London midday: Stocks erase losses as Russia accepts Crimea vote

18th Mar 2014 12:10

- Stocks jump after Putin comments- Russia to incorporate Crimea- Antofagasta, Sainsbury choppy after results- Resolution sinks sharply as founders step down- ASOS, Speedy Hire plummet after updatestechMARK 2,790.58 -0.20%FTSE 100 6,590.24 +0.33%FTSE 250 16,255.78 -0.26%UK stocks had erased early losses and swung into positive territory by Tuesday lunchtime as investors reacted to comments from Russian President Vladimir Putin.The FTSE 100, which had dropped to an intraday low of 6,535 early on, was trading 0.3% higher at 6,590 by midday.Following Sunday's referendum in Crimea, which saw locals vote overwhelmingly to join the Russian Federation, Putin called for a treaty to accept the accession, defying sanctions imposed by European Union (EU)and US leaders yesterday who labelled the vote as illegal.Putin said that Moscow felt "robbed" when Crimea, historically a Russian region, was "handed over like a sack of potatoes" to Ukraine in 1954. He praised the Crimean voters, saying that the "referendum is of a vital and historical importance", and stressed that the vote was fully in line with international law.Antofagasta and Sainsbury erase early gains, Resolution sinksAfter an earlier rise, copper miner Antofagasta was in the red after missing estimates with its 2013 earnings as results were hampered by depressed metal prices. However, the dividend, although slightly lower than 2012's, came in well ahead of analysts' forecasts.Supermarket chain J Sainsbury was higher but had also came off its highs after a tougher-than-expected fourth quarter which saw like-for-like sales fall 3.8%.Heading the other way was insurance group Resolution, after announcing that two of its founders, Clive Cowdery and John Tiner, are stepping down from the board given that the company has completed its restructuring programme. Resolution, which now intends to change its name to Friends Life Group, reported a big jump in profits for 2013 but left its dividend unchanged.Defence contractor BAE Systems was making gains after RBC Capital Markets lifted its rating on the stock to 'outperform' and raised its target price from 450p to 490p.Cairn Energy fell sharply after widening its annual loss, reflecting unsuccessful exploration costs and the disposal of assets. It also said it is suspending its share buy-back programme.Outside the FTSE 350, online fashion retailer ASOS was a big mover, sinking sharply after saying that sales growth in the first two months of the year slowed more than expected and margins would be dented by increased spend on warehousing and its new Chinese operations.Shares of Speedy Hire also tumbled after the equipment and tool rental firm said adjusted pre-tax profit for the year ending March 31st is now expected to be "in the region of £14.5m". This is down from £16.8m the previous year and well under current consensus estimates for a figure of around £17.8m.FTSE 100 - RisersCoca-Cola HBC AG (CDI) (CCH) 1,522.00p +2.49%G4S (GFS) 241.20p +2.12%ITV (ITV) 201.40p +1.82%Aberdeen Asset Management (ADN) 376.10p +1.79%BAE Systems (BA.) 402.50p +1.51%Barclays (BARC) 234.25p +1.39%Glencore Xstrata (GLEN) 310.70p +1.34%Amec (AMEC) 1,085.00p +1.12%Standard Life (SL.) 366.10p +1.10%Wolseley (WOS) 3,420.00p +1.06%FTSE 100 - FallersResolution Ltd. (RSL) 351.60p -5.76%Fresnillo (FRES) 885.50p -4.22%Randgold Resources Ltd. (RRS) 4,883.00p -1.73%Next (NXT) 6,605.00p -1.64%Antofagasta (ANTO) 838.00p -1.12%Associated British Foods (ABF) 2,809.00p -1.09%Sports Direct International (SPD) 850.00p -0.99%WPP (WPP) 1,213.00p -0.82%Tate & Lyle (TATE) 632.50p -0.71%Vodafone Group (VOD) 224.45p -0.69%FTSE 250 - RisersITE Group (ITE) 227.90p +3.64%Henderson Group (HGG) 244.80p +2.56%Ferrexpo (FXPO) 145.80p +2.46%Evraz (EVR) 56.40p +2.08%Berkeley Group Holdings (The) (BKG) 2,700.00p +1.81%Ashmore Group (ASHM) 304.10p +1.81%Kazakhmys (KAZ) 259.30p +1.65%Electrocomponents (ECM) 266.00p +1.29%IG Group Holdings (IGG) 638.00p +1.27%Grafton Group Units (GFTU) 667.00p +1.21%FTSE 250 - FallersCairn Energy (CNE) 176.40p -10.23%Xaar (XAR) 901.00p -9.67%Moneysupermarket.com Group (MONY) 186.50p -4.85%Millennium & Copthorne Hotels (MLC) 582.50p -2.92%Dairy Crest Group (DCG) 498.00p -2.73%Alent (ALNT) 316.90p -2.55%Cranswick (CWK) 1,183.00p -2.55%Lonmin (LMI) 286.30p -2.49%Countrywide (CWD) 681.00p -1.87%RPC Group (RPC) 614.00p -1.76%BC