The FTSE 100 closed down 0.1% despite a slight rebound in the
price of oil, with Brent Crude up 1.9% to $77.03 a barrel. "The
basic-resource sector continues to act as a lag with weakness in
Rio Tinto and Glencore, while retail is also a little softer today
with JD Sports down for the second day in a row, while
disappointing BRC retail sales for December [are] also weighing on
the rest of the sector, with Ocado, Marks and Spencer and
Kingfisher all near the bottom of the U.K. index," CMC Markets
analyst Michael Hewson says in a note. Beazley was the session's
largest faller, followed by JD Sports Fashion and Ocado, down
4.35%, 4.2% and 3.6% respectively. Severn Trent, GSK and Hikma
Pharmaceuticals were the session's highest performers, up 2%, 1.8%
and 1.75% respectively.
COMPANIES NEWS:
GSK Expands Respiratory Pipeline With Aiolos Bio Buy
GSK is buying biopharmaceutical company Aiolos Bio for up to
$1.4 billion in a deal that expands its respiratory pipeline and
follows a string of pharmaceutical majors buying fast-growing
biotechs to restock their pipelines.
---
B&M European Value Backs Guidance, Declares Special
Dividend
B&M European Value Retail backed its guidance for fiscal
2024 on the back of positive trading in the third quarter and
announced a special dividend payout.
---
Unite Group Backs Guidance, Sees Strong Demand Ahead of New
Academic Year
Unite Group backed guidance for growth and said it has seen
strong demand for the upcoming academic year.
---
M.J. Gleeson Says Sales Slipped, But Expects Demand Recovery
M.J. Gleeson sold fewer homes, but expects a recovery in demand
over the coming months and said its order book rose.
---
Shoe Zone's Profit Rose on Positive Summer Trading; Raises
Dividend
Shoe Zone reported a pretax profit rise in fiscal 2023 on the
back of a positive performance throughout the key trading periods,
and increased its dividend payout.
---
SIG Expects Underlying Profit to Meet Upper End of Views
SIG said it expects its underlying profit to reach the top end
of guidance despite a slip in like-for-like revenue.
---
Games Workshop Profit Rises on Sales Growth, Improved
Margins
Games Workshop Group said pretax profit for the first half of
fiscal 2024 rose, with core revenue growth in all channels and in
all major countries while costs reduced.
---
Hays PLC to Miss Market Forecasts After December Slowdown
Hays PLC said that it expects to miss current market forecasts
for the first half-year after net fees fell in the second quarter
of fiscal 2024 following a more difficult December.
---
Jupiter Fund Management Shares Fall After Higher Outflows
Expected
Jupiter Fund Management shares fell after the group said its net
outflows for 2023 were worse than anticipated.
---
Hays PLC Shares Fall on Profit Warning
Hays PLC shares fell as much as 19% in early trade after the
company said it expects to miss current market forecasts for the
first half-year as net fees fell in the second quarter of fiscal
2024 following a more difficult December.
---
Games Workshop Finance Chief Rachel Tongue to Step Down
Games Workshop said that Chief Financial Officer Rachel Tongue
will leave the company in January 2025.
MARKET TALK:
Jupiter Fund Management Drops After News of Manager's Exit
1448 GMT - Jupiter Fund Management shares tumble 15% after it
said fund manager Ben Whitmore was planning to leave the FTSE
250-listed firm later this year to set up his own equity boutique.
Whitmore manages Jupiter funds, trusts and segregated mandates with
assets under management worth a combined GBP10 billion, Jupiter
said. Meanwhile, Jupiter also said it had recruited Alex Savvides
from JO Hambro Capital Management. Numis Securities says it has
placed its hold recommendation under review whilst it gauges client
reaction to the changes. "Whilst it's encouraging to see Jupiter
has taken some steps to mitigate Ben's departure, we note the scale
of AuM involved and the likelihood of at least some attrition,"
Numis analyst David McCann writes. (philip.waller@wsj.com)
---
Hays PLC Unsure if Weak Performance Reflects Jobs Market
Slowdown
1338 GMT - Although Hays PLC issued a profit warning on lower 2Q
net fees, the recruiter said it is too early to know whether or not
this reflected a more sustained market slowdown, Interactive
Investor analyst Victoria Scholar says in a note. A sluggish global
growth backdrop combined with tighter monetary policy has dampened
business appetite to incur additional fixed staffing costs, Scholar
says. "And while temporary workers typically pick up the slack,
Hays said it didn't see the 'normal seasonal step-up in worker
volumes' dealing a double blow to the recruitment firm," she says.
Shares are down 9% at 98.05 pence.
(anthony.orunagoriainoff@dowjones.com)
---
Centamin's Drilling Results Show Potential for Standalone
Plant
1313 GMT - Centamin's positive drilling results gives leverage
to gold being a key exposure theme in 2024, Bank of America analyst
Jason Fairclough writes in a research note. The London-listed gold
miner's drill results from two targets close to its flagship Sukari
mine in Egypt could one day underwrite deposits whereby ore could
be trucked to Sukari, or even a new standalone plant, Fairclough
says. "Early days, but encouraging nonetheless." BofA sees gold
upside to above $2,100 an ounce, and Centamin's impressive
turnaround provides leverage to this theme, the analyst says. "We
think that Sukari is a Tier 1 asset and expect ongoing mergers and
acquisitions in the subsector." Shares are up 0.9% at 95.20 pence.
(christian.moess@wsj.com)
---
Hays Performance Might Signal a Slowdown in Jobs Market
1244 GMT - Hays PLC's investors will hope December's weak
performance is just a blip and not a sign of a more sustained
slowdown in the jobs market, AJ Bell says after the company issued
a profit warning on falling 2Q net fees. The recruitment company
flagged a 12% year-on-year drop in net fees and sees 1H operating
profit dropping to GBP60 million, from GBP97 million the year
prior, AJ Bell analyst Russ Mould says in a note. The weakness has
spread to temporary hires, which could be a warning of a wider
softening in the labor markets, something stock markets aren't
currently entertaining, he says. According to Mould the 2Q rate of
decline in permanent hiring hasn't gotten any worse and that is
positive. Shares are down 7.4% at 99.70 pence.
(anthony.orunagoriainoff@dowjones.com)
---
European Stocks Drop After Mixed Asia; Recruiters Fall
1215 GMT - European markets fall after mixed Asia trading and
ahead of an expected lower U.S. open. The Stoxx Europe 600 drops
0.3%, the FTSE 100 retreats 0.1% and the CAC 40 and DAX backtrack
0.4%, with bank, property and tech losses offsetting gains for oil
shares as Brent crude rises 2.2% to $77.82 a barrel. Recruitment
stocks also fall after a profit warning from Hays. "Hays's
management is unsure whether this is just a blip, caused by
deferred decision-making, or a sign of a more sustained job-market
slowdown, but equity investors will be hoping it's the former," AJ
Bell's Russ Mould writes. IG futures show the Dow opening at 37496,
versus Monday's close of 37683. Australian, mainland China and
Japanese markets rose, but Hong Kong stocks fell.
(philip.waller@wsj.com)
---
M.J. Gleeson's Short-Term Pain Presents an Attractive Investment
Opportunity
1057 GMT - M.J. Gleeson is suffering from a number of
site-specific issues on around 10 older sites across its
house-building operations, but the short-term pain presents an
attractive buying opportunity, RBC Capital Markets analysts say in
a research note. The house builder's issues are being addressed,
and the underlying business is performing well against the current
macro headwinds, RBC says. However, RBC cuts its 2024 and 2025
pretax profit forecasts by 20% and 11%, respectively. "We believe
it is positive that the new CEO and management team are proactively
dealing with past site misgivings, and this should not detract from
the bigger opportunity provided by Gleeson's growth story," the
Canadian bank says. RBC cuts its price target to 525 pence from 550
pence. Shares are down 9.3% at 488.0 pence.
(joseph.hoppe@wsj.com)
---
B&M's Slow Sales Raise Specter of Weakening Consumer
Backdrop
1042 GMT - B&M's sales growth slowed over the key Christmas
quarter to 5% from 6.2% in the first half, prompting concerns about
a broader U.K. retail demand slowdown on the back of the weakening
consumer backdrop, Interactive Investor's Victoria Scholar says in
a note. The convenience retailer's sales have largely benefited
from the cost-of-living crisis as consumers trade down to cheaper
stores, however, higher interest rates and risk of a recession
could have a broader impact on consumer behavior and hit retailers
even at the value end of the spectrum, Scholar says. Following the
strongest period for retailers--the golden quarter--encompassing
Christmas trading, the lull and the confluence of macroeconomic
pressures in January and February are likely to be quite painful
for the sector, she adds. (michael.susin@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
January 09, 2024 12:45 ET (17:45 GMT)
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