Newspaper article The Evening Standard (London, England)

London Funds Queuing Up for a Kazakh Miner

Newspaper article The Evening Standard (London, England)

London Funds Queuing Up for a Kazakh Miner

Article excerpt


THE City's big income funds have started queuing to buy shares in acompany called Eurasian Natural Resources (ENRC), which is due to make itsdebut among the UK's top 100 listed companies.

Never heard of it? Not many people have. It joined the London stock markettowards the tail-end of last year, and now weighs in at a healthy [pounds sterling]12.2billion.

The shares started life at around the 600p level and have almost doubled sincethen, briefly touching a peak of 1123p. This morning they dipped 49p to 900p.

The mining company is based in Kazakhstan and is almost 60% controlled by fourof its founders.

Dealers say ENRC is not an investment that has been tailor made for widows andorphans.

Curiously enough, rival Kazakhmys, down 84p at 1696p, has been forced to denyhaving received a "formal" proposal from ENRC about a merger of the twocompanies.

Yesterday's Budget overshadowed the latest regular quarterly review which alsosaw Tate & Lyle , down 1 1 2 p at 504p, regain promotion to the top-flightalong with defence contractor Cobham , 7 3 4 p off at 203 3 4 p. They willreplace housebuilder Taylor Wimpey, 7.5p cheaper at 162.5p, telephonedirectories operator Yell Group, 5.9p lower at 169.6p, and the hapless RentokilInitial, 1.1p off at 76.5p.

Elsewhere, a sense of reality returned to the Square Mile with share pricestaking a tumble on growing fears for the global economy. The FTSE 100 indexresponded with a fall of 111.2 points to 5665.2, while the FTSE 250 indexslumped 219 points to 9770.4.

Now that this week's diversions, which included the central banks pumping moneyinto creaking money markets and yesterday's Budget, are over investors mustfocus back on fundamentals.

Chancellor Alistair Darling has instructed the Bank of England's monetarypolicy committee to keep inflation on target. …

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