Hikma, Gem Diamonds and Lloyds

“The FTSE100 moved cautiously higher ahead of an expected US Federal Reserve interest-rate rise tonight, with traders also waiting on UK jobs data this morning and a Bank of England quarterly bulletin at noon,” says AJ Bell Investment Director Russ Mould.

“Fast-growing pharmaceutical group Hikma soared to the top of the FTSE100 board following strong growth in revenues and core operating profits last year. The acquisition of West-Ward Columbus is transforming Hikma ‘s generics business and the group as a whole. This is Hikma’s largest acquisition so far and it is make making good progress with integration and cost synergies which should bring significant growth in revenue and profitability in the generics business in the coming years. Hikma’s shares were up by more than 6.6% in early trading.

“Gem Diamonds lost its sparkle as far as investors were concerned and was the biggest faller on the FTSE All-Share Index after revenues and underlying earnings plunged in the year to the end of December. Demand and prices for large, high quality diamonds remained firm but the decline in the recovery of diamonds larger than 100 carats at the company’s Letseng mine had a disappointing impact upon revenue and cash flow and the board decided that no dividend would be paid. Gem Diamonds was down by 6.9%.

“Lloyds has moved a step closer to a return to full private ownership with the Government cutting its stake to under 3%. The taxpayer held 43% of the bank at the height of the financial crisis and the Treasury’s phased sale of its shares was interrupted by market turbulence last year. The programme now, though, is back on track with the Government cutting its remaining holding to just 2.95%. The bank’s shares edged up 0.49% in early trading.”

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