FTSE 100 Opens Higher as Oil Stocks Get Boost From Saudi Output Cut

FTSE 100 Opens Higher as Oil Stocks Get Boost From Saudi Output Cut

0821 GMT - The FTSE 100 is up 0.5% at 7644.30 in early trade as Friday's unexpectedly strong U.S. jobs data show a strong U.S. economy while higher unemployment and slower wage growth keep alive prospects of the Federal Reserve pausing rate rises this month. Gains for heavyweight oil stocks boost the index after Saudi Arabia announced a planned oil-output cut, lifting the cost of a barrel of Brent crude by 2.2% to $77.81. Both BP and Shell rise by 1.1%, while telecoms firms Vodafone and BT lead gainers, up 3.0% and 2.9% respectively, as they recover after recent falls. Precious-metal miners are among the main losers, with Endeavour Mining down 3.1% and Fresnillo falling 2.2%. ([e-mail])

COMPANIES NEWS:

Bigblu Broadband Reports Flat 1H Revenue

Bigblu Broadband said Monday that total revenue for the six months ended May 31 was flat on the year prior at 14.9 million pounds ($18.6 million) and that total customers at period end rose to 62,600 from 60,400.

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Diageo Names Debra Crew Interim CEO Effective Immediately

Diageo PLC said Monday that Debra Crew has been appointed interim chief executive officer with immediate effect, ahead of her planned joining date as CEO in July 1.

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Polymetal International Subsidiary CEO, CFO Resign

Polymetal International said Monday that the chief executive officer and the chief financial officer of its Russian-registered subsidiary JSC Polymetal have resigned from all executive positions.

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Lifesafe Sales in Year to April Grew More Than Expected

Lifesafe Holdings on Monday said its sales growth over the first four months of 2023 have continued to exceed its expectations and that it is well-placed for its seasonally busier second half.

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Hercules Site Services 1H Pretax Loss Narrowed as Revenue Jumped

Hercules Site Services said Monday that its pretax loss narrowed in the first six months of fiscal 2023 due to strong market dynamics and demand.

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Deepverge Makes Cost Reductions; Cautions 2022 Accounts Could Be Delayed

Deepverge said Monday that it will carry out cost reductions and may not be able to publish its 2022 accounts before the AIM rules deadline, and it is contemplating a potential sale of one or more lines of the business.

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Concurrent Technologies Says 2023 Performance in Line With Views

Concurrent Technologies said Monday that its performance in 2023 has been in line with market expectations and the board sees potential to improve further as supply recovers.

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Hargreaves Services Chair Roger McDowell Takes Temporary Sabbatical

Hargreaves Services said Monday that Chair Roger McDowell is taking a temporary sabbatical for personal reasons with immediate effect.

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Flowtech Fluidpower Chairman Steps Down Temporarily

Flowtech Fluidpower said Monday that Chairman Roger McDowell has handed over his role until Aug. 31 to Nonexecutive Director Jamie Brooke in order to tend to a family health matter.

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Verici's Tutivia Given Proposed Gapfill Rate Price; 2022 Loss Widened

Verici Dx said Monday that its Tutivia product has been given a proposed gapfill median rate price of $2,650 a test, and that its 2022 pretax loss widened on higher expenses.

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Avingtrans Chairman Roger McDowell Takes Sabbatical

Avingtrans said Monday that Chairman Roger McDowell was taking a temporary sabbatical for family health reasons with immediate effect, and that Les Thomas will assume the interim chairman position in his absence.

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Haydale Graphene Industries Appoints Patrick Carter as CFO

Haydale Graphene Industries on Monday named Patrick Carter as its new chief financial officer with immediate effect.

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Ironveld Appoints Malebo Ratlhagane Deputy CFO, Brian James Acting Group CFO

Ironveld said Monday Malebo Ratlhagane has been appointed deputy chief financial officer with immediate effect and that Brian James will take on the role of acting group CFO in a non-board capacity over a transitional period of around 12 months.

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Amicorp FS Plans London IPO, Raising Around $16.2 Mln in Placings

Amicorp FS (UK) said Monday that it expects share placings to raise around $16.2 million as part of its initial public offering on London's junior AIM in early June.

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Mondi Pulls Out of Syktyvkar Disposal Agreement; Committed to Eventual Sale

Mondi said Monday that it is pulling out of an agreement to sell Syktyvkar, its most significant facility in Russia, and two affiliated entities to Augment Investments, but that it remains committed to divesting the assets.

MARKET TALK:

Diageo's New CEO has Plenty of Work to do Boosting Shares

0802 GMT - Diageo has named Debra Crew its new CEO immediately, earlier than the expected July 1 appointment date as departing CEO Ivan Menezes is in hospital, Interactive Investor says. The drinks maker's new appointment is encouraging, though it also highlights how few women there are in CEO roles on the blue-chip index, Interactive head of investment Victoria Scholar says in a market comment. "Shares in Diageo are down around 7% so far this year amid the backdrop of the cost-of-living crisis and inflationary cost pressures, underperforming the FTSE 100 which is modestly higher, suggesting there is plenty of work for Crew to do to reinvigorate the shares," Scholar says. Shares are down 0.2% at 3,367.5 pence. ([e-mail])

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Diaceutics's New Contract Win Underpins Growth Expectations

0800 GMT - Diaceutics has secured a three-year contract with a major pharma client, providing further validation of its accelerated investment to optimize platform scalability and underpinning market expectations, Canaccord Genuity says. The U.K. diagnostics company should be able to accelerate growth from 23% in 2023 to 30% by 2025, Canaccord analysts say in a research note. "On [the current share price], Diaceutics trades at a 50% discount to peers, which looks too cheap given the growth trajectory," the Canadian investment bank says. Canaccord retains its buy rating and 150 pence price target. Shares are up 14% at 91.5 pence. ([e-mail])

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Hunting's New Alliance Looks an Important Development

0753 GMT - Hunting's 10-year alliance with Jiuli Hi-Tech Metals for the supply of corrosion resistant alloys is an important development, RBC Capital Markets says. The energy-services group's deal will see it use the alloys in products across key geographies, including the U.S., where the outlook for growth in carbon capture, utilisation and storage--or CCUS--and geothermal wells is underpinned by funding from the inflation reduction act, RBC analyst Victoria McCulloch says in a research note. "Although today's announcement from Hunting doesn't impact our financial estimates, it provides greater visibility on the company's ability to participate materially in energy transition end markets, particularly CCUS and geothermal," the Canadian bank says. RBC retains its outperform rating and 400 pence price target on the stock. Shares are up 0.9% at 224.0 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-05-23 0446ET