London open: Bumi battered by concerns at subsidiary

24th Sep 2012 08:39

London has started the week on a dull note, with renewed concerns over the single currency region weighing on sentiment following France and Germany's failure to agree a schedule for initiating shared oversight of the region banking sector. Bumi plummetsMining giant Bumi said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29% interest, with particular focus on that firm's development funds. "The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at December 31st 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said. Fund manager Aberdeen Asset Management saw its assets under management (AuM) edge up in the first two months of the second half of the year. AuM at the end of August stood at £184.3bn, up from £182.7bn at the end of June. Gross new business during July and August totalled £6.1bn, but overall the group saw a net outflow of £0.1bn. Dairy Crest warned of lower first half profits, as challenging conditions continue, but said profit expectations for the full year ending March 31st 2013 remain unchanged. Profit before tax and exceptional items slipped to £14.9m in the six months ended July 28th, from £16.2m in the corresponding period of last year at Irn-Bru maker AG Barr. The company took a £1m hit from adverse currency movements, although around £0.6m of this is expected to unwind in the second half of the year. On a constant currency basis, first half profit before tax was £0.3m behind the similar period in the prior year. Sales in the first seven weeks of the second half have shown double digit percentage growth.Analysts at Bank of America Merrill Lynch have downgraded their view on shares of Anglo American to "neutral" from "buy". Other marketsThe price of oil has turned south, with the most activiely trade futures contract for Brent crude off 89 cents at $110.53 a barrel.Gilts are not getting any benefit from investors spurning equities. Prices fall back, resulting in yields edging up. The yield on the benchmark 10-year gilt is 1.84%, up from 1.83% at Friday's close.FTSE 100 - RisersReckitt Benckiser Group (RB.) 3,615.00p +0.44%Smith & Nephew (SN.) 689.00p +0.44%Hammerson (HMSO) 450.20p +0.36%Rexam (REX) 437.30p +0.21%Capital Shopping Centres Group (CSCG) 335.80p +0.21%Pennon Group (PNN) 747.50p +0.20%BP (BP.) 441.90p +0.20%Associated British Foods (ABF) 1,294.00p +0.15%British Sky Broadcasting Group (BSY) 734.00p +0.14%Centrica (CNA) 337.50p +0.09%FTSE 100 - FallersEvraz (EVR) 263.00p -3.27%Anglo American (AAL) 1,895.00p -2.22%Glencore International (GLEN) 355.30p -1.85%Eurasian Natural Resources Corp. (ENRC) 338.70p -1.68%Kazakhmys (KAZ) 717.00p -1.65%Fresnillo (FRES) 1,803.00p -1.64%Vedanta Resources (VED) 1,069.00p -1.57%GKN (GKN) 222.50p -1.55%Rio Tinto (RIO) 2,998.00p -1.41%Antofagasta (ANTO) 1,259.00p -1.33%FTSE 250 - RisersQinetiQ Group (QQ.) 182.30p +6.11%Petra Diamonds Ltd.(DI) (PDL) 114.00p +3.92%Stobart Group Ltd. (STOB) 117.00p +2.18%Computacenter (CCC) 375.00p +2.12%KCOM Group (KCOM) 86.30p +1.89%Capital & Counties Properties (CAPC) 214.60p +1.75%Shanks Group (SKS) 90.10p +1.69%JPMorgan Emerging Markets Inv Trust (JMG) 547.00p +1.48%Brewin Dolphin Holdings (BRW) 173.00p +1.47%British Assets Trust (BSET) 124.20p +1.14%FTSE 250 - FallersBumi (BUMI) 145.00p -25.98%Workspace Group (WKP) 254.00p -3.05%Centamin (DI) (CEY) 93.25p -2.56%Heritage Oil (HOIL) 204.90p -2.52%Ferrexpo (FXPO) 210.30p -2.41%Petropavlovsk (POG) 430.00p -2.18%Redrow (RDW) 150.80p -1.69%Diploma (DPLM) 450.20p -1.64%F&C Commercial Property Trust Ltd. (FCPT) 102.40p -1.54%Lonmin (LMI) 585.00p -1.52%JH