Date: Monday 26 Sep 2011
Mining stocks remain out of favour as commodity prices tumble. In a sign of the times, commodities futures exchange CME has said it will increase the collateral requirements - the proportion of the total cost of a purchase which a buyer must have on deposit with the exchange - for gold by 21%, silver margins by 16%, and copper margins by 18%, from the close of business tonight.
In contrast, asset managers are wanted after a solid trading update from Aberdeen Asset Management.
Fund manager Aberdeen Asset Management says its profits for the full year will be at the top end of analysts’ forecasts despite the recent volatility in markets.
At 31 August, assets under management totalled £176.9bn, a 4.8% decrease on the total at 30 June.
“Markets have been particularly volatile in recent weeks, as concerns about the Eurozone debt crisis and its impact on the global financial system have intensified,” Aberdeen Asset said.
“Against this background, it is not surprising that we have seen some slowing of gross inflows, but there has been no increase in the rate of outflows and we have continued to see encouraging net inflows from key products.”
Citi reiterated its buy/medium risk rating on Aberdeen Asset Management after the fund manager’s trading update today.
At £176.9m, assets under management were 3% higher than Citi’s forecasts of £172.5bn.
“Despite a challenging market backdrop, stronger than industry fund flows are reassuring,” Citi noted.
Though Aberdeen Asset is higher, ironically it is rival F&C Asset Management that occupies a place in the top risers among FTSE 250 stocks.
FTSE 250 - Risers
Heritage Oil (HOIL) 236.10p +6.02%
Hansteen Holdings (HSTN) 73.30p +4.42%
Devro (DVO) 241.60p +4.09%
Catlin Group Ltd. (CGL) 370.00p +3.93%
Daejan Holdings (DJAN) 2,430.00p +3.85%
Debenhams (DEB) 58.10p +3.84%
Soco International (SIA) 331.30p +3.53%
F&C Asset Management (FCAM) 65.50p +3.48%
Stobart Group Ltd. (STOB) 126.50p +3.27%
Britvic (BVIC) 303.50p +3.27%
FTSE 250 - Fallers
African Barrick Gold (ABG) 515.50p -9.48%
Aquarius Platinum Ltd. (AQP) 179.80p -6.06%
Premier Foods (PFD) 10.25p -5.62%
Hochschild Mining (HOC) 440.60p -5.12%
Elementis (ELM) 118.60p -4.66%
Rank Group (RNK) 121.90p -4.39%
Sports Direct International (SPD) 217.70p -4.27%
Centamin Egypt Ltd. (CEY) 95.65p -4.25%
Ferrexpo (FXPO) 284.50p -4.05%
Petropavlovsk (POG) 664.00p -3.84%
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