FTSE 100 Falls as Lloyds Outlook Disappoints; Miners, Oil Stocks Drop

FTSE 100 Falls as Lloyds, Miners, Oil Stocks Drop

0924 GMT - The FTSE 100 drops 1%, or 78 points to 7899 as Lloyds Banking Group, miners and oil stocks fall. Lloyds falls 3% after what Citigroup described as a mixed 2023 outlook. Miners dominate the blue-chip fallers, with BHP and others leading the index lower after Rio Tinto reported lower underlying earnings for 2022. Rio shares drop 2%. BP and Shell lose ground as the price of a barrel of Brent crude retreats 0.9% to about $82. "Miners are trading towards the bottom of the basket after Rio's 2022 earnings disappointed," Interactive Investor head of investment Victoria Scholar writes. "Lloyds is also under pressure after earnings, dragging other banks like HSBC down with it." ([e-mail])

 
Companies News: 

Science in Sport 2022 Performance in Line With Views, Optimistic for 2023

Science in Sport PLC said Wednesday that performance for 2022 was broadly in line with expectations despite a challenging economic and supply-chain backdrop.

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Future PLC Appoints Jon Steinberg as Chief Executive

Future PLC said Wednesday that it has appointed Jon Steinberg as chief executive and that he will join the company on April 3 to succeed Zillah Byng-Thorne.

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Rio Tinto Reports Lower 2022 Earnings, Cuts Dividend -- Earnings Review

Rio Tinto PLC, the world's second-largest mining company by market value, reported its 2022 earnings after the Australian market closed on Wednesday. Here is what you need to know:

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Gooch & Housego 4-Month Performance in Line After Capacity Progress

Gooch & Housego PLC said Wednesday that its performance over the first four months of the new fiscal year has been in line with expectations as it made good progress in increasing its productive capacity.

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Lloyds Banking 4Q Pretax Profit Rose on Higher Income, Updated Mid-Term Targets

Lloyds Banking Group PLC on Wednesday reported a rise in pretax profit for the fourth quarter of 2022 on higher income and a lower impairment charge and issued 2023 guidance as it updated its mid-term targets.

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RWS Holdings Sees Robust FY 2022 Performance Despite Economic Uncertainty

RWS Holdings PLC said Wednesday that it booked robust results for fiscal 2022 despite continued economic uncertainty and the conflict in Eastern Europe.

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Angling Direct Sees FY 2023 Adjusted Ebitda in Line With Market Views

Angling Direct PLC said Wednesday that it expects to deliver adjusted Ebitda in line with market expectations supported by a resilient performance in the U.K. market.

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Hummingbird Resources to Raise Up to a Further $3.5 Mln for Balance Sheet, Guinea Mine

Hummingbird Resources PLC said Wednesday that it has secured a conditional subscription of around $1.4 million from certain existing institutional shareholders and that it is conducting an open offer to raise up to around $2.4 million.

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Upland Resources Raises GBP1.7 Mln For Sarawak Activities

Upland Resources Ltd. on Wednesday said it raised around 1.7 million pounds ($2.1 million) in an oversubscribed fundraise to fund its activities in Malaysia's Sarawak.

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Amedeo Air Four Plus to Return GBP28 Mln to Shareholders

Amedeo Air Four Plus Ltd. said Wednesday that it will return 28 million pounds ($33.9 million) by way of a partial compulsory redemption of shares and a quarterly dividend increase.

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Applied Graphene to Wind Up Business After $1.3 Mln Disposal

Applied Graphene Materials PLC said Wednesday that it will wind up after agreeing with Universal Matter Inc's subsidiary, Universal Matter UK Ltd, to sell Applied Graphene Materials UK Ltd and Applied Graphene Materials LLC for $1.3 million.

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Avingtrans 1H Revenue, Profit Rose Despite Inflation, Supply-Chain Issues

Avingtrans PLC said Wednesday that revenue and pretax profit rose for the first half of fiscal 2023 as its pinpoint-invest-exit model delivered robust results despite inflationary pressures and supply-chain instabilities.

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Seeing Machines 1H Revenue Boosted by Global Focus on Transport Safety

Seeing Machines Ltd. said Wednesday that it expects revenue for the first half of its fiscal year to rise, thanks in part to a global heightened regulatory focus on transport safety.

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City of London Investment Group 1H Funds Under Management Fell

City of London Investment Group PLC said Wednesday that funds under management for the first half of fiscal 2023 fell amid higher costs, but maintained its dividend payout.

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Hammerson Says Accounting Change to Affect 2022 Results

Hammerson PLC said Wednesday that 2022's full year results will be affected by a change in its accounting policy which requires 2021's figures to be restated.

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TBC Bank 4Q Pretax Profit Boosted by Interest Rates; Confirms Mid-Term Guidance

TBC Bank Group PLC said Wednesday that its fourth-quarter pretax profit rose 64% as it benefited from higher interest rates, fee and commission income, and the performance of its foreign exchange operations.

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Boku to Update on Mid-Term Financial Targets at CMD

Boku Inc. said that it will provide an update on its mid-term financial targets to double revenue and increase earnings before interest, taxes, depreciation and amortization margins to more than 50% at its capital markets day on Wednesday.

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Star Phoenix Shares Surge on Return to Trading After Publishing FY 2022 Earnings

Shares in Star Phoenix Group Ltd. more-than doubled Wednesday after being restored to trading following the publication of the company's fiscal 2022 earnings on Tuesday.

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Corcel Signs Option to Acquire Lithium Rights at Australian Project

Corcel PLC said Wednesday that it has signed a 30-day option with Huntsman Exploration Inc. to fully acquire the lithium rights of the Canegrass project in Australia.

 
Market Talk: 

Lloyds Banking's Return on Tangible Equity Guidance Disappoints

0822 GMT - Lloyds Banking's near-term return on tangible equity guidance might not be well-received by investors, says Shore Capital in a note. "While the guidance has been somewhat upgraded from that set at strategy presentation alongside the FY results last year, reflecting the positive change to interest rate expectations, we think the market may find this a little disappointing," says analyst Gary Greenwood. He points to peer NatWest's 14-16% ROTE target for 2023, a very similar business to Lloyds, which guided for around 13% for 2023 and 2024. The analyst adds that the bank's ROTE guidance of more than 15% by 2026 is probably too far out to have credibility. Shares shed 2.1% at 49.9 pence. ([e-mail])

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Lloyds Banking's Net Interest Margin Guidance Misses Consensus

0821 GMT - Lloyds Banking Group's net interest margin guidance for 2023 comes below below its fourth quarter NIM, RBC Capital Markets says in a note after the lender posted a profit beat for the three-month period. The bank posted an NIM of 322 basis points, ahead of consensus, but guided for a 305 basis-point margin for the year ahead, behind consensus of 315 basis points. "We expect the market will start to reward LLOY for better cost control and asset quality vs. peers," analyst Benjamin Toms says. RBC rates the stock outperform. Shares open 1.7% lower at 50.1 pence. ([e-mail])

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Rio Tinto Likely Past Earnings Trough

0818 GMT - A recovery in commodity prices and slower cost inflation should fatten Rio Tinto's margins in 2023, say Jefferies analysts, who reckon 2H 2022 was likely a trough in the cycle for the world's No. 2 miner. Rio Tinto's decline in annual earnings and subsequent cut to capital returns "can be attributed mostly to lower commodity prices, especially in 2H" 2022, the analysts say. Costs also continued to creep higher, they add. "Recent strength in the iron-ore price is likely to continue, and should drive consensus earnings upgrades, as iron ore still accounts for the majority of Rio's Ebitda," the analysts say. Jefferies has a buy rating on the miner's London stock. ([e-mail]; @RhiannonHoyle)

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Rio Tinto Seen Prioritizing Organic Growth

0814 GMT - Rio Tinto looks set for organic growth to take precedence over acquisitions as it continues to pivot toward internal organic expansion, RBC Capital Markets' analyst Tyler Broda says in a research note. The 2022 print of the world's second-biggest miner by market value was in line with expectations, with higher cost inflation in aluminum driving a very small miss, Broda says. "After recent volatility in Rio's iron ore division, the in-line performance will likely be viewed positively, especially in the context of the strong production numbers in 4Q," Broda adds. RBC Capital Markets has a sector perform rating on the stock with a price target of 4,700 pence.([e-mail])

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Rio Tinto's 2022 Dividend Beats Expectations

0806 GMT - Rio Tinto's 2022 earnings were in line with expectations, but its dividend slightly beat Citi and consensus expectations, Citi analysts say in a research note. The world's second-biggest miner by market value fine-tuned its capex guidance for 2023 to $8 billion, from $8 billion-$9 billion, while its production and cost guidance remain unchanged, with this implying on-year increases in iron ore and copper unit costs, they say. Citi has a neutral rating on the stock with a target price of 6,000 pence.([e-mail])

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Rio Tinto 2022 Result Steady; Small Miss on Aluminum Costs

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02-22-23 0446ET