FTSE 100 Closes Up 0.2% Lifted by 3i Group -3-

1153 GMT - Royal Mail Owner International Distribution Services' trading update shows the effect of multiple labor strikes with consumers and businesses frustrated at the situation and turning to competitors, perhaps never to return, AJ Bell analyst Russ Mould says in a note. U.K. operations saw a large decline in parcel and letter volumes, which has compounded problems in the business, with strikes costing it around GBP200 million and the parent company wanting to avoid accusations of not paying workers enough whilst doling out cash to shareholders, Mould says. Still despite all this, its plan to stabilize the business is making good progress, he says. "That might explain the positive share price action in response to the trading update," Mould says. Shares are up 1.9% at 223.70 pence. ([e-mail])

---

European Stocks Rise Ahead of Likely Modest US Losses

1211 GMT - European stocks mostly rise after mixed Asia trading and ahead of an expected slightly lower U.S. open. The Stoxx Europe 600 gains 0.4%, the FTSE 100 edges 0.1% higher and the CAC 40 advances 0.6%, though the DAX retreats about 0.1%. Brent crude increases 0.7% to $86.78 a barrel. IG futures data show the Dow opening at 33721, versus Wednesday's close of 33743. "Stock markets were mixed in Asia, with the picture still incomplete thanks to public holidays in key markets such as China and Australia," IG analysts say in a note. "Investors get their first look at U.S. 4Q GDP today and while growth is expected to slow from 3Q, it's forecast to remain at an acceptable level." ([e-mail])

---

Women Recycle More Than Men, App Says

0745 ET - Women are more likely to recycle than men using apps, bolstering the so-called eco-gender gap that argues recycling falls under the umbrella of domestic work that is often left to women, according to a survey of around 400,000 users of recycling app Bower in the UK and Nordics. Bower, which partners with consumer giants Nestle, L'Oreal and Unilever, says that the number of women is almost double than the number of men on its platform that pays users to recycle. Bower recently raised around $4.7M as it expands into the US and UK. ([e-mail])

---

Just Group Shares Don't Reflect Its Marked Transformation, RBC Says

1256 GMT - Just Group has completed a marked capital transformation in the last three years, says RBC Capital Markets in a note after the specialist financial-services company reported good operating profit growth for 2022. The brokerage flags management's smart and innovative actions which have been aided by the continuing tailwind of rising interest rates. "We do not believe this transformation or the enhanced future growth opportunity is reflected in the current share price," says analyst Mandeep Jagpal. RBC has an outperform rating on the stock with price target at 155 pence. Shares are up 1.5% at 84.5 pence. ([e-mail])

---

Provident Financial's 2023 Profit Seen Under Pressure From IFRS9 Provisioning

1340 GMT - Provident Financial PLC's 2023 pretax profit estimates are likely to see a material fall as cost of risk increases from accounting provisions, says Peel Hunt in a note. The brokerage says current consensus of around GBP130 million could roughly halve in view of the group's accelerated volumes since under IFRS9 requirements lenders have to book provisions equal to expected losses for the first 12 months of new lending. "Although short-term earnings estimates are under pressure, the longer-term benefits of faster growth should in principle exert upward pressure on forecasts for years after 2023," says Peel Hunt. The U.K. brokerage rates the stock add with price target at 377 pence. Shares rise 4.2% at 224.8 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-26-23 1209ET