FTSE 100 Rises After Gains on Wall Street

FTSE 100 Rises After Gains on Wall Street

0825 GMT - The FTSE 100 rises 0.5% to 7666 points after U.S. stocks closed higher overnight. U.S. markets "snapped back strongly" as the dust settled from Wednesday's Federal Reserve meeting when it paused interest-rate rises but signaled more to come, Interactive Investor analyst Richard Hunter writes. "The market is still insisting on the glass half-full approach, anticipating only one more rate rise in July as opposed to the two hikes which the Fed implied earlier in the week, and the cumulative slew of economic data over recent days could just lead additional weight to that view." Retailer Frasers Group and online grocer Ocado are top risers on the FTSE 100, while supermarket chain Tesco drops 0.4% after a trading update. ([e-mail])

COMPANIES NEWS:

ITV Confirms It Is Considering All3Media Acquisition

ITV confirmed Friday that it was actively exploring the possible acquisition of U.K. film production company, All3Media

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Currys Mulls Sale of Greek Business Kotsovolos

Currys said Friday it had started a strategic review of Greek business Kotsovolos, and that this could lead to its sale.

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Tesco 1Q Group Retail LFL Sales Rose 8.2%, Backs FY 2024 Guidance

Tesco on Friday said its like-for-like group retail sales grew 8.2% in the first quarter of fiscal 2024 boosted by volumes and inflation, and reiterated its guidance for the full year.

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Mears Sees 2023 Profits Materially Ahead of Market Views

Mears Group said Friday that the board expects 2023 profits to be materially ahead of current market expectations.

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Travis Perkins Lowers Full-Year Profit Guidance on Challenging Market Conditions

Travis Perkins said Friday that is has lowered its full-year profit guidance due to lower volumes in both the new build housing and private domestic repair, maintenance and improvement markets.

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CT Automotive 2022 Pretax Loss Widened; Confident on Meeting 2023 Views

CT Automotive Group on Friday said its pretax loss widened in 2022 but that it has seen an encouraging start to 2023 as operating conditions stabilize.

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Invinity Energy Systems Expects Narrower 2022 Pretax Loss Than Anticipated

Invinity Energy Systems said Friday that it expects to report a materially narrower pretax loss and gross margin loss than anticipated for 2022.

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ASA International Executive Director Aminur Rashid to Retire

ASA International Group said Friday that Executive Director Aminur Rashid will retire as of June 30 to spend time with his family.

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Peel Hunt Swung to Pretax Loss in FY 2023 on Market Turmoil

Peel Hunt on Friday said it swung to a pretax loss in fiscal 2023, hit by low market activity and subdued investor sentiment, and said it has seen signs of activity picking up as well as a gradual improvement in its M&A pipeline since the start of the new fiscal year.

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Dukemount Capital 1H Pretax Loss Narrows, Needs Extra Funds To Operate Beyond 12 Months

Dukemount Capital on Friday said its pretax loss for the first half of fiscal 2023 narrowed and that it will need extra funding to continue operating beyond the next 12 months.

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IAG Launches Buyback Program of Up to EUR35 Mln

International Consolidated Airlines Group said Friday it had agreed to launch a buyback program of up to 35 million euros ($38.3 million) for share awards to executives and employees under its share-based incentive plans.

MARKET TALK:

Travis Perkins's Profit Warning Drags UK House Builders into the Red

0834 GMT - Travis Perkins's 2023 profit warning shows it's been caught up in the cocktail of pressures facing the U.K. property market from rising interest rates, build-cost inflation and the cost-of-living crisis, Interactive Investor says. The U.K. building-materials retailer's disappointing update has dragged house builders to the bottom of the FTSE 100 including Barratt Developments and Kingfisher, Interactive's head of investment Victoria Scholar says in a market comment. "While the sector got off to a strong start to the year, price action more recently has soured, pricing in the prospect of more rate hikes from the Bank of England as inflation remains stubbornly high," Scholar says. Shares in Travis Perkins, Barratt and Kingfisher are down 4.9%, 1.0% and 0.7% respectively. ([e-mail])

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Travis Perkins' Profit Warning Is Significant for Wider Sector

0830 GMT - Travis Perkins' 2023 profit warning suggests a double-digit downgrade to current full-year market forecasts, Davy Research says. The U.K. building-materials retailer blames the soft U.K. residential end-market, and the warning will naturally carry a wider resonance for the entire sector, Davy analysts Flor O'Donoghue and Andrea Collins say in a research note. "However, it once again highlights, given its size and concentration, the extent to which the group is intimately linked to the fortunes of the U.K. economy, especially consumer confidence," the Irish research firm says. Davy retains its neutral rating and 935 pence price target on the stock. Shares are down 4.8% at 825.2 pence. ([e-mail])

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Tesco's 1Q Could Lead to Consensus Upgrades

0823 GMT - Tesco's first-quarter results were robust and track for consensus upgrades, Jefferies says in a note after the U.K. grocer posted sales growth for the 13 weeks to May 27 and backed its full-year guidance. "At a time when investors may be a little concerned by TSCO's historical positive valuation correlation to the U.K. food CPI, we remain of the view that revisions risk at the group remains more pitched to the upside," analysts write. They point out the context of reducing mix headwinds, industry gross margin discipline holding, with relative share momentum remaining solid and operating expenses challenges having passed their peak. Jefferies rates the stock buy. Shares slip 0.6% at 263 pence. ([e-mail])

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Travis Perkins' Guidance Dump Shouldn't Surprise

0757 GMT - Travis Perkins' profit guidance dump shouldn't have been wholly unexpected given recent commentary from the housebuilders and housing market, RBC Capital Markets analyst Andrew Brooke writes in a research note. "Consensus will come down, but we would argue this is largely factored into the current valuation," the analysts says. Despite macro uncertainty, which prompted the lowered operating profit guidance, any weakness should be seen as a good opportunity for longer-term investors to buy into a market leader with a sensible strategy, a strong balance sheet, property backing and a sound dividend yield, Brooke says. RBC keeps an outperform rating on the stock and a price target of 1.250,00 pence. Shares are down 4.7% at 826.00 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-16-23 0458ET