HOC up 25 percent on higher gold prices

European equities markets were mixed Thursday, but most were lower on suspicions that plans by central banks to put more money into the financial system will not be enough to avoid more meltdowns related to the credit mess.

In London the FTSE 100 was down 0.66 percent to 4,880 but the FTSE 250 added 0.32 percent to 8,336.8 on big gains and big declines, especially on the 250, where gold miner Hochschild (LSE: HOC) added 25.15 percent but software group Misys (LSE: MSY) dropped 15.36 percent on the session.

The biggest loser on the 100 was insurer Old Mutual (LSE: OML; JSE: OLOML) with a decline of 15.54 percent.

Among banks, Lloyds TSB (LSE: LLOY) was down 15.1 percent after it agreed to buy HBOS (LSE: HBOS), which in turn added 17.34 percent on the news to lead gains on the 100.

Retail sales in the UK were up an unexpected 1.2 percent in August, sending most retailers higher, including DIY retailer Kingfisher (LSE: KFG), which added 9.68 percent even though house prices are still falling there.

The FTSE Eurofirst 300 was down 0.61 percent to 1,063.62 as the IBEX fell 0.28 percent to 10,631.6 and the CAC-40 dropped 1.06 percent to 3,957.86 but the Dax added 0.04 percent to 5,863.42.

The biggest gainer on the Dax was carmaker Volkswagen (FWB: VOW), which added 25.16 percent on speculation that Porsche (FWB: POR3) will add more to its current 35 percent stake in VW.

Steelmakers and airlines were lower on the session, while drinks maker Pernod Ricard (Euronext: RI) dropped 9.85 percent on the CAC-40.

Most equities markets in the Asia-Pacific region were lower again Thursday, led by banks on fears that thee will be more failures in the global financial sector.

Some indicies, however, recovered from bigger declines after the US Federal Reserve, the European Central Bank and the Bank of Japan put more money into their financial systems.

In Tokyo the Nikkei 225 was down 2.22 percent to 11,489.3 and the Topix index fell 2.12 percent to 1,097.68 but the Mothers market of small and mid-caps added 0.05 percent to 440.26.

Broker Nomura Holdings (TYO: 8604; NYSE: NMR; SGX: N33) was down 6.4 percent while Sumitomo Mitsui Financial (TYO: 8316) was 6.6 percent lower and Nipponkoa Insurance dropped 10 percent after Goldman Sachs (NYSE: GS) downgraded Japan’s banking sector from “neutral” to “underweight” and cut its rating on insurers there from “overweight” to “neutral”.

Miners were up, led by Sumitomo Metal Mining (TYO: 5713) with a gain of 7.2 percent, and the food and beverage sector saw gains, but consumer electronics giant Sony (TYO: 8758; NYSE: SNE) dropped 8.7 percent on a broker downgrade from “buy” to “neutral”.

In Australia, the S&P/ASX200 was down 2.43 percent to 4,607 and the Sydney Ordinaries dropped 2.47 percent to 4,651.9 on big declines in the financial sector.

Australian investment bank Macquarie (ASX: MQG) fell a record 23 percent while Babcock & Brown (ASX: BNB) was down 17 percent, bringing its declines this year to 97 percent.

Gold miners were up significantly in Australia, however, as gold prices continued to see gains, with Newcrest (ASX: NCM) up 15 percent as Lihir Gold (ASX: LGL; NAS: LIHRY) added 16 percent.

Elsewhere in the region, the Straits Times Index was down a fraction to 2,419.21 while the Hang Seng fell 0.03 percent to 17,632.46, the Shanghai Composite was 1.72 percent lower to 1,895.84, the Kospi was down 2.3 percent to 1,392.42 and the Taiex dropped 2.74 percent to 5,641.95.

On a day of volatile trade on Wall Street the Dow Jones Industrial Average was up 0.94 percent to 10,709.48 at just past 1:30 p.m. in New York while at the same time the Nasdaq Composite had added 0.82 percent to 2,115.99 and the S&P 500 had gained 1.06 percent to 1,168.61.

Banks were mixed after plans were announced to put more money into financial systems.

The oil sector was higher while Kraft Foods (NYSE: KFT) added 2.5 percent after it was named to replace insurer American International Group (NYSE: AIG) on the Dow.

Story link: HOC up 25 percent on higher gold prices