FTSE 100 Closes Up 0.6% as Financial Sector Advances

The FTSE 100 index closed Wednesday up 0.6% to 7486 points, extending yesterday's advance and in line with global markets, as positive U.K. inflation data lifted the banking sector, IG chief market analyst Chris Beauchamp says in a note. "While bank stocks will have to get used to a world without a steady rise in interest income, the prospect of easing pressures on the U.K. economy continues to support bank stocks," he adds. Experian led the blue-chip index, with shares closing up 7.5%, after the credit-reporting agency backed its guidance following a profit rise in the first half. Ocado shares also outperformed, up 5.6%, after the group said it will provide warehouse technology to healthcare provider and pharmaceutical distributor McKesson Canada.

COMPANIES NEWS:

Reckitt Benckiser Chair Chris Sinclair to Retire; Jeremy Darroch Named Successor

Reckitt Benckiser said Chair Chris Sinclair intends to retire after the 2024 annual general meeting in May, and named Senior Independent Director Jeremy Darroch as his successor.

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SSE Backs View After Swing to Pretax Profit

SSE backed its full-year outlook after swinging to a pretax profit in the first half of fiscal 2024, boosted by strong results in renewables, thermal and transmission divisions.

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Experian Backs Full-Year View After First-Half Growth

Experian backed its guidance for fiscal 2024 as it posted an on-year rise in pretax profit for the first half driven by growth across all of its regions.

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Ninety One Cuts Dividend After Profit Falls on Challenging Conditions

Ninety One said pretax profit fell and reported higher outflows amid a challenging macroeconomic backdrop, cutting its interim dividend.

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Intermediate Capital Backs Guidance After Pretax Profit Rose Ahead of Consensus

Intermediate Capital Group said pretax profit rose ahead of consensus for the first half of its fiscal year as revenue increased, and backed guidance for the year.

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Watkin Jones Appoints Interim CEO Alex Pease on Permanent Basis

Watkin Jones said it has appointed interim Chief Executive Officer Alex Pease to the role on a permanent basis with immediate effect.

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Fuller Smith & Turner Earnings Rose on Strong Sales; Launches New Buyback

Fuller Smith & Turner said pretax profit for the first half of fiscal 2024 rose on the back of strong sales and profit conversion despite high inflation, and said that it plans to buy back an extra one million A shares.

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Atlantic Lithium Shares Surge on Takeover Bid Rejection

Shares in Atlantic Lithium rose as much as 30% after the company said it has rejected an indicative takeover offer from a major shareholder.

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Genuit Group Shares Rise on Consensus Forecast Beat

Genuit Group shares rose 11% after the company said that full-year adjusted operating profit will beat market forecasts on the back of cost cuts and continued commercial progress, despite revenue to date falling on lower volumes.

MARKET TALK:

Fuller Smith & Turner Forecast Raised After Strong Results

1343 GMT - Following Fuller Smith & Turner's strong half year earnings, Liberum analysts Anna Barnfather and Nishant Dahad upgrade their fiscal 2024 pretax profit forecast by 7.7% to GBP21.0 million. They also increase their sales forecast to GBP351.4 million from GBP340.3 million along with a 4.7% increase in Ebitda to GBP62.0 million. "Whilst the revenue momentum is impressive, the margin outlook remains less clear and hence our forecasts remain prudent," they say. Shares up 7% at 614.0 pence. ([e-mail])

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Fuller Smith & Turner Shares Seen Undervalued

1258 GMT - Fuller Smith & Turner shares are trading at a one-fifth discount to book value despite reporting a double-digit growth in revenue for the first half year, AJ Bell investment director Russ Mould writes in a note. "Shares still look cheap, even after the recent advance, especially as Fuller Smith & Turner's GBP358 million market capitalization compares to net assets on its balance sheet of GBP443 million as of the end of the first half," Mould added. Shares up 7.3% at 616.0 pence and are up 24% for the year to date. ([e-mail])

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Tullow Oil's Minor Output Cut Unlikely to Hurt Cash Flow

1152 GMT - Tullow Oil's reduced full-year production view shouldn't hurt 2023 cash flow, Peel Hunt analysts write in a research note. A delay to the commissioning of water injection risers at the Jubilee South East project in Ghana during 4Q has driven the oil-and-gas company to cut expectations to 2023 oil output, now to marginally below prior guidance of 58,000-60,000 daily barrels. Importantly, Tullow doesn't expect a change to Jubilee oil cargoes to tankers net to the company, hence no 2023 cash impact, and the production seems deferred rather than lost, the analysts say. They now expect Tullow to produce 57,000 oil barrels in 2023, down from 59,000 previously. Shares are up 6.8% at 35.78 pence. ([e-mail])

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Burberry's Profit Poised to Fall Despite Revenue Rise

1137 GMT - Burberry is expected to report a revenue increase for the 1H period, while inflationary pressures are likely to have an impact on profit. The British luxury-goods company is forecast to report 1H revenue of GBP1.38 billion, according to a company-provided consensus based on 18 analysts' estimates, up from GBP1.35 billion reported in the same period a year ago. However, operating profit is expected to fall to GBP218 million from GBP263 million, according to the company-compiled consensus. Adjusted EPS is also expected to fall to 40.3 pence from 44.3 pence. Shares are up 0.8% at 1,717.5 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

11-15-23 1208ET