Gilts Unlikely to Fall in Value in Coming Months

UK Gilts Unlikely to Fall in Value in Coming Months

0914 GMT - U.K. government bonds have appreciated in value recently and there is no immediate catalyst for a move lower, says RBC Capital Markets. Gilts measured in asset swap spreads look "very rich across the curve following recent moves," analysts at the bank say. This coupled with likely net negative gilt supply for the rest of this fiscal year suggests gilts will not "cheapen right away." The analysts recommend investors only oppose elevated gilt prices if the March Asset Purchase Facility reinvestment programme doesn't go ahead and/or if net gilt supply in the fiscal year 2022/23 looks set to be its highest in over a decade. ([e-mail])

 
Companies News: 

AB Foods Reports FY 2021 Earnings Rise with Primark Growth, Declares Special Dividend

Associated British Foods PLC on Tuesday reported higher profits for the fiscal year ended Sept. 18, as Primark earnings rose, and declared a special dividend alongside the ordinary payment.

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Persimmon Sales Remain Above Pre-Pandemic Levels; Sees 2021 Increase

Persimmon PLC said Tuesday that performance over the summer was good with private sales reservations rates well above pre-pandemic levels, and that it expects full-year completions to increase.

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Vistry Sees 2021 Profit in Line With Management Views

Vistry Group PLC said Tuesday that it is on track to deliver 2021 pretax profit in line with management expectations, and it has a strong forward sales position going into 2022.

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Coca-Cola Europacific Partners 3Q Revenue Rose; Raises 2021 Guidance

Coca-Cola Europacific Partners PLC said Tuesday that revenue for the third quarter rose, and that it is raising its guidance for the year.

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Savills Sees 2021 Profit Ahead of Pre-Pandemic Levels

Savills PLC said Tuesday that its performance has been strong since June, and that it expects full-year profit to materially exceed levels achieved before the coronavirus pandemic.

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Direct Line Insurance: 3Q Gross Written Premiums Grew But Own-Brand Motor Reduced

Direct Line Insurance Group PLC said on Tuesday that gross written premiums increased in the third quarter of 2021 but its own-brand motor premiums fell.

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Grafton Group Says 10-Month Revenue Increased; Raises Full-Year Profit Guidance

Grafton Group PLC said Tuesday that revenue in the first ten months of the year grew steadily on strong demand, and that it is increasing its adjusted operating profit guidance for the full year.

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Blue Prism Group Sees Higher FY 2021 Bookings; Backs FY Earnings Guidance

Blue Prism Group PLC said Tuesday that it expects total bookings for fiscal 2021 to be higher than last year and backed its earnings guidance.

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GYG Says 2021 Results Will Be Below Expectations After Shipyard Disruption

GYG PLC said on Tuesday that its financial outturn for 2021 will be much lower than the board's previous expectations.

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3i Infrastructure 1H Profit Rose; Raises Dividend

3i Infrastructure PLC said Tuesday that pretax profit in the first half of fiscal 2022 rose significantly on higher investment returns and a strong portfolio performance, and raised its interim dividend.

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Oxford Nanopore Technologies Raises Revenue Guidance on Contract Win

Oxford Nanopore Technologies PLC said Tuesday it is increasing its revenue guidance for 2022 and 2023 after it won a large contract in the United Arab Emirates.

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James Cropper Shares Rise on 1H Swing to Profit, Return of Dividends

James Cropper PLC shares rose in early trading Tuesday after it said it swung to a pretax profit for the first half of fiscal 2021, and reintroduced dividends.

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Arc Minerals Says Order on Zambian Mine Has Been Set Aside

Arc Minerals Ltd. said Tuesday that a court has ruled in favor of its Zambian subsidiaries in a case related to the Kalaba mine.

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Alfa Financial 3Q Revenue Rose; 2021 Revenue Seen Ahead of Views

Alfa Financial Software Holdings PLC said Tuesday that revenue for the third quarter rose, and that it expects to exceed the board's 2021 revenue estimates by around 3%.

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Oxford Instruments 1H Pretax Profit Grew, Backs FY View

Oxford Instruments PLC on Tuesday reported an improved profit for the first half of the fiscal year and said its full-year expectations are unchanged despite supply chain pressures.

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Watches of Switzerland Shares Jump on Improved Outlook

Shares of Watches of Switzerland Group PLC rose on Tuesday after the company upgraded its full-year guidance after a better-than-expected performance over the first half of fiscal 2022 on strong demand.

 
Market Talk: 

Persimmon Doesn't Look Cheap But Does Look Good Value

0922 GMT - Persimmon's update shows new house demand remains robust, and cost inflation is being countered by higher selling prices and moves to manufacture its own raw materials, Interactive Investor says. The house builder's price to net asset value ratio of 2.5 is comfortably above rivals Barratt Developments and Taylor Wimpey, suggesting the shares are obviously expensive, the investment platform says. That said, land buying opportunities are still being found and recent changes to curtail house-buying assistance haven't hindered the sector, Interactive Investor says. "In all, and with the shares sat on an historic and estimated future dividend yield of over 8%, analyst consensus opinion continues to point to a buy," Interactive Investor says. Shares are down 1.4% at 2,682.0 pence. ([e-mail])

AB Foods' Special Dividend Signals Major Change From Management

0902 GMT - Associated British Foods' special dividend of 13.8 pence a share represents a return of GBP110 million, Shore Capital estimates. While being relatively modest at this stage, the special distribution signals a major change in management thinking for the better, the U.K. investment group says. In addition, permission to engage in share buyback activity is also being sought from the conglomerate's shareholders, which is seen by Shore as a sensible idea given current modest valuations. "We see today as an inflection point in the recent history of ABF, one where the board has showed that it cares about all shareholder interests, that it has listened and that it is acting," Shore says. ([e-mail])

Persimmon's Update Doesn't Rock the Boat

0800 GMT - Persimmon's market update was reassuring, reiterating its target to deliver 10% volume growth in 2021 and return to 2019 levels by 2022, and overall changes to consensus on the back of it are unlikely, Citi says. The housebuilder's investors' focus will remain on continued planning delays, planned site launches into spring and the potential for acceleration in build activity next year, the bank says. Persimmon's performance remains supportive with a private sales rate above pre-pandemic levels, and it retains a healthy forward order book and robust net cash balances of GBP895 million, Citi says. The bank retains its buy rating and price target of 3,203 pence. ([e-mail])

ABF Posts Slightly Better-Than-Expected FY 2021 Results

Associated British Foods posted a slightly better-than-expected set of results for the year ended Sept. 18, RBC Capital Markets says. Ebit for the Primark and Sugar divisions was better than forecast, whereas Grocery, Ingredients and Agriculture delivered in line with expectations, the bank says. In addition, the special dividend of 13.8 pence a share wasn't expected, RBC says. Moreover, ABF expects Primark sales to increase by at least the GBP2 billion lost because of closed stores in the last fiscal year, the bank's analysts note. RBC has an outperform rating on the British conglomerate with a 2,300 pence price target. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

11-09-21 0441ET