The FTSE 100 index on Wednesday closed lower despite
outperforming its European peers with gains from pharmaceutical
major GlaxoSmithKline PLC and other major oil stocks. "The market
is still adjusting to the Fed's hawkish shock last week when it
projected two interest rate rises in 2023," says Sophie Griffiths,
market analyst at OANDA.
Manolete Partners Profit Fell in FY 2021; Appoints New
Manolete Partners PLC on Wednesday reported a drop in profit for
fiscal 2021 and appointed Howard Leigh as chairman designate.
Synthomer Appoints Michael Willome as CEO
Synthomer PLC said Wednesday that it has appointed Michael
Willome as its next chief executive officer, succeeding Calum
MacLean with effect from Nov. 1.
Investment Company Literacy Capital PLC Plans London Float
Investment company Literacy Capital PLC said Wednesday that it
plans to float on the main market of the London Stock Exchange,
with admission expected to take place on Friday.
Transglobe Energy 2Q Production Rose on Quarter
Transglobe Energy Corp. said Wednesday that second-quarter
production rose on quarter due to well-optimization activities in
Egypt, full oil production from the lower Bahariya reservoir,
Egypt, and a return to production in Canada.
Berkeley's FY 2021 Results Outperformed Market Expectations --
Berkeley Group Holdings PLC reported results for fiscal 2021 on
Wednesday. Here's what we watched:
Dignity Says 21-Week Underlying Profit Fell on Year
Dignity PLC said Wednesday that underlying profit for the 21
weeks ended May 21 was slightly lower than in the same period of
the previous year.
Data Knights Acquisition Files 8K - Other Events >DKDCU
Data Knights Acquisition Corp. (DKDCU) filed a Form 8K - Other
Events - with the U.S Securities and Exchange Commission on June
IHS Markit 2Q Profit, Revenue Rise as End Markets Recover
IHS Markit Ltd. said profit for its recent quarter rose as end
markets continued to recover.
GlaxoSmithKline Expects Sales, Profit to Grow Through 2026,
Driven by Vaccines, Specialty Medicines
GlaxoSmithKline PLC said Wednesday that it expects growth in
sales and adjusted operating profit over the next five years to be
underpinned by new vaccines and specialty medicines, as it set
targets for the medium and long term following the planned 2022
demerger of its consumer healthcare business.
IHS Markit Raises Adjusted Earnings Guidance for Fiscal 2021
IHS Markit Ltd. raised its adjusted-earnings guidance for the
rest of the fiscal year as it said its end markets continued to
Clontarf Energy Chairman Steps Aside; David Horgan Named as
Clontarf Energy PLC said Wednesday that John Teeling has stepped
aside as chairman of the board, and that Managing Director David
Horgan has been appointed executive chairman.
Polyus PJSC Backs 2021 Production Guidance
Polyus PJSC on Wednesday reiterated its 2021 production target
and said it expects to produce slightly more gold over the next two
years, mainly from higher output from the Olimpiada mine.
Capital Ltd. Founder Brian Rudd to Sell 3 Mln Shares --
Capital Ltd. said Wednesday that founder and Executive Director
Brian Rudd is selling three million shares of the company at a
GlaxoSmithKline Expects Long-Term Sales, Profit Growth, Driven
by Vaccines and Specialty Medicines -- Update
--The company expects its late-stage pipeline to underpin sales
in the longer term, until 2031
Marlowe's Investment Case Strengthened by Bright Outlook
1052 GMT - Marlowe's fiscal 2021 results came with a small beat
to current consensus, organic progress in a number of areas, and a
sizeable upgrade to future guidance, Berenberg says. The provider
of technology-enabled compliance services achieved run-rate
adjusted Ebitda of GBP44 million in the fiscal year, above previous
guidance of GBP39 million, prompting Berenberg to upgrade its
forecasts by 12% to 14%. "With the company remaining in a net cash
position, having a 'strong pipeline of earnings enhancing
acquisitions,' as well as enjoying a strong start to the year in
terms of organic growth, we think the Marlowe investment case is in
a great position," the German brokerage says. Berenberg has a buy
rating on the stock and increases the target price to 1,160 pence
from 900 pence.
IMI Is Catching Up With Rivals, HSBC Says
1023 GMT - IMI is catching up with rivals, HSBC says, increasing
its recommendation on the U.K. engineering company to buy from hold
and its price target to 2,065 pence from 1,370p. IMI's shares could
make further significant gains despite a 40% rally so far this
year, HSBC says. Over the past decade, IMI's adjusted earnings
haven't risen on a compound annual basis, whereas those of its
peers have on average increased by about 5% a year, the bank says.
"At the moment, it's tricky to delineate between recovery and
sustainable growth, but we believe enough has changed at IMI to
drive the latter," analyst Michael Tyndall says. Shares rise 0.8%
UK PMIs Strong Momentum Is at Odds With Other Indicators
1019 GMT - While U.K. PMIs suggest a modest slowdown in economic
growth in June, other surveys signal that activity has slowed
sharply in recent weeks, says Samuel Tombs, chief U.K. economist at
Pantheon Macroeconomics. Both the Office of National Statistics'
Business Impact of Covid-19 survey and the Bank of England's
Clearing House Automated Payment System data suggest that activity
has stalled, he says. "As the ONS' survey has been a better guide
than the PMIs to the pace of the recovery so far ..., we still
think that month-to-month growth in GDP probably slowed to about
1.5% in May and 0.5% in June, decelerating from the 2.1% and 2.3%
increases seen in March and April, respectively," Tombs says.
Weaker UK PMI Data Unlikely to Alter BOE's Policy Stance
1019 GMT - A lower-than-expected preliminary reading in the U.K.
purchasing managers index for June is unlikely to alter the Bank of
England's monetary policy stance, says Oliver Blackbourn,
multi-asset portfolio manager at Janus Henderson Investors. "It is
unlikely that the data changes the picture for the Bank of
England's rate decision tomorrow." 10-year gilt yields are little
changed Wednesday after a week of volatility in line with other
bond markets. Instead, this morning's data has seen inflation
breakeven rates rise, pushing down real yields, while the stronger
eurozone PMI responses and a weaker U.K. survey may have
contributed to sterling weakening against the euro, he says.
Berkeley Drops as Investors Question UK Market Momentum
1015 GMT - Berkeley Group Holdings falls 1% despite higher
annual profit and revenue and the U.K. house-builder's plans to
return more cash to shareholders. Investors are questioning whether
house-builders can maintain momentum as the U.K. market cools,
Hargreaves Lansdown says. "Some of Berkeley's figures seemed to
confirm this trend," says HL analyst Laura Hoy. "Private
reservations were down 20% and forward sales also declined
slightly. Some of that can be attributed to the fact that the group
paused some launches of its developments during lockdown and
management confirmed that despite this, it was still on track to
hit its long-term goal of GBP500 million in annual profits each
year to 2025, but it's still unnerving for the market."
Market Seen Overlooking Strengths of UK Networking,
0936 GMT - Spirent Communications, dotDigital Group and
Centralnic Group hold top positions in niche and highly technical
markets, but are often overlooked by the market, Berenberg says.
Test, assurance, and analytics services provider Spirent has become
much less cyclical over the 2015-20 period, marketing-automation
software company dotDigital is set to benefit from continuing
tailwinds and internet domain-name supplier Centralnic can
accelerate revenue growth thanks to its online marketing
businesses, the brokerage says. "We think all three stocks are
often overlooked because they are viewed as cyclical, too expensive
or too small," Berenberg says, starting coverage on all three
stocks with buy recommendations.
Anglo American Cycle 5 Sales Exceeded Expectations
0918 GMT - Anglo American shares rise 1.6% after reporting De
Beers rough diamond sales for the fifth cycle of the year. The
diamond company achieved sales of $470 million between June 7-June
22, up from Citi's expectations of $450 million. "The increase
reflects improving market fundamentals and restocking-led demand,"
the bank says. Cumulative sales of $2.5 billion in the first five
cycles of 2021 is more than double that of the first half of 2020,
and is within the $2.5 billion-$3.0 billion range seen in 2017-19
for the period, Citi notes.
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
June 23, 2021 12:13 ET (16:13 GMT)
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