London midday: Stocks off the bottom

7th Nov 2011 12:20

UK prices are off the bottom, but investors are keeping a wary eye on developments in Italy, where reports suggest that Il Cavalieri, Silvio Berlusconi, could resign the post of Prime Minister within a matter of hours.CHOPPY WATERS AHEAD FOR WEIRScottish engineering firm Weir, the company which saw a five-fold increase in its share price between January 2009 and August of this year, leads the market lower.As was the case with its August trading update, the numbers looks all right but the company has been talking down its own prospects. Revenues in the third quarter grew more strongly than the first half of the year and also on a like for like basis against the same period of 2010. However, referring to its oil and gas business, Weir warns "downstream market conditions remain challenging". As for the Power and Industrial arm, "overall market conditions remain mixed with continuing delays in nuclear projects and largely weak general industrial markets".The market is not impressed with the third quarter trading update from Essar Energy, either. The India-focused integrated energy company said total energy generated during the period rose to 1,553mWh (megawatt hours), 4% higher compared to 1,498mWh for the same period a year ago. The company said higher gas prices, resulting in a higher generation cost, have sapped demand at its gas based plants in recent months.PREMIER FOODS SHARES SELLING LIKE HOT CAKESStruggling food manufacturer Premier Foods has been given a bit of breathing space by its bankers, who have agreed to defer the company's end-of-year loan covenant tests by three months.The shares rose more pleasingly than a bit of hot pastry on the news. Another stock on the rise is Carphone Warehouse, after it confirmed it is simplifying its business relationship with US consumer electronics giant Best Buy, by selling it some assets and forming a new joint venture.Carphone Warehouse is selling its share of Best Buy Mobile's US and Canadian business to the US firm for £838m. The company intends to return £813m of cash to shareholders through a share issue which will give shareholders the option of income or capital. It also announced plans to shut down its 11 loss-making edge-of-town consumer electronics barns.The closure of the 11 UK outlets does not seem to have done much for the shares of Comet owner, Kesa Electricals, which is one of the biggest fallers among FTSE 250 constituents.Rentokil, the pest control and cleaning services company, has seen profits drop in the third quarter as its City Link delivery business continues to drag the group down. Adjusted profits before tax were down 11% on the equivalent period of 2010 although revenues did inch 0.6% higher.SMALL CAPSUp for sale property consultancy DTZ has seen its stock market value obliterated after admitting its shares are virtually worthless. Engineering solutions provider Costain said it continues to perform well and trading is in line with the board's expectations. The group's order book has increased to £2.6bn following the strong performance reported in the interim results in August. The figures includes the recently announced award by Network Rail of the London Bridge Station.FTSE 100 - RisersICAP (IAP) 359.90p +2.71%Ashmore Group (ASHM) 341.00p +1.61%Severn Trent (SVT) 1,561.00p +1.17%International Power (IPR) 333.30p +1.00%SSE (SSE) 1,325.00p +0.84%Centrica (CNA) 300.20p +0.84%Hargreaves Lansdown (HL.) 499.60p +0.79%Inmarsat (ISAT) 466.70p +0.78%Schroders (SDR) 1,380.00p +0.73%BT Group (BT.A) 192.20p +0.52%FTSE 100 - FallersWeir Group (WEIR) 1,829.00p -5.28%ARM Holdings (ARM) 624.50p -3.18%Essar Energy (ESSR) 302.20p -3.17%Rexam (REX) 334.70p -3.04%International Consolidated Airlines Group SA (IAG) 152.40p -2.87%IMI (IMI) 801.50p -2.55%Associated British Foods (ABF) 1,104.00p -2.30%ITV (ITV) 63.70p -2.23%Lloyds Banking Group (LLOY) 27.93p -2.22%Kingfisher (KGF) 256.70p -2.21%FTSE 250 - RisersPremier Foods (PFD) 3.80p +12.93%Supergroup (SGP) 626.00p +4.42%Aquarius Platinum Ltd. (AQP) 169.70p +2.54%F&C Asset Management (FCAM) 69.95p +2.34%Pace (PIC) 67.75p +2.34%FTSE 250 - FallersPhoenix Group Holdings (DI) (PHNX) 478.60p -7.43%Homeserve (HSV) 300.00p -6.95%SThree (STHR) 237.90p -5.71%New World Resources A Shares (NWR) 484.80p -5.50%Afren (AFR) 77.70p -5.13%