UKX FTSE 100 Index

FTSE 100 Rises as Investors Cheer US Debt-Ceiling Deal

0826 GMT - The FTSE 100 Index rises 0.6%, or 44 points to 7534 as investors take heart from U.S. approval of a debt deal. "The U.S. debt-ceiling deal has cleared the second and last hurdle, with the Senate passing the bill to raise the ceiling," IG analysts write. "President Biden can now sign it into law, staving off a U.S. default." Asian and European markets rallied on the news, with mining and property stocks among the biggest top-flight risers in London. BP, Shell and Harbour Energy also gain as the price of Brent crude advances 1.2% to $75.19 a barrel. Defensive stocks such as utility and tobacco shares are among a handful of fallers. (philip.waller@wsj.com)

COMPANIES NEWS:

Gateley to Report FY 2023 Revenue Rise, Underlying Pretax Profit in Line With Views

Gateley (Holdings) said Friday that it will report a rise of around 17% in revenue for the year ended April 30, and that it expects underlying pretax profit to be in line with market expectations.

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Dechra Pharmaceuticals Agrees to Lowered GBP4.46 Bln Takeover by EQT

Dechra Pharmaceuticals said Friday that it has agreed to a new and lowered 4.46 billion pound ($5.59 billion) takeover by EQT's Freya Bidco.

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PayPoint Sees FY 2023 Adjusted Pretax Profit At Top-End of Expectations

PayPoint said Friday that fiscal 2023 adjusted pretax profit is expected at the top end of market expectation on the back of a revenue rise, and that performance in the first quarter of fiscal 2024 has been positive.

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NatWest, Ireland's Finance Minister Raise EUR110.5 Mln From Permanent TSB Shares Sale

NatWest Group and the Minister for Finance of Ireland raised 110.5 million euros ($118.9 million) from the sale of shares they held in Permanent TSB Group Holdings, the bank said on Friday.

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Revolution Beauty 1H 2022 Pretax Loss Narrowed on Lower Stock Charge, FY 2021 IPO Costs

Revolution Beauty Group on Friday reported a narrowed pretax loss for the first half of fiscal 2023 due to a lower stock provision charge in the period and IPO costs that were booked in the comparable period.

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Amur Minerals' Board to Consider Takeover Approach from Ascent Resources

Amur Minerals Corporation said Friday that its board will consider the indicative proposal of an all-share offer from Ascent Resources, which the latter made public Thursday.

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Gemfields' May Emerald Auction Brings in $43.7 Mln

Gemfields Group on Friday said that it made a record $43.7 million in revenue from an emerald auction it held in the second half May.

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NatWest, Ireland's Finance Minister Raise EUR110.5 Mln From Permanent TSB Shares Sale -- Update

NatWest and the Minister for Finance of Ireland raised 110.5 million euros ($118.9 million) from the sale of shares they held in Permanent TSB Group Holdings, the bank said on Friday.

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Zenith Energy to Buy, Operate Some Assets in Oklahoma, US for $2 Mln

Zenith Energy said Friday that it has agreed to buy and operate a number of oil production and development licenses in Oklahoma, as well as other states in the U.S., from Stateside Energy for $2 million.

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Hurricane Energy to Pay GBP37.2 Mln in Special Dividend

Hurricane Energy said Friday it will pay a supplementary dividend of 1.87 pence a share under the terms of the company's acquisition of Prax Exploration & Production.

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Anpario to Return Up to GBP9 Mln via Tender Offer

Anpario said Friday it will propose to return up to 9 million pounds ($11.3 million) to shareholders via a tender offer and that current challenges in the agricultural industry had affected its sale performance in 2023.

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Ashington Innovation Raises $1 Mln Ahead of IPO

Ashington Innovation said on Friday that it raised 809,437 pounds ($1 million) ahead of its initial float on the London Stock Exchange's main market.

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Nostrum Oil & Gas 2022 Revenue Rose on Oil Prices Increase

Nostrum Oil & Gas said Friday that 2022 revenue rose due to an increase in average Brent prices, and that it will continue to focus on developing assets and invest in both upstream and midstream opportunities.

MARKET TALK:

Gateley's Update Might Prompt Upgrades

0843 GMT - Gateley's update shows the legal-and-professional services group is demonstrating resilient growth despite macroeconomic headwinds, Shore Capital analysts Jamie Murray says in a note. Its update suggests it is broadly on track to meet full-year expectations--with revenue expected to exceed GBP161 million compared with Shore's forecast of GBP159.6 million-- as the company is showing resilient growth despite macroeconomic headwinds, Murray says. Still it is heavily exposed to property and M&A, which account for 75% of revenue, and this makes it a risky investment at present, Murray says. "We are likely to marginally uplift our current year revenue numbers to reflect the trading update," Murray says. Shore rates the stock hold. Shares are up 0.9% at 167.50 pence.(anthony.orunagoriainoff@dowjones.com)

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British American Tobacco Set for Scrutiny in Trading Update

0843 GMT - British American Tobacco is expected to report a business update on Tuesday ahead of its first-half results. The FTSE-100 cigarette maker faces a range of longstanding issues that may weigh on sentiment, including regulatory pushback against smoking as well as menthol and flavored alternatives, its ability to create new income streams with next generation products and a $635 million fine by the U.S. for violating North Korean sanctions, AJ Bell analysts say in a research note. "All of these issues will be under scrutiny as [New Chief Executive] Marroco oversees the second-quarter update, which will be benchmarked against the full-year guidance for 2023 given by [Former CEO] Bowles alongside the 2022 full-year results back in February," the brokerage says. Shares are flat at 2,557.0 pence. (joseph.hoppe@wsj.com)

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Gemfields' Record Emerald Result Bodes Well for Ruby Auction

0836 GMT - Gemfields shrugs off headwinds in the macroeconomic environment by setting a record at Friday's auction, Liberum analysts write in a research note. The mining company, which produces emeralds and rubies in Africa, set a new record for high-quality emeralds in a sold-out auction of $43.7 million, up 41% from the previous tender. The auction had the both the highest number of companies placing bids and overall bids placed, which was surprising as the rising interest rates were expected to dampen demand, the analysts say. "This bodes well for the ruby auction result later in the month," they add. Liberum has a buy rating on the stock. Gemfields shares are up 10% at ZAR3.96. (christian.moess@wsj.com)

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PayPoint Share Price Weakness Looks Unmerited Given Positive Update

0836 GMT - PayPoint expects pretax profit to come in at the top end of market expectations, which should result in low single-digit consensus upgrades to EPS, Jefferies analysts Allen Wells and Kean Marden write in a research note. The U.K. payments company's update also hinted at further positive momentum into fiscal 2024, and consequently an upbeat narrative at preliminary results on July 6, the analysts note. "This is in sharp contrast to the recent share price weakness," they say. Jefferies has a buy rating on the stock. Shares are up 6.2% at 401.00 pence. (christian.moess@wsj.com)

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Prudential, AXA Seen as Attractive Buying Opportunities, JPM Says

0823 GMT - Insurers Prudential and AXA are J.P. Morgan's key calls into the second quarter, the brokerage says placing them on its positive catalyst watch. JPM sees some attractive opportunities into the quarter despite the IFRS17 accounting change "fog" making it hard to form a view on companies' potential to beat or miss expectations, analyst Farooq Hanif writes. "Prudential is still on track to beat new business sales and profit consensus under its embedded value framework," Hanif says, pointing to year-to-date trends. On Axa, he remains convinced that the property and casualty division can outperform company guidance, he adds. Prudential shares in London rise 3.6% and is among the top FTSE 100 performers, while Axa gains 1.4% in Paris. (elena.vardon@wsj.com)

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Gemfields' Record Auction Results Highlight Strength of Colored Gemstone Market

0809 GMT - Gemfields Group posted an excellent result with record highs for an emerald auction since 2009, finnCap says in a note. The ruby and emerald mining company reported record revenues and average price per carat for its auction held from May 15 to June 1. "It is worth pointing out that recent sales from the diamond producers have been relatively weak, so this auction highlights the continuing strength of the colored gemstone market," analyst Martin Potts writes. Shares in Johannesburg, South Africa, jump 10% at ZAR3.96. (elena.vardon@wsj.com)

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Gateley's Balance Sheet, Net Cash Position Seen as a Differentiator

0737 GMT - Gateley's update pointing to top line growth of around 17% for FY 2023 and a performance in line with consensus at underlying pretax profit level indicates that its diversified model continues to work as intended, Liberum analysts James Allen and Nick Anderson say in a note. "Gateley's net cash position and strong balance sheet remain a differentiator, providing the ability to trade through a weaker macro environment and a potential increase in the time taken to pay by clients," they say. Liberum rates the stock buy and cuts its target price to 290 pence from 320 pence. Shares are up 5.7% at 205 pence. (anthony.orunagoriainoff@dowjones.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

June 02, 2023 05:07 ET (09:07 GMT)

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