The U.K.'s blue-chip index ended the session 0.17% lower on
Wednesday at 7,469.51 points. "The UK Autumn Statement wasn't a big
market-moving event today and perhaps in the current environment,
that's a good thing," Oanda analyst Craig Erlam writes in a market
comment, pointing to recent speculation that Finance Chief Jeremy
Hunt would announce measures that could run counter to the Bank of
England's 2% inflation target. Home-improvement retailer group
Kingfisher was the FTSE 100's worst performer on the back of weak
third-quarter sales and another guidance cut. "Maybe the
chancellor's largesse at the Autumn Statement, giving consumers a
reduction in [national insurance] payments, will mean some extra
spending heads towards Kingfisher - the share price could certainly
do with some propping up," IG analyst Chris Beauchamp says.
COMPANIES NEWS:
Smith & Nephew to Buy CartiHeal for $180 Mln
Smith & Nephew said it will buy CartiHeal for an initial
cash consideration of $180 million, and that the transaction will
be financed from existing cash and debt facilities.
---
Johnson Matthey Hikes Views Despite Pretax Profit Slip on Lower
Metal Prices
Johnson Matthey raised its underlying performance guidance
despite pretax profit falling on a decline in precious metal
prices.
---
Kingfisher Cuts Profit Expectations Again After Weaker Sales in
France
Kingfisher further cut its profit guidance for fiscal 2024 after
reporting an fall in third-quarter sales, mainly dragged by its
performance in France.
---
Severn Trent Pretax Profit Falls on Higher Energy, Chemical
Prices
Severn Trent said its pretax profit fell in the first half of
the fiscal year on higher energy and chemical prices, while it
backed its outlook for the current regulatory period.
---
Britvic Profit Fell on Higher Costs; Lifts Dividend
Britvic reported a fall on pretax profit for fiscal 2023 on the
back of increased costs, but raised its dividend payout.
---
Sage Group Pretax Profit Fell Despite Double-Digit Revenue
Growth
Sage Group reported a lower pretax profit for fiscal 2023
despite double-digit revenue growth, and outlined a share buyback
program of up to 350 million pounds ($438.8 million).
---
Speedy Hire Pretax Profit Fell; Sees Full Year at Lower End of
Views
Speedy Hire said pretax profit fell for the first half of its
fiscal year as revenue decreased on lower hire and service revenue,
and that results for the year will be toward the lower end of the
board's expectations.
---
Old Mutual Life Insurance Sales Rise
Old Mutual said life insurance sales in the first nine months of
the year rose as positive momentum in personal finance contributed
to growth.
---
QinetiQ Says Klear Kite Has Increased Stake to 11.48%
QinetiQ Group said that Klear Kite--a Delaware limited liability
company--has increased its stake in the company to 11.48%.
---
Partners Group to Sell Civica to Blackstone
Switzerland's Partners Group Holding has agreed to sell U.K.
software developer Civica to Blackstone, the U.S. firm's latest bet
in the U.K.
---
Sage Group Shares Rise on Buyback Plan, Double-Digit Revenue
Growth
Sage Group shares are up over 10%--leading the FTSE 100 index
risers--after outlining a buyback of up to 350 million pounds
($438.8 million) worth of shares and reported double-digit revenue
growth for fiscal 2023.
---
Kingfisher Shares Slip After Second Guidance Cut This Year
Kingfisher is the FTSE 100's worst performer after the group cut
its fiscal 2024 profit expectations for the second time in less
than three months, mainly due to a sales drop in France.
---
Ithaca Energy Backs Output View; Improves Cost Target Again
Ithaca Energy reported a slight fall in nine-month earnings but
improved its full-year cost guidance and backed its output
target.
---
Freeline Therapeutics Agrees to Buyout by Syncona
Freeline Therapeutics Holdings has agreed to be acquired by
majority shareholder Syncona in a deal that values the
clinical-stage biotechnology company at about $28.3 million.
MARKET TALK:
Severn Trent Looks Best-Placed for Growth in the Sector
1207 GMT - Severn Trent reported a slight dip to profit before
interest and taxes on one-offs, but the backed guidance is much
more important, Bank of America analyst John Campbell writes in a
research note. "Our positive stance is based mainly on our view
that Severn Trent looks among the best positioned of U.K. water
firms to deliver value-accretive growth from the expected large
scale AMP8 investment," Campbell says. AMP8 refers to the upcoming
regulatory 2025-30 period. In addition, BofA considers the water
utility's equity story to revolve much more around the outcome of
the upcoming 2024 price regulatory review, which should provide
meaningful scope to regulatory capital-value growth during AMP8,
the analyst says. Shares are up 1.1% at 2,680.00 pence.
(christian.moess@wsj.com)
---
UK Real Estate, Leisure and Retail Stocks Rise Ahead of Autumn
Budget
1155 GMT - U.K. stocks are in fashion ahead of the government's
Autumn Statement at lunchtime, with the more domestic-focused FTSE
250 index rising 0.81% to 18,497 and property and construction
stocks among those in demand, AJ Bell says. U.K. finance chief
Jeremy Hunt is expected to unveil measures to boost British
business including removing planning red tape, boosting foreign
investment and cutting business taxes, and there are talks of
changes to National Insurance, AJ Bell investment director Russ
Mould says in a research note. National Insurance cuts would amount
to a tax cut for consumers, giving them more flexibility to spend
on goods and services--good news for retailers and leisure
companies, Mould says. Shares in Barratt Developments, Taylor
Wimpey, Next and J.D. Wetherspoon are all up 1.75%, 1.45%, 0.1% and
1.3%, respectively. (joseph.hoppe@wsj.com)
---
Kingfisher's Market Conditions Are Mostly to Blame
1147 GMT - Kingfisher's poor 3Q performance and guidance cut
aren't a problem with the group itself and market conditions should
be blamed, eToro analyst Adam Vettese says in a note. The
home-improvement retailer's market expectations for sales are
higher after the pandemic-era do-it-yourself boom, but consumers
are spending less on the sector given the cost-of-living crisis and
the return to the office policies, the analyst says. The company is
also facing fierce competition in its key markets, particularly in
Poland and France, Vettese says. "We expect things to improve as
economic conditions become more benign and consumers are feeling
better off," the analyst adds. Shares are down 6.0% at 216.7 pence.
(michael.susin@wsj.com)
---
Kingfisher's Disappointing Performance Could Raise Questions
Over Disposals
1142 GMT - Kingfisher's 3Q update suggests that the group is
returning to its patchy form of the past after years of
inconsistent performance, AJ Bell investment director Russ Mould
says in a note. "There is no question the economic backdrop is far
less helpful to Kingfisher today. Do-it-yourself activity is
closely linked to property markets, which have been scarred by
rising borrowing costs and weak consumer confidence," Mould says.
After disappointing sales in France, investors may question the
group's structure and whether any of these various businesses could
be sold off, Mould highlights. Shares are at the bottom of the FTSE
100, down 6.2% at 216.4 pence.(michael.susin@wsj.com)
---
European Stocks Rise Ahead of Likely Higher US Open
1132 GMT - European stocks mostly rise after mixed Asia trading
and ahead of an expected higher U.S. open. The Stoxx Europe 600
gains 0.4% and the DAX and CAC 40 advance about 0.5%, though the
FTSE 100 trades flat ahead of the U.K. government's autumn budget
statement. Oil shares trade mixed as Brent crude drops 1.2% to
$81.43 a barrel. Australian and mainland Chinese stocks fell 0.2%
and 1.2% respectively, while Hong Kong's Hang Seng closed flat and
Japan's Nikkei 225 rose 0.3%. IG futures data shows the Dow opening
at 35125, versus Tuesday's close of 35088. "In a bumper day for
U.S. data, U.S. unemployment claims, durable-goods orders and
weekly oil-inventory figures are among the figures being released,"
IG analysts write. (philip.waller@wsj.com)
---
Britvic's Earnings Per Share Outlook May Weigh on Sentiment
1115 GMT - Britvic shares edge 0.5% lower after the soft-drink
maker reported higher annual revenue and adjusted pretax earnings
before interest, though its adjusted EBIT margin fell. While
adjusted EBIT topped market expectations, earnings-per-share
estimates for the year to the end of September 2024 are likely to
come down by low single digits, Goodbody says. "The headline number
here should reassure, with generally solid trading momentum despite
tough end-market conditions," Goodbody analyst Fintan Ryan writes.
"However, the below-the-line items will weigh on EPS, which will be
negative for sentiment in the current backdrop."
(philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
November 22, 2023 12:29 ET (17:29 GMT)
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