The FTSE 100 closed down 2.35 points, or 0.03%, after "a strong showing from heavyweight oil stocks helped make up for weakness elsewhere," AJ Bell investment director Russ Mould said in a market comment. Shares in Shell and BP rose along with oil prices on escalating tensions in the Middle East, which also propped up gold prices, helping Fresnillo to top the FTSE 100 gainers. The share-price dips of Schroders and Kingfisher dragged the blue-chip bourse after receiving rating cuts from RBC Capital Markets and Exane BNP, respectively.
COMPANIES NEWS:
Inspecs Revenue Misses Company Expectations; Remains Positive for New Year
Inspecs Group said revenue for last year was flat, missing the board's expectations due to a soft market in December, but that it remains positive for the new year with new accounts and distribution in place.
---
Ferrexpo Subsidiary Faces $125 Mln Claim in Ukraine Over Loan Agreements
Ferrexpo said a Ukrainian court has confirmed a claim against its subsidiary Ferrexpo Poltava Mining for 4.73 billion Ukrainian Hryvnia ($125 million) regarding contested guarantees related to certain loan agreements.
---
Tritax Big Box Contracted Rent Rose Though Vacancies Also Increased
Tritax Big Box REIT said its annual contracted rents and estimated rental values rose, though vacancies also increased.
---
Safestay Expects to Beat Market Revenue Forecast
Safestay expects to beat revenue forecast for last year, which it said reflects recovery from the pandemic.
---
Air Astana Targets Market Cap of Up to $962 Mln in IPO
Air Astana said the price range of its initial public offering has been set at $2.13 to $2.75 a share, and that this would result in a market capitalization of between $770 million to $962 million.
MARKET TALK:
Chill Brands Shares Dive on U.K. Plan to Ban Disposable Vaping
1457 GMT - Chill Brands shares fall 30% on Monday after the U.K. government proposed to ban disposable vaping. "Rishi Sunak made it perfectly clear last year that he will not tolerate the rise in young people taking up vaping so the ban on disposables seemed inevitable," AJ Bell investment director Russ Mould says in a note. The company said that it won't be affected by the proposal given that its devices aren't classified as disposable because of their recharging ports, Mould notes. However, investors seem to weigh a major risk to earnings whether it is from the government's latest plans or its general effort to stop young people from getting into the vaping habit, he notes. Shares over the last 12 months are up 31%. (michael.susin@wsj.com)
---
BOE Gilt Sale Program Could Continue Well Into 2025
1429 GMT - The Bank of England's sale of gilts, as part of reducing its asset purchase facility holdings, could continue throughout 2024 and well into 2025, Danske Bank Research analysts say in a note. The gilt sale program, also known as quantitative tightening, has the effect of tightening monetary policy and liquidity conditions. "We look for the BoE to continue QT even as it starts to cut interest rates later in 2024 - likely from June," they say. The BOE is likely to continue its quantitative tightening program for longer than the U.S. Federal Reserve and the European Central Bank, Danske Bank says. (miriam.mukuru@wsj.com)
---
Superdry Gains After Flagging Possible Cost Cuts
1413 GMT - Superdry shares rise 5% after the fashion retailer said it was considering various "material" cost-cutting measures. "Whilst there's no certainty that any of these options are progressed, they aim to build on the success of the cost-saving initiatives carried out by the company to date and position the business for long-term success," Superdry said in a statement. The company is stuck in a difficult mid-market spot where consumers are cutting back spending, Hargreaves Lansdown says. "There's no dressing up the challenge ahead," HL's head of money and markets Susannah Streeter writes, adding that HL believes the cuts might include shop closures and job losses. (philip.waller@wsj.com)
---
Serabi Gold Loses Sparkle After 4Q Output Falls Short
1339 GMT - Serabi Gold shares drop 12% to 38 pence after the Brazilian gold miner reported worse-than-expected fourth-quarter production. The company's 4Q output of 7,891oz was below Peel Hunt's forecast of 8,652oz, while full-year production of 33,153oz was also slightly short of the brokerage's estimate of 33,913oz, albeit up 4.2% on 2022, Peel says. "Serabi Gold reported a steady year-on-year increase in gold production for 2023, with a weaker 4Q for the Palito complex partially outweighed by accelerating development at Coringa," Peel analysts say in a note, reiterating their buy recommendation and 80 pence price target. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
01-29-24 1237ET
