The FTSE 100 closed Tuesday 0.96% higher, as European markets
staged a rebound from Monday's losses. Mergers and acquisitions are
certainly on the forefront of investor's minds, as Entain PLC
shoots to the top of the FTSE 100 and travel group National Express
Group PLC and Stagecoach Group PLC make strong gains as well among
the midcaps, IG Group PLC chief market analyst Chris Beauchamp
says.
"Coupled with the mystery bid for easyJet it seems that there
are plenty of people around the globe who think any worries about a
slowing global economy are overdone, and that there is more good
news to come on the economic front that can lift both earnings and
stocks," Mr. Beauchamp says.
Companies News:
Oxford Instruments Had Strong Five Months But Strong Pound
Hurts
Oxford Instruments PLC said Tuesday that order and revenue
growth has been strong during the first five months of fiscal 2022,
but the strong British pound has hurt both revenue and operating
profit.
---
SIG 1H Pretax Loss Narrowed; Effect of Material Shortages to Be
More Significant in 2H
SIG PLC said on Tuesday that its pretax loss for the first half
narrowed as revenue rose, and that it expects the effect of
material shortages to be more significant than in the first half,
and to continue for an extended period.
---
Learning Technologies Posts Higher 1H Pretax Profit; Approves
Interim Dividend
Learning Technologies Group PLC said Tuesday that pretax profit
rose in the first half of the year, and it approved an interim
dividend.
---
Manolete Partners Says Performance to Date in Line With
Management's Expectations
Manolete Partners PLC said Tuesday that its performance to date
has been in line with management's expectations despite the effect
of the Corporate Insolvency and Governance Act 2020, known as the
"temporary measures," which led to a fall in corporate
insolvencies.
---
Kingfisher 1H Adjusted Pretax Profit Rose, Came in Ahead of
Market Views -- Update
Kingfisher PLC on Tuesday reported an expectations-beating jump
in adjusted pretax profit for the first half of fiscal 2022,
boosted by strong demand for home improvement, and said its outlook
for the full year has improved.
---
Real Good Food Mulls Delisting to Save Costs; Shares Fall
Shares in Real Good Food PLC fell on Tuesday after the company
said that it is considering delisting from London's AIM to cut down
on costs.
---
Nexus Infrastructure Says eSmart Networks to Be Profitable at
Operating Level in 2021
Nexus Infrastructure PLC said Tuesday that its eSmart Networks
vehicle-charging business is expected to be profitable at the
operating level in 2021.
---
Cambridge Cognition Swung to 1H Pretax Profit; Board Confident
in 2021's Outlook
Cambridge Cognition Holdings PLC said Tuesday that it swung to a
pretax profit for the first half as revenue increased, and that the
board was confident in the outlook for the year as its performance
was continuously in line with market expectations.
---
Workspace Group Sells London Site for GBP92 Mln
Workspace Group PLC said Tuesday that it has exchanged contracts
to sell a site in London for 92 million pounds ($125.7 million) and
will use the money toward new projects and acquisitions.
---
Kooth 1H Pretax Loss Narrowed, Full-Year Revenue Seen in Line
With Market Views
Kooth PLC on Tuesday reported a narrowed pretax loss for the
first half of the year on the back of a jump in revenue, and said
the board expects revenue for the full year to be in line with
expectations.
---
Caspian Sunrise Considers Dividends Amid Positive Oil Outlook --
Commodity Comment
Caspian Sunrise PLC said Tuesday that it will ask shareholders
to approve the capital reduction required to pay first dividends,
as its first-half earnings were boosted by the recovery in oil
prices. Here's what the Kazakhstan-focused energy company had to
say:
---
Mediclinic International Refinances Southern Africa Division's
Debt Through New Facility
Mediclinic International PLC said Tuesday that it has secured a
five-year 8.45 billion rand ($571.4 million) facility to replace
the existing debt of its Southern Africa division, which is in line
with its financial strategy and approach to responsible
leverage.
---
ASA International Swung to Pretax Profit in 1H
ASA International Group PLC said Tuesday that it swung to a
pretax profit in the first half of the year, and that its
collection efficiency increased or remained broadly stable as of
Aug. 31 compared to the previous month in all countries.
---
AfriTin Secures $6 Mln Loan to Expand Processing Plant in
Namibia
AfriTin Mining Ltd. said Tuesday that it has agreed to terms for
a 90 million Namibian dollar (US$6.1 million) term loan with
Standard Bank Namibia Ltd. to fund the expansion of its Uis
tin-processing plant.
---
Litigation Capital Management FY 2021 Profit Rose
Litigation Capital Management Ltd. said Tuesday that its profits
rose in fiscal 2021, but it won't pay a dividend to preserve
cash.
---
Fintel 1H Pretax Profit Rose, Confirms Revenue Increase
Fintel PLC said Tuesday that pretax profit increased in the
first half and confirmed an uptick in revenue for the period.
---
Mattioli Woods 1H Pretax Profit Fell
Mattioli Woods PLC reported on Tuesday a significant decline in
pretax profit for the fiscal 2021 after booking high
acquisition-related costs.
---
Alliance Pharma 1H Pretax Profit Rose
Alliance Pharma PLC on Tuesday reported a jump in pretax profit
and higher revenue for the first half, and said its expectations
for the remainder of the year remain in line with market views.
---
Mosman Oil & Gas Reports Operational Delays Due to
Covid-19
Mosman Oil & Gas Ltd. warned on Tuesday that some of its
operations are being hampered by minor delays due to the Covid-19
pandemic.
Market Talk:
First Green Gilt Prices at Premium
1033 GMT - Steep demand for the U.K.'s first ever green gilt has
driven the spread over its pricing benchmark lower, helping the
debt to be sold at a premium, according to a deal notice. The
spread was set at 7.5 basis points above the 4.25% June 2032
benchmark gilt, which was used as a pricing proxy. This represents
the lower end of a 7.5-8.5 bps spread over the benchmark at
guidance. RBC Capital Markets estimated fair value at around 9.6
basis points above the 2032 gilt benchmark related to maturity,
while a similar interpolation on the duration curve suggested a
fair value of around 8.9 bps above the pricing proxy. It said it
would expect the gilt to price at fair value or even with a 1-2 bps
premium due to strong demand. (lorena.ruibal@wsj.com)
Travis Perkins Divestment Sets Up Strategic Refocus
1028 GMT - Travis Perkins's imminent completion of the sale of
its Plumbing and Heating division will realize the group's
strategic ambition to streamline its operations and refocus on the
trade sector, Davy Research says. The building-materials supplier
will now be left with a market-leading position in building
distribution and a growth angle via Toolstation, while proceeds
from the disposal will effectively be handed back to shareholders,
enhancing the attraction of the company from an income perspective,
Davy says. The Irish research firm retains its neutral rating.
(joseph.hoppe@wsj.com)
Evergrande Crisis Threatens Miners
1027 GMT - China's lack of action to save Evergrande could mean
a slowdown in building activity, and thus demand for copper and
iron ore could start to falter, AJ Bell's Russ Mould says. The
ramifications of this don't stop at China's borders, and the U.K.'s
mining stocks are on the slide as a result, since iron ore and
copper were huge earners for Rio Tinto, BHP, Glencore, Antofagasta
and Anglo American in the first half of the year, Mould says. "The
FTSE All-Share's Industrial Metals and Mining sector is down by
more than a fifth from its May high--and that is technically bear
market territory," the analyst notes. (jaime.llinares@wsj.com)
BMO GAM Plans to Switch Part of Gilt Allocation to Green
Gilts
0957 GMT - BMO Global Asset Management is planning to replace
some its allocation to conventional gilts with green gilts. "We
expect to be switching a portion of our gilt allocations into the
green gilt issuances," says director and portfolio manager of multi
asset solutions Keith Balmer, as the U.K. issues its first ever
green gilt. He says the U.K. has "disappointingly" lagged in the
race to issue sovereign green bonds, accounting for less than 5% of
the over $1 trillion issued in 2020, including both sovereign and
corporate green debt. Yet it should catch up soon. "As the U.K.
government has been late to market, its issuance is likely to grow
significantly," he says. (lorena.ruibal@wsj.com)
Green Gilts Likely to Trade at Premium Versus Conventional
Gilts
0946 GMT - Green gilts are set to trade at a premium versus
conventional U.K. sovereign debt due to strong demand from
environmentally-conscious investors, says BMO Global Asset
Management. "We believe there will be significant demand for green
gilts from sustainability-driven investors and this will cause
these gilts to trade at a premium to their traditional
counterparts," says director and portfolio manager of multi asset
solutions Keith Balmer. For the fund manager, green gilts make
sense from both a fiscal and sustainable perspective. Investors
placed orders of more than GBP90 billion for the U.K.'s inaugural
2033 green gilt being offered Tuesday, according to a deal note.
(lorena.ruibal@wsj.com)
Kingfisher Had Strong 1H, But Rest of Year is Key
0928 GMT - Kingfisher reported a better-than-expected first
half, but the European home-improvement retailer needs to show it
can keep up the pace for the rest of the year, AJ Bell says. The
retailer's numbers in the six months to the end of July were
strong, but the second half is when Kingfisher really has a tough
act to follow, Bell says. "While Kingfisher expects a bit of a
drop-off, the decline is looking shallower than previously
expected, which is significant, particularly as even in the
worst-case scenario, the performance would still be ahead of
pre-Covid levels," Bell's investment director Russ Mould says. "The
company seems still to be benefiting from the home-improvement
drive." Shares fall 5%. (philip.waller@wsj.com)
Stagecoach Might Have Other Buyers Due to Its Key Position in
the UK
0915 GMT - National Express has pitched its interest in
Stagecoach as a merger but the company is basically trying to buy
it, Russ Mould at AJ Bell says. The benefits of pairing both
transport companies are many and include a bigger footprint for
National Express in growth areas such as private coach hire and
corporate transport, Mould says. Still, a factor to consider is if
another entity might be interested in Stagecoach, such as an
overseas transport operator, given its key position in various
parts of the U.K., he says. "It isn't an easy feat to build up a
large position in the U.K. public transport market and Stagecoach
now has 8,400 buses and coaches." National Express shares are up
7.7% and Stagecoach is up 20%.
(anthony.orunagoriainoff@dowjones.com)
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 21, 2021 12:02 ET (16:02 GMT)
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