FTSE 100 Rises as Bumper Nvidia Results Boost Sentiment

FTSE 100 Rises as Bumper Nvidia Results Boost Sentiment

0936 GMT - The FTSE 100 index rises 0.4% to 7346.27 as equity markets get a boost from bumper earnings from Nvidia after the U.S. close and as Wednesday's purchasing managers' data, including in the U.K., tempered prospects of more interest-rate rises. Traders are cautious, however, ahead of Federal Reserve chief Jerome Powell's speech on Friday at the Jackson Hole symposium. Retailers are among the biggest risers, with JD Sports Fashion up 4.4% and grocer and tech company Ocado up 2.5%. "After knock-out results from U.S. tech outfit Nvidia overnight the FTSE 100 enjoyed a broad-based rally on Thursday morning," writes AJ Bell investment director Russ Mould. ([e-mail])

COMPANIES NEWS:

Intertek Buys PlayerLync for Undisclosed Sum

Intertek Group has bought PlayerLync Holdings, a provider of mobile-first training and learning content, for an undisclosed sum.

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Harbour Energy Narrows Full-Year Production View as Pretax Profit Drops

Harbour Energy narrowed its full-year production guidance to the lower end of the range, after pretax profits dropped in the first half of the year amid weaker energy prices.

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Drax Group Appoints Andrea Bertone as Chair Designate

Drax Group has appointed Andrea Bertone as nonexecutive director and chair designate effective Thursday.

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Hunting Earnings, Revenue Surge on Strong Energy Demand

Hunting said its earnings soared in the first half of the year on the back of revenue boosted by strong demand across oil and gas industries, and that it has lifted its interim dividend payout.

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Liontrust Asset Management to Declare GAM Offer as Failed Next Week

Liontrust Asset Management expects to declare its offer for Zurich-listed investment manager GAM Holding as unsuccessful next Tuesday after preliminary figures showed that it has failed to get the minimum acceptance level required for it to proceed.

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Hays Declares Special Dividend Despite FY 2023 Profit Fall; Appoints New CEO

Hays said that fiscal 2023 pretax profit fell on the back of increased expenses, released a special dividend and announced the appointment of a new chief executive officer.

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Benchmark Holdings 3Q Pretax Loss Narrowed on Lower Costs

Benchmark Holdings said that third-quarter pretax loss substantially narrowed driven by a robust fall on costs and said that it is performing within market expectations.

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Hunting Launches Strategic Operational Restructure

Hunting has begun a restructure of its operations in addition to disposing legacy non-core assets in a bid to enhance returns and lower the cost base.

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Redcentric Keeps Stable Dividend After FY 2023 Pretax Loss on Higher Expenses

Redcentric reported a swing to fiscal 2023 pretax loss as operating expenses more than doubled, and declared a flat dividend payout.

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Malvern International Shares Jump on Return to 1H Profit as Revenue Doubles

Shares of Malvern International rose 22% in early trade after the company said that it expects to report a return to profit for the first half-year on revenue that more than doubled on the back of strong student uptakes.

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James Cropper Cuts Dividend As FY 2023 Profit Fell on Higher Costs

James Cropper said that pretax profit for fiscal 2023 has more than halved on the back of increased costs despite a revenue increase, and cut its dividend payout.

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MacFarlane Group Pretax Profit Rose on Acquisitions, Performance in Europe

MacFarlane Group said its pretax profit rose in the first half of the year despite weakening demand in some markets, and that it raised its interim dividend payout.

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Cordiant Digital Infrastructure to Buy Irish Fiber Infrastructure Provider

Cordiant Digital Infrastructure is buying Irish open access fiber infrastructure provider Speed Fibre DAC for 97 million euros ($105.4 million).

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Tribal Group 1H Profit Rose on Education Services Performance

Tribal Group reported a first-half pretax profit increase driven by a performance improvement in its education-services business.

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Zamaz to Change Name to Dispensa; Appoints New Nonexecutive Chair

Zamaz said that it will change its name to Dispensa Group and that it has appointed a new nonexecutive Chair.

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Fusion Antibodies Taps Stephen Smyth as Interim CFO

Fusion Antibodies said it has appointed Stephen Smyth as interim chief financial officer with immediate effect.

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Ashington Innovation to Buy Calon Cardio-Technology in All-Share Deal

Ashington Innovation has signed a preliminary agreement to buy Calon Cardio-Technology for 39 million pounds ($49.6 million) in shares, conditional upon the completion of its reverse takeover of Cell Therapy.

MARKET TALK:

CAB Payments Is a High Growth Cash Generator But Wrongly Priced

0932 GMT - CAB Payments is well placed to sustain high growth rates and cash and capital generation but it is too cheap, Liberum says in a note on the fintech group which recently floated in London. Despite the positive news flow after the IPO, it trades at the cheapest among global payments and foreign exchange universe peers, analysts Nick Anderson and James Allen write. "This is wrong," they say, pointing to the group's competitive advantages, blue-chip client base and clear customer traction with which it is disrupting the B2B emerging-market cross-border payments sector delivering a superior product versus incumbents. Liberum starts coverage of the stock with a buy rating and 480 pence target price. Shares edge up 1.4% at 250 pence. ([e-mail])

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Drax New Chair Designate Adds Strong Value

0928 GMT - Drax's appointment of Andrea Bertone as chair designate is positive as it brings in additional significant experience in North America, RBC analysts write in a research note. "We expect [the appointment] will be a strong value add as the company looks to build out bioenergy with carbon capture and storages," they say. The U.K. power-generation company's U.S. bioenergy carbon-capture and storages business is headquartered in Houston, Texas, where Bertone is a resident, they say. Shares are up 0.7% at 560.60 pence. ([e-mail])

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Gilt Yields Fall as Weak Data Dent UK Interest-Rate Prospects

0926 GMT - Gilt yields extend Wednesday's falls after weaker-than-expected U.K. provisional purchasing managers' data, which likely rule out prospects of a larger 50 basis-point interest-rate hike by the Bank of England in September, writes Nick Rees, analyst at Monex Europe. The data showed that significant interest-rate rises are increasingly weighing on the U.K. economy, leaving the potential that a 25bps rate rise in September could mark the peak, he says. Markets currently price an 89% chance of a 25 basis-point rate rise in September and an 11% chance of no change, Refinitiv data show. A week ago, markets priced a 9% chance of a 50bps increase. The 10-year gilt yield falls 8 basis points to 4.395%, according to Tradeweb. ([e-mail])

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Liontrust's Failed GAM Offer Derisks Investment Case

0923 GMT - Liontrust's investment case is derisked by the failed tender offer for Zurich-listed investment manager GAM Holding, Peel Hunt says in a note after the group sustainability-focused investment manager said it didn't win enough shareholder support. The deal would have brought execution risks and uncertain financial benefits given Liontrust's continued assets under management declines, analysts write. It faces strategic issues such as the risk of further M&A given management's willingness to undertake complex acquisitions to diversify the business, they say. "Conversely, the fall in Liontrust's shares and currently low valuation multiples could render it as a target for others," they add, pointing to the share drop on fears over the GAM takeover. Peel Hunt upgrades the stock to buy from under review. Shares, down 40% year-to-date, rise 11%. ([e-mail])

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Liontrust's Failed GAM Bid Cheered by Market

0910 GMT - Liontrust Asset Management is the FTSE 250's best performer, with shares up 11% after its offer for Zurich-listed investment manager GAM Holding is expected to have failed lacking shareholder support. "As we have consistently noted throughout this sorry affair, we saw the deal as a value destructive one from a Liontrust perspective," Numis analyst David McCann writes in a note. The U.K. sustainability-focused investment manager's shares have lost around 37% since the GAM rumors emerged, though some of it on weaker-than-expected performance, he notes. Attention will return to the existing business once the dust settles and while the stock may enjoy a minor relief, it seems unlikely the full share price losses will be recovered soon, McCann adds. ([e-mail])

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Hunting Restructuring Plans Should Support Long-Term Margin Target

0855 GMT - Hunting's interim numbers are broadly in line, with international profitability improving, supported by a significant rise in its order book, Jefferies analysts Mark Wilson and Jamie Franklin write in a research note. The energy-services group issued restructuring plans in line with its 2030 strategy to enhance returns and lower costs. The plans include a facility closure in Netherlands and a site closure in Oklahoma, which "should support margin enhancement toward long-term 15% Ebitda margin target," the analysts say. Jefferies rates the stock a buy with a 350-pence price target. ([e-mail])

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Harbour Energy Booked a Beat on Cash But a Miss on Earnings

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08-24-23 0554ET