24 January 2004 20:49
Shares and market report: News of growing Russian interest meets with Corus of approval
CORUS SHARES hit a fresh 12-month high yesterday, rising 1p to 42.25p, as a mixture of upbeat comments from its rival
ThyssenKrupp and continued evidence of stake building by the Russian businessman Alisher Usmanov caused traders to pile
into the troubled steel group. The news from ThyssenKrupp, Germany's biggest steel maker, was certainly positive.
It posted a 6.4 per cent jump in first-quarter earnings and indicated that the steel industry's recovery is
accelerating as economic growth picks up.
The German group also boasted of a 6 per cent increase in new orders and even had the confidence to raise its steel
prices to counter higher raw material costs. All this bodes well for Corus, which has not been profitable for many
years.
Meanwhile, Mr Usmanov obviously seems to be confident that things are on the mend at the group. The Russian
businessman has raised his stake to 9.1 per cent from 7 per cent, making him Corus' second largest shareholder.
Some suggested that Mr Usmanov now wants a seat on the group's board, although he is yet to make a formal request
to the company. It is believed he last met the Corus management six months ago and that no further meetings are
currently scheduled.
Elsewhere, UBS got Xstrata shares moving. The mining group gained 18p to 681p as the Swiss broker upgraded its rating
to "buy" from "neutral" and set an ambitious 785p price target. According to UBS, Xstrata is among
the best placed in the mining sector to benefit from the recent strength in commodity prices. UBS also pushed Anglo
American higher after upgrading the group to "buy" from "neutral". Anglo ended the day 25p better to
1,229p.
In a review of the European support services sector, Citigroup Smith Barney upgraded Securicor to "buy"
from "hold". The broker believes the global economy is set for a strong acceleration in growth this year and
tipped the support services sector and Securicor to benefit greatly from such a trend. WPP was unmoved by speculation
that its Young & Rubicam agency has lost its account with Burger King. WPP, steady at 609.5p, only won the account
last year, and is believed to be worth about $345m to the group.
Regal Petroleum soared 58 per cent, or 79p, to 214.5p, after its Greek unit boasted of a major oil find. The company
indicated that the field may contain up to 227 million barrels of recoverable oil. Minmet, the mining minnow, put on
0.10p to 5.1p after reporting solid progress at its development in Romania. NSB Retail jumped 6.25p to 25.75p after the
Reading-based group reported a strong start to its distribution partnership with BT in a bullish trading statement.
Tenon Group rose 3.5p to 34p as five directors disclosed the purchase of 50,000 shares each at 30.5p. The
professional services group has enjoyed something of a renaissance over the past 12 months or so and directors obviously
believe there is more upside to come. Last February its shares traded at just 6.25p.
One market player that has done well from Tenon is Bob Morton, the serial investor. Although a chairman of several
companies, he more recently has tended to take large stakes in stricken small caps companies and then moved to reform
from behind the scenes. Mr Morton built up a 17 per cent stake in Tenon when its shares traded at below 10p.
Multi Group, where Mr Morton holds a near 60 per cent stake, ticked 0.12p lower to 5.5p after the tool hire group
said it continues to explore various options for its loss-making software business. In the case of Multi Group, Mr
Morton paid just 1p a share for his stake in a deal which saved the group from going into administration.
Directors at Telecom Plus, down 3.5p at 400p, continued to cash in on their shares. Peter Nutting, the chairman,
disclosed the sale of 100,000 shares at 402p yesterday. In December, Charles Wigoder, the chief executive, bagged more
than pounds 4m via the sale of stock. XP Power added 10p to 271p as market professionals reported talk that next
month's figures from the group will not disappoint. Profit margins are said to be improving at XP Power.
There was also vague talk of improving trading conditions for DCS Group, steady at 14p. The computer software company
has a hefty debt burden but market professionals expect the stock to motor should the rumours of improving trading
conditions prove to be correct.
As penny share punters bought into Toad, 3.25p higher to 22.75p, Sir Christopher Evans, the group's largest
single shareholder, sold down his stake. The biotech entrepreneur disclosed the sale of 2.5 million shares, leaving him
with a total holding of 4.5 million. Toad is something of a departure for Sir Christopher from his usual stomping
ground. It specialises in vehicle technology.
And finally, Einstein Group, which went into administration in July, is set to return to AIM on Monday. Einstein had
tried to make money by organising international chess tournaments but failed and is now going to try its hand at film
finance. Creditors are believed to have agreed to a debt-for-equity swap, allowing the company to return from
suspension.
[The Independent] |
RUSSIA IN FACTS
