19th Sep 2018 10:39
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------FTSE 100 - WINNERS----------Prudential, up 1.7%. The UK Financial Conduct Authority has decided against further action over the treatment of customers by life insurance businesses. In 2016, the FCA launched the investigation into six life insurers: Old Mutual, Police Mutual, Scottish Widows, Prudential, Countrywide, and Abbey Life. The FCA looked into whether the firms adequately communicated about their policies to closed-book customers, especially regarding the ease with which customers could change policies, amongst other things. The investigation into Police Mutual and Scottish Widows was ended earlier this year. The regulator on Wednesday said the other four investigations are now also closed, with no further action needed.----------Smiths Group, up 1.0%. Citigroup initiated the engineering firm with a Buy rating.----------FTSE 100 - LOSERS----------Kingfisher, down 6.2%. The DIY retailer said difficult trading in France sent its half-year profit down by almost a third, despite "strong" performances in the UK and Polish markets. For the six months to July 31, the home improvement and garden centres retailer posted a 30% fall in pretax profit, down to GBP281 million from GBP402 million a year ago. On an adjusted basis, pretax profit also fell, by 18% to GBP323 million. Meanwhile, revenue increased 1.2% to GBP6.08 billion compared to GBP6.01 billion a year prior. The company said that a weak trading performance in France, where it operates Brico Depot and Castorama France, offset "solid performances" in the UK and Poland. The DIY retailer is now taking action to support trading in France in the second half.----------J Sainsbury, down 1.2%. The UK Competition & Markets Authority said the proposed merger between UK supermarkets Sainsbury's and Walmart Inc-owned Asda Group has been referred for an in-depth phase 2 investigation. The competition regulator said its phase 1 investigation has confirmed the deal raises "sufficient concerns" to be referred for an in-depth review. "The companies are two of the largest grocery retailers in the UK and their stores overlap in hundreds of local areas, where shoppers could face higher prices or a worse quality of service," said the CMA. The CMA started a formal investigation into how the proposed GBP14 billion merger could affect competition for British shoppers in late August. Back then, both supermarkets asked the watchdog to move to the second phase of the investigation "quickly" through a fast-track process, as it was "clear" that the deal would require an in-depth analysis.----------FTSE 250 - WINNERS----------AVEVA Group, up 5.2%. The industrial software firm set out its medium-target targets ahead of its capital markets day, while backing its annual guidance. AVEVA said it continued to deliver constant currency revenue growth in the financial year-to-date and aims to deliver medium-term revenue growth on a constant currency basis at least at a mid-single digit rate. This revenue growth target reflects AVEVA's expectations to grow its underlying software business, driven by a combination of sales execution, revenue synergies and additional value levers, including pricing. AVEVA also said it aims to grow the proportion of recurring revenue to total revenue to over 60% from 52% in the medium-term.----------Babcock International, up 4.9%. The company, which designs and builds naval patrol vessels and aircraft carriers, reiterated its full-year outlook and said current trading remained in line with expectations. The defence company said 87% of revenue for its current financial year is now in place and around 57% for the year after. For the year ending March 31, 2019, the company expects low single-digit underlying organic revenue growth at constant currency with stable margins. Underlying earnings guidance remains unchanged and revenue and cash flow performance is predicted to be second half weighted. ----------FTSE 250 - LOSERS----------Sequoia Economic Infrastructure, down 2.3% at 108.50 pence. The investment trust, focused on senior debt exposures to economic infrastructure projects, said it will raise GBP200 million via share issue to fund attractive investment opportunities. The investment trust will issue up to 188.7 million new ordinary shares at a price of 106.0p per share. The fund intends to use the proceeds to repay the drawn commitments under its multi-currency revolving credit facility and to fund its GBP300 million investment pipeline. The company has drawn around GBP116.2 million from its loan facility.----------OTHER MAIN MARKET AND AIM - WINNERS----------Pan African Resources, up 9.5%. The gold miner said it hopes to restart dividend payments soon, after a difficult year in which a large impairment hit profit. For the 12 months to June, pretax profit came in at GBP9.4 million from GBP44.9 million in its prior year, while revenue fell to GBP108.5 million from GBP125.1 million as gold sales declined 13%. Pan African took a GBP106.3 million impairment on the closure of underground mining at its Evander project in South Africa, and also booked the resulting retrenchment costs. Revenue was hit by lower output, which fell to 160,444 ounces of gold from 173,285 ounces, leading to lower gold sales, as well as a lower average gold price year-on-year.----------OTHER MAIN MARKET AND AIM - LOSERS----------Zibao Metals Recycling, down 13%. The scrap metal seller said it is "likely" to report a loss in the current financial year, as trading will be impacted by new Chinese regulations. The company said the continued weakening of the Chinese economy and the limited availability of credit, have made its trading environment "more challenging than anticipated". The new regulations introduced by China's Ministry of Ecology & Environment in April will significantly reduce the types of products the company can buy from overseas in its current financial year, Zibao said. Meanwhile, Zibao posted its results for the financial year to March 31, which saw pretax profit up to HKD1.8 million, or GBP173,814, from HKD1.1 million the year prior. Annual revenue increased 6% year-on-year to HKD857.1 million from HKD808.9 million, mainly on the back of increased orders with new and existing customers.----------Related Shares:
PrudentialBabcockKingfisherAVV.LPan African ResourcesSequoia Economic Infrastructure FundZBO.LSmiths GroupSainsbury's