Market Report: Hochschild Mining shines as Peru reverts its plans to close its flagship silver mine
Hochschild Mining shined after Peru seemed to have turned back on its plans to close its flagship silver mine.
Last Friday, Peru’s Prime Minister Mirsa Basquez said the government would move to close and deny significant permit extensions for some mines (including two Hocksilts) for environmental reasons.
Mining group stocks crashed on Monday, halving their value at some point.
Resurrection: Hockschild shares were supercharged yesterday when Peru said it would allow companies to request extensions and changes to existing mining permits.
However, after a solid rise for several days, Hockschild said that Peruvian Ministerial Council Chairman would support the rule of law and allow companies to request extensions and changes to existing mining permits. Stock was supercharged yesterday.
This was what investors wanted to hear, but analysts warned that it was all done yet and might not be messy.
Peelhunt analysts said the comment was considered a “partial explanation.” Analysts said: “The real question for us is how quickly the government will approve those demands. While it is still possible that the government will put pressure on miners, we continue to believe that selective closure was not a viable option as a broader policy.
Stock Watch-Eco Animal Health
The plunge in pig prices in China has hit the interests of livestock drug makers eco-animal health.
According to the group, falling pork prices in China led to lower demand for the antibiotic eyebrosin, resulting in a 9% drop in half-year sales to £ 38.5m and profits from £ 4.8m to £ 900,000. That was the main reason. China’s volatile market, which accounts for more than 40% of the eco-animal health business, is affecting many other companies.
However, Eco Animal Health was also hit hard by putting off long-term projects. The stock price of the Sally-based group fell 20.2% (40.5p) to 160p.
Shareholders were reassured enough to raise Hocksilt by 14.3 percent (17.4p) to 139.4p.
It has regained a lot of ground since Monday’s surge – it’s still some distance from 165p, but it was worth it at the end of last Friday.
As analysts now point out, a fall can sacrifice Hochschild’s position on the FTSE 250.
Index director FTSE Russell will use the company’s market capitalization at the closing price on Tuesday to determine which companies will be included in the FTSE 100 and 250 and which will be launched. Darktrace (down 1.9% (9.4p) to 479.6p) is one of my favorites to lose its place in the Footsie mods that take effect in December.
Meanwhile, the decision by chemical maker Johnson Matthey to withdraw from the battery market could also sacrifice its position in the Best Equity Index. Johnson Matthey was flat at 2135p last night.
The index was calm but ultimately a positive day, with the FTSE 100 rising 0.33 percent (24.05 points) to 7310.37 and the midcap FTSE 250 rising 0.49 percent (112.90 points) to 23279.96. ..
The Cake Box boss (7.4%, down 30p to 375p) and his wife will land a £ 10.5m payday after selling shares in an eggless bakery chain.
Sukh Chamdal and his wife Santosh have sold 3 million shares of the group “in response to investor demand,” with a 25% stake worth about £ 36 million.
Mitchells & Butlers rose 3.6%, or 8.4p, at 244.4p, after the pub and restaurant group that owns Harvester and Allbar One improved significantly in August and September, 2.7% above the same period in 2019. bottom. ..
In the retail sector, Mothercare (3.1%, an increase of 0.58p to 19.4p) returned to the black in the first half of the fiscal year after taking steps to improve profitability.
The embarrassed High Street retailer made a profit of £ 3.6m in the six months to September 25, recovering from a loss of £ 13.2m in the previous year.
The owners of Crowne Plaza and Holiday Inn, the Intercontinental Hotels Group (2.8%, or 135p to 5042p), received a rare double upgrade, courtesy of Jeffreys. This is the Premier Inn owner Whitbread (2.8%, or 84p, 3108p), a bright break note and another top pick in the leisure sector. This pair was one of the top Footsie risers.
John Menzies, an airport service group, rose 2% (5.5p) to 288p after extending a long-standing deal with easyJet at 21 airports in Europe.
Under the renewed contract, Menzies will undertake tasks such as cleaning and deicing the cabins of carriers with whom it has worked for 15 years.
Market Report: Hocksilt Shines As Peru Reverts to Closing Mine
Source link Market Report: Hocksilt Shines As Peru Reverts to Closing Mine