The FTSE 100 closed down 0.27% Wednesday, as gains were trimmed
in stocks due to renewed inflation concerns. After rises in the
last few sessions, the market saw a bout of profit-taking creep
back in, although relatively orderly so far, IG Group PLC chief
market analyst Chris Beauchamp says. "The U.K.'s CPI reading and
ongoing concerns about Europe's seemingly-inevitable winter energy
crunch have been behind the risk-off move, with investors tempering
their optimism about the next few months as they fret about
recessions in both the U.K. and the rest of Europe," Mr. Beauchamp
says.
Companies News:
GSK Says Plaintiff to Drop Zantac Case
GSK PLC said late Tuesday that the plaintiff's counsel in the
first of the U.S. lawsuits over discontinued heartburn drug Zantac
plans to file a notice of voluntary dismissal.
---
ASOS CFO to Step Down as Company Restructures Executive Team
ASOS PLC said Wednesday that Chief Operating Officer and Chief
Financial Officer Mat Dunn has agreed to step down as the company
looks to restructure its executive team.
---
Boohoo Group Buys 7.1% of Revolution Beauty Shares
Boohoo Group PLC said Wednesday that it has bought 22.1 million
shares in Revolution Beauty Group PLC, or 7.1% of its issued share
capital, and plans to be a long-term supportive partner.
---
Persimmon 1H Pretax Profit Fell; Backs 2022 Legal-Completions
Target
Persimmon PLC said Wednesday that pretax profit and revenue fell
in the first half of 2022, and that it anticipates delivery volume
to increase in the second half as the company rebuilds its outlet
position.
---
Glanbia 1H Pretax Profit Rose on Favorable Pricing, Higher
Volumes; Updates Guidance
Glanbia PLC said Wednesday that its pretax profit for the first
half of fiscal 2023 rose on favorable pricing and an increase in
volumes, and updated its guidance for the year.
---
Plus500 1H Pretax Profit Rose; Launches $60.2 Mln Share Buyback
Program
Plus500 Ltd. said Wednesday that pretax profit for the first six
months of 2022 rose, adding that it has launched a share buyback
program and updated its shareholders return policy.
---
Predator Oil & Gas to Raise GBP3.3 Mln to Fund Drilling
Predator Oil & Gas Holdings PLC said Wednesday that it is
raising 3.3 million pounds ($4 million) via a share placing and
will use the money toward drilling.
---
Cineworld Anticipates Significant Share Dilution After Weak
Admissions
Cineworld Group PLC said Wednesday that it is in funding talks
that will likely result in a significant dilution for existing
shareholders, as recent admissions have been below
expectations.
---
Gem Diamonds 1H Revenue Fell From Previous Six Months
Gem Diamonds Ltd. said Wednesday that revenue fell in the first
half of 2022 from the second half of 2021, and that strong demand
and robust prices are driving a continued positive sentiment in the
sector.
---
Balfour Beatty 1H Pretax Profit Rose as Costs Fell
Balfour Beatty PLC said Wednesday that pretax profit for the
first half of fiscal 2023 rose on lower costs, and that for the
full 2022 calendar year, its UK construction division looks set to
deliver industry-standard margins in the 2% to 3% range.
---
Gooch & Housego Lowers Profit Views on Ramp-Up Delay, CEO to
Retire; Shares Fall
Gooch & Housego PLC shares fell on Wednesday after the
company downgraded its profit views for fiscal 2023 as its capacity
to ramp up production to meet a robust order book is taking longer
than expected, and said that its chief executive officer will step
down.
Market Talk:
Cineworld to Look to Debt or Equity to Boost Liquidity
0858 GMT - Cineworld Group is evaluating options to increase
liquidity and restructure its balance sheet through but how isn't
currently clear, Peel Hunt analysts say in a research note. "It is
not clear whether Cineworld will be able to raise fresh debt or
issue fresh equity but, in either case, it appears that the value
of the existing equity will be further diluted," they say. Peel
Hunt has a hold rating on the stock and cuts the target price to 20
pence from 32 pence. Shares trade down 43% at 11.81 pence.
(kyle.morris@dowjones.com)
Persimmon Could Soon Feel Cost-Of-Living Pressures
0855 GMT - Persimmon's margins may be insulated from rising
costs by increased house prices but shortages of skilled labor and
materials are pressuring volumes, AJ Bell says. The U.K. house
builder is confident about a second-half volume recovery but it is
easy to understand why the market is being cautious, AJ Bell
financial analyst Danni Hewson says. "Now it looks like they could
be overtaken by inflationary pressures amid the first signs [that]
mounting mortgage costs and cost-of-living pressures are finally
having some impact on house prices," the brokerage says. The
appetite for change has driven a buoyant housing market but there
is a limit, and as financial pressure grows, people will find it
harder to afford moving house, Hewson says. Shares are down 1.6% at
1,820 pence. (joseph.hoppe@wsj.com)
UK Inflation Heads Above 10%, Peak Has Yet to Come
0845 GMT - U.K. inflation has gone above 10% for the first time
since 1980 and a large part of the increase can be traced back to a
huge 2.2% month-on-month increase in food prices and a sizable
increase in various housing costs, ING's developed markets
economist James Smith says in a note. Next month, headline
inflation looks set to dip back below 10% due to a sharp fall in
average petrol and diesel prices, the economist says. But that is
only a temporary reprieve with a 75% increase in the household
energy cap on its way in October, he says. Therefore, U.K.
inflation is likely to head above 12% from October, according to
ING. (maria.martinez@wsj.com)
UK Domestic Inflationary Pressures Seen Leading BOE to 50bp
Raise
0841 GMT - Inflationary concerns continue to dog the Bank of
England, Capital Economics senior U.K. economist Ruth Gregory says
in a note. While global pressures are beginning ease, signs point
to more persistent domestic inflationary pressures, she says. This
increases the chances that the BOE will opt for a 50 basis-point
interest rate hike on Sept. 15, rather than 25 basis points.
Despite inflation in the U.S. peaking, Capital Economics says
inflation in the U.K. will rise to at least 12.5% in October, while
the recent increases in price and wag expectations will keep
inflation higher for longer. (maria.martinez@wsj.com)
Persimmon's In-House Production Seems a Good Decision
0756 GMT - Persimmon's decision to bring part of the production
in house is giving signs of being a positive choice as it is
protecting the group from inflationary pressures and supply-chain
issues, Richard Hunter, head of markets at Interactive Investor,
says in a research note. The U.K. house builder has not only
expanded its factory capacity but has also kept its gross margin at
31%, the analyst notes. The house building sector, however,
continues to be out of favor with investors and Persimmon's shares
look increasingly cheap despite its healthy financial position and
room for further land acquisitions, Hunter says.
(michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
August 17, 2022 12:30 ET (16:30 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024