The FTSE 100 is again on the back foot as resources companies suffered thanks to weak commodity prices. Financials, pharmaceuticals, property and retail stocks are also under pressure.
Staying in the retail sector Sainsbury's (SBY) is up 0.3% to 242.85p as Home Retail (HOME) – down 6.6% to 130.1p – confirms it rejected the former’s takeover bid because it undervalued the group and its long-term prospects.
Buying an office building in Basingstoke for £3 million sends commercial property investor Regional REIT’s (RGL) shares 2.3% higher to 103.8p. The deal, the sixth announced by the real estate investment trust since November’s IPO, will generate 12.48% of the purchase price in rent each year.
Despite Kurdistan oil producers Genel Energy (GENL) and Gulf Keystone Petroleum (GKP) announcing export payments from the Kurdistan Regional Government both fall – Genel down 2.3% to 163p and Gulf Keystone off 1.6% to 15p. Taking their cue from a new 11-year low for oil prices which is hitting the wider oil and gas sector.
In this context Sound Energy’s (SOU:AIM) 0.7% advance to 17.25p looks more impressive. The Italian focused gas producer revealing production from its Nervesa field will be up and running by early February and upgrading the estimated chances of success on a key well on its Badile project from 22% to 34%.
Staffline (STAF:AIM) falls 3.5% to £13.55 despite confirming full year earnings will be in line with expectations and that both of its business' divisions have performed well in 2015 – the market perhaps spooked by net debt peaking at £64 million at the year end.
Engineering solutions business Costain (COST) is up 2.35% to 375.63p as a trading update confirms it has continued perform well since its interim results on 20 August and expects to deliver full year numbers in line with expectations.
Software provider Corero Network Security (CNS:AIM) leaps 14.6% to 18.9p as it clinches a first order for its SmartWall Threat Defence System from a European tier-1 internet service provider. The order is valued at $700,000.
Project manager WYG (WYG:AIM) is up 5.22% to 141p as it confirms subsidiary WYG Environment Planning Transport's purchase of SCA Planning, which trades under the name of its own subsidiary, Signet Planning, for an enterprise value of £3.74 million.