The FTSE 100 closed up 1.47% on Wednesday, shrugging off
yesterday's hesitancy. However, with the U.S.'s Federal Bank
meeting later this afternoon, and the Bank of England meeting
tomorrow, the week is only just beginning, says IG Group PLC's
chief market analyst Chris Beauchamp. "We can expect tapering,
inflation and some stagflation commentary to prevail in both
meetings, so it will be vital to watch the dollar today and the
pound tomorrow, although any explicit commitment to rate hikes in
the first half of the new year is unlikely to be forthcoming," Mr.
Beauchamp says. In the Bank of England's case especially, worries
about ending furlough and price rises beyond its control will warn
the Monetary Policy Committee off rate hikes, Mr. Beauchamp
says.
Companies News:
Mission Group Swung to a 1H Pretax Profit
Mission Group PLC reported on Wednesday a swing to a pretax
profit for the first half of 2021 thanks to a combination of strong
revenue growth and diligent cost control.
---
Pembridge Resources Shares Rise as Minto Mine Raises C$30.5 Mln
Ahead of Reverse Takeover
Shares in Pembridge Resources PLC jumped Wednesday morning after
it said that Yukon, Canada-based Minto Explorations Ltd. has
secured a 30.5 million Canadian dollars ($23.8 million) capital
raise ahead of a reverse takeover, which will see Minto listed on
the TSX Venture Exchange.
---
Aura Energy Shares to Restart Trading on ASX on September 23
Aura Energy Ltd. said its shares will restart trading on the ASX
on Thursday.
---
Alfa Financial 1H Pretax Profit Rose; Shares Rise
Shares in Alfa Financial Software Holdings PLC on Wednesday rose
after the company reported a rise in pretax profit for the first
half and said that it expects to surpass full-year market
expectations.
---
Braemar Shipping Services 1H Set to Beat Views; Plans Interim
Dividend
Braemar Shipping Services PLC said Wednesday that it has
performed well since the start of fiscal 2022 with first-half
results set to beat views, and that it is planning an interim
dividend.
---
Pennant International Posts Narrowed 1H Pretax Loss; Long-Term
Outlook Positive
Pennant International Group PLC on Wednesday reported a nearly
halved pretax loss for the first half of 2020 on lower costs and
said that remains on track to meet expectations for the full
year.
---
Warpaint London Swung to 1H Pretax Profit as Sales Increased
Warpaint London PLC on Wednesday reported a swing to a pretax
profit for the first half of 2021 as sales recovered to
pre-pandemic levels, and said it views the rest of the year with
confidence.
---
IGas Says Covid-19 Reduced 1H Production by 180 BOE/D; Shares
Fall
Shares in IGas Energy PLC dropped Wednesday after the company
forecast full-year net production of around 2,000 oil-equivalent
barrels a day, warning that the pandemic hit its output during the
first half.
---
Mirriad Advertising Shares Fall on Widened 1H Pretax Loss,
Downgraded Guidance
Shares in Mirriad Advertising PLC fell after the company said
that its pretax loss widened in the first half after booking higher
costs, and that it expects revenue for the year to be below
previous guidance.
---
ECSC Group 1H Pretax Loss Narrowed
ECSC Group PLC said Wednesday that its first-half pretax loss
narrowed as revenue increased, and that the strong growth of its
divisions drove an improved financial performance across the
business.
---
Deepmatter 1H Loss Widened Amid Higher Research and Development
Spending
Deepmatter Group PLC on Wednesday reported a widened pretax loss
for the first half of the year and said it expects revenue to
continue to grow for the remainder of the year.
---
Ferro-Alloy Starts Production of Ferromolybdenum, Vanadium
Pentoxide
Ferro-Alloy Resources Ltd. said Wednesday that it has started
production of ferromolybdenum and vanadium pentoxide to avoid
selling the materials at a discount.
---
Saga Warns of Pandemic's Long-Term Effect on Travel Industry --
Update
Saga PLC on Wednesday cautioned over the longer-term effect on
the travel industry from Covid-19 despite bookings for fiscal 2023
being ahead of pre-pandemic levels.
Market Talk:
Future Longer-Dated Green Gilts Likely to Do Well
1209 GMT - Issuance of longer-dated green gilts should attract
strong demand, says Quentin Fitzsimmons, portfolio manager of the
T. Rowe Price Global Aggregate Bond Fund. "There is every reason to
expect longer maturity issuance will also do very well, given the
nature of pension fund liability-driven demand present in the U.K.
market," he says. He expects the U.K. government to build a 'green'
yield curve over time and provide a sensible framework for proving
the how the proceeds will be used. The Debt Management Office,
which sells bonds on behalf of the Treasury, plans to schedule a
second syndication of a new green gilt maturing in the 20- to
30-year area, in mid to late October 2021.
---
Iron-Ore, Copper Miners Look Set to Face Price Pressure
1144 GMT - Iron-ore and copper prices are likely to fall amid a
Chinese economic slowdown, says Bank of America, cutting its
recommendations on producers of the commodities. China policy to
cut steel production by 10% by December looks set to push the
market into surplus and iron ore could trade down to marginal cost
of about $80 a ton, BoA says. Copper demand is also likely to slow,
though not by as much, BoA says. "Our China economist, Helen Qiao,
has called for easing and is concerned that policymakers may now be
'behind the curve'," BoA analysts say. They cut BHP, Vale and
Boliden to neutral from buy, Kumba and KGHM to under-perform from
buy and Ferrexpo to under-perform from neutral.
---
BOE Likely to Stay Quiet on Quantitative Tightening Timing
1057 GMT - The Bank of England is expected to keep monetary
policy unchanged and offer muted signals regarding when it could
start reducing pandemic-era stimulus at Thursday's rate decision,
says Brown Advisory. Rate-setters will be "very firmly on hold this
week," says Ryan Myerberg, portfolio manager in Brown Advisory's
Global Sustainable Fixed Income team. The event is likely "to be
one of those meetings where they try to say and signal as little as
possible and move on to November," he says. In his view, there's
more than "enough uncertainty" to the economic picture to allow the
Monetary Policy Committee to remain in assessment mode without
having to signal any specifics to the market with regards to the
timing for quantitative tightening.
---
Babcock Backlog Not Majorly Affected by Loss of French Submarine
Contract
1055 GMT - Babcock's backlog won't take a major hit from the
loss of work on France's submarine deal with Australia, says
Liberum. The British company was set to receive around GBP1 billion
of work from the deal, which has been abandoned in favor of a new
security partnership with the U.S. and the U.K. The work was
expected over the contract's lifetime which would have been
decades-long as the first submarine was expected to be delivered in
2034 with each subsequent vessel delivered every two years after
that, the U.K. brokerage says. Media reports also suggest that the
AUKUS pact could lead to the Astute submarines undergoing deep
maintenance, although it isn't clear if Babcock would be involved
in this. Liberum rates the stock buy.
---
Gas Crunch to Benefit Equinor, Shell, Total
1015 GMT - High European gas prices are positive for Equinor,
which derives around 35% of its production from European gas and is
very exposed to spot prices, UBS says. Strong prices are also good
news for major companies with big LNG portfolios such as Shell and
TotalEnergies, which have the highest exposure to the superchilled
fuel, the bank says. However, the companies' exposure to spot LNG
prices shouldn't be overstated as 60%-80% of sales are linked to
oil prices, UBS says. "With little new gas/LNG supply coming in the
near term and consumption about to rise sharply in the winter, we
expect gas prices to remain at exceptionally high levels this
winter," it says.
---
Supermarket Income REIT Looks Set for Strong FY 2021 Results
1006 GMT - Supermarket Income REIT's full-year results,
scheduled to be released Thursday, cover a period of significant
growth for the company, Goodbody says. The real-estate trust has
made more than GBP200 million worth of direct acquisitions, and
while Goodbody expects net asset value to rise to 105.3 pence a
share for fiscal 2021, it says there is considerable upside risk to
this given that valuations have accelerated in recent months. The
company is still making more acquisitions, including a further six
supermarkets on Monday for a total GBP113.1 million. "These
acquisitions further diversify Supermarket's rent roll while also
adding the first M&S and maintaining the long-dated [weighted
average unexpired lease term] across the portfolio of 15 years,"
the brokerage says. Shares are up 1.7% at 119.0 pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 22, 2021 12:00 ET (16:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Mar 2024
FTSE 100
Index Chart
From Mar 2023 to Mar 2024