The FTSE 100 edged down 0.03% on Friday, with major banks dragging the index lower ahead of the weekend. Standard Chartered fell 2.4%, NatWest declined 2.2%, HSBC dropped 1.6%, and both Lloyds Banking and Barclays were down 1.7%. Energy majors BP and Shell also finished the week in the red. Conversely, shares in miners rose, led by Anglo American. Informa was the best performer on Friday. Berenberg raised its recommendation on the business publisher and exhibition organizer to buy, and the stock closed 3.2% higher. "Restrictions, which have prevented the running of large trade shows, are being eased globally, and while 2021 shows will be smaller and less profitable than normal, we think they set Informa up for a substantial recovery in profitability from 2022," the brokerage said in a note.


 
Companies News: 

GYG's Deadline for Harwood Capital Bid Extended Again

GYG PLC said Friday that the U.K. Takeover Panel has extended to July 23 the deadline for its second-largest shareholder Harwood Capital to give a firm intention to make an offer or walk away.

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CMOStores.com to Raise GBP27.3 Mln in London IPO

CMOStores.com Ltd. said Friday that it is raising 27.3 million pounds ($37.6 million) as part its initial public offering on London's junior AIM.

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LungLife AI Raises GBP17 Mln in London IPO

LungLife AI said Friday that it has raised 17 million pounds ($23.4 million) as part of its initial public offering on London's junior AIM.

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Grit Enters $25 Mln Loan Deal to Fund Kenyan Site Acquisition

Grit Real Estate Income Group Ltd. said Friday that it has entered a $25-million loan agreement with the International Finance Corporation in order to acquire and redevelop a warehousing and manufacturing facility in Nairobi, Kenya.

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I3 Energy 2Q Production Rose; Finishes First Well at Marten Hills

i3 Energy PLC said Friday that production rose in the second quarter and that it has finished drilling its first well at Marten Hills in Canada.

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Oilex Appoints Colin Judd as CFO

Oilex Ltd. said Friday that it has appointed Colin Judd as chief financial officer, effective as of Thursday, and that it intends to appoint him as a director in due course.

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Chesterfield Resources Shares Fall on Discounted Share Placing

Shares of Chesterfield Resources PLC fell 9.5% on Friday after the company said that it has raised 800,000 pounds ($1.1 million) via the share placing first announced late Thursday, slightly more than planned.

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Bidstack Shares Drop on Discounted GBP10.9 Mln Equity Raise

Shares in Bidstack Group PLC fell Friday after the company raised 10.9 million pounds ($14.9 million) via a discounted share issue to fund the development of a new advertising platform.


 
Market Talk: 

Aveva's Transition to SaaS Seen as Financially Accretive

0930 GMT - Aveva is continuing to expand addressable markets by filling spaces in its product portfolio as it leverages its leading market position, Jefferies says. The engineering and industrial-software company is shifting toward software as a service or other hybrid deployments as it released a fiscal 2026 SaaS revenue target representing 25% of revenue, Jefferies says. "We see the transition to SaaS as financially accretive for Aveva, leading to an annual contract value uplift of over 50% to 60% versus on-premises subscriptions, in turn resulting in higher EBIT and EBIT margin," the U.S. bank says. Jefferies rates the stock a buy with a 4,600 pence target price. Shares are up 0.9% at 3,843 pence.

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Morgan Advanced Materials Looks Cheap and Attractive, Jefferies Says

0920 GMT - Morgan Advanced Materials continues to be overlooked by investors, but its prospects are attractive and shares are cheap, Jefferies says. The ceramic, carbon and composite products provider's 1H interims are expected to show healthy on-year sales recovery and Ebita margin progress and, while fireworks aren't expected, management are likely to reiterate longer-term Ebita margin upside opportunities, Jefferies says. Morgan is one of the cheaper U.K. industrials under Jefferies's coverage, and its appealing valuation should make it an attractive option to investors, the bank says. Jefferies reiterates its buy rating and raises its price target to 420 pence from 405 pence. Shares are up 2.4% at 368.5 pence.

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Glencore Shares Expected to Recover After Investigations Are Over

0919 GMT - Three years ago, Glencore received a subpoena from the U.S. Justice Department regarding its business in Nigeria, the DRC and Venezuela. Shares fell 8% that day and haven't recovered since, Jefferies says. However, the stock is expected to re-rate following ESG improvements and the completion of continuing regulatory investigations, including the DOJ investigation, Jefferies notes. The U.S. bank believes the consensus is that fines will be between $1 billion and $2 billion, and anything below that would be a clear positive for the commodity major. "As a large producer of copper, cobalt and nickel, Glencore is the most leveraged of the major diversified miners to battery materials and decarbonization policies," Jefferies says.

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Informa Profits Set For 'Substantial Recovery'

0915 GMT - Informa shares have further to go, says Berenberg, which increases its recommendation on the business publisher and exhibition organizer to buy from hold and its price target to 640 pence from 610p. Having lagged other 're-opening' trades, Informa could make solid gains on a 12-month view, Berenberg says. While consensus profits for 2021 need to fall, the medium- and long-term outlook is still robust, the brokerage's analysts say. "Restrictions, which have prevented the running of large trade shows, are being eased globally, and while 2021 shows will be smaller and less profitable than normal, we think they set Informa up for a substantial recovery in profitability from 2022." Shares rise 2.8% to 527 pence.

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Glencore Expected to Pivot Toward Industrial Business Under New CEO

0908 GMT - Under the leadership of new Chief Executive Officier Gary Nagle, Glencore will become more dependent on its industrial businesses and less dependent on marketing, Jefferies expects. Despite ESG concerns and the company's green commitments, the Switzerland-headquartered commodity major has been acquiring coal assets from other major miners, and a demerger of this business is unlikely, Jefferies says. Mr. Nagle on Thursday replaced Ivan Glasenberg, who is retiring as CEO after nearly 20 years in the role.

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Tapering of UK Jobs Support Seen as Risk to Pound

0831 GMT - The winding down of the U.K. government's job retention scheme could have negative implications for sterling, MUFG Bank says. "Our bullish view on GBP is based in part on the Bank of England later this year being in a position to signal a quicker end to stimulus and a start to rate hikes (late 2022)," MUFG analyst Derek Halpenny says. A potential rise in unemployment as the furlough scheme is scaled back is a risk to that view, he says. Rising coronavirus cases could severely impact certain sectors where workers are still on the furlough scheme, which started tapering support on Thursday, he says. GBP/USD is flat at 1.3765 and EUR/GBP falls 0.2% to 0.8597.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

07-02-21 1217ET