FTSE 100 Edges Up After Mixed UK Economic Data

FTSE 100 Edges Up After Mixed UK Economic Data

0903 GMT - The FTSE 100 edges up 0.15% to 7656.92 after mixed U.K. economic data. June retail sales rose 0.7% month on month, much better than the 0.2% forecast by economists in a WSJ survey, but GfK's Consumer Confidence Index fell to minus 30 in July from minus 24 previously, "signalling a potential sign of consumer capitulation in the current environment", says Interactive Investor head of markets Richard Hunter in a note. The biggest FTSE 100 gainers include financial company Hargreaves Lansdown, up 2.3% after Jefferies upgraded the stock to buy after results showed improved 2Q performance, while equipment rental company Ashtead Group rises 2%. Miner Glencore falls 0.8% after a trading update, while telecoms company BT loses 1.7% and insurance company Prudential falls 1.4%. ([e-mail])

COMPANIES NEWS:

FirstGroup FY 2024 Performance in Line So Far; To Launch Buyback Program of Up to GBP115 Mln

FirstGroup said Friday that its fiscal 2024 performance in the year-to-date has been in line with expectations.

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DP Poland 1H Sales Up 18% on Higher Order Count

DP Poland said Friday that first-half like-for-like sales rose 18% on year, supported by an 11% rise in order count, and that it expects its performance to continue improving as it remains optimistic about its outlook.

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THG Confirms Sale of Loss-Making Units for GBP4 Mln

THG said on Friday that it has sold THG OnDemand and ProBikeKit for a total consideration of around 4 million pounds ($5.1 million) following a conclusion of its strategic review of loss-making areas within the THG OnDemand division.

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Liontrust Asset Management Says Takeover Offer for GAM Holding Won't Be Increased

Liontrust Asset Management on Friday said its offer to buy Zurich-listed investment manager GAM Holding is final and won't be increased.

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BowLeven Says It is Unaware of Reasons for Share-Price Surge; Fundraise Planning Continues

BowLeven said Friday that it wasn't aware of any particular reason for the sudden increase in the price of its shares, and that planning for an additional equity raise continued.

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Petershill Partners' 2Q Aggregate Assets Under Management Rose

Petershill Partners on Friday said its aggregate assets under management rose over the second quarter of 2023 and kept its full-year guidance for raising organic gross fee-eligible AUM.

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Premier African Minerals Loans GBP1.7Mln From CEO

Premier African Minerals said Friday that it has entered into a loan facility agreement of up to 1.7 million pounds ($2.2 million) with Chief Executive George Roach.

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Keywords Studios Agrees on New $400 Mln Loan to Replace Previous EUR150 Mln Facility

Keywords Studios said Friday it had agreed on a $400 million loan and that this replaced its previous 150 million-euro ($167 million) unsecured multicurrency revolving credit line.

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Thruvision FY 2023 Pretax Loss Narrowed, Boosted by Order Intake From US Customer

Thruvision Group said Friday that its pretax loss narrowed in fiscal 2023 as revenue increased due to strong order intake from a U.S. customer.

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Star Phoenix AIM Shares Cancelled After Failing to Appoint Nominated Adviser

Star Phoenix Group said Friday that trading of its shares on AIM had been cancelled effective today after failing to appoint a nominated adviser.

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European Metals Holdings Agrees to EUR6 Mln Investment for Czech Lithium Project

European Metals Holdings said Friday that the European Bank for Reconstruction and Development will invest 6 million euros ($6.7 million) to support the development of its lithium project at Cinovec in the Czech Republic.

MARKET TALK:

Anglo American's 1H Production Largely Met Expectations

1018 GMT - Anglo American's 1H production was in line with or slightly ahead of consensus expectations, while the hoped-for China copper-import stimulus seems to have created volatility in the market, Bank of America Global Research analysts write in a research note. The key takeaways from the multinational miner's 1H production print was the completed ramp up of the Quellaveco copper mine in Peru, the unchanged full-year production guidance, and the changed unit cost guidance on foreign exchange currencies, the analysts say. "We lower 2023 Ebitda estimate 1% to $12.7 billion, largely on lower diamond and nickel earnings estimates," they say. On stimulus from China, the analysts note "ongoing volatility as the market weighs China stimulus potential vs. slowing Western economies." BofA rates the stock buy, with a 2,380-pence price target. ([e-mail])

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Petershill Partners' 2Q Fee-Paying AUMs Were Weaker Than Expected

1000 GMT - Petershill Partners' second-quarter fee-paying assets under management was disappointing, UBS says in a note after the investment firm missed consensus expectations with $1 billion in fee-paying inflows as certain funds haven't yet been activated. This represented a 4% miss against UBS estimates and an 8% miss to consensus' forecasts, analysts write. "While there is a solid pipeline of funds raised but not activated, the slower translation into fee-paying AUMs will have a moderately negative impact to 2023 [partner-firm fee related earnings]," they say. UBS rates the stock buy. Shares have slipped 2% since the start of the year.([e-mail])

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UK Retail Sales Are Reversing 2022's Slide, But Surging Rates Will Hurt

0941 GMT - The uptick in U.K. retail sales in June was the fifth monthly increase this year, a sign of a sea change in high-street conditions after volumes suffered a near continuous decline in 2022, Investec Chief Economist Philip Shaw says in a note. Now it remains unclear to what extent higher interest rates will bear down on consumer activity, he says. The six-point fall in July's GfK consumer-confidence index may well be a prescient indicator, coming alongside the sharp spike in fixed-term mortgage rates in recent months, Shaw says. "The drag on spending through the course of this year should become increasingly clear and we continue to judge that the U.K. economy will be fortunate if it escapes a recession" he says. ([e-mail])

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Close Brothers' Resilience Shows Shares Offer Good Value

0939 GMT - Close Brothers' sustainably high risk-adjusted margin with low leverage makes it more able to absorb external shocks, Numis says in a note. The U.K. merchant banking group posted an update for fiscal 2023 with strong asset management performance with increased net inflows, offsetting weakness at Winterflood. "While Close trades at a premium to the other specialist lenders we believe this is justified by many decades of resilient performance," analysts write, adding that they expect the usual tightening from the commodity capital banks to see customers they would have deemed prime a few months ago flow to Close at a higher margin as the economy weakens. Numis rates the stock buy. Shares are down 8% year to date. ([e-mail])

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Filtronic Seen as Gaining Ground in Booming Satellite Industry

0927 GMT - Filtronic's impressive low orbit earth contract win enables the telecom-equipment manufacturer to supply products at multiple frequencies to a rapidly growing market, finnCap analysts Michael Hill and Kimberley Carstens write in a note. The contract--which follows an initial entry to the market in January--is strategically important as it formalizes the relationship with the European Space Agency, and such a positive reference "is crucial in the early stages as the company engages with leading players in the market in the context of a booming satellite industry," the analysts say. The contract is expected to start immediately, with the value split between FY 2023 and FY 2024, they say. Filtronic is a corporate client of finnCap, which has a 20-pence price target on the stock. Shares are up 9.7% at 15 pence. ([e-mail])

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Petershill Partners' 2Q Fundraising Was Decent

0921 GMT - Petershill Partners' partner firms continued to raise funds despite a challenging environment in the second quarter but conversion to fee-paying assets under management continues to be slow, Numis says in a note. The investment firm said on Friday that its aggregate AUM rose over the second quarter and that partner firms' fundraising was slightly higher than consensus' expectations. Shares look cheap and while Numis remains positive on the stock given its longer-term growth story, they lack an obvious short-term positive catalyst, analyst David McCann notes, rating the stock buy. "We think the short-term investment case is one of being paid to wait (...), whilst patiently waiting for the more supportive market environment," he adds. Shares edge up 0.5% at 165.8 pence. ([e-mail])

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Kistos Holdings' License Extension Could Drive Lifts to Long-Term Consensus

0910 GMT - Oil-and-gas producer Kistos Holdings' license extension is very positive for results, and although it likely won't have an impact on full-year financial forecasts, it provides potential upside to long-term consensus, Berenberg analysts write in a research note. Due to the timing of the appraisal drilling, which is likely in 2025, there shouldn't be any changes to near-term numbers, which look for free cash-flow yields of -7% and 26% in 2023 and 2024, respectively, the analysts say. "Assuming appraisal drilling is successful, and the company moves to develop the asset, we would anticipate first production in 2028," they say. Berenberg reiterates its buy rating on the stock with a 420-pence price target. Shares are up 3.9% at 238 pence. ([e-mail])

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Consumer Gloom May Prove Harbinger of UK Recession

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07-21-23 0636ET