Reports » UK

UK stock market morning note (February 04, 2013)

The FTSE 100 is called to open slightly higher this morning following the gains on Friday and overnight in Asia although further short term upside may be limited. Overnight we had data from China showing that growth in services PMI rose slightly in January to 56.2 (56.1). Today's economic diary will focus on the release of UK construction PMI with investors also keeping a watch on a speech today from the Chancellor on his plans to 'electrify' the ring fence that will sit between banks retail and investment operations. Commodity prices are mixed in trading and on the foreign exchanges, the pound is up slightly against both the dollar and the euro.

Company Announcements

Barclays Management Changes. It has confirmed weekend press reports that Finance Director, Chris Lucas and General Counsel, Mark Harding are to retire from the company. The search for their replacements are underway, but both will remain in their roles until successors have been appointed and appropriate handovers completed. 

Randgold Resources Q4 and 2012 Full Year Results saw profit up 18% quarter on quarter and ahead 16% for the year to nearly USD511m and production grew 5% quarter on quarter and 14% for the year at 794,844 ounces of gold. Cash cost per ounce came in at USD735. The dividend is raised 25% to 50 US cents a share. It added that forecast production for 2013 is estimated at 900,000 to 950,000 ounces, a 13% rise over 2012 at the lower end of the range. Total capex for 2013 is expected to be approximately USD670m with management targeting a total cash cost per ounce after royalties of between USD700 and USD750.