FTSE 100 Closes Monday Slightly Up as Investors -2-

1140 GMT - 888's announcement that it is suspending VIP accounts in the Middle East over anti-money laundering best practices not being followed is incredibly damaging and new Executive Chairman Jon Mendelsohn now has tricky waters to navigate, AJ Bell investment director Russ Mould says in a note. Combined with the news of the departure of CEO Itai Pazner, the market is likely to draw its own conclusions, Mould says. "Longer term the betting industry faces scrutiny for the harm it does to wider society--with those harms only likely to be magnified against a more difficult economic backdrop," he says. Shares trade down 27% at 75.15 pence. ([e-mail])

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Pets at Home Likely to Report Robust 3Q Growth

1149 GMT - Pets at Home is due to report a positive 3Q performance tomorrow given recent updates from peers that indicate a robust market and resilient demand for veterinary care and strong sales in accessory-related categories, Shore Capital analysts Eleonora Dani and Clive Black say in a note. The read across the sector drives expectations for the pet-care company to report robust growth in both retail and veterinary division revenues, they say. "Despite recent share price gains, Pets at Home remains attractively valued at around 30% discount to historical averages," the analysts add. Shore has a buy rating on the stock and a price target of 334 pence. ([e-mail])

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European Stocks Fall Ahead of Likely US Losses

1150 GMT - European stocks drop after mixed Asia trading and ahead of an expected lower U.S. open. The Stoxx Europe 600 falls 0.8%, the FTSE 100 retreats 0.2%, the CAC 40 backtracks 0.9% and the DAX sheds 1%. Brent crude gains 0.1% to $86.45 a barrel. Markets in Australia, Hong Kong and South Korea fell, though stocks in mainland China and Japan rose. IG futures data show the Dow opening at 33718, versus Friday's close of 33978. "Investors are re-focusing their minds on interest rates, with the U.S. Federal Reserve expected to hike its rates by 25 basis points and the European Central Bank and Bank of England by 50 basis points this week," IG analysts write. ([e-mail])

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Ryanair's 3Q Beat Was Flattered by FX Gains, Says Liberum

1200 GMT - Positive sentiment around Ryanair's strong third-quarter results might be moderated by the foreign exchange gain that flattered the figures, says Liberum in a note. "The results were flattered by a EUR67m FX gain and the pre-exceptional figures excluded a fuel option mark-to-market loss (EUR10m pre-tax, EUR9m post-tax)," analyst Gerald Khoo says after the Irish budget airline swung to a pre-exceptional post-tax profit of EUR211 million in the quarter, beating its EUR200 million guidance. Liberum rates the stock buy with a target price of EUR17. Shares fall 2.7% to EUR15.10. ([e-mail])

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L&G Share Weakness Shows Investors Lamenting CEO Departure

1204 GMT - Legal & General's share drop shows the esteem in which departing boss Sir Nigel Wilson is held by shareholders after more than 11 years at the helm, AJ Bell says. "The life insurer's 341% total return since he took over in June 2012 beats the FTSE 100's 120.2% hands down," investment director Russ Mould notes. The stock, which falls 3% at 253.0 pence, is the FTSE 100's second-worst performer. ([e-mail])

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Computacenter Is Cheap And Cheerful, Goodbody Says

1223 GMT - Computacenter sits on a large discount to peers, Goodbody says after the U.K. information-technology group's "pleasing" 2022 update marked an 18th year of unbroken growth, a sector record. "The only negative: No investor meeting and few details in the statement. But the worry beads are back in the box," analyst George O'Connor says, tweaking estimates up. Goodbody has a buy rating on the stock. Shares are up 8.1% at 2,154.0 pence, its highest price since September. ([e-mail])

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Diploma Sees Buoyant Demand and M&A Opportunities

1231 GMT - Diploma's first-quarter update showed strong organic volume and mix and the second quarter has started strongly with buoyant demand and the M&A pipeline remaining encouraging, Shore Capital's Akhil Patel and Tom Fraine say in a research note. The U.K. supplier of specialized technical products and services should make adjusted Ebita of GBP208.2 million for fiscal 2023, up around 9% on year, they say. Shore Capital retains its buy recommendation with a fair value of 3,350 pence on the stock. Shares trade up 0.2% at 2,732.00 pence. ([e-mail])

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(END) Dow Jones Newswires

01-30-23 1201ET