Sector movers: Nuclear power outlook lifts British Energy
Equities fall back across the board in London with just the electricity sector and the small forestry and paper sectors defying the trend.
Electricity stocks are led up by British Energy, following its nine months results this morning. The company has been encouraged by last month's government White Paper which confirmed that nuclear power still has a role to play in meeting the nation's energy needs.
"We are well positioned for a central role in the new build programme," claimed Bill Coley, chief executive of British Energy. "Negotiations with a number of potential partners are ongoing and we expect to provide a further update around the end of the financial year," Coley added.
Although the company disappointed the market by reporting earnings that were in the bottom half of the range of expectations, investors were cheered by the payment of a special quarterly dividend of 14.5p.
In the nine-months to the end of 2007, the company's operating profit before NFL cash sweep adjustments and amortisation fell to £563m from £626m. Adjusted EBITDA declined to £745m from £775m; analysts had been forecasting EBITDA figures ranging from £741m from £755m.
Miners are on the slide today, despite impressive results from Rio Tinto. Underlying second half profits rose by 9%, boosted by record production of major commodities, despite rising energy and other costs. It has also promised a 20% dividend hike for the next two years to follow this year's 31% gain.
Lonmin has fallenl despite the weight of Goldman Sachs behind it. The US broker lifted its price target on the platinum miner to 3,600p from 2,665p and raised its rating to 'neutral' from 'sell', saying problems with the South African power industry should lead to higher platinum prices.
Heavy rains causing flooding in Queensland, Australia has caused Xstrata to suspend shipments of coal from its Newlands and Collinsville mines.
Top performing sectors so far today
Forestry & Paper 3,858.80 +1.06%
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Electricity 7,435.10 +0.30%
Aeronautics and Defence NULL 0.00%
Alternative Investment Instruments NULL 0.00%
Automotive and Parts NULL 0.00%
Bottom performing sectors so far today
Fixed Line Telecommunications 2,947.60 -2.50%
Aerospace and Defence 3,174.60 -2.29%
Software & Computer Services 450.20 -2.13%
Mining 23,765.10 -2.08%
Equity Investment Instruments 5,762.60 -2.05%
