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FTSE 100 Falls as BOE Inflation Forecasts Boost Sterling

08/05/2021 | 10:08am EDT
Market News 
 
FTSE 100: 7120.43  -3.43   -0.05% 
FTSE 250: 23506.11  158.38  0.68% 
FTSE AIM: 1256.84  -2.04   -0.16% 
 

The FTSE 100 lagged Thursday in favor of more domestically-focused companies, as the pound rose in response to Bank of England inflation warnings. "With the pound gaining ground off the back of today's [BOE] meeting, it should come as no surprise to see the FTSE 100 lose traction due to the damaging impact a stronger pound has upon international earnings," IG Group PLC market analyst Joshua Mahony said. While the bank sees above-target inflation as being largely transitory, there is a strong possibility that some monetary tightening will be required to bring price growth back down to 2%, Mahony said.

 
Companies News: 

ScS Group Sees FY 2021, FY 2022 Performance Beating Market Expectations

ScS Group PLC said Thursday that its performance for fiscal 2021 and fiscal 2022 is expected to be above market expectations given its strong order book and positive recent trading.

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Secure Trust Bank 1H Pretax Profit Rose; Resumes Dividend

Secure Trust Bank PLC reported on Thursday a significant rise in pretax profit for the first half of 2021 and resumed dividends.

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Spirent Communications 1H Pretax Profit Fell

Spirent Communications PLC said on Thursday that first-half pretax profit fell after it booked higher costs, and that it is putting together an opportunity pipeline to support its mergers and acquisitions strategy.

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Centamin 1H Profit Fell on Weaker Production, Higher Costs

Centamin PLC said Thursday that its net profit for the first half of the year fell 20%, reflecting weaker gold production and higher unitary costs.

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Mkango Resources to Buy Remaining Stakes in Songwe Hill, Maginito; Shares Rise

Shares in Mkango Resources Ltd. rose Thursday after the company said it is increasing its ownership over the Songwe Hill rare earths project in Malawi and Maginito Ltd. to 100% for 13 million pounds ($18.1 million) in shares.

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Resolute Mining to Sell Bibiani Gold Mine to Asante Gold for $90 Mln

Resolute Mining Ltd. said Thursday that it has agreed to sell its Bibiani gold mine in Ghana to Asante Gold Corp. for $90 million in cash.

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Castillo Copper to Spin Off, Float Prime Broken Hill Assets

Castillo Copper Ltd. said Thursday that it plans to demerge its Prime Broken Hill assets in New South Wales, Australia and list them as a new company on the Australian Stock Exchange.

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Frasers FY 2021 Pretax Profit Fell; To Move CEO Mike Ashley Into Executive Director -- Update

Frasers Group PLC on Thursday reported a significant decline in pretax profit for fiscal 2021, and said that it is in talks to move Chief Executive Mike Ashley into an executive director role.

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OptiBiotix Shares Climb; 1H Sales Beat Expectations

Shares in OptiBiotix Health PLC jumped Thursday after it said that sales of its LP(LDL) and SlimBiome health and weight-management products came in above expectations in the first half of the year, and that it expects to meet or exceed the full-year sales forecast.

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Goldplat Says Operating Profit From Recovery Operations Fell in 4Q

Goldplat PLC said Thursday that the operating profit from its recovery operations more than halved in the fourth quarter of the fiscal year.

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Versarien FY 2021 Pretax Loss Widened

Versarien PLC said Thursday that its pretax loss for fiscal 2021 widened after booking higher costs and that there are indications that trading is beginning to return to pre-pandemic levels in its mature businesses.

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Chaarat Gold CEO Artem Volynets Steps Down, to Become Senior Advisor

Chaarat Gold Holdings Ltd. said Thursday that Chief Executive Officer Artem Volynets will step down from his role with immediate effect and take on a senior advisor role.

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Brickability Fiscal 2021 Pretax Profit, Revenue Fell

Brickability Group PLC said Thursday that pretax profit and revenue fell in fiscal 2021, but that performance in the first quarter of fiscal 2022 was encouraging, marked by a healthy construction market and strong order book.

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Tritax Big Box 1H Pretax Profit Rose

Tritax Big Box REIT PLC said on Thursday that pretax profit rose for the first half of 2021 mostly due to a rise in property revaluations, and that it expects to see further letting activity in the second half.

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Synthomer Swung to 1H Pretax Profit; CFO to Step Down

Synthomer PLC reported on Thursday a swing to a pretax profit for the first half of the year, and said Chief Financial Officer Steve Bennett is stepping down.

 
Market Talk: 

BOE's Policy Withdrawal Sequencing More Important Than QE End

0936 GMT - Rather then when bond purchases will end, the most relevant piece of information from the Bank of England's policy meeting is the outcome of the review of the sequencing of policy withdrawal, says RBC Capital Markets. "With [the] current GBP150bn QE programme already two-thirds complete, to some extent the debate on whether or not to end it early is distracting from what will be the key announcement," analysts at the bank say. This is the outcome of the central bank's review of the sequencing of policy withdrawal, which is expected to be announce later in the year. "It is possible that we may get the results of the review alongside today's meeting though that is not our central expectation," they say.

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WPP's 1H Is a 'Knock-Out'; Revenue Guidance Raised

0928 GMT - Shares in WPP rise 2% after the advertising, marketing and public-relations company reported a swing to a 1H pretax profit and raised its full-year guidance. The company achieved a "knock-out" set of 1H numbers driven by strong 2Q organic expansion which, at 19.3%, signals a return to 2019 levels of activity one year ahead of schedule and which has prompted a full-year organic revenue guidance upgrade, Citigroup says. "We think results should be taken well and we rate WPP as a buy," Citi analysts say.

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Centamin 1H Earnings Fell Less Than Expected

0924 GMT - Centamin's first half Ebitda declined 26% to $190 million but was 8% ahead of consensus expectations, Jefferies says. The gold miner's interim dividend of 4 cents a share was slightly below the 4.2 cents consensus, but Jefferies says this is not a concern as the company has already committed to a minimum payout for 2021, which should shift expectations for a higher dividend in respect of the second half. In addition, increases in fuel prices remain below budget and, beyond this, Centamin isn't experiencing major cost inflation, the bank says. Jefferies reiterates a buy rating on the stock.

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Glencore Shows Limited Cost Inflation

0923 GMT - Glencore delivered positive news on the cost side, relative to RBC Capital Market's expectations and peer performance, the Canadian bank says. Although consensus coal numbers are likely to edge higher, there isn't a big cost blow out across the commodities that Glencore produces, which should be taken positively, RBC says. Elsewhere, the bank says Glencore's first-half results were strong and bolstered by the $530 million special dividend and $650 million share buyback. "With these results out of the way we are very positive on Glencore here vs. peers, as iron ore transitions back into a balanced market and as the company looks to deliver on a program of streamlining of non-core assets."

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Glencore 1H Results Were as Strong as Expected

0855 GMT - Glencore achieved strong first half results, with Ebitda of $8.7 billion broadly in line with consensus expectations, Citi says. There weren't significant surprises in the divisional Ebitda, although the marketing Ebit implies an annualized rate of $3.6 billion, leaving enough room for upside surprises against the guidance of $3.2 billion, the bank says. "Commodity mix geared towards de-carbonisation enabling metals, strong balance sheet, volume growth potential and accelerated emission reduction efforts are key pillars of Glencore's investment case," Citi says. The bank has a buy rating on the stock.

---

Rolls-Royce's Negative Cashflow, Long Recovery Are Cause for Concern

0848 GMT - Rolls-Royce's GBP1 billion of planned cost-cutting helped the engineering company return to 1H profit, but there is still plenty to concern investors, Mark Crouch at eToro says. The British engine maker has struggled as the fortunes of its largest division, civil aerospace, are so interlinked with the airline industry, one of the sectors worst affected by Covid-19, Crouch says. Furthermore, its negative cashflow position is an issue for investors, despite the company saying it should turn positive at some point in the 2H, he says. "While we believe that Rolls-Royce is still a quality company, its position still looks precarious and its recovery long. Therefore, this is very much a long-term play for investors," Crouch says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

08-05-21 1208ET

Stocks mentioned in the article
ChangeLast1st jan.
AUSTRALIAN DOLLAR / BRITISH POUND (AUD/GBP) -0.04% 0.5391 Delayed Quote.-3.55%
BRICKABILITY GROUP PLC -0.19% 104.8 Delayed Quote.60.31%
CANADIAN DOLLAR / BRITISH POUND (CAD/GBP) 0.26% 0.589008 Delayed Quote.2.20%
CASTILLO COPPER LIMITED -7.50% 0.037 End-of-day quote.5.71%
CENTAMIN PLC 0.30% 99.8 Delayed Quote.-19.63%
CHAARAT GOLD HOLDINGS LIMITED -2.90% 21.12 Delayed Quote.-5.64%
CITIGROUP INC. -0.13% 72.12 Delayed Quote.17.24%
DJ INDUSTRIAL -0.23% 35211.46 Delayed Quote.15.32%
EURO / BRITISH POUND (EUR/GBP) 0.25% 0.8451 Delayed Quote.-5.56%
FINTECH ACQUISITION CORP. V -0.10% 10.02 Delayed Quote.0.00%
FRASERS GROUP PLC -1.57% 626.52 Delayed Quote.41.12%
FTSE 100 -0.62% 7187.16 Delayed Quote.11.97%
FTSE MID 250 INDEX -0.23% 22928.46 Delayed Quote.12.18%
GLENCORE PLC 0.79% 393.4 Delayed Quote.67.62%
GOLDPLAT PLC -3.36% 7.2 Delayed Quote.-7.45%
IG GROUP HOLDINGS PLC 0.29% 820.5 Delayed Quote.-5.10%
INDIAN RUPEE / BRITISH POUND (INR/GBP) -0.22% 0.009669 Delayed Quote.-3.25%
OPTIBIOTIX HEALTH PLC 0.00% 47 Delayed Quote.-18.97%
RESOLUTE MINING LIMITED 1.10% 0.46 End-of-day quote.-42.14%
S&P GSCI GOLD INDEX -0.01% 1029.8675 Delayed Quote.-6.69%
SCS GROUP PLC 1.49% 272 Delayed Quote.26.42%
SECURE TRUST BANK PLC -0.21% 1170 Delayed Quote.34.00%
SPIRENT COMMUNICATIONS PLC -1.10% 287.6 Delayed Quote.10.15%
SYNTHOMER PLC 0.31% 463.8 Delayed Quote.2.98%
TRITAX BIG BOX REIT PLC 0.27% 221.8 Delayed Quote.31.63%
US DOLLAR / BRITISH POUND (USD/GBP) 0.21% 0.728422 Delayed Quote.-0.55%
VERSARIEN PLC -2.40% 29.5 Delayed Quote.-28.21%
WPP PLC -0.97% 980.2 Delayed Quote.23.78%
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