The FTSE 100 closed Wednesday down 0.6% to 7628 points, dragged by the consumer-goods, retail and mining sectors, IG Chief Market Analyst Chris Beauchamp said in a note. "Despite the index's relative cheapness, it remains firmly unloved, and languishes well off its record highs even as its peers in Europe and the U.S. continue to look well-placed for more gains," he adds. Grocer Sainsbury's shares fell 6.1% to the bottom of the index after the group laid out its cost-saving strategy, followed by Barratt Developments, down 5.5% on news of its acquisition of rival Redrow. Consumer-goods heavyweight Unilever shares slipped 1.4% ahead of its 2023 earnings report tomorrow, while miners Antofagasta and Anglo American closed down 3.8% and 3.7%, respectively.


COMPANIES NEWS:

Barratt Developments to Buy Redrow for GBP2.52 Bln in Shares

Barratt Developments has agreed to buy smaller housebuilder Redrow for 2.52 billion pounds ($3.17 billion) in an all-share deal.

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Babcock International Backs Guidance

Babcock International Group said its board was backing its expectations for fiscal 2024, and that it continued to build momentum to achieve medium-term guidance.

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Ashmore Group Posts Pretax Profit Rise on Interest Income, Investment Program

Ashmore Group posted a rise in pretax profit for the first half of fiscal 2024 despite lower assets under management, driven by higher interest income on its cash and gains in its active seed capital investment program.

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Barratt Developments Profit Slumps But Sees Demand Recovering

Barratt Developments saw a slump in pretax profit as sales dropped in a difficult macroeconomic environment, but tightened upwards its full-year guidance as demand recovers.

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Sainsbury's Launches Cost-Saving Strategy, GBP200 Mln Buyback

J Sainsbury said it expects to save 1 billion pounds ($1.26 billion) in structural costs over the next three years as part of its strategy update and launched a share buyback program.

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Redrow Profit Falls, But Sees Encouraging Early Sales Recovery

Redrow pretax profit and revenue slumped, but said it has made an encouraging start to the second half.

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PZ Cussons Swung to Pretax Loss Due to Nigerian Naira Devaluation

PZ Cussons swung to a pretax loss for the first half of fiscal 2024 due to the devaluation of the Nigerian Naira which had a significant impact on its financial performance, but the company said it remained confident about long-term growth potential.

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Alpha Financial Markets Consulting Sees Slower Trading Weighing on Earnings

Alpha Financial Markets Consulting expects to report an on-year drop in its net fee income growth and core earnings for fiscal 2024 due to the competitive environment it operates in and longer sales cycles, it said.

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Grainger's Positive Momentum Continues With Strong Rental Growth, Portfolio Expansion

Grainger said its positive momentum continued with strong rental growth and continuing portfolio expansion, and that a strong U.K. residential market underpinned its investment case.

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Future PLC Performance In Line With Expectations

Future PLC said that its performance at the start of the new fiscal year was broadly in line with its expectations with a revenue improvement, reflecting its growth-acceleration strategy.

MARKET TALK:

Ashmore's Momentum Recovers as Emerging Markets Do Well

1319 GMT - Ashmore Group appears to be regaining momentum, Panmure Gordon says following the emerging market-focused asset manager's first-half results. Panmure upgraded Ashmore's stock last September because of a valuation which had become extreme on a business where there was a good chance of momentum improving in due course, the brokerage says, reiterating its buy recommendation and 285 pence price target. "Macro conditions continue to strengthen the case for emerging markets and investment performance is better," Panmure analysts say in a note. "Performance fees ahead of market expectations show managers must be getting something right. The balance sheet continues to underpin the valuation and signs are there that momentum in the business is improving." Shares drop 0.1% to 210p. (philip.waller@wsj.com)

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Sainsbury's Masterplan Looks Bold, But Will Cost Money

1053 GMT - Sainsbury's shares drop 4% after the U.K. grocer announced a plan to cut costs by GBP1 billion over the next three years, but said it would increase capital spending. While the company's plans are bold and show a clear vision to get customers to spend more money, attract more people to its shops and drive more traffic to catalogue-retailer Argos's website, stores and supermarket concessions, they're not guaranteed to work, AJ Bell says. "Achieving the goal is another matter and it will cost money--something the market typically hates," Bell's investment director Russ Mould writes. "Sainsbury's shares fell on the news, but interestingly so did Tesco and Marks & Spencer as they face new competitive threats." (philip.waller@wsj.com)

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Future PLC's Growth Strategy Likely to Take Time

1050 GMT - Future PLC's first-half performance was muted but the specialist media platform company is benefiting from its diversified portfolio, Peel Hunt analysts Jessica Pok and Melanie Yang write in a research note. The CEO's newly launched growth acceleration strategy makes sense, but it is unlikely to see meaningful results until at least the second half or into fiscal 2025 as challenges remain, the analysts say. Shares are down 5.7% at 677.0 pence. (najat.kantouar@wsj.com)

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Sainsbury's Growth Strategy Implies Unwelcome Costs

1052 GMT - Sainsbury's bold growth plan bring a renewed energy, with a clear vision to get customers to spend more money, attract more shoppers, and drive more traffic to the Argos website, AJ Bell investment director Russ Mould says in a note, referring to its general-merchandise retail brand. However, achieving its goals is not guaranteed to work and it will cost money, something the market typically hates, he says. "The grocery space is already highly competitive and other supermarkets have their own initiatives in the fight to grow market share. No doubt Sainsbury's rivals will pull their own rabbits out of the hat in the quest to fill shoppers' baskets," he adds. Sainsbury's shares are down 3.8% on the news, but Tesco and Marks & Spencer are also down 2.6% and 0.8%, respectively, as they face new competitive threats, he adds. (michael.susin@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;


(END) Dow Jones Newswires

02-07-24 1200ET