next month added 0.14% to $115.96 per barrel and West Texas Intermediate crude for delivery next month increased 0.1% to $91.94.

Bumi falls on Rothschild exit

Coal miner Bumi (BUMI.L) shed 8.5p, or 3.5%, to 232p as co-founder Nat Rothschild quit the board of the company after a row with the Bakrie family, who control the business.

Rothschild accused the company's chairman, Samrin Tan, of being ‘complicit’ in oppressing minority shareholders as the Bakrie family made moves to exit the company.

Carpetright (CATUV.L) shed 4.5p, or 0.64%, to 695p despite posting a small increase in second-quarter sales as a result of revamped stores and better laminates sales.

Car and plane parts maker GKN (GKN.L) sank to the bottom of the FTSE 100, down 3.2p, or 1.5%, to 209p as a weak automotive market in Europe held back third-quarter profits.

Lloyds (LLOY.L) added 0.65p, or 1.6%, to 41p on news it will be able to bolster its finances in a deal with Scottish Widows. The bank will borrow more than £1 billion of liquid assets from Scottish Widows' insurance arm, using lower quality securities to boost its cash holdings.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter