13th Jun 2025 07:45
(Alliance News) - The FTSE 100 is set to open lower on Friday, though its oil majors could save it from a deeper decline, as Brent prices jumped following an Israeli strike on Iran's nuclear facilities.
The IDF said the attack was in response to the Iranian regime's ongoing aggression against Israel. Dozens of jets struck military targets in various locations of Iran in a first stage, the IDF said. Iran vowed a "strong response".
"Oil markets have been alarmed by reports of Israeli attacks on Iranian nuclear and ballistic missiles infrastructure. Despite the move higher in prices over the past three days, the worst case outcome is far from being in the price, in our view," analysts at Barclays commented.
In early UK corporate news, M&A was the theme again. Primary Health maintained its offer for Assura was the best option, despite the latter backing a new private equity offer earlier this week. Adriatic Metals agreed to a bid from a Toronto-listed suitor.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called down 0.5% at 8,842.42
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Hang Seng: down 0.9% at 23,830.16
Nikkei 225: down 1.0% at 37,797.34
S&P/ASX 200: down 0.2% at 8,547.40
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DJIA: closed up 101.85 points, 0.2%, at 42,967.62
S&P 500: closed up 0.4% at 6,045.26
Nasdaq Composite: closed up 0.2% at 19,662.48
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US 10-year Treasury yield: 4.32% (4.38%)
US 30-year Treasury yield: 4.81% (4.87%)
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EUR: lower at USD1.1539 (USD1.1575)
GBP: lower at USD1.3533 (USD1.3586)
USD: lower at JPY143.48 (JPY143.71)
GOLD: higher at USD3,424.52 per ounce (USD3,388.71)
(Brent): higher at USD74.25 a barrel (USD69.66)
(changes since previous London equities close)
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ECONOMICS
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Friday's key economic events still to come:
10:00 BST eurozone industrial production
16:00 BST eurozone European Central Bank executive board member Frank Elderson speaks
15:00 BST US Michigan consumer sentiment index
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UK retail footfall decreased in most categories and all four nations last month despite "warm and sunny weather", the British Retail Consortium reported. Total UK footfall decreased 1.7% on an annual basis in May, according to BRC-Sensormatic data, in a "slow start to summer shopping". This was compared with a 7.2% on-year jump in April. BRC Chief Executive Helen Dickinson commented: "Despite favourable weather throughout May, footfall took a disappointing turn last month, following a more promising start to the year. "While stock markets stabilised, higher household bills depressed consumer sentiment and the appetite to visit retail stores." High street footfall decreased by 2.5% in May against a 5.3% rise in April. Retail park footfall showed a 0.2% rise, slowing from a 7.5% increase in April. Finally, shopping centre footfall fell 2.3% in May, having climbed 5.6% in April.
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BROKER RATING CHANGES
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Jefferies raises Halma price target to 2,490 (2,140) pence - 'underperform'
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Jefferies cuts Mitie to 'hold' (buy) - price target 145 pence
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COMPANIES - FTSE 100
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GSK said the European Medicines Agency has accepted the drug maker's regulatory application to expand the use of its respiratory syncytial virus jab to adults from 18 years of age. The Arexvy vaccine is already approved in the European Economic Area for the prevention of lower respiratory tract disease, caused by RSV, in adults aged 60 and over, and adults aged between 50 and 59 who are at increased risk of RSV. "A European regulatory decision on this submission is anticipated in H1 2026. GSK is continuing to seek expanded indications for its RSV vaccine in other geographies including the US and Japan," it added.
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COMPANIES - FTSE 250
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Primary Health Properties backed its offer for Assura, after its fellow FTSE 250 listing threw its weight behind a new takeover offer from a private equity consortium. Healthcare facility investor PHP said that with a closing price of 103.0 pence per share on Thursday, its cash and shares offer implies a 53.0p valuation per Assura share, above the offer by the consortium led by private equity firm Kohlberg Kravis Robert & Co. The KKR and Stonepeak bid is worth 52.1p. Both the PHP and KKR offer values for healthcare facilities-focused investor Assura factor in declared dividends. PHP added: "Under the terms of the PHP offer, PHP announces that it will not reduce the value of the PHP offer if the Assura board declares a special dividend conditional on the offer becoming unconditional, of up to a maximum of 0.84 pence per Assura Share, in lieu of and representing an acceleration of the dividend expected to be paid to Assura shareholders during October 2025." PHP added that in order to "increase the certainty of execution", it will reduce the acceptance condition for its offer to more than 50% of Assura shares, in line with the KKR bid. PHP said it has a plan to reduce leverage, is confident on execution and talked up its track record of integrating acquisitions. Execution risks and leverage were concerns Assura had outlined in regard to PHP's offer. Assura on Wednesday agreed to a GBP1.70 billion bid from KKR and funds advised by Stonepeak.
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Oxford Instruments reported a rise in annual revenue, with its top line beating the GBP500 million threshold for the first time. Looking ahead, the provider of technology and services to industrial companies and scientific researchers believes it is will placed "to mitigate any direct impact from tariffs". In the year to March 31, pretax profit declined 44% on-year to GBP39.8 million from GBP71.3 million. Revenue increased 6.4% to GBP500.6 million from GBP470.4 million. Adjusted operating profit, however, rose to GBP82.2 million from GBP80.3 million. Oxford Instruments lifted its final dividend to 17.1 pence per share from 15.9p. Its total dividend amounted to 22.2p, up from 20.8p. "Looking ahead, whilst acknowledging the level of macro uncertainty, we have a strong and more focused business; there is a lot we can control, and we are well placed to mitigate any direct impact from tariffs. There are further benefits to be realised from our strategic initiatives to transform the business, and our revenue visibility is healthy. Our strong balance sheet, and the proceeds to come from the sale of our quantum business, allow us to return capital to shareholders via a share buyback that we have also announced this week," it added.
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OTHER COMPANIES
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Cryptocurrency payment and settlement services provider Tap Global Group will soon join London's junior AIM market, ditching the AQSE Growth Market. Tap expects to float on AIM on June 27. "The board considers admission to be in the best interests of the company and its shareholders given the growing scale of the business and its mission to create a seamless and fully regulated bridge that links fiat payments, traditional assets and crypto markets," the firm said. "Tap Group recently announced that it expected to report record revenues and a first full year of positive Ebitda in the financial year ending 30 June 2025. The board believes AIM is a more appropriate market for the company and will enable it to attract a wider pool of investors and improve liquidity over time." It will not be raising new capital as part of the admission.
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Adriatic Metals agreed to a USD1.25 billion cash and shares takeover from Toronto-listed Dundee Precious Metals. Dundee, a gold mining company with operations in Bulgaria, Serbia and Ecuador, will pay 93p in cash plus 0.1590 of a new DPM share. The deal values the entire issued share capital of the Bosnian Rupice silver mine operator Adriatic at GBP1.25 billion. Adriatic last month confirmed it was in discussions about a possible takeover offer from Dundee. Following completion, Dundee shareholders are expected to own around 75% of the enlarged firm. Adriatic CEO Laura Tyler said: "We see clear synergies between the asset portfolios of DPM and Adriatic, supported by DPM's strong financial capacity and proven operational expertise. Together these strengths are expected to unlock further value for shareholders of both companies, in both the near and longer term. Importantly, the creation of a diversified mining company in the Balkan region will bring benefits not only to our employees and shareholders, but also to local communities and broader regional stakeholders. This transaction presents a compelling opportunity to be part of a transformative and long-term success story - one we fully endorse and recommend to all our stakeholders."
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By Eric Cunha, Alliance News news editor
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Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
HalmaMitieAdriatic Metal.GlaxosmithklinePrimary HealthAssuraOxford InstrumentsTAP.L