London open: Heritage bubbles higher on Iraqi success

3rd Apr 2012 08:51

London has started on the front foot, taking heart from the late surge on Wall Street yesterday, which was sparked by a better-than-expected performance by the Institute of Supply Management's manufacturing index.Drugs firms in focusDrugs giant GlaxoSmithKline has received top-line results from seven of the eight 'Harmony' drug development Phase III studies investigating the use of albiglutide in type 2 diabetes. Glaxo said that based on the studies it has performed so far, there is enough information to support progression to regulatory submissions, as a possible once-weekly treatment for type 2 diabetes.Sticking with the pharmaceuticals sector, Anglo-Swedish drugs giant AstraZeneca is teaming up with US biotechnology company Amgen to jointly develop and bring to market a portfolio of clinical-stage inflammation treatments.Chip designer ARM is also getting into the collaboration game. It has teamed up with two digital security firms to create a joint venture aimed at creating a secure environment for services running on high-tech gadgets such as smartphones and tablets.Collaboration is not exactly the watch-word at investment trust Alliance, where the board has given a feisty response to activist investor Laxey Partners' renewed attempt at telling the board how to run the company. Hedge fund Laxey, which owns 1.7% of Alliance Trust, has called for a number of changes, including the outsourcing of investment management, higher dividends and the opportunity for shareholders to sell their shares to the company at price closer to net asset value per share than the stock is currently trading in the market.Alliance has responded by accusing Laxey of wasting the board's time and being motivated by short-term self-interest rather than the medium and long-term interests of the wider shareholder base.Resource stocksOil and gas group Heritage Oil has drilled and flowed gas at a reservoir interval at its Miran West-3 well in the Kurdistan Region of Iraq.African Barrick Gold has revised upwards by 0.5m ounces of gold the resource estimate for its Nyanzaga project in Tanzania after working out how to treat the two mineralised zones of the project, Tusker and Kilimani, as a single pit resource.Cairn Energy is splashing out $450m dollars on Agora Oil & Gas, a firm with North Sea interests and owned by Lord Rothschild's investment trust, RIT Capital Partners. Meanwhile, mining titan Xstrata has sold a majority interest in its Chilean hydroelectric development company to Origin Energy.In other mergers and acquisitions news, equipment rental group Ashtead has acquired Philadelphia-based peer Topp Construction Services and its related company Precision Steel Works. The two companies have been bought for a total consideration of $33.5m in cash, which included the among paid to settle Topp's net debt at closing.FTSE 100 - RisersAberdeen Asset Management (ADN) 264.60p +2.12%ICAP (IAP) 398.30p +1.40%Barclays (BARC) 239.55p +1.31%Lloyds Banking Group (LLOY) 33.97p +1.16%IMI (IMI) 1,006.00p +1.11%BG Group (BG.) 1,494.50p +1.08%Polymetal International (POLY) 946.50p +0.91%Man Group (EMG) 134.50p +0.90%Sainsbury (J) (SBRY) 316.60p +0.83%Royal Dutch Shell 'B' (RDSB) 2,260.00p +0.80%FTSE 100 - FallersCompass Group (CPG) 659.50p -1.71%Bunzl (BNZL) 1,017.00p -1.07%Pearson (PSON) 1,212.00p -0.74%CRH (CRH) 1,292.00p -0.54%Anglo American (AAL) 2,356.00p -0.53%Rexam (REX) 430.10p -0.53%ARM Holdings (ARM) 604.50p -0.49%Smiths Group (SMIN) 1,059.00p -0.47%BHP Billiton (BLT) 1,957.00p -0.41%Kingfisher (KGF) 312.40p -0.35%FTSE 250 - RisersHeritage Oil (HOIL) 146.40p +6.09%Cairn Energy (CNE) 334.00p +4.24%Ruspetro (RPO) 234.60p +3.67%Salamander Energy (SMDR) 230.00p +2.45%Hays (HAS) 87.30p +2.40%KCOM Group (KCOM) 73.60p +2.22%Premier Oil (PMO) 400.40p +2.06%FTSE 250 - FallersRedrow (RDW) 125.70p -2.56%Spirit Pub Company (SPRT) 61.50p -1.99%Rightmove (RMV) 1,433.00p -1.98%Brewin Dolphin Holdings (BRW) 171.50p -1.72%Taylor Wimpey (TW.) 51.25p -1.63%WH Smith (SMWH) 539.50p -1.55%Debenhams (DEB) 79.45p -1.55%JH