The FTSE 100 gets off to a weak start as it falls back below the 7,000 mark. The mid cap index, the FTSE 250, is also in negative territory.
Weak sterling has given a boost to education specialist Pearson (PSON). It says earnings per share guidance for 2016 will increase by 4.5p to a 54.5p-59.5p range if there is no change to current exchange rates. However, the market is concerned that underlying performance is being affected by tough market conditions, sending the shares down 5.2% to 789p.
Renewed legal action destabilises Starcom (STAR:AIM), down 16.7% to 2.5p after an Israel court concluded there could be cause for a claim against one of the company’s operating subsidiaries and against the group’s chief executive and chief operating officer. Financial services group Top Alpha sued Starcom in 2014 claiming there was an agreement to use its services.
Serabi Gold (SRB:AIM) has reported record gold production for the third quarter of 2016 at 10,233 ounces. That prompts the Brazil-based miner to upgrade its full year output guidance by 5% to 39,000 ounces.
Contract wins in China help lift Modern Water (MWG:AIM) by 14.9% to 6.75p. The water treatment specialist recently reported a downturn in Asian activity, so today’s £550,000+ worth of sales for monitoring equipment bodes is reassuring.
The submission of a planning application to conduct further testing and drilling at the Gatwick oil discovery, Horse Hill-1, gives a boost to various AIM-quoted firms that hold a stake in the project. This includes Solo Oil (SOLO:AIM), up 8.2% to 0.249p; and Regency Mines (RGM:AIM) which rises 9.5% to 0.57p.