The FTSE 100 briefly hit a new two-year high in intraday trading on Tuesday before slipping lower, closing down 0.08% as a decline in oil prices acted as a wider drag on the energy sector, says Michael Hewson, chief market analyst at CMC Markets. BP shares pushed higher initially after it said profits in the fourth quarter were better than expected, and mooted further buybacks. Shares did eventually slip back, but both BP and Shell are up more than 20% year to date, Hewson adds. Airtel Africa shares dropped after investors sold 1.5% of shares at a discount and Ocado slid to 22-month lows. Elsewhere, Vodafone shares have seen little follow-up to reports that French mobile carrier Iliad has made a bid for 100% of its Italian operation, Hewson says.
Companies News:
BP Launches $1.5 Bln Buyback as Profits Boosted by Oil-and-Gas Prices
BP PLC said Tuesday that it is launching a $1.5 billion buyback and reported higher-than-expected earnings for the fourth quarter of 2021.
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Micro Focus FY 2021 Pretax Loss Narrowed Despite Revenue Fall
Micro Focus International PLC said Tuesday that for fiscal 2021 its pretax loss narrowed as the previous year was hit by a large asset write-down, though revenue fell.
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Ocado FY2021 Pretax Loss Widened Significantly, Expects Recovery in 2022
Ocado Group PLC reported on Tuesday a significantly widened pretax loss for fiscal 2021 and said that it expects to return to mid-teens revenue growth in 2022.
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Airtel Africa Shareholders Sell 58M Shares at 140 Pence Each
Citigroup Global Markets Ltd. said Tuesday that it has sold 58 million shares in Airtel Africa PLC at 140 pence each.
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SSE Upgrades FY 2022 Adjusted EPS Guidance
SSE PLC said Tuesday that it upgraded fiscal 2022 adjusted earnings-per-share expectations to at least 90 pence ($1.22) from at least 83 pence, and that this reflected the strength and stability provided by its mix of regulated and market-facing business.
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Bellway Sees 1H Housing Revenue Rising 4.1% on High Home Sales
Bellway PLC said Tuesday that it expects its first-half housing revenue rose by around 4.1%, driven by strong growth in the number of homes sold, and its forward order book also grew.
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Numis Says 2Q Started Slow; Confident With FY2022 Outcome
Numis Corp. said Tuesday that its performance for the second quarter of fiscal 2022 had a slower start as inflation and interest-rate concerns reduced investors risk appetite and capital-markets activity.
Market Talk:
Bellway Shares Look Cheap Given Strong 1H Performance
1007 GMT - Bellway's saw significant demand and a record number of homes delivered in the first half of the year, and as such its shares look far too cheap, Peel Hunt says. The house builder's performance is likely to drive consensus operating-profit forecasts up by low single digits, the brokerage says, adding that it now expects operating profits of more than GBP600 million for fiscal 2022. Bellway's shares have been week recently, falling 17% in the year-to-date against a sector average of 12%, Peel Hunt says. "Given the strong trading backdrop and undemanding valuation, we continue to see value in the shares," Peel Hunt says, retaining its buy rating and 4,020 pence price target. Shares are up 3.1% at 2,925 pence.
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Ocado Drops as Technology-Investment Concerns Weigh
1005 GMT - Ocado Group tops the FTSE 100 fallers, down 12% after the online grocer and retail-technology supplier reported a bigger full-year pretax loss. Commentary around significant investment in its technology business is driving the subdued market sentiment, Hargreaves Lansdown says. Next year's profits are set to be lower than expected and while Ocado's impressive robotic grid systems and software are attractive for retailers looking to boost online operations, Ocado hasn't been able to expand them as quickly as it may have wanted, the brokerage says. "That leaves question marks over its ability to capture as much of the addressable market as it might like," HL analyst Sophie Lund-Yates says.
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Pound Seen Range-Bound as Traders Await BOE Speeches, UK GDP
1004 GMT - Sterling is likely to trade mostly range-bound Tuesday as traders await Bank of England speeches and U.K. economic growth data later in the week, ING says. "Except for the non-market-moving political turmoil in the U.K., there are no other events or data releases to report on the GBP side today," ING forex strategist Francesco Pesole says. That will keep sterling trading in a tight range for now, he says. In coming days, however, sterling could move with speeches from BOE chief economist Huw Pill on Wednesday and BOE Governor Andrew Bailey on Thursday followed by U.K. economic growth data on Friday. GBP/USD rises 0.1% to 1.3547 and EUR/GBP falls 0.4% to 0.8414.
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BP Flags Bumper Profits As Household Energy Bills Rise
0950 GMT - BP gains 1.2% after the oil major reported better-than-expected fourth-quarter profit, potentially courting controversy when U.K. energy bills are soaring, analysts say. "BP followed Shell by reporting bumper profits, but both companies probably wished the timing didn't coincide with the rise in the U.K. energy price cap, which piles pressure on households already facing a cost-of-living crisis," says Russ Mould, investment director at AJ Bell. "The U.K. government has ruled out a windfall tax for the oil & gas sector for now, but the threat of a legislative intervention hangs in the air, given the contrast between voters struggling to heat their homes and two of Britain's biggest companies announcing such strong results."
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Bellway Gains After 1H Revenue, Orders Rise
0934 GMT - Shares in Bellway gain 3.9% after the U.K. house-builder said it expects first-half housing revenue to have risen, driven by strong growth in the number of homes sold, while its forward order book also increased. The average selling price in the six months to the end of January, at GBP311,800, was marginally better than expected, which will lead to small consensus upgrades of full-year numbers, brokerage Davy says. "Volume guidance has been reiterated and margin guidance is broadly in line with market expectations," Davy analysts say.
Contact: London NewsPlus; sarka.halas@wsj.com
(END) Dow Jones Newswires
02-08-22 1224ET
