5th Feb 2016 08:18
LONDON (Alliance News) - London shares were firm at the open Friday, with the day's economic data focus to be US non-farm payrolls in the afternoon.
Spread betting firm CMC Markets got its initial public offering away, but priced the shares towards the lower end of its guided range.
CMC's IPO was priced at 240.0 pence per share, measuring up against a guided range of 235.0p and 275.0p. Conditional dealings in the shares on the London Main Market began Friday. The stock was quoted at the IPO price of 240.00p soon after the the open.
At the IPO price, CMC is valued at about GBP691.0 million, compared to GBP2.63 billion for FTSE 250 rival IG Group.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 5,932.97
FTSE 250: up 0.4% at 16,153.86
AIM ALL-SHARE: up 0.2% at 694.89
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Hang Seng: closed up 0.6% at 19,288.17
Nikkei 225: closed down 1.3% at 16,819.59
DJIA: closed up 0.5% at 16,416.58
S&P 500: closed up 0.2% at 1,915.45
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GBP: down at USD1.4530 (USD1.4586)
EUR: flat at USD1.1197 (USD1.1195)
GOLD: flat at USD1,154.11 per ounce (USD1,154.10)
OIL (Brent): down at USD34.07 a barrel (USD34.62)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
(all times in GMT)
13:30 US Nonfarm Payrolls, Unemployment Rate, Participation, Average Earnings
13:30 US Trade Balance
13:30 Canada Unemployment Rate
13:30 Canada International Merchandise Trade
15:00 Canada Ivey Purchasing Managers Index
18:00 US Baker Hughes US Oil Rig Count
20:00 US Consumer Credit Change
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Permanent job placements in the UK grew at a faster rate in January, the Report on Jobs compiled by the Recruitment and Employment Confederation and Markit Economics showed. The number of people placed in permanent jobs continued to rise in January, and to a rate above the survey's long-run average. At the same time, temporary and contract staff billings increased at the slowest pace in four months. The availability of staff for both permanent and temporary/contract roles declined further at the start of the year. Overall vacancies climbed again in January, with the pace of expansion picking up to a five-month high.
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Germany's factory orders declined more than expected in December, provisional data from Destatis showed. Orders fell 0.7% in December from November, when it advanced 1.5%. This was the first decrease in three months. The pace of decline was faster than a 0.5% drop forecast by economists.
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The leading index for Japan, which measures the future economic activity, decreased more-than-expected to the weakest level in nearly three years in December, preliminary figures from the Cabinet Office showed. The leading index fell to 102.0 in December from 103.2 in the previous month. Economists had forecast the index to drop to 102.7.
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Iran asked the US to reassure European banks they will not be penalised for legitimate trade with the country, Reuters reported. "Rebuilding the confidence of the banks that the United States will not re-intervene in their relations with Iran may require some further assurance from the United States," Iranian Foreign Minister Mohammad Javad Zarif said in London.
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US President Barack Obama is proposing a USD10.0 per barrel tax on oil, The Financial Times reported. The move has received backlash from the energy industry, the report said, amid the ongoing pressure from low oil prices. The proposal was included in a budget plan that the Republican-led Congress will ensure is never enacted. The oil industry said that the tax would raise the cost of petrol by 25 cents per gallon and undo the shale energy revolution, the FT report said.
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BROKER RATING CHANGES
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BARCLAYS CUTS ENTERPRISE INNS TO 'UNDERWEIGHT' (EQUAL WEIGHT) - TARGET 80 (155) P
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N+1 Singer Ups Victrex To Buy From Hold, Target At 1,730p
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BERENBERG INITIATES 4IMPRINT GROUP WITH 'BUY' - TARGET 1600 PENCE
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BERENBERG INITIATES ECKOH WITH 'BUY' - TARGET 56 PENCE
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COMPANIES - FTSE 100
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BG Group reported full-year results that met market expectations as a 16% fall in revenue caused a steep drop in underlying earnings. The company, which is set to merge with Royal Dutch Shell, reported business performance earnings, which excludes special items and measures the underlying performance of the business, of USD1.69 billion in 2015 compared to USD4.03 billion a year earlier after revenue dropped 16%. Underlying earnings before interest, tax, depreciation and amortisation dropped 39% to USD5.63 billion from USD9.17 billion whilst underlying earnings before interest and tax fell 62% to USD2.42 billion from USD6.37 billion a year ago.
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Centrica said it has agreed to sell its interests in three UK wind farms to a consortium that will generate USD115.0 million in net proceeds for the company. The UK energy and storage company, also the owner of British Gas, said it has agreed with its 50/50 joint venture partner to sell the Glens of Foudland, Lynn and Inner Dowsing wind farms to a consortium comprised of the UK Green Investment Bank Offshore Wind Fund and funds managed by BlackRock.
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Standard & Poor's on Thursday downgraded Glencore’s debt to one notch above junk. S&P now rates Glencore triple B minus, from triple B previously, though its outlook has been moved to Stable as a result from Negative previously. The ratings agency cited the "challenging outlook" for the mining industry, according to the Financial Times, as well as increasing uncertainty about demand from China.
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COMPANIES - FTSE 250
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Wizard Parent, which is owned by Francisco Partners, Golden Gate Capital, Thoma Bravo and Elliott Management, said it upsized the number of shares it sold in software company Micro Focus International after a placing announced late Thursday was met with strong demand from investors. Wizard raised GBP357.0 million from the placing, which took place overnight and saw the sale of 28 million shares, versus the original expectation of 22 million shares, at 1,275 pence per share. The shareholder had originally been looking to keep a stake of 17% in the company, but said on Friday the increase in the number of shares placed will leave it with a 13.8% stake in the company. Wizard came to own about 40% of Micro Focus when it sold Houston, Texas-based Attachmate to the company in September 2014.
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Just Eat said it has acquired four takeaway businesses for a total of EUR125.0 million, in a move to beef up its position in four different countries. The food delivery company said it bought takeaway food businesses from Rocket Internet in Spain and Italy, and from foodpanda in Brazil and Mexico, with the acquisitions to be paid for with existing cash.
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Residential landlord Grainger said it has agreed to sell its German residential portfolio and its German business platform to real estate investment manager Heitman LLC for EUR124 million. Grainger said it had sold its FRM German residential portfolio and its German business platform Grainger Deutschland GmbH to Heitman to release capital to support its UK private rented sector growth, as well as to deliver on its objective of simplifying its business.
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Halma said it has acquired a US communication technology company that is focused on the healthcare market for USD140.0 million in cash, immediately boosting Halma's earnings. The London-listed health, safety and environmental technology group said it acquired CenTrak Inc to bolster its medical division. Halma will pay the consideration, using its existing cash resources and debt facilities. Newtown, Pennsylvania-based CenTrak designs and manufactures sensors and proprietary communication technology that provides location data for healthcare facilities used to ensure healthcare providers are complying with regulations and to improve patient care.
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Shaftesbury said it has continued to see strong tenant demand, underpinned by robust footfall and spending, while making "good progress" with its major schemes. The real estate investment trust, which owns retail, restaurant and leisure assets across London's West End, reported EPRA vacancy of 2.0% at the end of December 2015, versus 1.6% at the end of September.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Premier Farnell said it has agreed to sell life-safety products business Akron Brass Holding Corp to IDEX Corp for USD224.2 million in cash. The company said it decided to sell Akron Brass, which provides products to fight fire, in order to allow it to invest more in its core electronics distribution arm. The move comes after the completion of an operational review of its global electronics distribution business late last year, with the sale of Akron Brass marking an "important miletone" towards refocusing Premier Farnell and improving its financial performance. Following the year end on January 31, full-year profit outcome is expected to be broadly in line with recent guidance, Premier Farnell said.
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Regenersis said it plans to return GBP50.0 million to shareholders in the second quarter of 2016, after striking a deal to sell its repair services business to CTDI Repair Services Ltd for EUR103.5 million. The sale of the repair services arm will leave Regenersis as a "pure play global software business" comprising of Blancco, SafeIT, Xcaliber and Tabernus. Regenersis plans to change its name to Blancco Technology Group PLC. The company also said it is looking to sell its digital care business.
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COMPANIES - INTERNATIONAL
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Toyota Motor reported operating income of JPY2.3 trillion for the nine-month period ended December 31, 2015 compared to JPY2.1 trillion, previous year. Net income to shareholders increased to JPY1.9 trillion from JPY1.7 trillion. Consolidated vehicle sales totaled 6,492,784 units, a decrease of 246,374 units compared to the same period last fiscal year. On a consolidated basis, net revenues for the period totaled JPY21.4313 trillion, an increase of 6.5%.
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Honda Motor is recalling 2.23 million vehicles in the US because of air bags made by Takata that could explode if the airbag deploys. Honda said that no injuries were reported due to the rupture of the PSDI-5 inflator in Honda or Acura vehicles. However, Takata's exploding components have links to at least 10 deaths worldwide because they can spray shrapnel at occupants.
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French lender BNP Paribas reported its fourth-quarter net income attributable to equity holders plunged to EUR665 million from EUR1.377 billion in the prior year. Excluding certain one-off items, profit was EUR1.587 billion, compared to EUR1.875 billion a year ago. Gross operating income decreased 6.9% to EUR3.043 billion. In the fourth quarter 2015, revenue totaled EUR10.449 billion, 2.9% higher than last year.
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News Corp announced earnings for the second quarter that fell sharply from last year. Results at the media giant were hurt by a challenging market for print advertising, it said. The company reported net income of USD62 million, or USD0.15 per share. This was down from USD142 million, or USD0.27 per share, in the same period last year. Revenues for the quarter slipped 4% to USD2.16 billion compared to USD2.26 billion in the same period last year. The slide was led by an 8% retreat in its news and information services unit. The company blamed negative foreign currency exchange fluctuations and a decline in revenues at its News America Marketing unit for a significant portion of the decline.
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Friday's Scheduled AGMs/EGMs
Lakehouse
On the Beach Group
Shaftesbury
Brewin Dolphin
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By Tom Waite; [email protected]; @thomaslwaite
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