London shares open on the up in early trade on Tuesday as markets track gains in Europe and the US in the previous session. However, mining stocks act as a drag on gains after a surprise interest rate cut in Australia. The benchamrk FTSE 100 index is trading around 60 points higher, or 0.8%, at 7,045, with midcaps matching the Footsie rally, the FTSE 250 up to 17,614.
Banking giant HSBC (HSBA) is a weak feature on Tuesday as investors mull speculation that the bank will make a decision over its possible move overseas within the next few months. The stock slips 1.5% lower to 637.1p. First quarter profits rise 4% to $7 billion thanks to gains in Europe and Asia but are offset by further mis-selling compensation claims, topping $137 million during the period.
Asset manager Aberdeen (ADN) underwhelms with a 25% profit jump in the second quarter as it report a £11.3 billion outflow of net new business. Investors run scared as the Fed apparently inches closer to an interest rate rise.
Among bigger movers, micro cap DekelOil (DKL:AIM), the operator and 51% owner of a palm oil project in the Ivory Coast, jumps 34.2% to 1.38p on news total Crude Palm Oil (CPO) production in the first four months of 2015 exceeded 2014's total production, a possibility flagged by Shares recently.
Kazakh hydrocarbons producer Tethys Petroleum (TPL:AIM) collapses 30% to 3.5p as it ditches plans to divest its assets to a Chinese buyer. The news follows the Kazakh ministry of energy's failure to approve the transaction before a deadline set by the Chinese group and Tethys admits it need additional funding within 12 months if it is to remain a going concern.
Mining firm Ferrum Crescent (FCR:AIM) leaps 50% to 0.9p as it signs an agreement with Principle Monarchy Investments, whereby the latter would acquire 39% of the Moonlight Iron Project in Limpopo Province, South Africa, through subscription for Ferrum Iron Ore (Proprietary) Limited shares.
Biotech tiddler Taihua (TAIH:AIM) crashes 21% to 2.25p as it spooks investors over the impact of frosts on the Forsythia harvest, its key active ingredient.
Gold digger Kalimantan Gold (KLG:AIM) jumps 15% to 1.35p as it receives the key Indonesian government permit required to immediately begin its planned 2015 work programme at the Beruang Kanan copper project located in Central Kalimantan, Indonesia. The permit is valid for two years.
Military training system specialist SimiGon (SIM:AIM) adds 6% to 26.5p as it wins a five-year drones training contract with the US Air Force training arm. Shares flagged likely upcoming contract wins for the current Play of the Week in an update last month.
Construction industry software supplier Eleco (ELCO:AIM) fails to win investors support as its turnaround programme shows limited progress in 2014. Revenue is largely flat at £16.5 million and pre-tax profits were capped att £700,000.
Pubs group Greene King (GNK) edges up 0.8% to 821p despite only managing a 0.4% increase in retail like-for-like sales for the 51 weeks to 26 April as the new drink driving legislation in Scotland weighs on record Easter and Valentine's Day sales. Its tenanted division grew net income by 3.6% as the operational benefits from disposing of 275 non-core sites begin to come through.
Pest control outfit Rentokil Initial (RTO) gets a boost from a bullish write up in the Times newspaper over the bank holiday weekend. Covering an investor seminar, the publication says Rentokil is a beneficiary of key trends including urbanisation, growing populations and climate change. Shares open 2.7% higher at 140p.