29th Mar 2019 10:40
LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.----------FTSE 100 - WINNERS----------Antofagasta, up 2.5%, Glencore, up 2.6%, Anglo American, up 2.3%, Rio Tinto, up 2.2%. BHP, up 2.0%. The miners were higher on reports the US and China are making progress to reach a deal to end their protracted trade war. Chinese shares ended higher as the US delegation led by trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Beijing on Thursday for the latest round of talks. "Shanghai's SSE Composite index jumped 3.2% on hopes that the US and China were making progress with trade talks. This optimism also gave a boost to the London-listed natural resources sector with mining shares topping the list of FTSE 100 risers," noted AJ Bell's Russ Mould.----------FTSE 100 - LOSERS----------TUI, down 7.5%. The Anglo-German travel company warned that the grounding of the Boeing 737 Max aircraft will hit annual earnings and will result in a large exceptional charge. The 737 Max aircraft manufactured by the US aviation company Boeing Co have been grounded by countries around the world following two fatal crashes in the past five months. Assuming resumption of 737 Max flights by mid-July, TUI is estimating a one-off charge of EUR200 million on adjusted earnings before interest, taxes and amortisation for its financial year to the end of September. The charge relates to the replacement of aircraft, higher fuel costs, other disruption costs, and the anticipated impact on trading. As a result of the exceptional charge, TUI expects underlying Ebitda for 2019 financial to fall by 17%, versus previous broadly flat guidance. In 2018 financial, the company recorded underlying Ebitda of EUR1.18 billion.----------AstraZeneca, down 4.8%. The Anglo-Swedish drugmaker reaffirmed its earnings guidance as it plans an up to USD6.9 billion collaboration agreement with Japan's Daiichi Sankyo Co. The agreement covers the potential cancer treatment trastuzumab deruxtecan. Under the agreement, Astra will make an upfront USD1.35 billion payment to Daiichi Sankyo, half due on execution and half 12 months later, followed by contingent payments of as much as USD5.55 billion for a total of up to USD6.90 billion. Of the USD5.55 billion contingent payments, USD3.80 billion will be paid out to the Japanese company for regulatory milestones and USD1.75 billion will be for sales-related milestones. "AstraZeneca is already under pressure to make up for reduced revenue from products which have lost patent protection in order to keep paying generous dividends. Splashing out on big acquisitions could put the dividend at risk unless they immediately produce strong cash flows," said Mould. ----------Evraz, down 0.9%. Citigroup downgraded the Russian steelmaker to Neutral from Buy. ----------FTSE 250 - WINNERS----------Man Group, up 3.5%. Credit Suisse started coverage on the hedge fund manager with an Outperform rating. ----------Jupiter Fund Management, up 2.5%. UBS raised the investment manager to Neutral from Sell. ----------OTHER MAIN MARKET AND AIM - WINNERS----------Midatech Pharma, up 34%. The pharmaceutical company said it received approval of a EUR6.6 million loan from the Spanish government for commercial scale-up of the company's cancer treatment MTD201 Q-Octreotide. The reindustrialisation loan will accrue interest at a rate of 1.6%, with repayments due to commence three years after drawdown. The repayment period is 10 years. The new loan brings the total public financing available for this project to EUR8.5 million, including previous amounts approved by the Basque regional government, Midatech explained. However, the total manufacturing cost of the project is currently estimated at around EUR16 million. It is being manufactured in the northern Spanish city of Bilbao, in the Basque region. MTD201 is a treatment for acromegaly and neuroendocrine tumours such as carcinoid cancer. ----------OTHER MAIN MARKET AND AIM - LOSERS----------Renewi, down 12%. The waste management firm said trading continued in line with expectations, but warned earnings in financial 2020 will fall after new regulations halted shipments from its ATM hazardous waste treatment plant in the Netherlands. For financial 2019 Renewi expects to deliver cost savings of EUR30 million, rising to EUR40 million the following year, as integration remains on track. However, the company is currently carrying out additional tests required by Dutch authorities for the resumption of shipments of thermally treated soil from ATM, and it expects to receive the permits during the year to March 2020. Renew is currently assuming no shipments from the plant will occur in financial 2020, resulting in a reduction in earnings before interest and taxes of around EUR25 million. Renewi has extended its bank covenants to June 2020, one year on from before, and will be paying a 0.5 pence final dividend for its year ending Sunday, giving a total of 1.45p, lower from 2.1p year-on-year. Renewi expects its dividend for its year ending March 2020 to have a "similar reduction". ----------Mobile Streams, down 34%. The mobile content retailer reported a narrowed pretax loss for the first half of its financial year due to lower costs. However, the company guided for revenue in the second half to be "lower than originally expected", as trading conditions in Argentina are expected to "remain consistent". It also cautioned on its Indian outlook. For the six months to the end of 2018, the company's pretax loss narrowed to GBP299,000 compared to GBP587,000 a year ago. This was mainly due to a steep reduction in selling and marketing costs to GBP198,000 from GBP440,000, and lower administrative expenses of GBP570,000 from GBP879,000. Revenue, meanwhile, halved to GBP919,000 from GBP1.8 million, mainly due to increased regulation in the Indian telecom market and devaluation of the Argentine peso and Indian rupee.----------
Related Shares:
AstrazenecaAnglo AmericanJupiter Fund ManagementRio TintoManMobile StreamsEvrazMTPH.LRenewi PlcAntofagastaGlencoreTUI.LBHP GroupAntofag.5%pr