FTSE 100 Closes Flat as Investors Focus on Fed's Comments

The FTSE 100 Index closed Wednesday flat at 7737 points in a trading day marked by softer U.K. inflation numbers for February as investors wait for the latest decision on the U.S. Fed rates tonight, AJ Bell investment director Russ Mould says in a note. "No move is expected so all the focus will be on any surrounding commentary and clues the market can draw about when the Fed will finally pivot to lower rates," he adds. Wealth-management business St. James's Place led the index top raisers, with shares up 4.5%, followed by Melrose Industries and Halma, up 4.1% and 3.85% respectively. Prudential and Burberry were the worst performers, with shares down 4.5 and 3.3%, amid concerns of a slowdown in China's market.

COMPANIES NEWS:

Prudential PLC Posts Higher 2023 Adjusted Operating Profit

Prudential PLC's adjusted operating profit rose in 2023, beating analysts' consensus forecast amid lower central costs and higher earnings from Eastspring, its asset management business.

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Johnson Matthey to Sell Medical Device Components Business for $700 Mln

Johnson Matthey said it will sell its medical device components business to Montagu Private Equity for $700 million in cash.

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Trustpilot Largest Shareholder Sells Down Stake at 200 Pence Per Share

Berenberg said Wednesday that it has sold 15.5 million Trustpilot shares on behalf of the review website company's largest shareholder at 200 pence each, more than planned due to strong investor demand.

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Braemar's Revenue, Adjusted Operating Profit in Line With Views

Braemar said it expects revenue and underlying operating profit for its fiscal year to be in line with market expectations, and that the board was confident for the year ahead due to a higher total forward order book.

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Computacenter Pretax Profit Rises on Record Revenue

Computacenter said pretax profit rise on record revenue growth, and that it expects to make further progress this year, with growth weighted to the second half.

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Town Centre Securities Loss Narrows on Lower Property Valuation Decline

Town Centre Securities pretax loss narrowed in the first half of fiscal 2024 on a lower loss on investment property valuation and a slightly higher revenue.

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Investec Expects To Post Earnings Growth

Investec's earnings for fiscal 2024 are expected to be higher than the previous year as the group benefited from a rising interest rate environment and grew its balance sheet over the period.

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Naked Wines Shares Rise on New Credit Facility Talks

Naked Wines shares rose 14% after the company said it is in talks with financing partners to replace an existing facility that will further its return to profitable growth.

MARKET TALK:

Prudential PLC Seems Confident on Ambitious Targets

0952 GMT - Prudential PLC's high aspirations are understandable, Interactive Investor says in a market comment after the Asia and Africa-focused investor and insurer posted a 45% rise in new business profit for 2023 driven by better performance in Hong Kong. It also backed its mid-term targets. "The stated objectives, including compound annual growth of between 15% and 20% in new business profit to 2027 are particular punchy but even at this early stage the group is increasingly confident of achieving these goals," head of markets Richard Hunter writes. The economic clouds which have hung over the likes of China have had a detrimental effect on Prudential's share price, he adds. Shares in London drop 4.8% to 743 pence and trade down 16% year to date. ([e-mail])

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Halma a Core Holding for Long-Term Investors, UBS Says

0931 GMT - Halma's track record of organic growth ahead of its targets is sustainable, UBS analysts Rory Smith and Andre Kukhnin say in a note. The safety, health and environmental-technology group's key attraction is the breadth of its portfolio, as well as an enviable track record of stable operating margins with low capital intensity and strong cash generation supporting deleveraging, the analysts say. Despite continuing merger and acquisition activity, the analysts see continued compounding of the growth model ahead. "For the quality-focused long-term investor we believe Halma should be a core holding," they say. UBS upgrades its stock rating to buy from neutral and raises the target price to 2,700 pence from 2,200 pence. Shares are up 2.85% at 2,271 pence. ([e-mail])

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U.K. Inflation Might Struggle in Final Mile

0923 GMT - The final stretch might prove the hardest for U.K. inflation as it edges toward the Bank of England's 2% target, Investec economist Ellie Henderson writes in a note. Price rises eased in February as energy and core-goods prices decelerated, but, while encouraging, the figures do not change the overall picture, Henderson says. Services inflation remains well above the headline rate and base effects won't always help, she notes. The last part of the race toward 2% can often be the hardest, Henderson says, pointing to the U.S., where inflation came down to 3% much more quickly than it has in the U.K. but has remained sticky since. ([e-mail]; @joshualeokirby)

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BOE Can Soon Give Nod to Market Views on Cuts

0840 GMT - The lower-than-expected U.K. inflation in February strengthens the case for the Bank of England to make a first interest-rate cut in the second quarter of the year, Berenberg economist Kallum Pickering says in a note. Although headline inflation remains too far above the 2% target to lower the bank rate just yet, it is fast heading toward target and another big drop is due in April when the energy price cap declines again, he says. After February's data, policymakers could give a nod to current market expectations for a first cut in June, which they can cement in May alongside updated macro projections, Pickering adds. "A further dovish tweak at the March meeting would be in line with the trend in recent meetings of policymakers gradually losing their hawkish bias," he says. ([e-mail])

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Gilts Rally Following Weaker-Than-Expected U.K. Inflation Data

0836 GMT - Gilt prices rally, causing yields to fall, after data showed U.K. inflation fell more than forecast, raising the prospect of the Bank of England cutting interest rates by more than previously expected in 2024. Annual inflation weakened to 3.4% in February, from 4.0% in January, below the 3.5% consensus forecast in a WSJ poll, while annual core inflation slowed to 4.5% from 5.1%. "Inflation continues to decelerate in the U.K., which should be good news for the BOE," Mizuho rates strategist Evelyne Gomez-Liechti says in a note. The 10-year gilt yield falls 4 basis points to 4.007% while the 2-year gilt yield falls 2bps to 4.209%, Tradeweb data show. The BOE is expected to keep rates unchanged on Thursday. ([e-mail])

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(END) Dow Jones Newswires

03-20-24 1311ET