FTSE 100 Rises as Legal & General, BHP, Oil Stocks Gain

FTSE 100 Rises as Legal & General, BHP, Oil Stocks Gain

0935 GMT - The FTSE 100 Index rises 0.6%, or 42 points to 7388 on the back of gains for Legal & General Group and oil and mining stocks. L&G tops the blue-chip risers, up 4% after the insurer said its global pension risk transfer business had continued to do well, securing new business wins in each of the U.K., U.S. and Canada in the last few weeks. Other insurers and financial stocks rally in response, with Abrdn, Lloyds Banking Group, NatWest, Aviva and Admiral all advancing. Meanwhile, BP and Shell rise about 1% as Brent crude increases 0.2% to $89.97 a barrel and miner BHP gains 1% after increasing its offer to buy Australian copper-mining company OZ Minerals. ([e-mail])

 
Companies News: 

DS Smith Appoints Richard Pike as Group Finance Director

DS Smith PLC said Friday that it has appointed Richard Pike as group finance director.

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Bodycote Four-Month Revenue Rose; Backs Full-Year Guidance

Bodycote PLC said Friday that it booked strong revenue growth in the four months to Oct. 31 and that it expects full-year results to be in line with market expectations.

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M.J. Gleeson Flags Recent Slowing Demand, Rising Cancellations

M.J. Gleeson PLC said Friday that its outlook for fiscal 2023 is dependent on the pace of recovery in the housing market, as recent demand has significantly slowed and cancellation rates increased.

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N4 Pharma Raises GBP1 Mln for Nuvec Development

N4 Pharma PLC said Friday that it has raised 1 million pounds ($1.2 million), with the proceeds to be used to progress development work relating to its Nuvec system.

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Legal & General Backs 2022 Views; Sees Solvency II Reform Proposal as Positive

Legal & General Group PLC on Friday welcomed the solvency II reform package laid out by U.K. Treasury chief Jeremy Hunt in the Autumn Statement, and said that it expects its full-year performance to be in line with expectations.

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Net Zero Infrastructure Withdraws from Taylor Construction Talks

Net Zero Infrastructure PLC said Friday that it has withdrawn from talks to buy Taylor Construction Plant Ltd. and Solar Highways Ltd., first disclosed on May 19.

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Biffa CFO Resigns to Join DS Smith

Biffa PLC said Friday that Richard Pike has resigned as chief financial officer to join DS Smith as group finance director

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Parsley Box Group Seeking Shareholder Approval to Cancel AIM Listing

Parsley Box Group PLC said Friday that it is seeking shareholder approval to cancel the trading of its shares on London's junior AIM, as previously flagged.

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Everyman Media Chairman to Step Down; Philip Jacobson Named Successor

Everyman Media Group PLC said Friday that Executive Chairman Paul Wise will step down at the end of February to pursue other interests, and named nonexecutive director Philip Jacobson as new nonexecutive chairman.

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Hurricane Energy Doesn't Expect Major Changes to UK Energy-Profit Levy Charges

Hurricane Energy PLC said Friday that it is assessing the effect of changes to the proposed energy profits levy together with its tax advisers and that it currently anticipates charges similar to this year's.

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Liontrust 1H Pretax Profit Fell on Higher Acquisition, Restructuring Costs

Liontrust Asset Management PLC said Friday that pretax profit fell on higher acquisition and restructuring costs, but kept its dividend payout at the same level as last year.

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Bank of Cyprus Holdings Nine-Month Pretax Profit Rose on New Lending Performance, Lower Costs

Bank of Cyprus Holdings PLC said Friday that pretax profit for the first nine months of the year rose on increased new lending and lower costs.

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Glenveagh Properties Calls Shareholder Meeting for Share Buyback Authority

Glenveagh Properties PLC said Friday that it has convened an extraordinary general meeting to ask shareholders for the authority to repurchase up to 10% of its ordinary share capital.

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MyHealthChecked Seeks Shareholder Approval for Capital Reduction

MyHealthChecked PLC said Friday that it is seeking shareholder approval for a reduction of its share capital in order to create distributable reserves, and for authority to buy back its own shares.

 
Market Talk: 

M.J. Gleeson Sales Completions Seen Hit Harder Than Peers

1121 GMT - M.J. Gleeson now expects homes sales in fiscal 2023 to fall to 1,600-2,000, a fall of up to 25% versus fiscal 2022 and following a six-week period of slow sales. The U.K. house builder is experiencing trends observed elsewhere in the housing market, but its sales completions are more heavily hit as it deliberately carried a lower order book into the year, Liberum analysts Charlie Campbell and Edward Prest say in a research note. The analysts cut their fiscal 2023 earnings per share estimate for the company by 30% to 43.5 pence. However, investors should remember the homes division's excellent growth track record and prospects on rising site numbers, the brokerage says. Liberum retains its buy rating on the stock but cuts its target price to 560 pence from 700 pence. Shares are down 7% at 348.0 pence. ([e-mail])

UK Fiscal Plans Could Prove Negative for Sterling

1115 GMT - The lack of imminent spending cuts and an increase in the energy price cap in the U.K. government's fiscal statement Thursday could have negative implications for sterling, Swissquote Bank says. The government delaying spending cuts until the next general election and the prospect of higher energy bills could boost inflation and weaken sterling if the Bank of England doesn't raise interest rates enough, Swissquote Bank analyst Ipek Ozkardeskaya says in a note. "And the BOE said last time that it won't go crazy hawkish to avoid a complete economic meltdown in the U.K.," she says. Indeed, what was "really scary" for sterling traders Thursday was the gloomy growth forecast issued in the fiscal statement, Ozkardeskaya says. ([e-mail])

M.J. Gleeson's Softer Sales Likely Means Further Earnings Cuts

1101 GMT - M.J. Gleeson has posted lower volume guidance, which will no doubt result in some pretty large cuts to earnings for fiscal 2023, Peel Hunt says. The U.K. house builder's site numbers are in decent shape with 68 selling outlets from 60 a year ago, but the reduced reservation rate means further downgrades are likely, Peel Hunt analysts say in a research note. "However, the more benign outlook for house prices, strength of the balance sheet and embedded gross margin across the site network should mean the risk of widespread asset write-downs is low, which should provide valuation support," the brokerage says. Peel Hunt retains its buy rating 1,500 pence price target. Shares are down 7% at 348.0 pence. ([e-mail])

Burberry's Fresh Strategy Looks Sensible

1055 GMT - Burberry's new strategy to drive revenue growth backed by the British design concept is sensible, while the key focus areas are broadly in line with expectations, RBC Capital Markets analysts Piral Dadhania and Richard Chamberlain say in a research note. The British luxury-goods company guidance targets weren't surprising, with the GBP4 billion revenue target seen as doable, although the EBIT margin target looks tougher, they say. "We prefer to wait and see the reaction of [new Chief Designer] Daniel Lee's initial contribution and also P&L evolution, with a view to re-evaluate our thesis in the upcoming quarters," the analysts say. ([e-mail])

Additional Royal Mail Strikes Could Hit IDS Earnings in 2022

1037 GMT - The Communication Workers Union--representing more than 115,000 postal workers--has outlined more strike action over six additional days in December, as the dispute between International Distribution Services' Royal Mail and staff escalates further, Interactive Investor says. Royal Mail and workers are in a stalemate over pay and conditions, with workers frustrated with the cost-of-living crisis, while the postal service has been battling headwinds other from industrial action including long-term declines in letter volumes, stiff parcel delivery competition and low margins, Interactive Investor's head of investment Victoria Scholar says in a market comment. "The additional walkout days will cause extra chaos and financial pain for the business, potentially leading to an even bigger full-year loss than anticipated," Scholar says. ([e-mail])

BOE Expected to Raise Rates Further as Fiscal Austerity Is Delayed

1030 GMT - The Bank of England is expected to raise interest rates further after the government's spending cuts and tax increases outlined on Thursday's autumn statement are set to come later than expected, Rabobank analysts say in a note. "The fiscal pain being implemented by the Chancellor... implies that its disinflationary impact will be pushed further into the future and in turn mean that the BOE needs to do slightly more on the rate hike front," they say. The BOE's terminal rate increased by 10 basis points to 4.63% after the autumn statement, according to the analysts. ([e-mail])

M.J. Gleeson Shares Slip Amid Slower Demand, Higher Cancellations

1008 GMT - Shares in M.J. Gleeson fall 7% after the U.K. house-builder reported slowing demand and higher cancellation rates. "The house-building sector has started to show some cracks in recent weeks and Gleeson has certainly added fuel to the fire," AJ Bell investment director Russ Mould writes. "Its cancellation rates have shot up to 41% over the past six weeks and reservation rates have fallen," he says. "There remains the problem of affordability which could stop many people from making a property transaction, even if they really wanted to move." However, the company looks better placed than many of its competitors to tackle the challenges as its properties are already at the more affordable end of the housing market, Mould says. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-18-22 0648ET