Market report: Synthomer wobbles as soaring sterling punishes the exporters

 

The strong pound continues to hit British exporters, with chemical group Synthomer the latest to warn that surging sterling will dent profits.

The maker of everything from paint emulsion to latex foam, Synthomer warned continued difficulties in Asia and unfavourable currency movements mean profits for the year will be broadly the same as last, around £11.5 million.

Synthomer joins a long list of companies that have blamed strong sterling for a squeeze on earnings this year. Chemical firm Croda, engineers Smiths Group and GKN, retailers Burberry, Associated British Foods and Asos, and technical-product supplier Diploma — have all pointed the finger of blame at the pound.

FTSE 250-listed Synthomer fell 5p to 216.25p.

Soothing words from Portugal’s troubled Banco Espirito Santo overnight reassured markets and helped the FTSE 100 turn higher for the first time this week, up 17.73 points at 6690.10.

But despite this recovery, the Footsie is still on track to record its worst week since the start of March. The index stands around 175 points, or 2.75%, lower than it did last Friday.

After yesterday’s panic drove safe-haven gold miners higher, the precious metal producers found themselves on the end of a sell-off today: Randgold Resources tumbled 180p to 5052.5p, Fresnillo was 19.5p lighter at 926p and African Barrick Gold dropped 5.5p to 227.5p.

Israeli advertising-technology specialist Matomy was forced to pull plans for a London listing in April due to a lack of demand. But the company took a second run at it this week on the High Growth Segment and found a strong appetite among punters today as it began unconditional trading. Matomy ticked up 5p to 236p.

ClearStar, the US technology outfit which makes CV-checking software, also had a solid start to listed life. The company climbed to 60p from its offer price of 57p on its first day of conditional dealing on AIM.

Leni Gas & Oil, the eponymous venture of serial AIM entrepreneur David Lenigas, pictured, said it is making good progress at its Goudron field in Trinidad. Leni, down 0.02p at 3.6p, has started drilling the fourth well of its 30-well plan.

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