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Basic Materials Roundup: Market Talk

12 May 2018 8:20 am

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

2047 GMT - Canadian stocks close higher on Friday, boosted by gains in health-care and metals and mining companies. The S&P/TSX Composite Index closed up 23.82 points to 15983.32. The blue-chip S&P/TSX 60 Index improved 2.99 to 947.69. Trading volume was 303.7M, as advances outpaced declines 902 to 657. (bowdeya.tweh@wsj.com; @BowKnowsBiz)

1551 GMT - European shares pare losses to rise 0.1% as Swiss chemical group Sika AG and oil services company John Wood Group PLC make gains. The Stoxx Europe 600 advances 0.1% to 392.4 as Sika lifts 8.1% after signing an agreement with French building material supplier Saint-Gobain to end a takeover battle. Wood gains 10% after upbeat first-quarter trading. Retailer H&M Hennes & Mauritz AB is the biggest pan-European faller, down 4%. (philip.waller@wsj.com)

1542 GMT - London shares gain in late trading as rising metal prices boost miners. The FTSE 100 Index lifts 0.3% to 7724.55 as the price of copper benefits from another slip in London Metal Exchange inventories on Thursday, with stocks having been drawn down by almost 17% since the start of May, ING says. Randgold Resources Ltd is the sector's top riser, up 3.8%, while Anglo American PLC gains 3.3%. Broadcaster ITV builds on Thursday's gains, up 7.3% after reporting a 5% rise in total external first-quarter revenue. (philip.waller@wsj.com)

1408 GMT - Nucor continues to expand its capacity to produce steel for the automotive industry and other high-value markets. The company plans to build a galvanizing line at its sheet steel mill in Arkansas. The $240M-investment will able to galvanize about 500,000 tons of steel annually. The target for completing the project is 1H of 2021. Nucor is already spending $230M at the Arkansas mill on cold-rolling equipment to expand the steelmaker's exposure to the automotive steel market. Shares rise 0.3% to $64.06. (robert.tita@wsj.com; @bob_tita)

1006 GMT - ArcelorMittal's first-quarter Ebitda is comfortably ahead of consensus thanks largely to the steelmaker's Brazil unit, which "comes roaring back to life," Jefferies says. The unit's Ebitda of $370 million is 20% higher than Jefferies' estimates, while the mining division beats expectations by 14%, the U.S. bank says. Net debt increased more than Jefferies expected, due to higher-than-expected working capital commitments, but it remains roughly in line with consensus. Jefferies retains its buy rating and EUR35 price target on ArcelorMittal, which trades 2.2% higher at EUR30.20. (nathan.allen@dowjones.com)

1004 GMT - European shares drop as utilities and retailers fall, offsetting gains for Swiss chemical group Sika after it ends a legal dispute. The Stoxx Europe 600 declines 0.1%, or 0.4 points to 391.57 as Severn Trent drops 2.45% and United Utilities Group reverses 2.3%, while retailers H&M and Next fall 2.3% and 2.5% respectively. Sika lifts 8.1% after signing an agreement with French building material supplier Saint-Gobain to end a takeover battle. Oil-services company John Wood Group gains 8.4% after reporting good first-quarter trading. (philip.waller@wsj.com)

0923 GMT - Challenges at Avesoro Resources' New Liberty mine in Liberia continue but progress is at least moving in the right direction, Peel Hunt analysts say. The brokerage says first-quarter cost performance at the mine was disappointing but at least an improvement on the fourth quarter of 2017. Elsewhere, Peel Hunt says that Avesoro's Burkina Faso operations continue to outperform. At this rate, the mining company could potentially exceed its debt-repayment targets while simultaneously funding its drilling campaign, which it hopes will extend mine life across its assets. Shares are up 0.5%, or 1.50 pence, at 282.50 pence. (oliver.griffin@dowjones.com; @OliGGriffin)

0903 GMT - The challenges continue to mount for Randgold Resources, analysts at RBC Capital Markets say. While the company maintains its full-year guidance, the bank says that meeting those targets will be a stretch considering the poor momentum at its Loulo-Gounkoto complex in Mali. Industrial action in Ivory Coast and legislative issues in the Congo are compounded by rising oil prices, which RBC says is another headwind for the company to contend with. The bank maintains its underperform rating. Shares at 0859 GMT were up 2.4%, or 136 pence, at 5,810 pence per share. (oliver.griffin@dowjones.com; @OliGGriffin)

(END) Dow Jones Newswires

May 12, 2018 04:20 ET (08:20 GMT)

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