The FTSE 100 closed 0.5% higher on Tuesday, as shares in major banks and insurance companies rose. The largest contributor to the index's gains was HSBC, which closed 3.2% higher. In addition, Lloyds Banking Group increased 3.3%, NatWest rose 3.1%, Prudential jumped 4.1% and Aviva was up 3.4%. Rising bond yields are helping financial stocks, IG said. "The FTSE 100 is trading higher with 7,500 as the next round number resistance to watch. China-exposed stocks such as Prudential and HSBC are trading at the top of the U.K. basket bolstered by a rally in Asia overnight," Interactive Investor said.
Companies News:
Thungela Resources Swung to 2021 Profit Driven by Coal Prices; Declares Dividend
Thungela Resources Ltd. reported Tuesday a swing to profit for 2021 driven by strong demand and record price levels, and declared a dividend payout on its first full-year result as a listed company.
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Diurnal Shares Fall After Widened 1H Pretax Loss, Going Concern Warning
Shares in Diurnal Group PLC dropped Tuesday after it said that further financing will be required if it is to reach sustainable profitability, and that its pretax loss widened for the first half of fiscal 2022.
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Auto Trader to Buy Autorama (UK) for GBP200 Mln to Expand Leasing Business
Auto Trader Group PLC said Tuesday that it has agreed to buy Autorama (UK) Ltd. for 200 million pounds ($263.4 million) in a deal that will expand its leasing business.
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Kingfisher FY22 Pretax Profit Above Views; Warns of Hit to 1Q, FY23 Performance
Kingfisher PLC on Tuesday reported a significant rise in pretax profit and revenue for fiscal 2022, which came in above market expectations, and said like-for-like sales declined in the first quarter of the current year among geopolitical uncertainty and inflation.
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Sabre Insurance 2021 Pretax Profit Fell; Sees Material Growth in 2022 on New Businesses
Sabre Insurance Group PLC said Tuesday that its pretax profit for 2021 fell as the company faced pressure on premium income due to the lack of new drivers and slow car sales.
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ZOO Digital Sees FY 2022 Revenue, Profit Ahead of Expectations Thanks to Organic Growth
ZOO Digital Group PLC said Tuesday that it expects to report revenue and profit for fiscal 2022 that are materially ahead of expectations after the continued rollout of existing streaming services and increased market share in new service offerings.
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MP Evans Says Total Crop Processed in First Two Months of 2022 Fell 10%, 2021 Pretax Profit Rose
M.P. Evans Group PLC said Tuesday that the total palm-oil crop processed in the first two months of 2022 was 10% lower than last year, mostly due to crop seasonality, as it reported a rise in 2021 pretax profit on increased revenue.
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ScS Group Swung to 1H Pretax Loss After Booking Higher Costs; Hopes for Profitable 2H
ScS Group PLC on Tuesday reported a swing to a pretax loss for the first half of fiscal 2022 as a result of higher costs linked to investments, and said it is on track to deliver a full-year pretax profit in line with market expectations.
Market Talk:
City Pub's Post-Disposal Portfolio Looks More Focused
1114 GMT - City Pub Group's GBP17.1 million sale of six pubs completes the tidying up of the portfolio as the sold sites didn't fit its premium-hospitality model, says Peel Hunt. The U.K. pub operator plans to use the sale proceeds to reinvest in new sites that offer higher Ebitda and returns, and if this strategy is successful, the U.K. brokerage says it should be earnings neutral in 2023 and accretive in 2024. Peel Hunt has a buy rating on the stock with a target price of 160 pence. Shares trade up 2.8% at 91.50 pence.
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Auto Trader Leasing Move Has Strategic Logic But May Jeopardize Buybacks
1110 GMT - Auto Trader Group's GBP200 million deal for new-car leasing marketplace Autorama UK has strategic logic, but the deal may put share buybacks on hold as a means of funding the transaction, Citi says. The acquisition increases Auto Trader's exposure to new-car-leasing growth in a market which is evolving as it increasingly digitizes--creating an opportunity for Auto Trader to provide solutions for dealers, the U.S. bank says. Auto Trader should benefit directly from growth in leasing as a result of Autorama's commission-based revenue model, it says. Citi has a neutral rating with a 730-pence target price on the stock.
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Softcat Shows off Strong Growth Despite Uncertainties
1103 GMT - Softcat's first-half growth in average gross profit per customer is a testament to its strong execution given the current macro uncertainty, even if it was helped along by a large project, Citi says. The IT-infrastructure company's growth certainly justifies its premium rating on the stock and consensus forecasts will definitely be upgraded further as a result of its update, the U.S. bank says. "In order to be buyers at these levels, however, we would want to identify [the] potential for further positive surprises for the stock and/or the sector, and so remain neutral," Citi says, retaining its 1,840-pence price target on the stock. Shares are up 5.9% at 1,821.0 pence.
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TP ICAP Could Benefit From Pound Weakening in 2022
1100 GMT - TP ICAP 2021 results show a company that still faces structural challenges, but GDP weakening against the dollar should be a tailwind for 2022 revenue, Shore Capital says. The U.K. investment group says earnings were broadly in line with its views, following significant downgrades last year. It keeps a dividend-yield forecast of 8.8% in 2022 but that rises to 10.1% for 2023. Fair value of the stock remains at 150 pence, Shore says as it upgrades its recommendation to buy from hold. Shares are up 4.5% at 124.3 pence.
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ZOO Digital Set for Strong Growth
1043 GMT - ZOO Digital Group is potentially on the verge of a period of significant growth as it capitalizes on structural broadcast-market drivers and this is reinforced by its upbeat trading statement, says Shore Capital. The provider of cloud-based localization and digital distribution services should deliver noteworthy growth in revenue alongside an uplift in profitability and rapid EPS expansion, Shore Capital says, noting that it views ZOO Digital as a very promising growth play. Shares trade up 0.4% at 122.00 pence.
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Nickel Short-Squeeze Shows Need for Prices Limits, LME CEO Says
1032 GMT - The recent short-squeeze in nickel which prompted a multiday halt to the LME's nickel trading shows why the exchange should maintain permanent price limits on all its metals contracts, says the exchange's CEO. The surge in nickel over $100,000 a metric ton earlier this month led the LME to take the controversial decision to erase a day's worth of trading, something it said was necessary to maintain the stability of the market. But the call angered some investors. "We have a lot of work to do to rebuild trust with those investors," says Matthew Chamberlain, on Bloomberg TV. Price limits should ensure such a move is never taken again, he says. "This incident demonstrates that we have to have price limits."
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City Pub's GBP17.1 Mln Deal Should Bring New Opportunities
1014 GMT - City Pub Group's GBP17.1 million deal for the disposal of six pubs releases capital to recycle into new opportunities, says Liberum. "This refocuses the portfolio towards the larger, more versatile properties with ancillary revenues including accommodation and strengthens the balance sheet in readiness for new opportunities," the U.K. investment bank says. As the proceeds may take some time to redeploy, Liberum lowers its target price to 155 pence with a buy rating. Shares trade up 2.8% at 91.50 pence.
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Pound May Extend Gains Vs Euro if UK Inflation Data Exceed Forecasts
0945 GMT - Sterling may extend its gains versus the euro if Wednesday's U.K. inflation data exceed expectations, Commerzbank says. If inflation continues to rise and the risk of a wage-price spiral increases, the Bank of England could raise interest rates more aggressively, Commerzbank says in a note. "As a result, the inflation data due for publication tomorrow morning might well have the ability to move sterling considerably," it says. A higher-than-expected reading would bolster the market's BOE rate-rise expectations, allowing sterling to recover further versus the euro, she says. EUR/GBP falls to a nearly two-week low of 0.8343, according to FactSet.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
03-22-22 1307ET
