By continuing to use this site you consent to the use of cookies on your device. Find out more about our cookie policy and the types of cookies we use by clicking here

Earnings Announcements Lead to Mixed FTSE

Shares in beverage giant Diageo and mining giant Kazakhyms head in opposite directions on the FTSE after both companies reported earnings

Alanna Petroff 23 August, 2012 | 6:45PM

Shares in the London-listed miner Kazakhmys (KAZ) continued to head lower on Thursday, losing nearly 4% of their value, after the company reported a sharp drop in sales and earnings for the first six months of 2012. The company also slashed its dividend.

“This follows the mining sector trend and is widely accepted given the troubled global macro-environment, which is pushing costs higher and lowering both demand volumes and commodity prices,” says Mike van Dulken, head of research at Accendo Markets.

Meanwhile, the alcoholic beverage behemoth Diageo (DGE) saw shares pop up by 1% after announcing that it would boost its dividend. The company, which sells Captain Morgan rum and Guinness beer, reported a rise in net sales and overall operating profit in the first six months of 2012, based on strong growth in emerging markets. However, the results show continued sales weakness in the European market.

A rise in Diageo, a fall for Kazakhmys and a mixed day in the markets resulted in the FTSE 100 index ending the day unchanged. The FTSE 100 added 2 points to close at 5,777. The FTSE 250 index closed at 11,467, after edging down by 28 points.

“European markets enjoyed a short lived early rally in trading on Thursday following hopes for further Federal Reserve stimulus and policy easing in China after last night’s FOMC minutes release and weak Chinese data,” said Fiona Cincotta, a market analyst at City Index. “However gains ebbed away as trading progressed under the pressure of lacklustre European PMI data, which indicated a further contraction for the troubled zone.”

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Diageo PLC2,465.00 GBX0.04
Kazakhmys PLC924.00 GBX-0.45-
About Author Alanna Petroff

Alanna Petroff  is a financial journalist with Morningstar UK.