FTSE Gains as Barclays, Fresnillo Rise; Oil Stocks Fall
The FTSE 100 rises 0.2%, or 14 points to 7010 as gains for
Barclays, Fresnillo and others offset losses for oil majors and
other financials. BP and Royal Dutch Shell drop despite a 0.4% gain
in Brent crude to $73.85 a barrel. HSBC, London Stock Exchange and
Standard Chartered also fall despite upbeat first-half results from
Barclays, which advances 4.2%. ITV gains 0.3% after the U.K.
broadcaster reported higher first-half pretax profit and an
encouraging advertising outlook as revenue from advertising and its
studios recovered from the hit caused by the coronavirus pandemic.
British American Tobacco gains 0.4% as adjusted revenue and
adjusted profit rose.
Companies News:
Rio Tinto 1H Net Profit, Dividends Sharply Higher
Rio Tinto PLC notched a record first-half net profit and more
than tripled its midyear payout to shareholders, benefiting from a
bull run in commodity prices that has stoked inflation expectations
around the world.
---
Barclays Profit Soars on Investment Banking
Barclays PLC Wednesday said its net profit rose in the second
quarter, driven by a strong performance in its investment bank.
---
Tricorn Sale Talks Continue; Bank Puts Restrictions on Borrowing
Facilities
Tricorn Group PLC said Wednesday that talks about a possible
sale of the business or one or more of its operations continue with
a number of parties, and that its main bank has put restrictions on
the company's borrowing facilities
---
British American Tobacco 1H Profit, Revenue Fell Despite New
Categories Growth
British American Tobacco PLC said Wednesday that first-half
pretax profit fell on the back of reduced revenue and a strong
comparative period, although adjusted revenue and adjusted profit
rose.
---
Esken to Raise GBP55 Mln in Discounted Equity Issue; Shares
Fall
Shares in Esken Ltd. fell Wednesday after the company said it
will raise 55 million pounds ($76.3 million) through a discounted
share placing and open offer.
---
Pebble Beach Systems Sees 1H Results In Line With Views
Pebble Beach Systems Group PLC said Wednesday that it expects to
report results for the first half of 2021 in line with its board's
views as it made progress across all key metrics.
---
MusicMagpie Swung to 1H Pretax Loss on Exceptional Costs
MusicMagpie PLC said Wednesday that it swung to a first half
pretax loss due to exceptional costs, but that revenue rose.
---
Diurnal's FY 2021 Alkindi Proforma Sales Rose
Diurnal Group PLC said on Wednesday that proforma sales of its
Alkindi product during fiscal 2021 rose 7%.
---
Smart Metering Systems Sees 2021 Underlying Profit in Line With
Expectations
Smart Metering Systems PLC said Wednesday that it expects to
report underlying profit in line with internal expectations for the
first half and for the whole of 2021.
---
Epwin 1H Revenue Rose, Sees 2021 Adjusted Profit Ahead of Mgmt
Views
Epwin Group PLC said Wednesday that revenue for the first half
of the year rose above pre-coronavirus pandemic levels and it now
expects 2021 adjusted pretax profit to exceed its expectations.
---
Total Produce Shares in London Fall After Cut to Dole's Expected
IPO Price
London-listed shares in Total Produce PLC fell Wednesday after
the company said the expected price of Dole PLC's initial public
offering in New York has been lowered to between $16 and $17 a
share, from between $20 and $23 previously.
---
Grafenia Shares Down After FY 2021 Revenue Fall; Pretax Loss
Reduced
Grafenia PLC shares fell Wednesday after it said that its fiscal
2021 revenue dropped 38%, though its pretax and earnings loss
narrowed on reduced costs.
---
Anglo Pacific 2Q Portfolio Contribution Up 38% From 1Q After
Voisey's Bay Acquisition
Anglo Pacific Group PLC on Wednesday reported a significantly
higher portfolio contribution for the second quarter, driven by the
acquisition of the Voisey's Bay cobalt stream.
---
Tracsis Expects to Beat Earnings Forecasts After UK Contract
Win
Tracsis PLC said Wednesday that it expects to exceed market
forecasts for full-year earnings after winning a significant
multiyear contract in the U.K. for its RailHub software
product.
---
Big Technologies Shares Jump in Stock Market Debut
Shares of Big Technologies PLC jumped as much as 55% Wednesday
as it started trading on the London Stock Exchange's junior AIM,
implying a market capitalization of 891.4 million pounds ($1.24
billion).
---
Fewer UK Businesses Faced Significant Financial Distress in 2Q
Than in 1Q, Report Says
A total of 650,000 U.K. businesses faced significant financial
distress in the second quarter of 2021, a 10% decline from the
first quarter, according to data published by
corporate-restructuring specialist Begbies Traynor Group PLC on
Wednesday.
Market Talk:
Rio Tinto's Cash Splash Shows Strength of Balance Sheet
0832 GMT - Rio Tinto's better-than-expected midyear payout shows
just how strong the miner's cash flow was during 1H, CFO Peter
Cunningham says. "The thinking underpinning [the shareholder
payout] is a function of the strength of the cash flow, the fact
that we had very strong markets in the first half of the year" and
the health of the balance sheet, which was net cash at the end of
the period, he tells WSJ. Even with the midyear payout, which
totals some US$9 billion, "we are left in a position where we are
still in an extremely strong financial position," he says.
---
Barclays 2Q Profit Tops Hopes
0815 GMT - Barclays second-quarter profit was better than
expected, says Citigroup. Citi says 2Q adjusted PBT of GBP2.6
billion, excluding litigation, is 55% ahead of consensus, mainly
driven by provision reversals on IFRS 9 assumption changes.
Pre-provision profit is 12% ahead of consensus, with a 2% revenue
beat and 2% cost beat. Guidance for FY21 net-interest margin is
slightly increased and FY21 cost guidance has been clarified,
though both appear to match existing consensus. CET1 ratio of 15.1%
is above consensus, while the announced buyback of GBP0.5bn also
tops expectations. "Overall a solid and reassuring set of numbers,"
Citi analysts say. Citi reiterates a neutral rating on the stock,
which rises 4.6%.
---
BAT's New Categories Are Crucial to Share Price
0812 GMT - British American Tobacco's reduced-risk
products--like e-cigarettes and tobacco-vapor products--are
critical to the continued performance of its share price in the
long-term, Jefferies says. The strong sequential improvement in the
New Categories segment in its 1H results is encouraging, it says.
At the same time, the tobacco company continues to take share in
the cigarette market, with U.S. delivery remaining robust, which
should help support additional investment in reduced-risk products,
Jefferies says. The U.S. bank retains its buy rating and target
price of 3,606.0 pence. Shares are up 0.1% at 2,772 pence.
---
BAT Looks Cheap Given Dividends on Offer
0759 GMT - The bulk of British American Tobacco's sales still
come from traditional tobacco products, with ethical issues leaving
the industry an untouchable area for many investors, but its push
toward new category products continues and great dividends are hard
to ignore, Interactive Investor says. The tobacco company's New
Category revenue rose 40.4% in 1H, and a historic and forecast
dividend yield of over 7% is hard to ignore, especially in the
current ultralow interest rate environment, Interactive Investor
says. "In all, and given a discounted valuation, strong cash
generation and a generous dividend yield, analyst consensus opinion
continues to point toward a strong buy," the online investment
platform says. Shares are down 0.1% at 2,769 pence.
---
Fresnillo Gains After 'Solid' 2Q Production Report
0757 GMT - Shares in Fresnillo rise 4% after the Mexican silver
miner reported better-than-expected second-quarter gold and silver
production. RBC Capital Markets says the numbers were solid and
beat both the brokerage's own estimates and those of the market.
"On a less positive tone, the group reported that it is assessing
the implementation of a new law in Mexico, which would restrict the
ability to subcontract labour in the country," RBC analyst Tyler
Broda says. While Fresnillo doesn't expect the law to impact FY21
volumes, it remains a risk to watch, RBC says. "We expect to hear
more at the company's interim results on August 3."
---
ITV's Outlook Seen as Implying Better-Than-Expected 3Q
Advertising
0757 GMT - ITV's first-half numbers are slightly better than
expected and its outlook for the third quarter suggests advertising
will be stronger than anticipated, Numis says. The British
broadcaster said advertising is expected to be up 68% for July and
up between 17% and 20% for August, while trends for September are
looking positive. This implies that ITV's third-quarter advertising
revenue should be up more than 20%, which is ahead of Numis's
current estimate of a 6% rise, the brokerage says. In the first
half, ITV's advertising and studios revenue both contributed, and
cost-saving plans are in line with previous comments, Numis says.
Shares rise 0.7%.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 28, 2021 04:58 ET (08:58 GMT)
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