The FTSE 100 Closed Down 0.1% Despite Slight Rise in Oil

The FTSE 100 closed down 0.1% despite a slight rebound in the price of oil, with Brent Crude up 1.9% to $77.03 a barrel. "The basic-resource sector continues to act as a lag with weakness in Rio Tinto and Glencore, while retail is also a little softer today with JD Sports down for the second day in a row, while disappointing BRC retail sales for December [are] also weighing on the rest of the sector, with Ocado, Marks and Spencer and Kingfisher all near the bottom of the U.K. index," CMC Markets analyst Michael Hewson says in a note. Beazley was the session's largest faller, followed by JD Sports Fashion and Ocado, down 4.35%, 4.2% and 3.6% respectively. Severn Trent, GSK and Hikma Pharmaceuticals were the session's highest performers, up 2%, 1.8% and 1.75% respectively.

COMPANIES NEWS:

GSK Expands Respiratory Pipeline With Aiolos Bio Buy

GSK is buying biopharmaceutical company Aiolos Bio for up to $1.4 billion in a deal that expands its respiratory pipeline and follows a string of pharmaceutical majors buying fast-growing biotechs to restock their pipelines.

---

B&M European Value Backs Guidance, Declares Special Dividend

B&M European Value Retail backed its guidance for fiscal 2024 on the back of positive trading in the third quarter and announced a special dividend payout.

---

Unite Group Backs Guidance, Sees Strong Demand Ahead of New Academic Year

Unite Group backed guidance for growth and said it has seen strong demand for the upcoming academic year.

---

M.J. Gleeson Says Sales Slipped, But Expects Demand Recovery

M.J. Gleeson sold fewer homes, but expects a recovery in demand over the coming months and said its order book rose.

---

Shoe Zone's Profit Rose on Positive Summer Trading; Raises Dividend

Shoe Zone reported a pretax profit rise in fiscal 2023 on the back of a positive performance throughout the key trading periods, and increased its dividend payout.

---

SIG Expects Underlying Profit to Meet Upper End of Views

SIG said it expects its underlying profit to reach the top end of guidance despite a slip in like-for-like revenue.

---

Games Workshop Profit Rises on Sales Growth, Improved Margins

Games Workshop Group said pretax profit for the first half of fiscal 2024 rose, with core revenue growth in all channels and in all major countries while costs reduced.

---

Hays PLC to Miss Market Forecasts After December Slowdown

Hays PLC said that it expects to miss current market forecasts for the first half-year after net fees fell in the second quarter of fiscal 2024 following a more difficult December.

---

Jupiter Fund Management Shares Fall After Higher Outflows Expected

Jupiter Fund Management shares fell after the group said its net outflows for 2023 were worse than anticipated.

---

Hays PLC Shares Fall on Profit Warning

Hays PLC shares fell as much as 19% in early trade after the company said it expects to miss current market forecasts for the first half-year as net fees fell in the second quarter of fiscal 2024 following a more difficult December.

---

Games Workshop Finance Chief Rachel Tongue to Step Down

Games Workshop said that Chief Financial Officer Rachel Tongue will leave the company in January 2025.

MARKET TALK:

Jupiter Fund Management Drops After News of Manager's Exit

1448 GMT - Jupiter Fund Management shares tumble 15% after it said fund manager Ben Whitmore was planning to leave the FTSE 250-listed firm later this year to set up his own equity boutique. Whitmore manages Jupiter funds, trusts and segregated mandates with assets under management worth a combined GBP10 billion, Jupiter said. Meanwhile, Jupiter also said it had recruited Alex Savvides from JO Hambro Capital Management. Numis Securities says it has placed its hold recommendation under review whilst it gauges client reaction to the changes. "Whilst it's encouraging to see Jupiter has taken some steps to mitigate Ben's departure, we note the scale of AuM involved and the likelihood of at least some attrition," Numis analyst David McCann writes. ([e-mail])

---

Hays PLC Unsure if Weak Performance Reflects Jobs Market Slowdown

1338 GMT - Although Hays PLC issued a profit warning on lower 2Q net fees, the recruiter said it is too early to know whether or not this reflected a more sustained market slowdown, Interactive Investor analyst Victoria Scholar says in a note. A sluggish global growth backdrop combined with tighter monetary policy has dampened business appetite to incur additional fixed staffing costs, Scholar says. "And while temporary workers typically pick up the slack, Hays said it didn't see the 'normal seasonal step-up in worker volumes' dealing a double blow to the recruitment firm," she says. Shares are down 9% at 98.05 pence. ([e-mail])

---

Centamin's Drilling Results Show Potential for Standalone Plant

1313 GMT - Centamin's positive drilling results gives leverage to gold being a key exposure theme in 2024, Bank of America analyst Jason Fairclough writes in a research note. The London-listed gold miner's drill results from two targets close to its flagship Sukari mine in Egypt could one day underwrite deposits whereby ore could be trucked to Sukari, or even a new standalone plant, Fairclough says. "Early days, but encouraging nonetheless." BofA sees gold upside to above $2,100 an ounce, and Centamin's impressive turnaround provides leverage to this theme, the analyst says. "We think that Sukari is a Tier 1 asset and expect ongoing mergers and acquisitions in the subsector." Shares are up 0.9% at 95.20 pence. ([e-mail])

---

Hays Performance Might Signal a Slowdown in Jobs Market

1244 GMT - Hays PLC's investors will hope December's weak performance is just a blip and not a sign of a more sustained slowdown in the jobs market, AJ Bell says after the company issued a profit warning on falling 2Q net fees. The recruitment company flagged a 12% year-on-year drop in net fees and sees 1H operating profit dropping to GBP60 million, from GBP97 million the year prior, AJ Bell analyst Russ Mould says in a note. The weakness has spread to temporary hires, which could be a warning of a wider softening in the labor markets, something stock markets aren't currently entertaining, he says. According to Mould the 2Q rate of decline in permanent hiring hasn't gotten any worse and that is positive. Shares are down 7.4% at 99.70 pence. ([e-mail])

---

European Stocks Drop After Mixed Asia; Recruiters Fall

1215 GMT - European markets fall after mixed Asia trading and ahead of an expected lower U.S. open. The Stoxx Europe 600 drops 0.3%, the FTSE 100 retreats 0.1% and the CAC 40 and DAX backtrack 0.4%, with bank, property and tech losses offsetting gains for oil shares as Brent crude rises 2.2% to $77.82 a barrel. Recruitment stocks also fall after a profit warning from Hays. "Hays's management is unsure whether this is just a blip, caused by deferred decision-making, or a sign of a more sustained job-market slowdown, but equity investors will be hoping it's the former," AJ Bell's Russ Mould writes. IG futures show the Dow opening at 37496, versus Monday's close of 37683. Australian, mainland China and Japanese markets rose, but Hong Kong stocks fell. ([e-mail])

---

M.J. Gleeson's Short-Term Pain Presents an Attractive Investment Opportunity

1057 GMT - M.J. Gleeson is suffering from a number of site-specific issues on around 10 older sites across its house-building operations, but the short-term pain presents an attractive buying opportunity, RBC Capital Markets analysts say in a research note. The house builder's issues are being addressed, and the underlying business is performing well against the current macro headwinds, RBC says. However, RBC cuts its 2024 and 2025 pretax profit forecasts by 20% and 11%, respectively. "We believe it is positive that the new CEO and management team are proactively dealing with past site misgivings, and this should not detract from the bigger opportunity provided by Gleeson's growth story," the Canadian bank says. RBC cuts its price target to 525 pence from 550 pence. Shares are down 9.3% at 488.0 pence. ([e-mail])

---

B&M's Slow Sales Raise Specter of Weakening Consumer Backdrop

1042 GMT - B&M's sales growth slowed over the key Christmas quarter to 5% from 6.2% in the first half, prompting concerns about a broader U.K. retail demand slowdown on the back of the weakening consumer backdrop, Interactive Investor's Victoria Scholar says in a note. The convenience retailer's sales have largely benefited from the cost-of-living crisis as consumers trade down to cheaper stores, however, higher interest rates and risk of a recession could have a broader impact on consumer behavior and hit retailers even at the value end of the spectrum, Scholar says. Following the strongest period for retailers--the golden quarter--encompassing Christmas trading, the lull and the confluence of macroeconomic pressures in January and February are likely to be quite painful for the sector, she adds. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

01-09-24 1245ET