FTSE 100 Closes Up 1% Amid Increasing Hopes of Rates Cut
21 December 2023 - 4:25AM
Dow Jones News
The FTSE 100 Index closed Wednesday up 1% at 7715 points, in
line with global peers despite a fall among miners, as signs of
easing U.K. inflation increased hopes of interest-rates cut next
year, Scope Markets chief market analyst Joshua Mahony says in a
note. The markets are now pricing a 75% chance of a rate cut by the
Bank of England in May, compared with previous expectations of 55%,
he adds. Intertek outperformed the blue-chip index, with shares
closing up 3.7%, followed by real-estate investment trust Segro and
IMI, up 3.2% and 2.9%, respectively.
COMPANIES NEWS:
K3 Business Technology Sees Earnings in Line With Market
Expectations
K3 Business Technology Group said that it expects results for
fiscal 2023 to be in line with market expectations despite
continuing lower demand and activity in global accounts.
---
Petrofac Sees Revenue in Line With Guidance; Wins $1.4 Bln
Contract
Petrofac said it expects to report full-year revenue in line
with guidance and an earnings loss due to one-off write-downs, and
that it has secured a $1.4 billion contract under its multi-year
deal with TenneT.
---
Shanta Gold Agrees to GBP141.95 Mln Takeover Bid From Saturn
Resources
Shanta Gold said it has agreed to Saturn Resources' 141.95
million-pound ($180.7 million) takeover bid.
---
Tortilla Mexican Grill to Miss Revenue Target on Weak Demand
Tortilla Mexican Grill said it expects full-year revenue to rise
but miss expectations due to muted demand in the last quarter of
the year.
---
Chill Brands Shares Rise on U.K. Supermarket Deal to Sell Chill
ZERO Vapor Products
Shares in Chill Brands Group rose after it said that its Chill
ZERO nicotine-free vapor products will be on sale at an undisclosed
top-five U.K. supermarket in the first quarter of 2024.
---
Home REIT Sells 80 Properties for GBP16.2 Mln
Home REIT said it has sold 80 properties, or 3.6% of its
portfolio, for 16.2 million pounds ($20.6 million) at a public
auction over the last five days.
---
LBG Media Shares Fall on Reduced Profit Contribution From
Australia
LBG Media shares fell after the company said it expects adjusted
earnings growth for the year to be less than expected due to a
lower contribution from its Australian business, although still
higher than the comparative period a year earlier.
---
Frasers Group Strengthens Luxury Offering With Matches Buy
Frasers Group is buying online luxury retailer Matches for 52
million pounds ($66.2 million) as part of the company's elevation
strategy, while strengthening its position in the luxury
market.
---
Lebara Mobile Mulls Sale Options or IPO, FT Reports
--London-based telecom group Lebara is exploring possible sale
options or an initial public offering, The Financial Times reports,
without saying where any potential IPO will be.
MARKET TALK:
Prudential PLC Might Support Joint Venture's Growth With More
Capital Injections
1342 GMT - Prudential PLC's $176-million cash injection into
Citic-Prudential Life Insurance Company, its Chinese joint venture,
might surprise some investors, Bank of America analyst Andrew
Sinclair says in a note. The amount is small in the group's
context--it still has a $3.8 billion free surplus--and it can be
seen as a business-as-usual process of moving capital around the
group to deploy into growth areas, Sinclair says. Despite BofA
forecasting zero growth over 2022-27, the move signals that
Prudential can still increase Mainland China sales over the bank's
forecasting period, Sinclair says. "In this regard, it could be
taken well. But the possibility of further capital injections to
support future growth remains," he says. Shares are up 0.7% at
869.60 pence. (anthony.orunagoriainoff@dowjones.com)
---
Rentokil Likely to Face Near-Term Pressures
1201 GMT - Rentokil has underperformed competition since 2022
and industry data suggests a volume slowdown, prompting a cut on
forecasts, Peel Hunt analyst Christopher Bamberry says in a note.
The pest-control, hygiene and workwear services provider's
prospects could be hurt by potentially lower market volume growth
on the back of a more challenging macro backdrop, while Terminix
integration enters into the most disruptive phase, Bamberry says.
Peel Hunt cuts EPS forecast by 2% in FY 2023, 5% in FY 2024 and 1%
in FY 2025 to reflect such challenges. "However, we believe the
near-term risks are compensated by the longer-term opportunities,"
he says. Shares are up 1.4% at 442.2 pence.
(michael.susin@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
December 20, 2023 12:10 ET (17:10 GMT)
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