London midday: Stocks hold slightly lower as Quindell craters

17th Nov 2014 12:20

UK stocks were still registering small losses come midday, weighed down by negative references out overnight from Asia, despite which miners were holding at the top of the leader board.As of 13:14 the Footsie was lower by 13 points to 6,640.Japan´s GDP contracted at a 1.6% annualised rate in the third quarter, according to preliminary data out from the Cabinet Office - a far weaker outcome than the 2.2% rate of expansion which analysts had expected.Hence, the archipelago´s economy has now again entered into "technical recession".Possibly lessening the blow, the country´s Economy Minister, Akira Amari, said there is now "a high chance" of a stimulus package being needed. Preliminary readings on GDP in Japan are also notoriously volatile."The trading week got off to a woeful start in Asia overnight as news that Japan contracted by 0.4% in the third quarter, leaving the country in a technical recession, drove the Nikkei to near 3% losses and raised serious questions about the planned sales tax hike next year," Alpari UK market analyst Craig Erlam said.In parallel, new local currency credits in China totalled 548bn yuan (60bn pounds) in October, according to figures from the China Banking Regulatory Commission published on 15 November, less than the 626.4bn yuan which markets had been anticipating.Bloomberg reported that Communist Party leaders have discussed reducing the country´s target for economic growth next year.Acting as a backdrop, economists at Barclays Research pushed back their expected data for the first increase in Bank Rate to the third quarter of 2015, versus the first quarter they had pencilled in previously, following what they described as a "dovish" Inflation Report.At 14:00 European Central Bank (ECB) President Mario Draghi was due to testify on monetary policy before the Committee on Economic and Monetary Affairs in Brussels."This could be quite a big market event today as not only is Draghi likely to be heavily questioned on the ECB's efforts to avoid deflation thus far, which are showing little sign of working, he's also likely to be pressed on further attempts to lift its balance sheet to €2trn," continued Erlam.Quindell continues to craterIn company news, Quindell´s share price cratered once more after revealing that broker Canaccord Genuity resigned as its financial adviser and joint broker on 21 October. The resignation would be effective from 17 November, the company said in a statement. In parallel, over the weekend the Sunday Times reported on possible contacts between the firm and two hedge funds aimed at a possible fund raising.At actual exchange rates industrial materials engineer Bodycote saw group revenues drop by 3.9% in the four months to 31 October on the back of weakness at its aerospace and defence arms, alongside certain weakness in its automotive business in Western Europe. At actual exchange rates the group´s performance was significantly better, with group revenues up 2.9% over the same period of 2013, in-line with management´s expectations.Ground engineering specialist Keller Group saw trading conditions in-line with expectations in the period from 1 July to 16 November, with steady growth in US construction and busy conditions in Asia offset by difficult European markets and weakness in Australia.Outsourcing group MITIE saw headline revenue growth of 4.8%, ahead of the prior year´s £1,095m (3.9% organic), together with a 3% rise in operating profts to £64.2m. The dividend was increased by 6.1% (5.2p). Net debt as of 30 September 2014 stood at £233.8m, while headline cash conversion was at 80.3%, above its target of 80%, broker Investec pointed out.Reckitt Benckiser Group (RB) unveiled the detailed proposed timetable for the demerger of its RB Pharmaceuticals business, which will have a separate UK listing under the name of Indivior. "The board of RB considers that the demerger is in the best interests of both RB and Indivior and will result in a stronger future for both," the group said.Mining giant Rio Tinto and China's Sinosteel Corporation announced plans to press ahead with talks for a second extension to the Channar Mining iron ore joint venture in Western Australia's Pilbara region. The original Channar joint venture was signed in 1987 to produce 200m tonnes of iron ore and was extended in 2010 to produce a further 50m tonnes of iron ore.Talk Talk has announced a new multi-year commercial agreement with Telefónica UK, under which Telefónica UK will provide TalkTalk with access to its 2G, 3G and 4G services in the UK. "This is a significant commercial relationship for us as we build upon our success to date in mobile," the FTSE 250 group said.techMARK 2,842.74 -0.38%FTSE 100 6,636.64 -0.27%FTSE 250 15,573.85 -0.45%FTSE 100 - RisersAnglo American (AAL) 1,387.00p +2.36%Fresnillo (FRES) 737.50p +2.36%Randgold Resources Ltd. (RRS) 4,354.00p +2.35%ARM Holdings (ARM) 888.00p +2.19%BHP Billiton (BLT) 1,681.50p +1.42%Glencore (GLEN) 332.55p +1.28%Rio Tinto (RIO) 3,074.50p +1.13%Marks & Spencer Group (MKS) 474.00p +1.07%Pearson (PSON) 1,223.00p +0.99%British Sky Broadcasting Group (SKY) 855.00p +0.89%FTSE 100 - FallersWeir Group (WEIR) 2,054.00p -3.43%AstraZeneca (AZN) 4,523.50p -2.84%Sainsbury (J) (SBRY) 264.00p -2.26%IMI (IMI) 1,228.00p -2.23%Standard Chartered (STAN) 937.50p -2.13%International Consolidated Airlines Group SA (CDI) (IAG) 419.60p -1.57%Tesco (TSCO) 192.05p -1.51%Tullow Oil (TLW) 456.90p -1.49%Intertek Group (ITRK) 2,621.00p -1.43%Babcock International Group (BAB) 1,089.00p -1.36%FTSE 250 - RisersOxford Instruments (OXIG) 1,174.00p +3.99%Kaz Minerals (KAZ) 277.30p +3.09%Evraz (EVR) 138.00p +2.68%Polymetal International (POLY) 534.50p +2.10%AO World (AO.) 208.90p +1.90%Vedanta Resources (VED) 806.50p +1.90%Countrywide (CWD) 429.90p +1.87%Micro Focus International (MCRO) 1,033.00p +1.77%Petra Diamonds Ltd.(DI) (PDL) 189.20p +1.72%Redefine International (RDI) 51.45p +1.48%FTSE 250 - FallersFenner (FENR) 264.70p -8.19%Mitie Group (MTO) 275.30p -5.46%Keller Group (KLR) 837.00p -4.29%Euromoney Institutional Investor (ERM) 990.00p -4.07%Foxtons Group (FOXT) 155.90p -3.11%Grafton Group Units (GFTU) 640.00p -2.59%EnQuest (ENQ) 65.80p -2.45%Rotork (ROR) 2,347.00p -2.25%Hays (HAS) 124.50p -2.20%Morgan Advanced Materials (MGAM) 279.80p -2.17%