Clarity on the Brexit timetable by Prime Minister Theresa May sends the pound down 0.3% against the dollar at $1.2936 and triggers a small sell-off in banks and housebuilder shares. The latter overshadows expectations that Chancellor Philip Hammond will unveil a £5 billion housebuilding stimulus package later today at the Conservative Party conference.
Fund manager Henderson Global Investors (HGG) shoots up 15.3% to 267.55p on news that it will merge with US financial group Janus Capital. The combined group will trade on the New York and Australian stock exchanges and be renamed Janus Henderson Global Investors.
Aberdeen Asset Management (ADN) jumps 2.8% to 335.5p and Jupiter Fund Management (JUP) rises 2.6% to 436.3p off the back of the Henderson news as they could be other candidates for M&A action in the investment industry.
Global medical products group ConvaTec is to float on the London stock market in late October or early November. It hopes to raise $1.8 billion to help pay down debt. Some of its existing shareholders including Nordic Capital, Avista Capital and members of the management team intend to sell down some of their holdings at the IPO.
Full scale zinc production has started at Vast Resources’ (VAST:AIM) Manaila polymetallic mine in Romania, providing the company with a second revenue stream alongside copper. Investors like the news, sending the shares up 10.9% to 0.3p.
Stratmin Global Resources (STGR:AIM) advances 15.4% to 1.88p on news that some existing and former directors will buy new shares at 2.5p each, which is 54% higher than last Friday’s mid-market price, providing the company with £344,500 in new cash. The CEO and technical director have also agreed to a 75% pay cut.
Financial administration group Sanne (SSN) nudges 0.7% ahead to 460p on news it will buy American rival FAS for $52.6m, giving it a base from which to target the US market.
Troubled stamps, coins and antiques dealer Stanley Gibbons (SGI:AIM) slumps another 14.4% to 11.12p on a woeful set of full year results showing a swing into the red and a suspension of the dividend. Overseeing a major restructuring, newly appointed chairman Harry Wilson reports a 43% reduction in net assets as a result of restating prior years' results and writing down the value of 2013 acquisition Noble Investments and the capitalised IT costs relating to the development of failed online platform The Marketplace.
Kodal Minerals (KOD:AIM) falls 17.2% to 0.104p on a heavily-discounted placing. It is issuing new stock at 0.1p each to raise £750,000 to advance its lithium exploration project. Flooring industry consolidator Victoria (VCP:AIM) clips ahead 7.5p to 334.5p on the £13 million acquisition of UK underlay manufacturer Ezi Floor. The latter's management will stay with the business and the acquisition is expected to make a positive contribution to Victoria's profits.