The FTSE 100 closed down 3.64% on Friday, wiping out gains made
in recent months. The latest coronavirus variant from South Africa
heralded a fear-based selloff for markets, with airlines, banks,
and restaurants feeling the pinch, IG Group PLC senior market
analyst Joshua Mahony says. The new variant raises concern that the
world could be in for another wave of infections and subsequent
restrictions, Mr. Mahony says. "With Pfizer stating that it could
take up to two weeks for them to ascertain just how well their
vaccine can help limit the effects or spread of the new Covid-19
strain, we are likely to see plenty more volatility as traders
consider the implications if initial warnings are correct," Mr.
Mahony adds.
Companies News:
Checkit to Raise GBP21 Mln to Fund Opportunities in Deskless
Worker Industry
Checkit PLC said Friday that it is planning to raise 21 million
pounds ($28 million) via a share placing which will be used toward
opportunities it sees in the growing deskless worker industry.
---
Quadrise Fuels Makes Progress in 2021
Quadrise Fuels International PLC said Friday that it continued
to make progress across all fronts following its fundraise earlier
in the year.
---
Science Group Says Performing in Line With or Slightly Above
Guidance
Science Group PLC said Friday that performance in all units
continues positively and that the company's performance remains in
line with or slightly above recent guidance.
---
Aquis Exchange Appoints Glenn Collinson as New Chairman
Aquis Exchange Ltd. said Friday that Glenn Collinson has been
appointed as the successor of Niki Beattie as the new chairman of
the company.
---
EQTEC Shares Rise on Collaboration Deal With John Wood Group
Shares in EQTEC PLC rose Friday after it said it has signed a
collaboration agreement with John Wood Group PLC to develop and
deploy waste-to-energy projects.
---
Parkmead Shares Fall on Significantly Widened FY Pretax Loss
Shares in Parkmead Group PLC on Friday fell after the company
reported a significantly widened pretax loss for fiscal 2021
despite higher gas prices.
---
Gran Tierra Sells Petrotal Stake for $30.1 Mln
Gran Tierra Energy Inc. has sold its 16.6% shareholding in
Peru-focused oil producer Petrotal Corp. for $30.1 million.
---
Alumasc Appoints Vijay Thakrar as Chairman
Alumasc Group PLC said Friday that it has appointed Vijay
Thakrar as non-executive chairman with effect from Jan. 1.
---
Synthomer Appoints Essentra's Lily Liu as CFO
Synthomer PLC said Friday that it will appoint Essentra PLC's
Lily Liu as chief financial officer.
---
Recycling Technologies Sets IPO Price Range of 150p-170p/Shr;
Trading Seen Starting Around Dec 16
Recycling Technologies Group Ltd. on Friday set an initial
public offering price range of between 150 pence and 170 pence a
share, implying a market capitalization of up to 111 million pounds
($147.9 million) at the top end.
---
Adams Shares Fall on Swing to 1H Pretax Loss
Shares in Adams PLC fell on Friday after the company reported a
swing to a pretax loss for the first half of fiscal 2022 due to
investment-return losses.
---
Private Equity Buyout Boom Hits Bondholders -- Analysis
Leveraged buyouts of companies by private equity firms are
sweeping Europe, leaving corporate-bond investors exposed to
losses.
Market Talk:
SSE Risks Disappointing Both Income and Growth Investors
1136 GMT - SSE is in danger of "falling between two stools" by
disappointing both income and growth investors, RBC Capital Markets
says as it downgrades the U.K. energy company to sector perform
from outperform. Last week, SSE doubled down on its existing
strategy of asset disposals to fund renewable capacity growth, RBC
says. From the point of view of income investors, stable cashflow
generation from the networks business will be diminished by the
capex requirements of the renewables division, and prospective
dividend yields screen poorly versus peer National Grid, the bank
warns. On the other hand, growth investors attracted to renewables
will see SSE selling down to minority positions in offshore
developments to help fund overall growth, RBC says.
---
SSE Faces Delicate Balancing Act to Achieve Growth
1118 GMT - SSE shares fall 1.7% to 1,576 pence after RBC Capital
Markets cuts the Scottish power generator to sector perform from
outperform and its price target to 1800 pence from 1900p. For
income investors seeking stable cash-flow generation, the
capital-spending needs of SSE's rapidly growing renewables division
reduce the attractions of its power networks, RBC says. In
addition, growth investors attracted to the renewables portfolio
face SSE selling down to minority positions to help fund growth and
keep extra debt off the consolidated balance sheet, the brokerage
says. "We don't feel the valuation gap to our sum-of-the-parts
valuation will close in the near term and a full split of
operations may be needed to achieve this," RBC analysts say.
---
Ocado, Reckitt Benckiser Show Resilience as Black Friday Turns
Red
1113 GMT - Online grocer Ocado and consumer-goods company
Reckitt Benckiser were the only two FTSE 100 stocks in positive
territory in the first half hour of trading this morning, as a new
coronavirus variant sent jitters across markets and turned Black
Friday red. Shares in Ocado and Reckitt Benckiser rose initially as
investors turned to companies that have been essential during the
pandemic, namely in the provision of foods and medicines, AJ Bell
says. "Markets are clearly speculating that a rapid spread of a
more brutal coronavirus strain could once again derail the global
economy," the brokerage says. Ocado shares are up 3% at 1801.5
pence. Reckitt rose 1.2% in early trading to a high of 6,273 pence
before slipping 0.6%.
---
AB Foods Shares Take Hit From Primark's Exposure to Potential
New Covid-19 Restrictions
1111 GMT - Associated British Foods shares fall as the prospect
of another pandemic-related lockdown or new restrictions leave its
Primark clothing chain exposed, given that it only operates out of
physical stores. The prospect of additional Covid-19 restrictions
has arisen after the discovery of a new coronavirus variant in
South Africa. Shares are down 4.7% at 1,851.00 pence.
---
Breedon's Strong Performance Leads to Upgrades
1047 GMT - Breedon's strong third-quarter performance, together
with its larger focus on sustainability, performance optimization
and expansion, has led to higher forecasts, Peel Hunt says. The
U.K. construction-materials group's 2021 pretax-profit forecast was
raised 10% to GBP118 million by the brokerage, which says that
Breedon has subtly shifted toward more organic investment, coupled
with bolt-on deals, although the prospect of larger acquisitions,
including a new geographic market, remain active. "We continue to
rate Breedon as a buy as we continue to believe it will grow at a
healthy pace driven by organic and acquisitive-led growth," Peel
Hunt says, raising its target price to 123 pence from 119
pence.
---
Oil Companies Fall on Coronavirus Variant Fears
1017 GMT - The FTSE 100 is being dragged by a 3.5% slump in the
Brent crude oil price, which in turn is weighing on shares in U.K.
market majors Royal Dutch Shell and BP, Russ Mould at AJ Bell says.
The drop in the oil price is the market's way of saying it is
worried about a reduction in economic activity given fears over a
new coronavirus variant, which also explains the decline in metal
prices, he says. The flip side of falling commodity prices is that
a weaker oil price should provide some relief in terms of
inflationary pressures, Mould says. BP falls 5.3% and Shell is down
4.5%. In mainland Europe, TotalEnergies declines 4.5%, Eni drops
4.4% and Equinor slips 3.7%.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
November 26, 2021 12:26 ET (17:26 GMT)
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