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UK stock market morning note (September 05, 2012)

The FTSE 100 is called to open slightly higher this morning despite a fall in global equities overnight. Last night's pull back was largely due to release of weaker than expected US manufacturing data which showed that the sector had contracted for its third straight month coming in at 49.6 and missing market expectations of 50. Some market commentators expect this poor result to be an indicator that the US government will look to provide fresh stimulus to its faltering economic recovery. In addition, given the importance of manufacturing to the US economy, the result indicates that it is unlikely that the US jobless rate will fall in the months leading up to the US elections. With no major economic announcements due out on Wednesday investors will likely be focusing on Thursday's ECB meeting on the euro zones debt crisis and US payroll data due out on Friday. Resource stocks, especially iron ore producers, may see short term weakness following a fall in Australian miners overnight and general weakness in the outlook for some commodity prices.

Today's Company announcements

Hargreaves Lansdown Final Results saw revenue come in 15% higher at GBP238.7m (FY 2011: GBP207.9m) on the back of a 7% increase in total assets under administration coming in at GBP26.3bn. PBT was 21% higher at GBP152.8m (FY 2011: GBP126m) whilst diluted EPS was 23% higher coming in at 24.1p (FY 2011: 19.6p). The company announced a final dividend of 10.65p whilst also announcing an increased special dividend of 6.84p bringing its FY dividend to 22.59p (FY 2011: 18.87p). The company said in the release that it has had another "positive year" and that it "has continued to attract significant numbers of new clients and is reporting increased profits despite a year marked by economic and regulatory uncertainty". In a separate release the company said that co-founder Stephen Lansdown has given notice that he will step down from the Board at the Group's AGM on 23 November 2012.

Polymetal International announced the results of its JORC-compliant Mineral Resources estimate carried out by Snowden Mining Industry Consultants on its Tamunier Project. The company has estimated 50Mt at 1.2 g/t gold at the project. In addition, it has identified further substantial exploration potential with on-going exploration seeking to expand and upgrade the resource estimate. The company said in the release that "the size of the deposit is quite substantial. However, the Tamunier project does not fit with (its) strategy of concentrating on higher-grade assets and (it) will, therefore, consider a sale or partnership to advance the development of the assets".