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Market Report: Citigroup tips Aggreko for success in Brazil

Oscar Williams-Grut
Thursday 15 May 2014 01:53 BST
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Citigroup is tipping Aggreko to land contracts in Brazil, with the price of power in the country booming. A drought means hydro-electric plants in Brazil are struggling, and with the World Cup and elections looming, Marc Van't Sant at Citi thinks temporary power contracts are inevitable and the acquisition of Poit Energia in the region puts it in a strong position. Aggreko charged up 21p to 1702p.

Companies trading ex-dividend such as Sainsbury's, off 11.3p at 327.7p, and a sharp fall for ITV, 11.9p lower at 179.1p, held back the FTSE 100 for most of the day. But comments from the Bank of England's Governor, Mark Carney, in the afternoon helped traders to turn bullish again and the blue-chip index managed to post a second 14-year high in as many days, climbing 5.41 points to 6,878.49.

The microchip designer and Apple Computer supplier Imagination Technologies rose 17.2p to 215.5p, and to the top of the FTSE 250, after analysts at Jefferies met senior IT management and suggested that it had deals in the pipeline that could be "significant individual sums". The life insurer Prudential also increased its stake in the business to more than 10 per cent.

The online betting firm GVC Holdings announced a push into Scandinavia in a joint venture with Betit Securities. The deal, which will leave the dividend unchanged, boosted GVC's shares by 11.5p, to 434p.

The Aim-listed Velocys, which develops technology to convert gas into liquid fuel, surged to a 52-week high after Roman Abramovich, the owner of Chelsea Football Club, took his stake in the business from 3.5 per cent to 5.33 per cent. Shares in Velocys climbed 10p to 196.5p.

Trouble is afoot at the Hong Kong children's club operator LZYE Group. Shares were suspended on Aim yesterday; the chairman, Dominic Yeung, has also left. Last month, LZYE was defeated by investors in its bid to delist from the London Stock Exchange.

Shares in the US-focused Magnolia Petroleum crept up 0.05p to 1.31p, after it posted a 224 per cent increase in revenues to $2.4m (£1.4m).

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