12th Aug 2024 07:44
(Alliance News) - Stocks in London are called to open higher, as some calm spreads over markets a week after the global sell-off which shook investors.
In early corporate news, BT welcomed news that Bharti will build a 24.5% stake in the firm, after buying shares from Altice.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 0.3% at 8,194.90
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Hang Seng: down marginally at 17,084.69
Nikkei 225: Japanese financial markets closed for Mountain Day
S&P/ASX 200: closed up 0.5% at 7,813.70
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DJIA: closed up 51.05 points, 0.1%, at 39,497.54
S&P 500: closed up 0.5% at 5,344.16
Nasdaq Composite: closed up 0.5% at 16,745.30
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EUR: down at USD1.0919 (USD1.0925)
GBP: down at USD1.2666 (USD1.2770)
USD: up at JPY147.14 (JPY146.56)
GOLD: up at USD2,431.10 per ounce (USD2,429.01)
OIL (Brent): up at USD79.81 a barrel (USD79.54)
(changes since previous London equities close)
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ECONOMICS
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Monday's key economic events still to come:
14:45 EST Germany current account
11:00 EDT US consumer inflation expectations
14:00 EDT US monthly budget statement
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The contraction in Irish construction industry decelerated thanks to a sound rise in new orders, survey results published by S&P Global showed on Monday. The headline seasonally adjusted BNP Paribas Real Estate Ireland construction total activity index posted at 49.9 points in July. The reading was up from 47.5 in June and signalled a near-stabilisation of activity. Housing activity increased for the fifth consecutive month, and at a solid pace that was the fastest since April, S&P said. The housing activity index rose to 53.2 points in July from 52.4 in June. Meanwhile, the commercial activity index stood at 49.9 points, the same as the overall index and near the neutral 50-point mark separating growth from contraction. This was much better than 43.3 points in June, which had signalled a sharp contraction. The index for new orders increased to 54.9 points in July, the best expansion since February 2022, from 51.8 in June.
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BROKER RATING CHANGES
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RBC raises Diageo to 'sector perform' (underperform) - price target 2,400 (2,100) pence
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UBS raises Hargreaves Lansdown to 'neutral' (sell) - price target 1,110 (915) pence
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Peel Hunt raises Bellway to 'add' (hold) - price target 3,020 (2,920) pence
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COMPANIES - FTSE 100
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Bharti Global said it has reached an agreement to buy a 24.5% stake in BT Group from Altice UK. The shares will be purchased through Bharti Televentures UK Ltd - a company established and wholly owned by Bharti Global. It said it has entered into a binding agreement with Altice UK to acquire a 9.99% stake of BT's issued capital imminently with the balance 14.51% of BT's share capital to be purchased following receipt of regulatory clearances. Bharti said it has no intention of making an offer to acquire BT. Sunil Bharti Mittal, chair of Bharti Enterprises, said: "This investment demonstrates the confidence we have in BT and in the UK. BT has a strong portfolio of market leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT Board to deliver value over the long term, which we fully support." In response, BT CEO Allison Kirkby said: "We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy."
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COMPANIES - FTSE 250
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Marshalls reported that revenue in the first half of 2024 fell 13% to GBP306.7 million from GBP354.1 million a year earlier. However, pretax profit jumped 22% to GBP21.5 million from GBP16.7 million. Net operating costs in the year fell to GBP277.8 million from GBP327.3 million. Marshalls left its dividend unchanged at 2.6p. Looking ahead, the company said that it remains "cautiously optimistic of a modest recovery in its end markets during the second half of the year predicated on a progressive improvement in the macro-economic environment." Chief Executive Matt Pullen said: "The group has delivered a resilient performance in weak end markets. The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the group's historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced group."
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Impax Environmental Markets reported that its net asset value per share fell to 429.3p at June 30 from 434.9p at December 31. Net assets at June 30 fell to GBP1.11 billion, down from GBP1.22 billion a year earlier. Chair Glen Suarez said: "The first half of 2024 for IEM has been marked by material volatility. Following our recent full year report, there have been continued challenges and upheavals in the macroeconomic environment which have created an uncertain backdrop generating headwinds for the small- and mid-cap companies in which IEM invests. Consequently, while the company's investment thesis remains strong, and valuations have become increasingly attractive, IEM has seen its portfolio fall very slightly in value."
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OTHER COMPANIES
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BiVictriX Therapeutics announced plans to cancel trade on AIM and re-register as a private limited company. It is expected that cancellation will become effective on September 11, if the resolution is passed at the company's general meeting. CEO Tiffany Thorn explained: "With a growing pipeline of novel, first-in-class bispecific Antibody Drug Conjugates, together with a highly competitive platform in one of the most commercially attractive sectors across the entirety of the oncology drug development market, BiVictriX is well positioned to capitalise on its already strong foundations. To maintain our competitive advantage within this space, we intend to progress our pipeline and platform expeditiously, and after extensive review, the board has concluded that this will be best achieved by the company delisting from AIM and re-registering as a private company."
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Genedrive announced the first UK commercial sales of its CYP2C19-ID Kit. It said that an initial order worth GBP100,000 has been made to support an implementation assessment at Greater Manchester's Comprehensive Stroke Centre. It explained that CYP2C19 genotyping should be used to guide clopidogrel use after ischaemic stroke or transient ischaemic attack, and that the Genedrive CYP2C19-ID test should be used as the test of choice for point of care strategies.
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By Sophie Rose, Alliance News senior reporter
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