London close: Aberdeen leads markets to strong finish

29th Apr 2013 16:58

A combination of political developments in the Eurozone, positive US data and optimism about central-bank stimulus lifted markets higher on Monday as stocks extended gains following a strong showing last week.Markets across Europe started today's session strongly after Italy formed a new coalition government at the weekend, removing some of the political uncertainty that has clouded over the country since the inconclusive elections a few months ago. This renewed confidence was reflected in the sovereign debt sale this morning as Italy issued its €6.0bn target in five- and 10-year bonds whilst paying the lowest financing costs since October 2010.Meanwhile, US consumer spending and pending home sales figures this afternoon gave stocks an extra lift with Wall Street benchmarks beginning the week on a positive note.The FTSE 100 jumped 2.2% last week after a raft of disappointing indicators from the Eurozone sparked hopes that the European Central Bank will move to ease monetary policy when it meets on Thursday. The consensus is expecting at least a 25 basis-point reduction in the ECB's key lending rate (the 'refi' rate) from the current record-low level of 0.75%The Federal Reserve is scheduled to convene tomorrow for a two-day meeting and is widely expected to leave its current stimulus measures unchanged given last week's disappointing growth figures. It was revealed on Friday that first-quarter gross domestic product (GDP) in the States expanded by just 2.5%, short of the 3.0% forecast. "The fact that US GDP in 1Q fell short of expectations and the sequester spending cuts are biting in together with the fact that the unemployment rate remains stubbornly high does suggest the Fed is unlikely to consider changing courses on the stimulus programme," said Market Strategist Ishaq Siddiqi from ETX Capital. FTSE 100: Aberdeen leads risersAberdeen Asset Management was the stand-out performer on Monday after it said assets under management increased in the last six months, as risk appetite continued to improve. AuM increased 13% to £212.3bn for six months to March 31st 2013 from the same time a year earlier on the back of a positive market, currency performance and net new business flows. Mining group Fresnillo was another strong riser after announcing plans to issue just over 19.6m shares - equal to around 2.74% of the current shares in the company - in order to meet the FTSE free-float requirements. Sector peers Eurasian Natural Resources Corp and Anglo American were on the rise after Nomura upgraded both from 'reduce' to 'neutral'.Meanwhile, information solutions provider Reed Elsevier was weighing on the market after Citigroup downgraded the stock to 'neutral'. Speciality chemicals firm Croda International fell after UBS reduced its target price from 2,550p to 2,420p, leaving its 'sell' recommendation unchanged highlighting that the stock trades at a 16% premium to the wider sector.Sainsbury shares were hit as the firm had to play down rumours that its Chief Executive Officer Justin King is set to resign. Citigroup was also weighing on the share price today after downgrading the supermarket to 'neutral'.FTSE 250: Balfour Beatty and Greggs slump on gloomy guidanceBalfour Beatty, the infrastructure firm, was the heaviest faller after saying that its UK construction business is expected to deliver "significantly lower profits" from operations in 2013 than its previous expectations. High Street bakery chain Greggs was also declining sharply after saying that profits for the full year would be slightly below the lower end of market forecasts. Adding to its woes, Panmure Gordon cut its estimates for the stock following a profit warning, but maintained its 'buy' rating. UBM was making decent gains after Citigroup raised its target price from 749p to 800p, upgrading the stock to 'buy'. Redrow climbed after Jefferies upped its target price from 200p to 278p, reiterating a 'hold' recommendation. FTSE 100 - RisersAberdeen Asset Management (ADN) 450.50p +8.01%CRH (CRH) 1,416.00p +2.91%London Stock Exchange Group (LSE) 1,343.00p +2.52%Capita (CPI) 907.00p +2.37%Fresnillo (FRES) 1,180.00p +2.34%Schroders (SDR) 2,338.00p +2.23%Eurasian Natural Resources Corp. (ENRC) 274.80p +2.04%Glencore International (GLEN) 325.00p +1.77%BG Group (BG.) 1,083.00p +1.69%Compass Group (CPG) 855.00p +1.60%FTSE 100 - FallersCroda International (CRDA) 2,449.00p -3.01%Polymetal International (POLY) 739.50p -2.31%Reed Elsevier (REL) 761.50p -1.81%BT Group (BT.A) 280.90p -1.71%Evraz (EVR) 158.40p -1.06%Wood Group (John) (WG.) 797.00p -0.99%Prudential (PRU) 1,109.00p -0.98%Tullow Oil (TLW) 1,021.00p -0.97%Aviva (AV.) 308.40p -0.87%ITV (ITV) 127.10p -0.70%FTSE 250 - RisersTed Baker (TED) 1,397.00p +5.83%UBM (UBM) 742.50p +3.99%Galliford Try (GFRD) 995.50p +3.21%Rightmove (RMV) 1,884.00p +3.12%Bellway (BWY) 1,377.00p +2.99%Redrow (RDW) 213.00p +2.95%Dairy Crest Group (DCG) 454.30p +2.60%Kentz Corporation Ltd. (KENZ) 388.10p +2.56%Savills (SVS) 569.50p +2.43%Big Yellow Group (BYG) 407.90p +2.41%FTSE 250 - FallersBalfour Beatty (BBY) 222.90p -9.54%Greggs (GRG) 422.70p -8.61%Carillion (CLLN) 272.70p -5.90%African Barrick Gold (ABG) 182.20p -4.11%Supergroup (SGP) 710.00p -3.60%Debenhams (DEB) 81.45p -2.92%Centamin (DI) (CEY) 41.75p -2.75%COLT Group SA (COLT) 115.00p -2.54%Informa (INF) 478.40p -2.37%Domino's Pizza Group (DOM) 650.00p -2.33%BC