Home Commodities FTSE 100 Closes Down 0.4% as Falling Commodities Weigh on Index

FTSE 100 Closes Down 0.4% as Falling Commodities Weigh on Index

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The FTSE 100 closed down 0.4% Friday as a slide in commodities weighed on the index. London saw the price of copper slide to its “lowest levels this year, and oil prices on course for their first negative week since early May,” Michael Hewson, chief market analyst at CMC Markets UK, said in a note. Earlier in the session, mining company Glencore helped the index after forecasting interim profits at its trading division achieving the top end of its outlook range. Sage Group was the day’s biggest riser, up 5.6%, followed by Ocado Group, up 5.5%, and Intermediate Capital Group, up 4%. BP, Rio Tinto, and Shell were the day’s biggest fallers, down 6.2%, 4.9% and 4.7%, respectively.

 
Companies News: 

AstraZeneca Weighing Bid For Mereo BioPharma: Report — MarketWatch

AstraZeneca (AZN.LN) is considering a bid for London-based, U.S.-listed biotech Mereo BioPharma (MREO), The Times reported without attribution.

Future Says on Track to Meet FY 2022 Guidance, Audience Growth Returns

Future PLC said Friday that it is on track to achieve its full-year guidance as the encouraging start to the second half of fiscal year 2022 has continued.

M&C Saatchi Withdraws Recommendation for Next Fifteen Takeover

M&C Saatchi PLC said Friday that it no longer considers the takeover offer from Next Fifteen Communications Group PLC to be fair and reasonable, as Next’s share price has fallen since the offer was made.

Glencore Raises Coal Guidance Amid Unprecedented Market Conditions

Glencore PLC on Friday raised price and cost guidance for its coal operations and said that the trading business is outperforming expectations.

Curtis Banks Says COO Jane Ridgley Is Retiring

Curtis Banks Group PLC said Friday that its Chief Operating Officer Jane Ridgley is retiring, and that it has started a search for a successor.

Access Intelligence Sees 1H Revenue Increase Following Isentia Buy

Access Intelligence PLC said Friday that revenue increased significantly in its first half after the acquisition of media monitoring, intelligence and insights company Isentia.

Allied Minds Names Bruce Failing as Interim Chairman

Allied Minds PLC said Friday that former senior independent director Bruce Failing has assumed the role of interim chairman, after former Chairman Harry Rein stepped down as planned.

Tesco 1Q Comparable Revenue Rose, But UK Sales Fell — Update

Tesco PLC said Friday that like-for-like sales rose in the first quarter of fiscal 2023, although U.K. revenue had a hit on an on-year basis, and noted that its full-year guidance for its profit and cash performance remains unchanged.

Directa Plus Says Performance Accelerated, Expects Major Tender

Directa Plus PLC said on Friday that performance in the last two months has accelerated and sales were in line with expectations as it expects a major tender offer to be secured.

James Fisher & Sons Appoints New CEO

James Fisher & Sons PLC said Friday that it has appointed Jean Vernet as chief executive officer with effect Sept. 5, replacing Eoghan O’Lionaird.

Bidstack Group Appoints David Reeves as Chairman Designate

Bidstack Group PLC said Friday that it has appointed David Reeves as chairman designate.

EnQuest Nonexecutive Chairman to Step Down

EnQuest PLC said Friday that nonexecutive Chairman Martin Houston has decided to step down to pursue other business interests.

 
Market Talk: 

Diageo Likely to Face Stagflation Through Pricing

0904 GMT – Diageo’s business model has the ability to absorb cost-of-goods-sold inflation which makes the stock well positioned to navigate through a stagflationary environment, Jefferies analysts say in a research note. The London-based maker of Johnnie Walker Scotch Whisky and Guinness Stout has been leveraging volume growth, pricing, and premiumization–products with superior quality and price–while productivity improvements are expected to generate GBP1.2 billion in gross saving over the next three years which are likely to become reinvestments, they say. “Despite potential headwinds, we believe that Diageo can deliver within its guidance range given the favorable industry backdrop and strong execution,” the analysts say.(michael.susin@wsj.com)

Playtech Bid Deadline Extension Looks Encouraging

0901 GMT – Playtech has said progress continues to be made in its discussions with bidder TTB Partners after the offer deadline was extended, and this is an encouraging sign that there may yet be an acceptable bid, Peel Hunt analysts Ivor Jones and Douglas Jack say in a research note. The gambling-technology company said the deadline has been extended to July 15, but Peel Hunt says a takeover isn’t the only option open to Playtech to release value. The U.K. brokerage has a buy rating with a target price of 800 pence. Shares trade up 4.8% at 553.50 pence. (kyle.morris@dowjones.com)

St. James’s Place Likely to Grow in the Long Term Despite Uncertainties

0810 GMT – St. James’s Place is well positioned for long-term growth despite facing short-term headwinds and uncertainties on equity-market and consumer confidence, which are likely to persist, Berenberg analyst Adam Barrass says in a research note. The analyst adds that the FTSE 100 wealth-management group has derated along with its peers and trades at a 35% discount. “We think St. James’s Place is well positioned to benefit from long-term structural growth tailwinds, supported by high retention, low client price elasticity, low net flow volatility and better relative advisor growth prospects,” Barrass adds. Berenberg has a buy recommendation but downgrades price target to 1,550.0 pence from 1,750.0 pence. (michael.susin@wsj.com)

Glencore’s Trading Update Should Lift 1H Profit Expectations

0753 GMT – Glencore’s trading update should lead to consensus Ebitda upgrades heading into the first-half results, RBC’s Tyler Broda says. On coal, the company has guided for a higher price discount to the benchmark and higher costs. However, Glencore has also increased the benchmark Newcastle price forecast for the first half and this is $30 a ton better than RBC expected, Broda says. As for the marketing unit, the company said first half EBIT will exceed $3.2 billion, which is well ahead of the $1.9 billion consensus. “We continue to expect that Glencore’s ability to return cash is unsurpassed in the sector and the company remains structurally better positioned than peers through an economic downturn with coal tightness helping to insulate profitability,” Broda says. (jaime.llinares@wsj.com)

Gateley Likely to Face Headwinds From Rising Interest Rates

0750 GMT – Gateley’s fiscal 2022 update was positive, but recruitment is proving to be difficult and its revenue mix is exposed to rising interest rates, Shore Capital analyst Jamie Murray says in a research note. The U.K. legal-and-professional services provider is struggling to recruit amid a competitive market as it hired only 29 fee earners–legal professionals that generate income for the company–the lowest number since 2016, Murray says. The analyst also expects 70% of revenue streams in fiscal 2023 to be generated from corporate and property businesses, which are likely to be affected by the Bank of England raising rates further. (michael.susin@wsj.com)

 

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

June 17, 2022 12:33 ET (16:33 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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