FTSE 100 Roars Back on Tuesday, Driven by M&A -2-

0928 GMT - Kingfisher reported a better-than-expected first half, but the European home-improvement retailer needs to show it can keep up the pace for the rest of the year, AJ Bell says. The retailer's numbers in the six months to the end of July were strong, but the second half is when Kingfisher really has a tough act to follow, Bell says. "While Kingfisher expects a bit of a drop-off, the decline is looking shallower than previously expected, which is significant, particularly as even in the worst-case scenario, the performance would still be ahead of pre-Covid levels," Bell's investment director Russ Mould says. "The company seems still to be benefiting from the home-improvement drive." Shares fall 5%. ([e-mail])

Stagecoach Might Have Other Buyers Due to Its Key Position in the UK

0915 GMT - National Express has pitched its interest in Stagecoach as a merger but the company is basically trying to buy it, Russ Mould at AJ Bell says. The benefits of pairing both transport companies are many and include a bigger footprint for National Express in growth areas such as private coach hire and corporate transport, Mould says. Still, a factor to consider is if another entity might be interested in Stagecoach, such as an overseas transport operator, given its key position in various parts of the U.K., he says. "It isn't an easy feat to build up a large position in the U.K. public transport market and Stagecoach now has 8,400 buses and coaches." National Express shares are up 7.7% and Stagecoach is up 20%. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [e-mail]

(END) Dow Jones Newswires

09-21-21 1202ET