FTSE 100 Edges Lower After Fed Minutes
0821 GMT - The FTSE 100 edges down 0.2% to 7501.68 in early
trade, tracking falls in U.S. and Asian stocks after Federal
Reserve minutes said U.S. interest rates would need to continue
rising to bring down inflation. "Negative momentum from a down day
on U.S. and Asian markets has carried forward to the European
session with markets opening in the red," says Victoria Scholar,
head of investment at Interactive Investor, in a note. In the U.K.,
investors remain concerned about risks of recession amid rising
interest rates after data Wednesday showed that inflation jumped to
10.1% in July. Financial stocks are among the main fallers.
Persimmon rises 1.8%, reversing some of Wednesday's losses
following poorly received 1H results.
(jessica.fleetham@wsj.com)
Companies News:
Thungela Resources Reaches Agreement With Transnet to Keep
Transport Deal
Thungela Resources Ltd. said Thursday that it has reached an
agreement to keep its long-term freight rail transport deal with
Transnet SOC Ltd., and that bulk coal rail services and coal sales
continued during the negotiations.
---
Proteome Sciences Appoints Abdelghani Omari as CFO
Proteome Sciences PLC said Thursday that it has appointed
Abdelghani Omari as chief financial officer.
---
Chill Brands Teams With Bellator to Expand CBD Product
Distribution in U.S.
Chill Brands Group PLC said Thursday that it has entered into a
brokerage agreement with Bellator Group LLC to support and expand
the distribution of its cannabidiol-product lines in the U.S.
market.
---
Zytronic Expects FY 2022 Revenue 5% Higher on Year, Profit
Ahead
Zytronic PLC said in an update Thursday that it now expects to
report fiscal 2022 revenue that is 5% higher on year and pretax
profit ahead of the prior year.
---
Inspecs Swung to 1H Pretax Profit on Increased Sales Volume
Inspecs Group PLC reported a swing to a pretax profit in the
first half of 2022 as revenue rose on higher volumes, and said the
company continues to expand its production capacity.
---
Immotion Group Location-Based Entertainment Revenue Soared on
Strong Summer
Immotion Group PLC said Thursday that revenue at its core
location-based entertainment business rose for the first half of
2022, and that discussions about the spinoff of two divisions are
at an advanced stage.
---
Aeorema Communications Increases FY 2022 Expectations After
Strong End to Year
Aeorema Communications PLC said in an update Thursday that it
was increasing its expectations for fiscal 2022 after a strong end
to the year.
---
Wynnstay Group Raises GBP10.6 Mln via Share Placing
Wynnstay Group PLC said Thursday that it has now raised 10.6
million pounds ($12.8 million) via the share placing first
announced late Wednesday.
---
Bens Creek Group Raises GBP6 Mln Toward Growth Strategy
Bens Creek Group PLC said Thursday that it has raised 6.0
million pounds ($7.2 million) via a share placing and subscription,
and that it will use the money toward the next stage of its growth
strategy as it moves to become an equipment owner-operator.
---
Marshalls 1H Pretax Profit Fell on Cost Increases
Marshalls PLC said Thursday that pretax profit for the first
half of 2022 fell due to a hit from adjusting items, but that
revenue increased.
---
Angling Direct Sees FY 2023 Revenue Sinking Well Below Views as
Inflation Hits Consumers
Angling Direct PLC said Thursday that it expects revenue for
fiscal 2023 to come in below market expectations amid as the rising
cost of living hits consumer confidence.
---
Rank Group Swung to FY 2022 Pretax Profit After Revenue Rise
Rank Group PLC said Thursday that it swung to a fiscal 2022
pretax profit after a rise in net gambling revenue.
---
Westminster Group 1H Pretax Loss Narrowed as Revenue Rose on
Pandemic Recovery
Westminster Group PLC said Thursday that its pretax loss
narrowed for the first half of 2022 as revenue increased due to the
recovery of its services business, and that it expects revenue in
the second half to be in line with market expectations.
---
AO World Swung to FY 2022 Pretax Loss as Costs Rose; Strategy
Shift to Hit Sales
AO World PLC reported Thursday a swing to pretax loss for fiscal
2022 due to higher costs, and that it expects both sales and
expenses to fall as the company realigns its online retail
strategy.
---
Helios Towers 1H Pretax Loss Widened on Increase in Costs
Helios Towers PLC said Thursday that its pretax loss for the
first half widened on increased costs, but that adjusted Ebitda
increased on revenue growth.
---
Made.com Group Mulls Equity Issue to Strengthen Balance
Sheet
Made.com Group PLC confirmed Thursday that it is considering a
potential equity capital raising to strengthen its balance
sheet.
Market Talk:
Pantheon Resources' Alaska Well Data Accumulation Invaluable for
Market, Industry
1124 GMT - Pantheon Resources carried out the drilling of the
pilot hole and lateral at the Alkaid #2 well very effectively with
the geological results matching, or improving on predrill
expectations is a dual positive for the oil-and-gas exploration
company, Canaccord Genuity analyst Charlie Sharp says in a note.
However for the market and the industry, it is the well's test flow
rates and pressure data over several months that will provide the
most important information from this well, Sharp says. "We expect
the early indications from mid October, but the accumulation of
data over the remainder of the year and into 2023 will be
invaluable," Sharp says. Canaccord Genuity rates the stock
speculative buy and has a 300 pence target price.
(anthony.orunagoriainoff@dowjones.com)
---
Pantheon Resources Reported Reservoir Quality Needs
Quantification
1100 GMT - Oil-and-gas exploration company Pantheon Resources
drilled a 5,300 foot lateral section in the Alkaid-2 well in Alaska
and although no assessment was given, it said that reservoir
quality in the lateral section was reported to be good, Peel Hunt
analysts Matt Cooper and Werner Riding say in a note. Although
management said the vertical pilot hole's reservoir parameters
continued or improved in the horizontal well bore, it would be
helpful to have some degree of quantification of the reservoir's
quality improvement, the analysts say. In particular with the
average porosity and permeability in the lateral section and how
this compares to predrill expectations. Peel Hunt rates the stock
sell, and has a 50 pence target price.
(anthony.orunagoriainoff@dowjones.com)
---
Rank Looks to Be on the Up Thanks to Digital Strength
1057 GMT - Rank Group's momentum appears to be improving after
its third quarter was affected by Omicron, Goodbody's David Brohan
says in a research note. The gambling group's digital operations
are performing better than peers, with Grosvenor beginning to see
International travelers returning and Mecca completing the
migration onto the Ride platform, Brohan says. However, underlying
growth in Grosvenor and Mecca venues is being counteracted by
increases in energy costs, he adds. "We continue to believe Rank is
a very well managed business, and despite the macro headwinds it is
currently facing, remains an attractive leisure recovery play,"
Brohan says. Goodbody has a buy rating on the stock.
(kyle.morris@dowjones.com)
---
AO World Seems to Be Entering in a Upbeat Phase
1053 GMT - AO World's shares declined by 82% over the past year,
but its upbeat mood in the FY 2022 report shows that the company
has entered into a new chapter after difficult times, head of
markets at interactive investor Richard Hunter says in a research
note. The online electrical-goods retailer reported an increase
both in revenue and customers over the past two years, while it
expands into a larger market, Hunter says. "In the meantime, vague
bid speculation hasn't materialized into anything concrete,
although the suspicion remains that potential suitors may still be
running the slide rule over the company," Hunter adds.
(michael.susin@wsj.com)
---
Marshalls's Diversification Looks Like a Strength
1035 GMT - Marshalls's first-half results demonstrate the
benefits of its increasing diversification, with strength in new
build housing and commercial end markets offsetting private-housing
repair, maintenance and improvement weakness, Davy Research's Ross
Harvey and Flor O'Donoghue say in a research note. While the macro
outlook is becoming less certain for the specialist landscape
products company, its full-year expectations remain in line with
market views thanks largely to the diversification, with the more
positive backdrop in Marshalls Building Products and Marley helping
cover tougher conditions in Marshalls Landscape Products, they say.
Davy has a neutral rating on the stock.
(kyle.morris@dowjones.com)
---
AO World's Refocus to Profit Over Growth Looks Set To Boost
Earnings
1031 GMT - AO World's FY 2022 performance was mostly
disappointing, but the strategic decision to prioritize value
creation rather than growth-at-all-costs could drive earnings ahead
of expectations, Jefferies says as shares trade 20% higher. As the
online electrical-goods retailer builds profitable channels and
identifies meaningful cost savings, the U.S. bank sees an Ebitda
increase of 34% to GBP45 million by the start of FY 2024, Jefferies
analysts Andrew Wade and Grace Gilberg say in a research note. The
U.S. bank upgrades the recommendation to buy from hold and price
target on the stock to 65 pence from 45 pence.
(michael.susin@wsj.com)
---
Marshalls Benefits From Steady 1H Trading
1028 GMT - Shares in Marshalls drop 2% after the
building-material supplier reported lower first-half profit, but
said revenue increased. The results matched expectations and the
group's 7% increase in like-for-like revenue was consistent with
trends in the first four months of the year, indicating trading
hadn't discernibly slowed at any point in the first half, Panmure
Gordon says. "Crucially, the Marley acquisition is performing well,
justifying the investment," Panmure analyst Adrian Kearsey says in
a note. "Enhanced levels of disclosure highlight the breadth of the
group's end markets and the resilience this brings. Within the mix,
firm house-building order books and public-sector spending are
offsetting a more subdued domestic landscaping segment."
(philip.waller@wsj.com)
---
Helios Towers Seems Committed to Rollout Plans
0956 GMT - Helios Towers looks committed to its rollout plans
despite the macro backdrop and its strong execution in the first
half seems to put it well on track to deliver the guided
1,200-1,700 organic tenancy adds this year, Jefferies's Jerry
Dellis and Yi Hsin Yeoh say in a research note. The Africa- and
Middle East-focused telecommunications-infrastructure company has
confirmed guidance for the full year and it should be able to bring
margins back up to the target range in the second half. Jefferies
has a buy rating on the stock and raises its target price to 212.00
pence from 209.00 pence. (kyle.morris@dowjones.com)
---
AO World's Longer-Term Earnings Look Set to Top Hopes
0925 GMT - Shares in AO World jump 16% to 47 pence after the
U.K. consumer-electronics online retailer sounded optimism about
its outlook despite swinging to a pretax loss in the year to March.
The company said it was closing its German business, voiced
confidence in the prospects of its U.K. operation and said it was
focusing on cash and profit generation. Jefferies says the results
were consistent with guidance and the brokerage's expectations, but
the focus on profit looked set to drive earnings ahead of its
previous estimates. "We upgrade our FY24 EBITDA estimate by 34%,
our price target from 45p to 65p and our recommendation from hold
to buy," Jefferies analyst Andrew Wade says in a note.
(philip.waller@wsj.com)
---
Rank Set to Book Energy Hit But Has Options Available
0921 GMT - Rank Group is set to take a GBP46 million hit from
rising energy costs, but there is some uncertainty surrounding the
cost for this year, Shore Capital's Greg Johnson says in a research
note. The gambling group has seen an improvement intrading at its
London casino estate and the pickup in digital is encouraging, with
further significant profit growth seen this year, Johnson says.
"Operationally, there remains numerous self-help opportunities, the
balance sheet is strong and the valuation heavily depressed," he
adds. Shore Capital has a buy rating on the stock. Shares trade
down 3% at 85.40 pence. (kyle.morris@dowjones.com)
---
Wynnstay Group Raises Funds for Growth Opportunities
0909 GMT - Wynnstay Group has completed a significantly
oversubscribed GBP10.6 million placing, with funds primarily set
for redeveloping the Calne feed facility as well as future
acquisitions, Shore Capital says. The U.K. supplier of agricultural
products and services has highlighted that despite cost inflation
and supply chain pressures, it has been experiencing a strong
trading backdrop supported by buoyant farmgate prices, Shore
analysts Akhil Patel and Clive Black say in a research note. "We
note the directors have identified several opportunities to
accelerate Wynnstay's growth including having a strong and active
pipeline," the investment group says. Shore acts as a broker and
nominated adviser to Wynnstay. Shares are down 4.5% at 592.0 pence.
(joseph.hoppe@wsj.com)
---
Rank Group Faces Regulatory Uncertainty Amid Delayed UK Gambling
Reform
0851 GMT - Rank Group continues to suffer from regulatory
uncertainty, with the U.K. government having delayed proposals to
reform gambling laws four times since 2019 amid a dispute among
Conservative party members, interactive investor's Head of
Investment Victoria Scholar says in a note. "The U.K.'s regulatory
tightening and uncertainty continue to be major headwinds for
stocks like Rank Group and 888 alongside the cost-of-living crisis,
which leaves individuals and households with less disposable income
left over at the end of the month," Scholar says. Shares trade down
3% at 85.40 pence. (kyle.morris@dowjones.com)
---
Gilt Curve Has Room to Flatten, But QT Might Muddy This Call,
ING Says
0702 GMT - The U.K. gilt curve has room to flatten further with
the peak in inflation still to come and recession fears further on
the rise, ING's rates strategists write in a note. Core U.K.
inflation might peak soon but ING's economists expect the headline
rate to hover around 12% from October, the rates strategists say
after annual inflation hit a four-decade high of 10.1% in July. In
a market featuring widening bid-offer spreads, the Bank of England
intends to embark on active quantitative tightening soon, they say.
"It will test market functioning as private investors will
effectively have to absorb significantly higher amounts of
government debt going forward," the strategists say, adding that
this factor muddies their call for a flatter curve.
(emese.bartha@wsj.com)
---
London Stocks Seen Opening Little Changed
0644 GMT - The FTSE 100 index is expected to open up marginally,
by 4.8 points, according to IG, as investors remain cautious after
Federal Reserve minutes confirmed that U.S. interest rates would
need to continue rising to bring down inflation. There was some
comfort for investors, however, as some Fed members worried that
rate increases could slow the economy more than warranted. The
minutes were "more
hawkish-than-what-was-needed-to-give-another-boost to the U.S.
stock markets," says Swissquote analyst Ipek Ozkardeskaya in a
note. Eurozone inflation data will be watched at 0900 GMT, after
data Wednesday showing U.K. inflation jumped into double digits. DP
World will be in focus after a 1H update.
(jessica.fleetham@wsj.com)
---
U.K.'s High Inflation Is a Problem for Eurozone Government
Bonds
0628 GMT - The U.K.'s four-decade-high 10.1% annual inflation
for July caused a repricing of market expectations of interest-rate
increases by the Bank of England, and the cross-read for eurozone
government bonds is that the market discounts similar upward
pressure for coming HICP releases, Commerzbank's strategists say.
"10y Bunds [Bund yields] took out the 1% level effortlessly amid a
flattening curve, before weakening equities helped Bunds to
stabilize later in the session," Commerzbank's rates strategists
Hauke Siemssen and Rainer Guntermann write in a note, referring to
Wednesday's moves. They add that subdued summer liquidity doesn't
help and might remain an obstacle in Thursday's trading as well.
The 10-year Bund yield is trading unchanged at 1.088%, according to
Tradeweb. (emese.bartha@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
August 18, 2022 07:47 ET (11:47 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
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