21st Oct 2024 11:07
(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Monday.
----------
SMALL-CAP - WINNERS
----------
Invesco Asia Trust PLC, up 3.3% at 344.00 pence, 12-month range 283.00p-358.00p. Shares in the investment firm rise after China's central bank announced two rate cuts. The one-year loan prime rate, which constitutes the benchmark for the most advantageous rates lenders can offer to businesses and households, was cut to 3.1% from 3.35%. The five-year LPR, the benchmark for mortgage loans, was cut to 3.6% from 3.85%. Invesco Asia, which backs Asian and Australasian companies, has the likes of Tencent Holdings Ltd and Alibaba Group Holding Ltd in its portfolio.
----------
Ricardo PLC, up 2.0% at 427.35p, 12-month range 394.01p-536.22p. The firm announced plans to sell its defence business as part of a strategic revamp unveiled in May 2022. Ricardo Chief Executive Officer Graham Ritchie, said the proposed sale will enhance Ricardo's focus on growing as a leader in environmental and energy transition markets, whilst allowing for defence to realise its full potential. In addition, the firm said it is exploring potential acquisitions but that the proceeds would be used in line with its capital allocation policy.
----------
SMALL-CAP - LOSERS
----------
Starwood European Real Estate Finance Ltd, down 5.3% at 90.00p, 12-month range 86.20p-97.80p. The firm reports "challenging local office market dynamics" in Ireland, where it has a loan investment. The balance of that loan is EUR25.9 million, secured against a remaining portfolio of seven properties. The loan represents just under 11% of its net asset value as of the end of August. Starwood European Real Estate says it has "evaluated various business plan scenarios and the uncertainty related to these scenarios". In July, it said it was working with a sponsor to "identify future capital expenditure needs, funding sources, exit values and the business plan to exit" amid the tricky market backdrop in the Irish office sector. Starwood European Real Estate has set out a 50% impairment of the loan, so EUR12.9 million. "Nevertheless, the board and the investment adviser consider that there are a wide range of possible outcomes whereby the loan may have a lesser or greater degree of recovery due to the ongoing uncertainty related to the various business plan scenarios. The investment adviser will be actively managing the position to maximise the opportunity for value recovery. The company looks forward to providing further updates as appropriate and when practically available," it adds.
----------
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.