The FTSE 100 closed down 0.79% on Monday as stock markets
globally have been hit by a wave of selling, with further
short-term losses expected. "It is definitely a 'sea of red' kind
of day for global markets, the first time that phrase has been used
for quite a while," IG Group PLC's chief market analyst Chris
Beauchamp says. Growth stocks in particular have been hit hard, and
those with any Chinese connection have been at the forefront, Mr.
Beauchamp says. Fortunately there was some good news for airlines
like British Airways-owner International Consolidated Airlines,
which saw a sudden and impressive rebound after the U.S. decision
to relax rules for vaccinated travellers from the U.K. and E.U., Mr
Beauchamp says.
Companies News:
Cohort Warns of Continued Delays; Expects Slightly Improved FY
2022 Performance
Cohort PLC said Monday that the delays to certain aspects of its
work which it highlighted in July have persisted, and that it
expects its performance for fiscal 2022 to be slightly ahead of
fiscal 2021.
---
Eurasia Mining Raises GBP11 Mln to Fund Rosgeo JV Projects
Eurasia Mining PLC said Monday that it is raising around 11
million pounds ($15.1 million) via a private placing of shares to
fund its joint venture with Rosgeo in Russia.
---
ZOO Digital Sees 1H Revenue Slightly Ahead of Guidance
ZOO Digital Group PLC said Monday that it expects first-half
revenue to be slightly ahead of guidance.
---
Christie Group Shares Rise on Swing to 1H Pretax Profit, Upbeat
Outlook
Shares in Christie Group PLC rose on Monday after the company
reported a swing to a pretax profit for the first half and said
that it expects to beat current full-year market operating profit
expectations.
---
BlueRock Diamonds 1H Pretax Loss Narrowed
BlueRock Diamonds PLC said Monday that its pretax loss narrowed
for the first half as revenue increased, and that it anticipates
continued strength in the diamond market in the second half.
---
Metals Exploration's 1H Boosted by Higher Gold, Recoveries --
Commodity Comment
Metals Exploration PLC on Monday reported a swing to profit for
the first half of the year on higher gold production and
recoveries. Here's what the Philippines-focused gold miner
said:
---
PRS REIT Exploring Raising Additional Capital for Six New Site
Acquisitions
PRS REIT PLC said Monday that it has identified a pipeline of
six sites and that the board is exploring the most appropriate way
of raising additional capital to fund them.
---
Eurowag Expects to Raise EUR200 Mln in London IPO
W.A.G. payment solutions as said Monday that it expects to raise
around 200 million euros ($234.5 million) at its initial public
offering on the London Stock Exchange.
---
Keywords Studios Appoints Bertrand Bodson as CEO
Keywords Studios PLC said Monday that Bertrand Bodson has been
appointed as its new chief executive officer.
---
K3 Business Technology to Sell Sage Business to Pinnacle for
GBP1.68 Mln
K3 Business Technology Group PLC said Monday that it would sell
the business and assets of its Sage Business to Pinnacle Computing
Ltd. for 1.68 million pounds ($2.3 million) in cash.
---
N4 Pharma Books Wider 1H Loss
N4 Pharma PLC said Monday that its loss widened in the first
half of the year, but that it remains "cautiously optimistic" over
the commercialization of its Nuvec delivery system for cancer
treatments and vaccines.
---
Kazera's Diamond Processing Plant in South Africa to Multiply
Throughput Under New Operator
Kazera Global PLC said Monday that production at the processing
plant used for its Alexander Bay diamond project in South Africa
will increase six-fold following a joint venture with the local
community's company.
Market Talk:
Moneysupermarket Faces Uncertainty From Power-Price Woe
1309 GMT - Moneysupermarket.com Group faces uncertainty from
energy-market turbulence, Peel Hunt says, cutting its
recommendation on the price-comparison site to add from buy and
putting its 360 pence price target under review. Rising wholesale
energy prices are causing an existential crisis for many smaller
energy companies, Peel says. While price inflation and higher U.K.
regulatory price caps should boost switching demand, supply-side
appetite is equally important, the brokerage says. "There is good
news elsewhere in the group and the [shares are] very modestly
rated prior to any change to home-service forecasts, but the
turmoil in the energy market adds another unwelcome layer of
uncertainty on this equity story," Peel analysts say. Shares fall
9.6% to 217p.
---
UK Housing Market Appears Set for Return to Normalcy
1253 GMT - Rightmove calculates the number of properties listed
for sale in the U.K. rose 14% in the first two weeks of September,
potentially heralding some loosening of the market and a return to
normality, Davy Research says. However, the Royal Institution of
Chartered Surveyors survey pointed to a sharp decline in new
listings in June, July and August as the U.K. government's stamp
duty holiday wound down, the Irish research firm says. "From Sept.
30, the standard rate stamp duty band will return to GBP125,000
from GBP250,000 currently," Davy says. But this change is
relatively small, with home buyers saving just GBP2,500, so stamp
duty relief's final elimination will have a limited market activity
effect in September, the firm says.
---
S4 Capital's Zemoga Merger Seen as Good Step for Future Revenue
Growth
1220 GMT - S4 Capital's acquisition of Colombia-based digital
transformation company Zemoga, which caters U.S. clients, may have
been closed at a consideration of around GBP50 million, Peel Hunt
estimates. The U.K. digital advertising and marketing-services
company could double its revenue again in the next three years as
it expands its capabilities, the U.K. brokerage says. Peel Hunt
increases its full-year 2022 and 2023 earnings-per-share forecasts
by around 3% and reiterates its buy rating on the stock.
---
Gilt Selloff Expected to Continue
1107 GMT - Expectations of higher interest rates and positive
net sovereign bond supply suggest that investors will likely
continue to sell gilts, driving yields higher, say Mizuho. The
central bank could announce an early end to its bond-buying program
at its rate-setting meeting this Thursday which, combined with
positive net supply, points towards the latest gilt selloff
continuing, it says. However, the BOE "has been extremely
prescriptive on its path to reducing its balance sheet" and Mizuho
analysts expect that quantitative tightening "will only have a mild
tightening effect." This should leave the BOE plenty of scope to
raise interest rates. Mizuho projects that rates will start to rise
next year and can continue doing so until around 2025.
---
UK Energy Bailouts Must Be Tied to Tackling Supply Crisis, Union
Says
1106 GMT - Any U.K. government bailout for failing energy
companies must come with guarantees for the future of the U.K.'s
energy security, the GMB union says following reports that the
government is considering offering state-backed loans to suppliers.
"We can't have a repeat of 2008 where the banks got a
get-out-of-jail free card. Any bailout must come with cast-iron
guarantees on significant changes that tackle the UK's growing
energy crisis. Otherwise, we'll only be lining the pockets of
bandit capitalism once again, while losing more and more control
over our energy future," the union says. Business Secretary Kwasi
Kwarteng will hold crisis talks with industry bosses including
Centrica and E.On on Monday, the BBC reported.
---
UK Gilts Face 'A Lot of Pressure' this Week
1049 GMT - U.K. sovereign bonds should be under "a lot of
pressure" this week as the Bank of England announces its policy
decision this Thursday, says Mizuho. "There remains the possibility
that the BOE announce an early end to quantitative easing at
Thursday's meeting, and there's limited reason for the Bank to need
to push back much against current pricing," analysts at the
Japanese banks say. Gilt yields have risen across the board, led by
shorter-dated gilts, as investors price in the possibility of
higher interest rates going forwards. The 2-year gilt yield hit an
intraday high of 0.293% Monday, after hitting a 19-month high of
0.306% last Friday, according to Tradeweb.
---
UK Building, Property Stocks Drop After Price Data
1034 GMT - U.K. construction and property stocks fall after
industry data showed a slowdown in house-price rises. National
average asking prices of newly marketed properties increased 0.3%
(GBP1,091) this month to a new all-time high of GBP338,462, though
the latter is only GBP15 higher than the previous record in July,
online estate agent Rightmove said. "This morning's Rightmove data
point to U.K. house-price inflation cooling off--asking prices were
flat over the past two months," brokerage Davy says. "This suggests
the surge in U.K. house-price inflation to double-digit rates, in
part prompted by [finance minister] Rishi Sunak's stamp-duty
holiday, is now finally coming to an end." Shares in Barratt
Developments, Taylor Wimpey, Berkeley Group, Persimmon and
Rightmove itself are all lower.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 20, 2021 12:14 ET (16:14 GMT)
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