Peso pain for Mobile Streams
THE collapse of the Argentine peso, which on Friday had its worst one-day trading session since the country’s 2002 financial crisis, had shareholders of AIM-listed Mobile Streams crying their eyes out.
The London-based mobile content firm generates 85pc of its revenues in the country, and so any untoward or detrimental movement in the peso on forex markets always sets alarm bells ringing.
They certainly rang out loud and clear yesterday, and the shares crashed 24.25p or 38pc to 39.75p after the group warned the devaluation of the peso meant it no longer expected to meet market expectations for the year ending June 2014.
Founder, chief executive and major 28 pcs-hare holder Simon Buckingham attempted to soften the blow, saying: ‘The performance of Mobile Streams once again continued to improve with growth in revenues and cash. This was driven by solid growth of around 50pc in the company’s Mobile Internet active subscriber base in the Latin America region, which surpassed 4m. Once the currency situation has stabilised, the company will provide further guidance to the market.’
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Randgold Resources rallied 130p to 4235p on news that its Loulo-Gounkoto gold mine in Mali is likely to revise upwards its production target for 2013.
Satellite TV group BSkyB fell 22.5p to 844.5p on nervous selling ahead of today’s second-quarter figures.
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Profit-taking in the wake of a good first- quarter trading update left private wealth manager Brewin Dolphin 9.3p lower at 293p. Total funds under management stands at £36bn, up 3.2pc from September.
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