The FTSE 100 closed down on Tuesday as China's Hang Seng index
slid to a nine-month low affecting Europe's market sentiment.
Analyst Michael Hewson at CMC Markets UK said that although the
fallout looks contained for now, the wider expectation is that
Chinese regulators are engaging in an exercise of boundary
redrawing, and that the bigger concern is that they overreach and
prompt widespread capital flight. "The weakness seen in Europe
today appears to be a by-product of wider fears that a policy
misstep from Beijing could have wider consequences for the global
economy," Hewson says.
Companies News:
Ceres Power Says on Track to Meet 2021 Revenue Consensus
Ceres Power Holdings PLC said Tuesday it is on track to generate
2021 revenue in line with consensus estimates of 31.5 million
pounds ($43.5 million).
---
Metals Exploration 2Q Gold Revenue Falls on Lower Volumes
Metals Exploration PLC on Tuesday reported that its gold revenue
fell in the second quarter, as sales and production were lower than
in the first quarter.
---
Just Eat Takeaway.com Climbs As Shareholder Says Firm Should
Merge With Rivals -- MarketWatch
Just Eat Takeaway.com was one of the few Stoxx Europe 600
advancers, rising 1.8% in early Amsterdam trade, after shareholder
Cat Rock called on the company to make a merger with other global
players.
---
Kooth Sees 1H Revenue in Line With Full-Year Views
Kooth PLC said Tuesday that revenue for the first half is
expected to be comfortably in line with market expectations for the
full year and that it plans to accelerate investment to drive its
growth strategy.
---
Chaarat Gold 1H Ebitda Tripled Despite Weaker Volumes
Chaarat Gold Holdings Ltd. said Tuesday that its earnings before
interest, taxes, depreciation and amortization more than tripled in
the first half of the year.
---
Uniphar 1H Organic Gross Profit Grew; Says On Track to Meet
Full-Year Views
Uniphar PLC said Tuesday that organic gross profit grew in the
first half of 2021 thanks to strong performance across its
divisions, and that it is confident in meeting full-year
expectations.
---
SourceBio International 1H Revenue, Earnings Grew
Significantly
SourceBio International PLC said Tuesday that its first-half
revenue almost quadrupled on-year and adjusted earnings grew
considerably, with significant further growth expected in the
second half.
---
Sylvania Platinum Shares Slide After 4Q Profit Fell 64% on
Quarter
Shares in Sylvania Platinum Ltd. dropped Tuesday morning after
it said its profit plummeted 64% in the fourth quarter from the
previous quarter of its fiscal year on the back of lower realized
prices and higher costs.
---
Games Workshop FY 2021 Profit, Revenue Rose
Games Workshop Group PLC reported Tuesday a rise in pretax
profit and revenue for fiscal 2021.
---
Sabre Insurance's 1H Pretax Profit Fell
Sabre Insurance Group PLC reported on Tuesday a decline in
pretax profit for the first half of 2021 and said that gross
written premiums fell in line with expectations under Covid-19
lockdown.
---
Ergomed 1H Revenue Rose
Ergomed PLC said Tuesday that revenue rose in the first half of
the year and that it expects full-year results to be in line with
forecasts.
---
Salt Lake Potash Trading Halted Ahead of Production Guidance
Downgrade, Possible Fundraising
Salt Lake Potash Ltd. said Tuesday that trading of its shares in
Australia and London has been halted pending a substantial
downgrade in production estimates for the year to June 2022, and a
possible future fundraising.
---
Ince Group Profit Slips, Commits to Restarting Dividends
Ince Group PLC said Tuesday that pretax profit for fiscal 2021
fell while revenue rose, and committed to restarting dividend
payments in the new year.
---
In the Style Swung to a FY 2021 Pretax Profit
In the Style Group PLC on Tuesday reported a swing to a pretax
profit for fiscal 2021, and said sales in the first quarter of
fiscal 2022 are 44% above those a year earlier.
---
Southern Energy Corp. to Float in London
Southern Energy Corp. said Tuesday that it intends to seek
admission to London's AIM junior market.
Market Talk:
UK Biggest Banks Could Post Positive Surprises in 1H
Earnings
1000 GMT - In the event of strong earnings for Barclays, Lloyds
Banking and NatWest, the largest U.K. banks could declare further
dividend increases, while the economic recovery underway can help
account for more impairment provisions, says Richard Hunter, head
of market at Interactive Investor. The U.K. banks have performed
amid a stronger-than-expected economic recovery in the first half
of the year, lessening their levels of bad debts, Hunter says. "For
those with an investment banking operation, there could also be a
further boost to earnings given the heightened levels of merger and
acquisitions activity and IPOs."
---
Just Eat Takeaway Could Be a Strategic Acquisition Target
0951 GMT - Investor Cat Rock Capital is pushing Just Eat
Takeaway.com to take action following its weak share performance,
an unsurprising move that highlights the company's attractiveness
as the food-delivery industry looks to consolidate, Citi says.
Consolidation is expected to be a key driver of the online
food-delivery landscape globally and the Amsterdam-based group
could be an attractive strategic asset in Europe, Citi says. The
company's strong positions in its core markets mean it is well
placed to pivot into logistics and grocery, Citi says. "Investment
in itself isn't an issue but lack of clarity feels like it has been
a barrier for some investors potentially interested in exploiting
the valuation gap of JET vs. peers," the bank says.
---
Polymetal 2Q Production Was Broadly in Line
0948 GMT - Polymetal International has reported a broadly in
line set of results for the second quarter, with gold production
decelerating sequentially from a stronger performance last quarter,
Citi says. Gold-equivalent output was as expected despite
considerable variability within operations, the bank says. "Gold
production at Kyzyl was stable and in line, but was above
expectations at Omolon and Varvara. However, production shortfall
at Svetloye and Voro offset the beat elsewhere." In addition, sales
fell short of Citi's views despite increasing 13%
quarter-on-quarter. Shares in the Russian miner fall 0.5% to 1,511
pence. Citi has a buy rating on the stock.
---
Greencore Shares Seen Undervalued
0859 GMT - Greencore Group shares don't fully reflect the food
company's strong position, Shore Capital says. "We don't feel that
Greencore's equity valuation reflects a vaccination and recovery
dividend. Nor does it actually value the competencies and
capabilities of the group, skills that make for material barriers
to entry," Shore says. The investment group has a buy rating on the
stock. Shares are up 3.6% at 133.5 pence.
---
SourceBio's Share Price Isn't Reflecting Building Momentum
0859 GMT - SourceBio International's shares look undervalued
given its strong first-half results and building momentum, Liberum
says. The laboratory-services provider's key driver in its
significant revenue and earnings growth was infectious-disease
testing although other divisions all appear to have recovered to
pre-coronavirus levels, but the shares are down almost 40% since
January--unreflective even on a post-coronavirus basis, the
brokerage says. "Whilst our forecasts are heavily second-half
weighted, the doubling of coronavirus testing volumes over the past
month combined with strong growth in [business division]
diagnostics in particular gives us confidence in management's
ability to deliver," Liberum says, retaining its buy rating and
target price of 230.0 pence. Shares are up 12% at 162.5 pence.
---
Slower Mobility Recovery Hurts Vivo Energy
0859 GMT - Vivo Energy shares drop 2.5% after the company
reported its first-half results. Numis, corporate broker for the
pan-African fuels and lubricants retailer, notes that some mobility
restrictions remain in place and that Vivo's volumes per site were
around 10% below 2019 levels. As a result of this slower recovery
in mobility, the brokerage is cutting its 2021 volume growth
estimate to 6% from 8%. On the positive side, Vivo's first half
Ebitda was 3% ahead of consensus on the back of stronger gross cash
margins. "While activity levels are the key to upgrades, we also
see upside from the group's ongoing investment into capturing the
long-term structural growth opportunities."
---
FirstGroup Should See Positive Sentiment on Consensus
Outperformance
0853 GMT - FirstGroup's fiscal 2021 results look positive which
should be reflected in market sentiment, with adjusted operating
profit of GBP209 million greatly exceeding the market consensus of
GBP151 million, Citi says. The rail-and-bus-operator's strong
outperformance was driven by better-than-expected revenue recovery
in its transit business and performance related payments in rail,
the U.S. bank says. Citi retains its buy/high risk rating for the
company, given the increased share price volatility driven by news
on the recent sale of the North American business, and target price
of 114 pence. Shares are down 0.7% at 83.8 pence.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 27, 2021 12:33 ET (16:33 GMT)
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