UKX FTSE 100 Index

The FTSE 100 closed down 0.4% as investors await U.S. inflation figures for December, with consumer-price data set to be published on Thursday followed by producer prices on Friday. "While housebuilders have propped up the index following Persimmon's update, broader risk-off sentiment could prevail tomorrow and beyond should U.S. inflation show signs of reviving," IG analyst Chris Beauchamp said in a note. Sainsbury's was the index's biggest faller, down 6.3%, with its non-food divisions struggling as consumers cut back, followed by Admiral Group and BT, down 5.6% and 3.6% respectively. Berkeley Group, Intertek and Intercontinental Hotels were the highest performers, up 2.3%, 2.2% and 1.7% respectively.

Persimmon Delivers a Strong Update With Scope for Further Growth

1157 GMT - Persimmon's year-end update came in better than expected, with new housing sales around 5% above JP Morgan estimates, driven by better-than-guided volumes, analysts say. The house builder provided limited details for the 2024 outlook, save for saying market conditions remain highly uncertain, particularly for first-time buyers and with an election likely this year, JPM analysts say in a research note. That said, there is scope for mid-single digit volume growth given the company's plan to open 30 outlets this spring, the U.S. bank says. JPM raises its price target to 1,120 pence from 1,030 pence. Shares are up 3.6% at 1,441.0 pence. (joseph.hoppe@wsj.com)

COMPANIES NEWS:

Sainsbury's Backs Guidance on Christmas Sales Lift

J Sainsbury backed its guidance for fiscal 2024 as sales volume growth offset inflationary pressures.

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Persimmon Sales Rate Fell But Saw Late Year Improvement; Forward Orders Rose

Persimmon said its 2023 sales rate fell, though demand improved in the final quarter and its forward sales position rose.

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Greggs Sees in Line FY 2023 Performance, Sales Up 20%

Greggs expects its performance for fiscal 2023 to be in line with its expectations as it reported that annual sales increased by a fifth compared to the previous year.

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Pennon Group Buys Sutton and East Surrey Water for GBP89 Mln; to Hold Share Placing

Pennon Group has bought Sutton and East Surrey Water for 89 million pounds ($113.1 million) from Sumitomo Corporation and Osaka Gas, and intends to raise up to GBP180 million in a connected share placing.

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Belvoir Group, Property Franchise Agree to GBP214.4 Mln All-Share Merger

Belvoir Group and Property Franchise have agreed to an all-share merger creating a company worth 214.4 million pounds ($272.5 million) and with more than 930 property franchise locations.

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Hunting Backs Views After In-Line Performance; Names New Chair

Hunting backed its full-year guidance after its fourth-quarter performance came in line with market views, and appointed Stuart M. Brightman as new non-executive chair.

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Nichols Sees Adjusted Pretax Profit Slightly Ahead of Views

Nichols said that its adjusted pretax profit for 2023 is expected to beat consensus estimates slightly.

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Costain Group Set to Deliver Northumbrian Water Infrastructure Upgrade

Costain Group said it has been appointed by Northumbrian Water Group to deliver its strategic infrastructure upgrade program, with potentially up to 670 million pounds ($851.6 million) of contracts set to be awarded over a 12-year period.

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Distil PLC Revenue, Volumes Rose on Business Remodel

Distil PLC said third-quarter revenue rose 39% while volumes rose 10% as it benefits from the business remodel in 2022, and that it expects to build on this growth over the fourth quarter of the fiscal year.

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Hostelworld Revenue Surges on Strong Demand

Hostelworld said its revenue jumped 32% in 2023 on robust demand in key markets.

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ProCook Group Revenue Rises In Peak Business Period

ProCook Group reported a slight increase in revenue for its third quarter of fiscal 2024, its peak business period, driven by its performance in retail.

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M Winkworth Sees Profit Meeting Views Despite Completed Sales Slipping

M Winkworth said it expects pretax profit to meet market expectations, despite a fall in completed sales in its network.

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Sosandar Shares Rise After Revenue Growth

Sosandar shares rose after the company posted a rise in revenue for the third quarter of fiscal 2024 and said it trades in line with views for the year.

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Marks Electrical Shares Plummet After Profit Warning

Shares in Marks Electrical dropped 25% after the online electrical retailer said a lower-than-expected gross product margin has hit its expected full fiscal-year revenue and earnings.

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Mercantile Ports Shares Dive on Lower-Than-Expected Coal Imports

Mercantile Ports & Logistics shares fell as much as 52% after the company said it didn't get the expected coal imports through its Karanja facility in India during December due to the acquisition of a port in the region.

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Amarin Shares Jump 15% With 4Q Revenue Expected to Beat Estimates

Shares of Amarin rose Wednesday after expected fourth-quarter revenue topped analysts' estimates.

MARKET TALK:

European Medical-Technology Sector Shows Positive Outlook for 2024

1412 GMT - European medical-technology companies enter 2024 with a more positive outlook than in recent times, partly driven by an easing of inflation that should allow for an improvement in margins, UBS analysts say in a research note. The sector has underperformed the Stoxx Europe 600 index over the past two years, dragged by inflation, supply-chain issues and rising bond yields, UBS says. Bond yields are now falling--supportive stock valuations--and the sector should be insulated from a weaker consumer backdrop, UBS says. UBS says Siemens Healthineers and Carl Zeiss Meditec are its top picks among European med-tech stocks. "We remain sell rated on Philips, driven by FDA and litigation headwinds, and also on GE Healthcare, where we think earnings expectations are too high," the analysts say. (nina.kienle@wsj.com)

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Hays PLC's Performance Prompts Forecast Cuts

1404 GMT - Although Hays PLC's cost adjustments continue, they have failed to keep pace with the rate of fee decline, Numis analysts say in a note. The recruiter's performance in December deteriorated notably with increased deferrals in decision-making and a lack of seasonal pick-up in temporary worker's activity, which resulted in a profit warning as 2Q group net fees fell by 10% on year and were below consensus, Numis says. The weaker performance prompts analysts to reduce their adjusted operating profit estimates by 30% for 2024 and 2025 to around GBP129.2 million and GBP148.5 million, respectively. Numis rates the stock buy and reduces its target price to 140 pence from 170 pence. Shares are down 0.9% at 99.10 pence. (anthony.orunagoriainoff@dowjones.com)

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Hostelworld's Long-Term Prospects Remain Strong

1310 GMT - Hostelworld's longer-term prospects remain strong as its social strategy increases customer loyalty, driving bookings and reducing acquisition costs, Numis analyst Tim Barrett says in a note. For 2024 Numis's forecasts remain unchanged at around 7.2 million bookings, an 11% rise, and a 50% marketing margin as management's reassurance that it has started the year with a strong momentum reassuringly endorse the framework it presented at the capital markets day in October 2022. "Additionally, structural growth in hostel supply and scope to add properties to the platform enhances growth," Barrett says. Shares are up 7.9% at 143.50 pence. (anthony.orunagoriainoff@dowjones.com)

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European Stocks Drop; Japan Stock Gains Buck Asia Losses

1205 GMT - European stocks drop after mostly downbeat trading in Asia and ahead of an expected lower open on Wall Street. The Stoxx Europe 600 and FTSE 100 retreat 0.3% and the CAC 40 and DAX fall 0.1%, with losses for insurers outweighing gains for property shares. Markets in Australia, mainland China, Hong Kong and South Korea fell, though Japanese stocks rose 2%. "While most indices in Asia were lower, the Nikkei 225 took off skywards, breaking above 34,000 for the first time since 1990, as slowing inflation for Tokyo weakened the yen," IG analysts write. IG futures data show the Dow opening at 37472, versus Tuesday's close of 37525. Brent crude rises 0.2% to $77.77 a barrel ahead of the release of weekly U.S. crude inventories. (philip.waller@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

January 10, 2024 13:00 ET (18:00 GMT)

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