Gilts

Gilt futures declined by more than a full point after the Government decided not to expand its £125 billion scheme of quantitative easing, raising fears it may stop the plan completely. The September long-gilt future fell £1.59 to £117.21. Yields on ten-year gilts leapt 18 basis points to 3.8 per cent before edging down slightly.

Rumour of the day

Takeover speculation in the battered solar industry helped PV Crystalox Solar, maker of solar wafers, to recover 6p to 80p. There was talk — played down — that General Electric was eyeing a €43.50-a-share bid for Phoenix Solar, its German rival, up €0.57 to €35.42, which warned two weeks ago that collapsing panel prices would hit its profits.

Deal of the day

Sirius Exploration was unchanged at 3.875p after it bought an option to take a 52 per cent stake in the AusPotash Corporation, which holds permits to explore a 150 sq km area of Queensland. After a recent purchase of a majority stake in Dakota Salts, the potash explorer, it is positioned as a potential big player in the growing potash market.

Bet of the day

Bovis rose 2½p to 395p ahead of its trading update today. Having successfully battled its debt mountain, the housebuilder now aims to snap up land at rock-bottom prices. The market expects it to have achieved 638 private reservations, a 71 per cent rise from last year. Paddypowertrader.com was quoting the shares at 395.5p to 399.5p.

Tiddler to watch

African Minerals, the miner run by Frank Timis, was flat at 230p, even though Mirabaud reiterated “buy” advice and raised its target price to 579p. The broker said that, after a £64 million share issue, the miner was more likely to attract a partner to provide the financing for a rail line and expanded port facilities for its iron-ore project in Sierra Leone.

Explore Markets

• United States

• Europe

• Japan

• China

• Russia

• The Gulf

• India

• Africa

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive