11th Dec 2019 11:24
(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Pentland Group said it has cut its stake in JD Sports Fashion, though will remain its majority shareholder. Brand management firm Pentland - which is JD's majority shareholder - has sold 24.0 million shares in the sportswear retailer, representing a 2.5% stake, at 740 pence each. The shares were offered by way of an accelerated bookbuild to international institutional investors. Following the sale, Pentland will continue to be JD's major shareholder, with a stake of 55%. JD will not receive any proceeds from the placement. Goldman Sachs International acted as sole bookrunner for Pentland.
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Stagecoach Group reported a mixed performance in the first half of its current financial year amid changes in markets in which the Perth-based company operates. Separately, Stagecoach said it shuffled its board to reflect its size and ensure it has a "mix of skills and experience" that will help to drive its "continued success". This saw its co-founder step down as chair but remain on the board. It reported pretax profit of GBP65.9 million for the six months to October 26, up 35% compared to GBP48.9 million it delivered a year ago, despite revenue falling to GBP800.2 million from GBP1.01 billion. The company maintained its interim payout at 3.8 pence a share. Stagecoach unveiled some board changes, with Brian Souter to step down as chair at the end of the year but carry on as a non-executive director. Ray O'Toole, a non-executive director, will be appointed as chair at the start of next year.
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Saga has chosen former Superdry boss Euan Sutherland as its new chief executive, the company announced Wednesday, amid a drive to improve performance. Saga, which provides products and services to over 50s such as insurance and holidays, said Sutherland will be joining on January 6. He replaces Lance Batchelor, who will depart at the end of January. Saga is currently undergoing a change in strategy following a poor set of annual results for its year ended January 2019, unveiled in April. It warned at the time profit for its current year would fall well short of the prior year as a result.
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Saudi Aramco's shares soared on their debut on the domestic stock exchange Wednesday, becoming the world's biggest listed company worth USD1.88 trillion after a record-breaking IPO. Aramco had priced the initial public offering at 32 riyals, about USD8.53, per share, raising USD25.6 billion and eclipsing Alibaba Group Holding's USD25 billion IPO of 2014 to become the world's largest. Aramco shares rose 10% to 35.2 riyals just seconds after trading began on Riyadh's Tadawul exchange, the maximum allowed on any trading day, further boosting the energy giant's valuation.
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MARKETS
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London shares were lower with a fresh round of tariffs on Chinese goods set to come into effect on Sunday. JD Sports was the worst blue chip performer, down 8.7%. The pound was lower against the dollar after the latest poll from YouGov showed a narrowing in the Conservative Party's lead ahead of Thursday's general election. Wall Street was pointed to a lower open ahead of the US Federal Reserve's interest rate decision at 1900 GMT. The central bank is widely expected to keep rates unchanged.
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FTSE 100: down 0.3% at 7,208.00
FTSE 250: down 0.7% at 20,635.55
AIM ALL-SHARE: down 0.4% at 897.23
GBP: down at USD1.3145 (USD1.3176)
EUR: soft at USD1.1080 (USD1.1095)
GOLD: up at USD1,467.10 per ounce (USD1,463.59)
OIL (Brent): down at USD63.98 a barrel (USD64.34)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Leaders of the two main UK political parties were engaged in a frantic last drive for votes on the last day before a general election both Tories and Labour have described as the most important in a generation. YouGov's constituency-by-constituency poll predicts the Conservatives are on course for a 28 seat majority, but the margin of error and unknown impact of tactical voting means a hung parliament is still a possibility. A 28-seat majority would be the best Tory result since Margaret Thatcher's showing in 1987 but it is down from the sizeable 68-seat victory that the same YouGov-style poll had been predicting only two weeks ago. Chris Curtis, YouGov's political research manager, said: "The margins are extremely tight and small swings in a small number of seats, perhaps from tactical voting and a continuation of Labour's recent upward trend, means we can't currently rule out a hung parliament."
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