THE TIPSTER | Insuring against losses

Tom Welsh
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THE reorganisation of Aviva, the insurance giant, continues apace, as its new chief executive keeps to his plan of trimming the business down to a more manageable size. The disposal of divisions in eastern Europe reflects the determination of the new management to keep the company under firm control, and its recovery from June lows around 260p reflects growing investor confidence. IG Index quotes a price of 309p-310p for Aviva.

An increase in risk appetite has brought mining stocks back into favour with investors. One in particular, Rio Tinto, releases an interim statement tomorrow. Capital Spreads quotes a price of 3,082.5p-3,087.0p for Rio Tinto.

Another mining and exploration company, Randgold Resources, officially opened its new Mali gold mine this week. It has put in a strong start to the year, very much in line with guidance, but with first quarter results revealing profits 126 per cent higher than the first quarter of 2011. This quarter’s results, due on Thursday, should also be on the top side of expectations. CMC Markets quotes a price of 5,860.31p-5,884.70p for Randgold Resources.

Investors may be prompted to take a closer look at US Airways, following Willie Walsh’s revelation that International Airlines Group could be considering a strategic stake in the company. Walsh clearly sees value in the company, and it’s hardly surprising given US Airway’s enormous turnover. The share price has gained 46 per cent this year and renewed interest may provide a further boost. Spread Co quotes $10.86-$10.90 for US Airways Group.