Investors Dig In With Camec

Central Africa Mining , the exploration group headed by former Test cricketer Phil Edmonds, was in demand yesterday. Its shares gained 5.7 per cent to 60p on talk that Glencore was looking to buy the 31.7 per cent stake owned by Prairie International, the investment vehicle of Dan Gertler.

The rumour was that Glencore would offer in excess of 100p a share.

However, many traders pinned yesterday's gain on a recent bullish note from Credit Suisse. In the report, the broker lifted its target price to 160p, citing the potential of Camec's coal concessions in Mozambique.
"In Mozambique, we think Camec is sitting on a very exciting undeveloped coal basin," it said. "We estimate that Camec's coal resources are worth at least $1.5 billion, or 30 pence per share assuming a coal resource of 1.5 billion tonnes."

Thus , the telecommunications company, advanced 1.9 per cent to 161½p on rumours that BSkyB , off 0.7 per cent to 508½p, was weighing up an offer. However, many traders were sceptical. Last week, Thus rejected a 165p a share offer from Cable & Wireless , up 0.5 per cent to 156.6p.

GCM Resources gained 1.9 per cent to 231p. After the close of trading, Polo Resources , down 8 per cent to 17¼p, said it had pulled a 175p takeover offer for GCM because the lengthy negotiations risked jeopardising other "value generating opportunities". Caledon Resources , in which Polo has built a 22 per cent stake, was down 0.4 per cent to 133½p.

Plant Health Care , the crop science specialist, rose 3.5 per cent to 402½p after trials showed that Myconate, the company's lead product, provided a 20 per cent increase in crop yields.

"This further supports the feeling of inevitability that Plant Health Care's products will eventually be rolled out in huge volumes around the world," said Evolution Securities.