As the market reached its best level since the end of February, Aggreko helped power the rise.
The company jumped 84p to �16.78 as it agreed to ship gas and diesel generators to Japan to help ease the disruption caused by last month's earthquake and tsunami. The equipment, under a one year contract signed with the owner of the stricken Fukushima nuclear plant Tepco, will provide 200MW of emergency power to the country's grid from June. Aggreko chief executive Rupert Soames - in some of the few positive words about Tepco since the crisis began - said:
Within a few days of the disaster, Aggreko entered into discussions with Tepco to bring additional power to the grid. Tepco has moved extremely fast and with great professionalism to define an engineering solution which will bring additional generating capacity to Japan.
Analyst Caroline de La Soujeole at Seymour Pierce repeated her buy recommendation and �17.75 price target, saying:
This underlines our positive stance on the company. Aggreko enjoys a market leading position and has the global scale and flexibility to respond quickly to emergency needs.
By the close the FTSE 100 had added 7.06 points to 6016.98, despite rising oil prices, continuing concerns about fighting in Libya and Europe's sovereign debt problems. Investors preferred to concentrate on last Friday's better than expected US jobs figure, while a rise in metal prices lifted the heavyweight mining sector. Antofagasta added 27p to �14.24 and Xstrata rose 24p to �15.11. Angus Campbell, head of sales at Capital Spreads, said:
Markets have continued this week from where they left off last week following the much better than expected US employment data that pushed the Dow to a near three year high. The FTSE remained above the 6000 level being lifted by the mining and energy sectors which attracted buyers as underlying commodity prices were higher.
But it's difficult to see this strength continue with oil touching $120 a barrel and the unrest in the middle east and north Africa getting worse by the day. On top of this the ECB are highly likely to raise interest rates on Thursday with forecasts that the Bank of England won't be all that far behind. The risks that are still very much apparent in the market place have kept gains to a minimum today.
A couple of deals by FTSE 100 companies did little for their share prices. Vodafone dipped 0.25p to 178.85p despite news it had agreed the long-awaited sale of its 44% in French mobile phone group SFR to partner Vivendi, for ?7.95bn (�7bn). BP slipped 0.75p to 469.25p as it continued the disposal programme put in train to pay for the Macondo oil spill liabilities with the $680m cash sale of its Arco aluminium business.
It is selling Arco, which makes rolled aluminium sheet used mainly to make drinks cans, to a consortium of Japanese companies including Sumitomo and Itochu. BP chief executive Bob Dudley said:
Although a strong business Arco Aluminium is clearly a non-strategic asset for BP. Today's agreement will deliver an attractive price for the business, unlocking its value for our shareholders.
So far BP has sold $24bn of surplus assets and is on track for its target of $30bn worth of disposals by the end of 2011.
Among the mid-caps Dixons Retail fell another 0.73p to 11.99p in the wake of the electrical retailer's profit warning last week and continuing concerns about the UK consumer cutting back on spending. Legal & General sold around 73m shares in the company in two tranches at the end of last week.
Cranswick, the pork supplier, closed 41p lower at 790p following signs that the current slowdown is even hitting meat sales. The company said:
The difficulties facing the UK consumer and the dynamics of the competitive UK market in which the company operates suggests the year to 31 March 2012 may be more demanding than usual.
Panmure Gordon moved from buy to hold and cut its target price from 950p to 850p.
But Croda climbed 24p to �17.18, boosted by takeover hopes in the chemicals sector after Belgium's Solvay announced a ?3.4bn deal to buy French group Rhodia.
Lower down the market software group Alterian lost nearly a fifth of its value following a profit warning and the departure of its chief executive.
The company, which supplies software to government, retailers and financial services companies, said full year revenues would be 10% below market expectations of �42m to �44m, mainly due to a major partner deferring a licensing contract renewal and extension. As a consequence chief executive David Eldridge has decided to fall on his sword. Alterian's shares dropped 35.75p to 154p. Peel Hunt and Panmure Gordon both moved their recommendations from buy to sell.
Finally California-based pharmaceutical company InterMune last month received European regulatory approval for its lung disease treatment Esbriet, with analysts suggesting a possible $1bn market for the product. It has found US approval more difficult but traders hear a decision from the US Food and Drug Administration could be imminent.
Source: http://www.guardian.co.uk/business/marketforceslive/2011/apr/04/aggreko-higher-after-japan-deal
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