FTSE 100 Ends Week Down, Dragged by Oil Majors

The FTSE 100 index edged down 0.1% on Friday to 7,615.54 points, dragged in part by oil-and-gas majors slipping on lower oil prices. "Today's laggards on the FTSE 100 have been the oil majors, with Shell and BP slipping back on the account of lower oil prices, reversing the gains of yesterday on the back of Shell's decent earnings numbers," CMC Markets analyst Michael Hewson said in a market comment. Shell's rival BP is due to report on Tuesday. On the upside, Tesco and Sainsbury's jumped after Morgan Stanley upgraded both, seeing the companies likely to benefit from volume growth in 2024.

COMPANIES NEWS:

YouGov Expects to Meet Market Views Despite Challenging Conditions

YouGov said it expects to meet full-year market expectations after strong early revenue growth, despite a challenging economic environment.

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Aukett Swanke Swings to Profit on Strong Revenue Growth

Aukett Swanke said that it returned to profitability in fiscal 2023 on doubled revenue and that it expects to post record revenue for the current fiscal year.

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TomTom Shares Rise After Revenue Boosted by Location Technology Growth

TomTom shares rose after the company said that revenue grew in the fourth quarter and 2023 on a strong performance from its location technology business, and set guidance for the year ahead.

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Athens International Airport Sets Final IPO Price at Top End of Its Range on Strong Demand

Athens International Airport said the final offer price set for its initial public offering was 8.20 euros ($8.91) a share--the top end of its guidance range--on strong demand.

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Verona Pharma Files 8K - Director, Officer or Compensation Filing >VRNA

Verona Pharma PLC (VRNA) filed a Form 8K - Director, Officer or Compensation Filing - with the U.S Securities and Exchange Commission on January 31, 2024.

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Superdry Gets Takeover Approach From CEO

Superdry said Chief Executive Officer Julian Dunkerton has asked permission to make an offer for the group and to start discussions over potential sources of finance.

MARKET TALK:

Shell Is Building a Track Record of Delivery

1036 GMT - Shell's solid fourth-quarter results and steady buyback show it is starting to build a track record of delivery consistent with the promises made when CEO Wael Sawan took the reigns last year, HSBC analysts Kim Fustier and Ujjwal Sharma write in a research note. The absence of guidance changes in Thursday's report is "not a surprise to us but still welcome," they say. "Shell seems to be taking a page from TotalEnergies's book and learning that consistency and predictability are virtues," they say. HSBC sees the Anglo-Dutch energy major as offering attractive and well-underpinned distribution yield, coupled with improved visibility and cash-flow growth. Shares are down 0.9% at 2,484.00 pence. ([e-mail])

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Superdry's Takeover Speculations Prompts Share Rally

1015 GMT - Superdry's shares jump on speculation around a potential takeover offer after fund manager First Seagull acquired a 5.32% stake in the embattled clothing brand, and on rumors of other investors interested in snapping the group, AJ Bell says. "The investment fund looks for companies it believes are mispriced and have 'hidden assets' [...] Now others are asking if there is money to be made from owning the shares," AJ Bell investment analyst Dan Coatsworth writes. The fund could have also considered that Superdry's recent streak of bad news are already priced in, he highlights. So far the fund seems like a passive investor rather than one demanding changes, he notes. Shares are up 80% on Friday, but down 70% on a 12-months basis. ([e-mail])

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Close Brothers Seen With Little Upside in Short Term

0932 GMT - Close Brothers's exposure to the U.K. regulator's reviews doesn't bode well for the stock's near-term performance, RBC Capital Markets says in a note as the merchant banking group's stock hit its lowest price since 2009. "Whilst we believe the review of motor finance is already baked into the shares, no further FCA comment until September 2024 and premium finance also being in the regulator's cross-hairs lead us to see little short-term upside," analyst Benjamin Toms writes. The broker expects a GBP200 million impact from the motor finance review, with the first provisions taken in 2025. RBC cuts its rating to sectorperform from outperform. Shares--which have seen a steady fall since the review's announcement in January and are down 37% year to date--fall 4.5% to 504 pence. ([e-mail])

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Gilt Yields Rise on Expectations of U.K. Interest Rates Staying Higher For Longer

0930 GMT - U.K. gilt yields rise as markets expect the Bank of England to keep interest-rate high for longer than previously expected following Thursday's BOE policy meeting where two members voted for a rate increase. "We still judge that the [BOE] will exercise a degree more caution than its peers," say RBC Capital Markets analysts in a note, adding they don't expect the BOE to cut rates until August. The 10-year gilt yield rises around 5 basis points to 3.784% while the U.K. 2-year gilt yield rises 4bps to 4.268%, Tradeweb data show. Markets currently price in 101 basis points of BOE rate cuts in 2024, down from 109bps priced in prior to the BOE's announcement, Refinitiv data show. ([e-mail])

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(END) Dow Jones Newswires

02-02-24 1218ET