The FTSE 100 closed Friday up 0.57%, reaching its highest level
since Oct. 19. The index was boosted by a rebound in oil prices
from five-month lows, lifting the like of BP and Shell, while its
second largest supermarket Sainsbury also had a solid session,
bouncing to its highest price in almost two years after Goldman
Sachs upgraded it to buy, CMC Markets UK chief market analyst
Michael Hewson says in a research note. A decline in Anglo American
did take some of the sheen off the index's gains, after the miner
warned it plans to make production cuts next year in order to
reduce costs and boost prices, Hewson says.
COMPANIES NEWS:
Telecom Operators Get $3.78 Bln Claim for End-of-Contract
Overcharging
London-based law firm Charles Lyndon has started proceedings
against Vodafone Group, EE, O2 and Three seeking 3 billion pounds
($3.78 billion) over claims the companies overcharged customers at
the end of minimum service contracts.
---
Berkeley Group Extends Guidance as Pretax Profit Rises on Higher
Selling Prices
Berkeley Group Holdings has extended its guidance by an extra
year as it reported a rise in pretax profit for the first half year
on higher average prices and despite selling fewer houses.
---
IG Group Holdings Names Breon Corcoran as New CEO
IG Group Holdings has appointed Breon Corcoran as chief
executive officer from Jan. 29, replacing June Felix who stepped
down in August due to health reasons.
---
Christie Group to Miss Forecasts on Transaction Delays
Christie Group said that it will miss full-year adjusted profit
market expectations due to delays in transactions moving into next
year as buyers and vendors avoid pre-Christmas disruption to their
businesses.
---
Artisanal Spirits Shares Dive on Profit Warning
Artisanal Spirits shares fell 22% after the company said that
revenue for the year will be below market forecasts due to a weaker
performance in China over the fourth quarter and
lower-than-expected sales of its 50th anniversary program.
MARKET TALK:
Berkeley Group Looks a Good Pick for Long-Term Investment
1113 GMT - Berkeley Group looks a very well-run business, which
continues to focus hard on medium- to longer-term value generation
and shareholder returns in particular, Peel Hunt says. The house
builder's results delivered no major surprises, and the possibility
it could return a large amount of capital after fiscal 2027 is
interesting, Peel Hunt analysts says in a research note. "In the
short term there are probably better-value plays in the sector, but
for those with long-term investment horizons, Berkeley should
remain of interest," the brokerage says. Shares are down 2.3% at
4,825.0 pence. (joseph.hoppe@wsj.com)
---
Berkeley Group Continues to Deliver on Returns for
Shareholders
1112 GMT - Berkeley Group is a cash cow that continues to
deliver the goods, setting itself apart from peers, RBC Capital
Markets says. The house builder's stock tends to perform well in a
good market, and the company often gives money back to shareholders
in a bad one, RBC analysts say. Meanwhile, its early Christmas
present to investors is a commitment to return all post-tax profits
to shareholders if it hasn't started to deploy capital into new
investments by the end of fiscal 2027, they add. Berkeley's market
may be challenging, but that hasn't deterred it from reiterating
guidance for fiscal 2024 and fiscal 2025 and providing guidance for
the year after that, the Canadian bank says. Shares are down 2% at
4,843.0 pence. (joseph.hoppe@wsj.com)
---
Berkeley Group Making Tough Choices But Investors Are Being
Rewarded
1109 GMT - Berkeley Group is making some hard choices to keep
itself in resilient shape, deciding against investing in new
developments given the difficult backdrop and tough regulatory and
planning environment, Interactive Investor says. That said, the
house builder's upgrade to its medium-term outlook gives both extra
visibility and comfort to investors, who have so far been rewarded
for their patience as its share price gains outperform peers and
the wider FTSE 100, Interactive's Richard Hunter says in a research
note. "While investor sentiment is clearly far from having turned
the corner, the market consensus of the shares as a strong hold
demonstrates a degree of optimism which is hard to find elsewhere
in the sector at present," Hunter says. Shares are down 1.9% at
4,845.0 pence. (joseph.hoppe@wsj.com)
---
Sainsbury's Market-Share Momentum Has Improved, Says Goldman
Sachs
1053 GMT - J Sainsbury's shares are among the biggest FTSE 100
risers, up 3% to 300 pence after Goldman Sachs upgraded the U.K.
grocer to buy from neutral and increased its price target to 350p
from 305p. While agricultural commodity prices remain elevated,
food retailers and suppliers still look likely to have inflation to
pass through next year and trading down to cheaper brands looks set
to partially reverse as the inflation outlook improves, the bank
says. "Sainsbury's has strengthened its positioning through the
year, with our proprietary price analysis indicating it has closed
the price gap versus Aldi, becoming the second of the big four to
do so," Goldman analysts write. "Consequently, Sainsbury's has seen
strongly improving market-share momentum."
(philip.waller@wsj.com)
---
Berkeley Group Performing Well But Planning Pressures Weigh
1050 GMT - Berkeley Group is on track to meet guidance for the
next two years despite a difficult market backdrop, but news it
isn't investing in new developments due to a volatile planning and
regulatory environment is telling, AJ Bell says, noting a fall in
first-half sales volumes. The house builder is finding
under-resourced local planning departments unable to approve
projects in a timely fashion, a key bugbear for the industry, AJ
Bell investment director Russ Mould says in a research note.
"However, an increase in profit from Berkeley, during tough times,
shows it continues to be near the top of the class in the sector,"
Mould says. Shares are down 1.9% at 4,845.0 pence.
(joseph.hoppe@wsj.com)
---
Anglo American's Streamlining Should Improve Balance Sheet, Cash
Flow
0929 GMT - Anglo American's reshape of its operations will
likely result in a stronger operational position with a better
balance sheet and cash flow position than previously, RBC Capital
Markets analyst Tyler Broda writes in a research note. The majority
of the global miner's production cuts seem to be from copper,
platinum group metals, coal and diamond assets, Broda says. "We
think this new streamlined Anglo American should allow it to shed
some of the recently more challenging aspects of the business and
addressing this proactively should help the company emerge in a
stronger position for the coming years," he says. Shares are down
4.5% at 2,125.00 pence. (christian.moess@wsj.com)
---
Berkeley Doesn't Seem Deterred by Challenging Market
Conditions
0754 GMT - Berkeley shows once again that even in bad market
conditions, it gives money back to shareholders, RBC Capital
Markets analyst Anthony Codling writes in a research note.
"Berkeley Group is a cash cow that continues to deliver the goods,"
he says. "The, very, early Christmas present is that if it has not
started to deploy capital into new investment opportunities by
April 30 2027, it will return 100% of profits after tax to
shareholders," Codling says. The U.K. house builder also reiterated
its guidance for fiscal 2024 and 2025 and extended guidance to
fiscal 2026. (christian.moess@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
December 08, 2023 12:02 ET (17:02 GMT)
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