FTSE 100 Rises as Oil, Industrial, Finance Stocks Gain
0809 GMT - The FTSE 100 Index rises 0.3%, or 21 points to 7461
as gains for oil, industrial and financial stocks outweigh losses
for BHP, retail and drug shares. BP and Shell gain as the price of
Brent crude increases 0.3% to $95.22 a barrel. Steam-systems group
Spirax-Sarco Engineering, chemical company Croda International and
industrial-software firm Aveva are also among the highest risers,
while Hargreaves Lansdown, Legal & General, Admiral and
Barclays lead financial stocks higher. Still, BHP drops 0.9% after
the miner launched a $5.8 billion takeover bid for Australian
copper-and-gold mining company Oz Minerals Ltd., which the latter
rejected. Also among a handful of fallers are GSK, AstraZeneca,
Marks & Spencer and Sainsbury's. (philip.waller@wsj.com)
Companies News:
Mosman Production Increased in FY 2022
Mosman Oil & Gas Ltd. said Monday that its fiscal 2022
production increased, and that output for the first quarter of
fiscal 2023 has improved.
---
Tungsten West FY 2022 Pretax Loss Widened on Higher Costs
Tungsten West PLC said Monday that its pretax loss for fiscal
2022 widened after the miner booked higher costs, and that it was
in discussions with financing partners regarding the construction
of the Hemerdon tungsten and tin mine in England.
---
Diversified Energy 1H Net Loss Widened Despite Production Boost
to Adjusted Ebitda
Diversified Energy Co. reported Monday a significantly widened
net loss for the first half of 2022, although its underlying
performance improved on the back of higher production.
---
Alliance Pharma Names New Auditor After KPMG Resigns Over
Corporate Concerns
Alliance Pharma PLC said Monday that it has appointed Deloitte
LLP as its auditor for 2022, after KPMG LLP--its auditor for six
years--stepped down over corporate-governance concerns.
---
ADVFN Chairman Michael Hodges Steps Down
ADVFN PLC said Monday that Michael Hodges was stepping down as
chairman and director with immediate effect, and that David Gold
will become nonexecutive chairman.
---
East Star Resources Wins New Exploration License at Kazakhstan's
Talairyk Project
East Star Resources PLC said Monday that it has been awarded a
new exploration license comprising 59 blocks at Kazakhstan's
Talairyk heavy rare-earth elements project.
---
Bidstack 1H Pretax Loss Slightly Widens; Revenue Significantly
Rose
Bidstack Group PLC said Monday that its first-half revenue rose,
though its pretax loss widened marginally on increased cost of
sales and administrative expenses.
Market Talk:
Playtech Snai Sale Could Be Transformative
1054 GMT - A sale by Playtech of Italian betting company Snai
would make strategic sense and transform it into a pure B2B
business whilse providing for a material capital return to
shareholders, Peel Hunt analysts say in a research note. In the
event of a sale, the gambling-technology company would become a
key, more digestible acquisition target in a sector that continues
to consolidate, the analysts say. Elsewhere, taking Caliente to the
U.S. has the potential for greater long-term value, they add. Peel
Hunt reiterates its buy rating on the stock with a target price of
800 pence. (kyle.morris@dowjones.com)
---
Joules Shares Soar Amid News of Talks With Next
1054 GMT - Shares in Joules Group surge 45% after the fashion
and homeware brand confirmed media speculation that it was in talks
with Next about selling a stake to the FTSE 100-listed fashion
retailer and using the latter's online services. Joules might
follow in the footsteps of other brands that use Next's 'Total
Platform' system to increase their sales without large capital
costs, operational risks or time developing sophisticated
infrastructure, AJ Bell says. "Next doesn't typically buy companies
outright, so it seems unlikely that an initial investment in Joules
will lead to a full takeover," AJ Bell financial analyst Danni
Hewson writes. "Instead, expect to see it become an influential
shareholder and for more of Joules's products to appear on Next's
website." (philip.waller@wsj.com)
---
PageGroup Looks Able to Face Short-Term Slowdown
1018 GMT - PageGroup reported a strong 1H performance on Monday,
but management remains aware of the worsening macroeconomic
backdrop following a slowdown in July, Davy Research analyst David
Greenall says in a research note. Although the market expects a
slowdown in 2H, this should only be temporary, Greenall says,
adding that the recruitment company already proved its ability to
cope with a severe short-term dip during the pandemic. The Irish
research firm has an outperform recommendation on the stock.
(michael.susin@wsj.com)
---
Lok 'n Store Update Shows Strong Performance, Positive
Outlook
1017 GMT - Lok 'n Store's year-end statement for fiscal 2022
describes continued strong trading and a positive outlook, FinnCap
says. The self-storage company's revenue rose, high occupancy
levels were maintained and early performance from new stores has
been strong, FinnCap analyst Guy Hewett says in a research note.
"We reiterate our view that the current portfolio and development
pipeline will support a share price of 1,550 pence--with 50%
upside--with further upside to come from future additions to the
pipeline," the U.K. investment bank says.
(joseph.hoppe@wsj.com)
---
Playtech Might Benefit From Restructuring
0901 GMT - Playtech could benefit from a wholesale restructuring
of the business by either its own management or a third party,
Deutsche Bank analyst Simon Davies says in a research note. The
gambling-technology company is trading 30% below the October 680
pence cash offer from Aristocrat, which failed to pass a
shareholder vote for approval, Davies says. The German bank sees a
favorable valuation gap between the company's stock and that of
other gambling-technology peers. Deutsche upgrades its rating on
the stock to buy from hold, but lowers the target price to 602
pence from 693 pence. Shares trade down 0.8% at 466 pence.
(kyle.morris@dowjones.com)
---
Clarkson's Outlook Looks Bright Despite Choppy Waters
0912 GMT - Clarkson drops 2% after the FTSE 250-listed
shipbroker reported higher first-half profit, revenue and dividends
and said the outlook was strong despite geo-political uncertainty,
inflation and supply-chain disruption. Shipping demand far
outstrips supply, creating conditions allowing firms like Clarkson
to increase their prices, financial-services firm eToro says. "As a
result, Clarkson has had a very strong first half, reporting record
revenue and profit, a strong cash position and an increasing
dividend, something it has done for the past 19 years," eToro
analyst Mark Crouch says in a note. "There are continued risks for
the firm--both macro-economic and geo-political--but it will
confront them from a very strong financial position and an
unrivaled market position." (philip.waller@wsj.com)
---
Pound's Fall on UK Recession Fears Capped by Rate-Rise Bets
0834 GMT - The prospect of the Bank of England delivering
another large interest rate rise likely limited sterling's declines
after the central bank forecast a U.K. recession at its last
meeting, ING says. "Sterling probably has not sold off more since
investors do not quite know what to do with a reserve currency that
will be backed by rates at 2.25% if we are correct with our BOE
call for the September meeting," ING analyst Chris Turner says in a
note. The BOE raised its key rate 50 basis points to 1.75% last
week. Since the euro should remain soft, EUR/GBP may struggle to
rise above 0.8450 this week, Turner says. EUR/GBP falls 0.1% to
0.8427 and GBP/USD rises 0.2% to 1.2093. (renae.dyer@wsj.com)
---
Oil Ticks After Chinese Trade Data
0754 GMT - Oil prices tick higher, supported by economic data
from China. Brent crude oil rises 0.7% to $95.53 a barrel while WTI
adds 0.6% to $89.55 a barrel. China's exports grew at a
faster-than-expected pace last month, suggesting the major economy
isn't yet feeling the impact of a slowdown in Western economies.
Meanwhile, Russia-related supply risks will put a floor under
prices, Capital Economics says in a note. A limited supply increase
from OPEC+ means the oil market is likely to remain tight and
prices should remain close to $100 a barrel, the firm says.
(william.horner@wsj.com)
---
Next Might Have Miscalculated Investment Plans
0751 GMT - Fashion retailer Next might have overshot its
investment plans in the online channel in relation to the
acquisition of a minority stake in fashion brand Joules Group,
Jefferies analyst Eleonora Dani says in a research note. The
potential investment in Joules marks another client for Next's
total platform, but the U.K.'s Revenue and Customs investigation
into whether Next paid below the minimum wage indicates that the
business has undertaken more than it can deal with, the bank says.
Jefferies has a hold recommendation on the stock and a target price
of 6,444 pence a share. Shares at 0739 GMT were up 24.00 pence, or
0.4%, at 6,468.00 pence a share. (sabela.ojea@wsj.com;
@sabelaojeaguix)
---
AstraZeneca's Enhertu U.S. Approval Was Faster Than Expected
0739 GMT - AstraZeneca's Enhertu breast cancer treatment has
been approved for use in the U.S. earlier than expected, Shore
Capital says. The pharmaceutical major's approval, while expected
based on overwhelmingly positive trial data, comes much faster than
anticipated, highlighting the FDA's recognition of Enhertu's
remarkable efficacy, Shore analysts Susie Jana and Sean Conroy say
in a research note. "Enhertu has the potential to become
best-in-class and we believe it can garner a significant share of
the HER2+ metastatic breast cancer market," the investment group
says. Shore reiterates its buy recommendation, which it said is
based upon its "industry-leading earnings growth and pipeline
prospects." Shares are down 0.9% at 10,774 pence.
(joseph.hoppe@wsj.com)
---
Metals Inch Higher Amid Positive China Trade Data
0717 GMT - Metals prices are inching higher after China saw
better than expected export figures for July. Three-month copper is
up 0.5% to $7,928 a metric ton while aluminum is up 0.6% to
$7,435.50 a ton. Gold meanwhile is flat at $1,790.60 a troy ounce.
China's exports and trade surplus both beat expectations with the
former 18% higher in dollar terms and the trade surplus hitting
$101.3 billion in July. Stephen Innes, managing partner at SPI
Asset Management says in an email that China's trade figures eases
some concerns over falling global demand, weighed down by rising
prices and higher interest rates. However, Innes adds that
manufacturing data still remains weak, weighing on commodity prices
for now. (yusuf.khan@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
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FTSE 100 Rises as Oil, Industrial, Finance Stocks Gain
(END) Dow Jones Newswires
August 08, 2022 07:12 ET (11:12 GMT)
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