Gilts

Gilt prices fell across the curve after the Government said that it would pump more capital into banks. Its net cash requirement, on which gilt issuance is based, will rise by £13 billion this year as a result, meaning that it could issue more of the securities. The December gilt future settled 49 ticks lower at 117.69, its lowest close in a week.

Rumour of the day

Shares in Redhall have been weak since it warned about full-year profits, and that fell another 1p to 123p despite Finncap noting that the nuclear engineer had several strong prospects expected before Christmas that could boost its order book. The broker said that the group could be a target for rivals wanting to a foothold in the energy and nuclear space.

Deal of the day

Microgen rose 6½p to 86p after the software group agreed to sell its billing services division to Swiss Post Solutions for £7.5 million. The company will return £3.5 million of the proceeds back to shareholders with a 4p special dividend and use the rest to strengthen its balance sheet. Microgen added that trading was better than expected.

Bet of the day

Stan Kroenke is 3-1 to mount a takeover bid for Arsenal Football Club before the end of the month, according to Ladbrokes. The American has been steadily adding to his stake, which moved to 29.6 per cent yesterday, ever closer to the 29.99 per cent threshold that would trigger an offer for the remaining shares.

Tiddler to watch

Shares in Dominion Petroleum may be worth keeping an eye on after the appointment of Andrew Cochran, one of Salamander Energy’s founders, as its new chief executive. The AIM-listed group, down 0.32p at 6.55p, is expected to start a drilling programme in Uganda in the next couple of months.

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