FTSE 100 Closes Tuesday Up 0.5% as China Concerns Ease

The FTSE 100 closed up 0.5% to 7512 on Tuesday and reached a three-month high, with Asia-exposed companies leading the gains amid expectations that the Chinese government will ease Covid-19-related restrictions, IG's chief market analyst Chris Beauchamp say in a note. Standard Chartered--one of the largest foreign bank networks in China--was up 5%, followed by HSBC Holdings, which rose 4.4%. The raw-materials and energy sector were also lifted by a weaker dollar and robust commodity prices, with miner Rio Tinto rising 3.7% and Anglo American by 3.6%.

 
Companies News: 

AstraZeneca to Buy Neogene Therapeutics for $320 Mln

AstraZeneca PLC said Tuesday that it is buying biotechnology company Neogene Therapeutics Inc. for up to $320 million.

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easyJet FY 2022 Pretax Loss Narrowed, Revenue Rose on Pandemic Recovery

easyJet PLC said Tuesday that its fiscal 2022 pretax loss narrowed and revenue rose as passenger numbers and revenue per seat recovered following the easing of Covid-19-related restrictions.

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Shaftesbury Swung to FY 2022 Pretax Profit on Revaluation Gains and as Income Rose

Shaftesbury PLC said Tuesday that it swung to a pretax profit for fiscal 2022, primarily on gains from the revaluation of investment properties, while net property income rose 28%.

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Amigo Holdings Swung to 1H Loss, Revenue Fell as Legacy Loan Book Unwinds

Amigo Holdings PLC said Tuesday that it swung to a pretax loss for the first half of fiscal 2023 as revenue dropped, and said meetings with potential investors in relation to a capital raise are under way.

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Wise PLC 1H Pretax Profit Boosted by Interest Rates, Higher Revenue

Wise PLC on Tuesday reported a large rise in pretax profit for the first half of fiscal 2023 as it benefited from higher interest rates on customer accounts, and backed its full-year guidance.

 
Market Talk: 

EasyJet's Shares Look Undervalued Given Progress to Date

1221 GMT - easyJet posted a clear, positive rebound in financial performance in its fiscal 2022 results, although the underlying positive trend was masked by restrictions in the first half brought on by the Omicron variant of Covid-19 and operational disruption in the third quarter, Liberum says. The budget airline's short-term outlook looks positive, though capacity guidance is slightly more cautious than expected and there are headwinds from fuel and market-wide inflationary pressure, Liberum analyst Gerald Khoo says in a research note. "The current rating more than reflects the external risks, while giving little credit for the strategic progress made by the group," Liberum says, retaining its buy rating and 430.0 pence price target on the stock. Shares are down 4.8% at 374.3 pence. ([e-mail])

EasyJet's Outlook Is Positive But Costs Still Weigh

1200 GMT - EasyJet has posted a strong end to fiscal 2022, with record fourth-quarter earnings and an encouraging top-line outlook for fiscal 2023, HSBC says. The budget airline's peak periods over winter have returned to normal volumes with strong yields--Christmas ticket yields, for example, are currently up 18% on-year, HSBC analyst Anand Date says in a research note. The challenge remains the cost offset, with management noting significantly higher fuel prices and "market-wide inflationary pressure," the U.K. bank says. "By our calculations, [we expect] a fuel bill for fiscal 2023 of around GBP2.11 billion, or up 64% on-year," Date says. HSBC raises its price target to 440 pence, from 380 pence. Shares are down 4.7% at 374.5 pence. ([e-mail])

EasyJet's Recovery Begins to Take Off

1126 GMT - EasyJet is finally beginning to show strong signs of recovery, with the latest quarter in particular providing comfort with record earnings, Interactive Investor says. The budget airline's headwinds past, present and future have weighed heavily on shares, falling to around GBP4 now from GBP13 prepandemic and declining faster than the wider FTSE 250, II head of markets Richard Hunter says in a market comment. "However, a potentially new direction of travel is at last emerging and although airlines remain at the higher end of the risk scale as they have always historically done, the market consensus of the shares as a buy reflects growing optimism for the company's prospects over the longer term," Hunter says. Shares are down 4.4% at 375.7 pence. ([e-mail])

Market Makers, Gilt Investors Favor Re-Opening of Index-Linked 2051 Gilt, DMO Says

1125 GMT - Most U.K. gilt market makers and investors recommend the reopening of the index-linked 2051 gilt in the first three months of next year, the final quarter of the 2022/23 fiscal year, the U.K.'s Debt Management Office says after consultations with the market participants. However, investors were split between a reopening of the 2051 and the 2031 index-linked gilt, the DMO says. Some market markers favored either the 2031 or 2039 linkers and there were "isolated calls for a re-opening of IL 2073." ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-29-22 1202ET