FTSE 100 Closed Up Boosted by China Reopening -2-

1210 GMT - Impax Asset Management Group's first-quarter assets under management update signals a robust start to the year, Peel Hunt says in a note. The investment group returned to growth with a 6% rise to GBP37.9 billion in AUMs at the end of December, despite weaker markets, with net inflows seen as robust given fragile investor sentiment, the brokerage says. Peel flags decent progress toward its AUM forecast for the end of September, which it keeps unchanged at GBP40.3 billion. "Impax remains well positioned to benefit from investors allocations to sustainable investments," Peel Hunt says, keeping its buy rating on the stock. ([e-mail])

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Clarkson's Tailwinds Seen Weakening

1223 GMT - Clarkson could be faced with short-term headwinds from softening 2023 market conditions, Peel Hunt says in a note. After the shipping services provider's fourth-quarter trading update on Friday reflected an excellent performance in monetizing its leading market positions and brokers, analyst Alexander Paterson updates estimates for 2022 to account for the group's boosted forecast but makes small changes to those of the coming years. "We are extremely positive about the longer-term trends given the lack of supply growth, so remain Buy but expect near-term headwinds from dry bulk and some weakness in the stock," he says, flagging that the ClarkSea index--a cross-sector weighted average of ship earnings per day--now trades at close to $30,000 after rising by around 30% over the previous year, averaging $37,300. Shares fall 2.4% at 3,225.0 pence, paring some of Friday's gains. ([e-mail])

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Big Pharma Hedges Its Merger-Monday Takeover Bets

0752 ET - A trio of takeovers in the biopharma sector all make use of a tool to hedge against future risk as part of the consideration. AstraZeneca, Ipsen and Chiesi all say they are issuing contingent value rights, or CVRs, in their buyouts of CinCor, Albireo and Amryt, respectively. The value of the CVRs, which are tied to specified future milestones for the takeover targets, account for 19%-28% of the total potential deal consideration. CinCor, Albireo and Amryt all trade above their initial takeout prices premarket, implying some investor faith in the CVRs. ([e-mail])

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WH Smith's Air Revenue Set to Beat Market Views

1314 GMT - WH Smith's Air division revenue is likely to exceed market expectations as Ryanair raised its full-year profit guidance and easyJet mentioned strong bookings during its end-of-year sale, RBC Capital Markets' analyst Richard Chamberlain says in a note. This should be driven by the news and stationery retailer's business development and new unit wins, growth in average transactional value and spend per passenger, as well as category development, for example in health and beauty, tech and premium food, Chamberlain says. "As of November 2022, SMWH had a store pipeline of around 150 stores over the next three years, and we see particularly strong potential for it in U.S. airports," he says. ([e-mail])

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Gilt Market Cashflow in January Supportive of Gilt Demand

1316 GMT - The demand for U.K. gilts in January is likely to remain strong due to increased cash supply to the gilt market, Barclays fixed income strategist Moyeen Islam says in a note. "January's cashflow remains largely supportive of the market due to GBP40 bln of redemption and coupon flow," he says. However, investors' ability to absorb increased gilt supply throughout 2023 from the U.K. Debt Management Office auctions and the Bank of England's gilt sale programs remains in question, Islam says. ([e-mail])

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UK Retailers' Performance Could be Better Than Feared

1339 GMT - Retail and consumer-goods companies in the U.K. this week are expected to report robust performance updates, following strong showings from B&M and Next, Shore Capital analysts Eleonora Dani and Clive Black say in a note. "Overall, stronger consumer demand than feared will support top lines of consumer companies but, in our view, the shares of multichannel businesses will perform better compared to online pure peers," they say. A mix of cold weather and aggressive discounting lifted sales, but highlights that the sector's profitability is likely to remain constrained despite robust demand, the analysts say. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-09-23 1254ET