The FTSE 100 closed up 0.7% on Monday, largely due to
outperformance in financial and basic resource stocks. Rising
aluminum and copper prices helped push mining companies higher,
while oil prices hitting more than $80 a barrel gave a lift to oil
stocks, CMC Markets UK chief market analyst Michael Hewson says.
U.K. yields also sharply rose as investors priced in the prospect
of a Bank of England rate rise by the year-end, which boosted banks
as investors hope to see improvements in net interest margins.
Meanwhile, higher costs and rising inflation wieghed on the likes
of retailers, with JD Sports Fashion PLC, Tesco PLC and Ocado Group
PLC underperforming.
Companies News:
Equals Group Revenue Increased in 3Q
Equals Group PLC said Monday that its revenue for the third
quarter of 2021 increased amid strong demand for its services.
---
Argentex Expects Higher 1H Revenue
Argentex Group PLC said Monday it expects revenue to increase
33% for the first half of fiscal year 2022 as client trading
volumes recovered.
---
Intercede Group 1H 2022 Revenue Boosted by New Orders
Intercede Group PLC said Monday that revenue for the first half
of fiscal 2022 was up 9% on a constant currency basis compared with
the same period last year, reflecting orders from both new and
existing customers.
---
Civitas Social Housing Says Performance Remains in Line With
Views
Civitas Social Housing PLC said Monday that its assets and
revenue continue to perform in line with expectations, and
reaffirmed its dividend target for fiscal 2022.
---
Spectra Systems Gets New Order; Expects to Beat 2021 Market
Forecasts
Spectra Systems Corp. said Monday that it has received a new
yearly order from a long-time central bank customer and therefore
expects to beat market forecasts for this year.
---
EDF's Pod Point Considers London IPO
U.K. electric-vehicle-charger provider Pod Point said Monday
that it is considering an initial public offering on the London
Stock Exchange.
---
Harmony Energy Income Trust Intends to Raise GBP230 Mln in
London IPO
Harmony Energy Income Trust PLC said Monday that it intends to
float on the London Stock Exchange, with the fund targeting an
initial placing and offer of up to 230 million new shares at a
price of 100 pence each.
---
Tungsten West to Raise GBP39 Mln in London IPO
Tungsten West said Monday that it has secured a 39 million-pound
($53.1 million) fundraising as part of its initial public offering
in London.
---
Pantheon Infrastructure to List on London's Main Market
Pantheon Infrastructure PLC said Monday that it plans to list on
London's main market and that it expects to raise 300 million
pounds ($408.5 million) via a placing, a subscription, and an
intermediaries offer on admission.
---
Autins Shares Rise as Shareholder Increases Stake to 11.99%
Shares in Autins Group plc rose Monday after Braveheart
Investment Group PLC said that it has increased its stake in the
company to 11.99%.
---
Highway Capital Agrees to Reverse Takeover of Guinevere
Capital
Highway Capital PLC said Monday that it has agreed to acquire
Guinevere Capital Esports & Entertainment, a sports and esports
investment and advisory firm, via a reverse takeover.
Market Talk:
Bearish Momentum on UK Gilts Looks Set to Continue
1255 GMT - A fresh wave of selling is driving U.K. sovereign
bond prices lower and yields higher Monday, with no signs of a
reversal in sight, says Mizuho. "The bearish momentum is proving
difficult to overcome," analysts at the bank say. Mizuho's
positioning indicators show a "sizable" investor base selling U.K.
sovereign bonds in the expectation that prices will fall further.
"Relative to other markets we don't see particularly good
risk-reward in Gilt longs," the analysts say, adding that tentative
market moves are likely at least until the November's Monetary
Policy Committee policy meeting. Meanwhile new supply of gilts
keeps coming, with next Green Gilt bond likely to be launched on
Oct. 19, they add.
---
Senior PLC's 3Q Update Unlikely to Affect 2021 Consensus
Forecasts
1151 GMT - Senior PLC's third-quarter update provided no
surprises, Jefferies says. Consensus estimates for the U.K.-based
engineering company aren't likely to change much following the
update: pretax profit and EPS forecasts are in good shape, while
projections on net debt are sensibly positioned, the bank says.
There might just be some tweaking in division forecasts within
consensus, it says. "Looking out to 2022 forecasts there are plenty
of moving parts to consider (particularly at the moment) on the
cost side, but we remain confident that the group's recovery is
well-set, and top line momentum should be strong," Jefferies says.
The bank has a buy rating on the stock, with a 200 pence target
price.
---
BOE Policy Comments Raise Alert of Looming Interest Rate Rises,
says Societe Generale
1131 GMT - U.K. markets have opened this week on alert for early
interest rate increases, says Societe Generale. Comments by
Governor Andrew Bailey and policymaker Michael Saunders over the
weekend stressing the risk of higher inflation and backing market
pricing of expectations of increased interest rates this year
"poured further fuel on the fire," says Societe Generale's Brian
Hilliard. Still, he thinks the market forecasts of a November move
are premature because the government and the markets seem to be
ignoring the potential damage to activity from the energy
situation. The French bank expects to review its current forecast
of no rate increase until August 22 after this week's labour and
GDP data because it looks "increasingly over-cautious," he
adds.
---
Just Eat Takeaway Likely to Start Strategic Review of US
Business
1116 GMT - Just Eat Takeaway needs to show it can adapt at its
upcoming capital markets day, which could include a strategic
review of its US business, Jefferies says. The food-delivery
platform needs to show it understands delivery, rather than the
gross value of its marketplace, is now key and adopt a clear view
on grocery delivery, Jefferies says. Just Eat only completed its
acquisition of US business Grubhub in June but Jefferies notes
Grubhub founder Matt Maloney is already departing. "The balance of
probability suggests that the US is now non-core and will be put
into strategic review," the investment bank says, suggesting the
company will exit all non-Tier 1 markets. However, Jefferies says
the company is likely to deliver good third-quarter growth.
---
ArcelorMittal Seen Posting Record Earnings
1108 GMT - ArcelorMittal is expected to deliver a record third
quarter, with Ebitda of $6.24 billion, up 24% quarter-on-quarter,
Jefferies says. The steel maker should sound a confident tone on
the medium-term outlook, despite slowing automotive demand, the
brokerage says. Jefferies forecasts a 14% drop in Ebitda in the
final quarter of the year, however, as any incremental strength in
Europe and the Nafta region will be offset by the company's
seaborne and ACIS production segments. ArcelorMittal reports
earnings on Nov. 11. Jefferies confirms its buy rating with a EUR40
target price. Shares rise 4.6% to EUR26.29.
---
Entain Investors Wonder Whether Upbeat Bid Is Likely
1026 GMT - Entain's share-price retreat implies skepticism on
the part of investors over whether an attractive takeover bid is
likely, says Peel Hunt ahead of the betting company's third-quarter
trading update. While M&A discussions with DraftKings continue,
the update is likely to prove a sideshow, Peel says. "Retail is
recovering, but we expect a tough comparative and regulatory
changes to hold back online growth," Peel analysts say. "There's an
appealing long-term opportunity for Entain, but we want to see the
3Q statement before turning more positive. We reiterate our hold
recommendation and 2,300 pence target price." Shares drop 0.8% to
2,115 pence.
---
Anglo American's Earnings Momentum Seen as Cusp of Turning
Positive
1023 GMT - Anglo American's commodity mix has been a headwind in
recent months as iron ore and platinum group metals prices have
sharply declined from their peaks of earlier this year, and the
miner has been on a declining mark-to-market earnings trend,
Jefferies says. However, platinum group prices should begin to
recover when the global chip shortage eases; copper, nickel and
diamond prices should rise in 2022; and most of the damage in iron
ore prices is done, Jefferies forecasts. The bank says that Anglo
American is now its top mining pick in the U.K., replacing
Glencore.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
October 11, 2021 12:09 ET (16:09 GMT)
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