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UK stock market morning note (March 12, 2013)

The FTSE 100 is called to open flat this morning with investors in cautious mood ahead of the release of domestic manufacturing, industrial production and trade balance figures. Overnight there was further domestic economic news with the RICS reporting that its seasonally adjusted house price balance declined to -6 in the 3 months to February (January -4), when the forecast had been for the balance to improve, but sales were at a two and a half year high. Commodity prices are mixed and on the foreign exchanges, both the pound and euro are lower against the dollar with the yen also continuing its decline.


Company Announcements

Lloyds Banking Group  Placing of shares in St James's Place. Further to its announcement yesterday of selling down part of its holding it has confirmed that it has placed shares at 510p to raise gross proceeds of GBP520m. It will now hold 37% of St James's Place and will continue to have board representation.

British Land Placing. It is raising GBP500m via a placing with new and institutional investors through a bookbuild process with the proceeds to be used to fund investment opportunities focused on its core sectors in London and the South East, mainly office, retail and mixed use schemes. It also separately announced the sale of Ropemaker Place in the City of London for GBP472m.

IG Group IMS reports that revenue in Q3 grew 18% to GBP88.6m reflecting increased activity across the business as client sentiment improved and it was up against a relatively weak prior year comparative quarter in what was otherwise a strong year. It added that previous guidance was for H2 revenue to be in line with H1 and it is continuing to manage its cost base on that basis. However, Q3 was stronger than this guidance implied, but it is mindful of the strength of the final quarter of last year and uncertainty surrounding consumer sentiment more broadly.

Close Brothers Interim Results saw adjusted operating profit up 26% to GBP79.8m with the interim dividend raised 7% to 15p a share. The Banking division performed strongly with adjusted operating profit up 26% and in Securities, Winterfloods remained profitable in difficult trading conditions. Asset Management is 'on track' and saw a 6% increase in assets under management to GBP8.9bn. It added that it looked forward with confidence and expects a good result for the year as a whole.