Gilts

Two-year gilt yields hit a record low and gilt futures jumped, outperforming other markets, helped by the Bank of England’s first gilt purchase since it extended its asset purchase scheme last week. December gilt futures settled 45 ticks up at 116.78 and the yield on ten-year gilts was five basis points down at 3.83 per cent.

Rumour of the day

Shares in Kalahari Minerals rose 3p to 176¾p amid rumours that Extract, in which the group has a 40 per cent stake, may put out a particularly bullish resource update this week. Kalahari’s management is visiting potential investors in the United States in an attempt to drum up further interest in the Namibia-focused group.

Deal of the day

Shares in IP Group, the intellectual property commercialisation business, fell 2¼p to 53p after agreeing to take a 19.8 per cent stake in Fusion IP, a smaller rival. IP Group has taken the stake as part of a wider £3.2 million fundraising for Fusion, up 1p to 33½p. The two companies have also entered into a co-investment agreement.

Bet of the day

Shares in Vodafone rose 2.15p to 137.95p before the mobile group reports first-half results today. Most City analysts are expecting an upbeat set of numbers, given recent decent figures from its peers, with Goldman Sachs forecasting revenues of £21.6 billion. Cantor Index offers a December-based contract spread of 138.1p to 138.5p.

Tiddler to watch

Lok’nStore rose 5p to 68½p after the self-storage group reported full-year results that were better than expected. Andrew Jacobs, chief executive, said that recent trading had been encouraging with reservations, inquiries, square feet let and number of customers all increasing. The group will pay a full-year dividend of 1p.

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