FTSE 100 Closes Down As Rising Yields, Asia-Property Worries Weigh

The FTSE 100 index closed 0.78% lower on Monday at 7,623.99 points as concerns around sticky inflation and low growth pushed yields higher and equity markets lower. Alongside this, worries over China's property sector are prompting weakness over basic resources and weighing on Asia-exposed companies on London's blue-chip index, CMC Markets U.K. analyst Michael Hewson writes. "Rising yields and a worsening economic outlook is a dangerous cocktail for the FTSE 100," IG analyst Chris Beauchamp says, noting that both growth stocks and usual dividend players are hit as higher yields makes them look less attractive.

COMPANIES NEWS:

Aviva Buys AIG's UK Protection Business for GBP460 Mln

Aviva said that it has acquired AIG Life U.K. from a subsidiary of American International Group for 460 million pounds ($563.1 million).

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Pelatro to Report Adjusted Pretax Loss for 2023, Lower-Than-Expected Revenue

Pelatro expects to report an adjusted pretax loss for this year and revenue below management's previous expectations due to project delays.

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Microsaic Systems Seeks to Raise Up to GBP2 Mln; Chairman Steps Down

Microsaic Systems said that it is aiming to raise funds in order to strengthen its balance sheet and lift the share suspension afterwards, and added that Chairman Gerry Brandon has stepped down.

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Crimson Tide Pretax Loss Narrows as Revenue Grows

Crimson Tide has reported a narrowed pretax loss for the first half year as revenue grew with a higher margin driven by a focused investment in marketing and sales.

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Empire Metals Raises GBP3 Mln to Speed Up Operations at Australian Project

Empire Metals said has raised 3 million pounds ($3.7 million) to expand and accelerate exploration at its Pitfield project in Western Australia.

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Brighton Pier Swung to a Pretax Loss on Lower Sales, Operating Margins

Brighton Pier Group expects operating profit for the year to likely be below expectations after it swung to a first-half pretax loss as sales fell in its bars division and operating margins were hurt by inflationary pressures and staff costs.

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Saietta Loss Widens on One-Off Costs Despite Turnover Jump

Saietta Group said that it expects to report a widened pretax loss for fiscal 2023 despite a jump in turnover as it was dragged by write-downs and discontinued activities.

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SpaceandPeople Shares Slip After Widened Pretax Loss on Higher Costs

SpaceandPeople shares fell after the group reported a widened pretax loss for the first half of 2023 on the back of higher costs.

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Molecular Energies Names Christopher Raggett CEO of Green House Capital Group Ahead of IPO

Molecular Energies has appointed Christopher Raggett as chief executive of Green House Capital Group, ahead of the subsidiary's spin-off later this year, it said Monday.

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Entain Sees Good Underlying Growth in Online Business Despite Lower Revenue Increase -- Update

Entain said it continued to see good underlying growth in its online business despite softer-than-anticipated revenue growth in the third quarter and the continued roll-out of gambling regulations, and backed its Ebitda expectations for the year.

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Kelso Acquires 3.2% Stake in TheWorks.co.uk

Kelso Group Holdings said it has acquired 3.2% of the share capital of retailer TheWorks.co.uk for 626,000 pounds ($766,287).

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Crimson Tide Shares Fall on Expectation of Lower Growth

Shares of Crimson Tide fell 15% in early trade on Monday after the company said its second-half performance will be tempered by a customer going into administration, although it still expects revenue to grow.

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Pantheon International Launches GBP150 Mln Tender Offer

Pantheon International is planning to buy up to 150 million pounds ($183.6 million) worth of shares via a tender offer.

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Invinity Energy Systems Shares Jump on New US Contract, Soaring Revenue in Fiscal 2023

Shares in Invinity Energy Systems climbed 15% after the company said its revenue saw a ten-fold rise in fiscal 2023 and that it has secured a large contract from the U.S. government for six projects.

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Spectra Systems Pretax Profit Rises on Higher Banknote Demand

Spectra Systems' pretax profit rose in the first half of the year, boosted by higher banknote demand from central-bank customers, it said.

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Alphawave IP Group Swings to Pretax Loss on Higher Costs, Lower Margins

Alphawave IP Group has reported a swing to pretax loss for the first half-year with low margins and higher costs, despite revenue growing, but said it expects higher profitability for the second half.

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STM Group Extends Interim Finance Chief Therese Neish's Contract

STM Group said that interim Chief Financial Officer Therese Neish's contract has been extended.

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GETECH Shares Fall on Widened Pretax Loss, Lower Revenue Due to Fall in Oil, Gas Sales Volumes

Shares in GETECH Group fell after it said its first-half pretax loss widened after booking higher costs and lower revenue due to a fall in oil-and-gas sales volumes, and that its traditionally stronger second half was supported by a good order pipeline but tempered by delays to spending decisions.

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Oracle Power Pretax Loss Widens on Higher Costs

Oracle Power has declared a widened pretax loss for the first half year as a result of higher operating costs.

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ThomasLloyd Energy Shareholders Vote to Keep Current Directors

ThomasLloyd Energy Impact Trust said that shareholders have voted against the resolutions to remove its current directors, in favor of the board's recommendation, at its second requisitioned general meeting.

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Aldi UK Reports Record 2022 Sales as Inflation-Hit Consumers Seek Discounts

Aldi said that sales last year reached a record high as rising costs of living pushed consumers to discount products.

MARKET TALK:

Currys's Newark Distribution Center Provides Competitive Advantage

1404 GMT - Currys's central supply-chain facility in Newark allows the group to operate at a scale and with a level of flexibility and resilience that competitors can't match, Liberum analysts Adam Tomlinson and Wayne Brown say in a note following a tour of the facility. The logistic structure is in the center of Currys's services offer, while it supports the sales model and the development of an expert workforce, they highlight. "Continuous improvements, with more to come, are driving ongoing increases in colleague and customer engagement and satisfaction levels that are resulting in a better experience and profit performance," the analysts add. Liberum has a buy rating on the stock with a target price of 135 pence. ([e-mail])

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Centamin's Share Price Seen as Undervalued

1352 GMT - Centamin will see a steep rise in Ebitda over the next few years, which the current share valuation seem to overlook, Peel Hunt analysts write in a research note. "The shares do not seem to give credit for rising output at Sukari [gold mine] or the longer-term growth at Doropo [gold mine]," the analysts say. The Ivorian Doropo mine will drive the gold mining company to $500 million in Ebitda per year on better gold pricing, grid power benefits and better grades from 2025, they say. "Fast forwarding to 2027 and a productive Doropo could see a share price of over 180 pence, even before benefiting from any further exploration successes." Peel Hunt maintains a buy rating on the stock, while lowering its price target to 125 pence from 135 pence. ([e-mail])

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Global Telecoms Push Holographic Communication As 5G Network Expands

0922 ET - Telecoms from Canada, U.S. and U.K. are promoting the use of holographs in virtual communications. Bell Canada, Verizon, Vodafone and holographic presence app Matsuko conducted their first transatlantic holographic meeting with the aim of showing practical use-cases of the platform for customers, as well as encouraging developers to play around with the technology. The companies say the performance of the app is based on 5G mobile networks. ([e-mail])

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Derwent London Lags Rivals Despite Solid Office Demand

1231 GMT - Derwent London shares look cheaper than rivals despite still-buoyant office demand, RBC Capital Markets says, upgrading the U.K. property firm to sector perform from under-perform. Derwent's shares have fallen 18% so far this year, 15% worse than the European real-estate sector and trading at bigger-than-average discounts to their five-year historic average multiples than other sector companies covered by RBC, the brokerage says. "At the same time, tenant demand for the best London offices appears to remain resilient for now," RBC analysts say in a note. "We upgrade our rating for Derwent's shares from under-perform to sector perform, with 13% return potential from our revised 2100 pence price target." Shares drop 2% to 1901p. ([e-mail])

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Kering Shares Suffer After BofA Downgrade

1222 GMT - Shares of Gucci parent Kering are down after Bank of America Global Research downgraded the stock to underperform from neutral as demand for luxury goods is likely to subside until the middle of 2024, analysts write in a research note. "We are more cautious on companies with higher exposure to a younger, less affluent customer and in the midst of a brand turnaround," the analysts say, citing Kering along with Burberry, Salvatore Ferragamo and Tod's. The downgrade comes just days after Gucci presented its new collection at Milan Fashion Week under new creative director Sabato De Sarno, who was only appointed in January. Kering shares trade 4.3% lower at EUR440.45. ([e-mail]; @MauroOrru94)

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Close Brothers' Capital Outlook Seen Supported By Potential Disposal

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09-25-23 1222ET