Abramovich builds giant stake in natural gas firm

RUSSIAN businessman Roman Abramovich has upped his stake in Aim-listed Velocys.

The man best known as the owner of Chelsea Football Club increased his holding in the firm, which turns natural gas into products such as fuel and waxes, by 3pc.

Abramovich now owns 24pc of Velocys through his company Ervington Investments.

Velocys shares are down 31pc this year. In its final results for 2015 it reported revenue of £2m, up from £1.7m the previous year. Yesterday shares gained 5.5pc, or 1.5p closing at 29p.

On the FTSE 100 (up 0.35pc, or 23.11 points to 6545.37) GlaxoSmith

Kline was among the greatest risers as it shares reached a two-year high, advancing 2.8pc, or 44p to 1645p.

Earlier this week the pharmaceutical giant announced the first phase of a new oncology study. Deutsche Bank raised its target price for the stock by 160p to 1700p.

Recruitment company Staffline fell on a trading update, despite the firm saying it had made excellent progress in the first half of the year. Staffline said there had been strong demand for its services from new and existing customers and that there had been no change since the referendum result. But nervous investors are concerned about how a potential recession could impact on the jobs market.

Berenberg last week cut its rating on the stock from ‘buy’ to ‘hold’. Shares were off 3.1pc, or 25p at 775p.

There have been concerns since the referendum result that consumer spending might slow, but that does not seem to have affected

Gear4Music. The online retailer, which sells musical instruments and equipment, reported a 191pc rise in European like-for-like sales in the week from June 27 to July 3.

A fall in the value of the pound, which has boosted exports, is thought to be behind the increase. The York-based retailer said that revenues had risen 46pc to £35.5m in the year since it floated on the stock market in June 2015. Guitars accounted for almost a third of sales. Shares strummed up 8.1pc, or 9p to 120p.

Property trusts slipped as fears about fund lock-ins spread. Standard Life Investments Property Trust tumbled 9.3pc, or 7.25p to 70.25p, Schroder Real Estate stumbled 9.1pc, or 4.5p to 45p and F&C Commercial Property fell 7.2pc, or 7.9p to 102.2p.

Investors should remember that these listed property trusts cannot lock you in. They are not forced to sell their assets if there is a flurry of investors heading for the exit, like open-ended funds are made to do.

Instead their share prices slide, reflecting the supply and demand dynamic on which they are based. Investors who still believe in the long-term prospects of property should avoid panic selling. Brick and concrete block maker

Forterra tumbled on a bleak trading update. The firm said the first half of the year had been in line with expectations and net debt was around £20m better than forecast. But brick sales are reliant on housebuilders, and Forterra said builders’ merchants were holding excess inventory which was affecting volumes.

That, along with economic uncertainty, means the board has reviewed its production plans and is proposing to temporarily mothball its two Lancashire factories.

The group, which floated on the stock market in April, said this would allow it to meet customers’ needs while managing its costs until it was able to more effectively forecast demand.

These brick plants were last mothballed between 2010 and 2014. Forterra said it will provide an update on the outlook in its interim results in September. Shares lost 10.9pc, or 14p falling to 114.8p.

MJ Gleeson advanced when Liberum upped its target price for the stock.

Its Gleeson Homes arm, which provides new, low-cost homes to people on low incomes in the North of England, revealed that sales rose 20.4pc from the year before.

With the full-year results at the top end of forecasts, shares climbed 5.6pc, or 25p to 475p.