The FTSE 100 index closed Wednesday up 0.3% to 7961 points, as financial and oil-exposed stocks countered a widespread drop in global markets after hotter-than-expected U.S. inflation data, IG Chief Market Analyst Chris Beauchamp wrote in a note. The U.S. CPI reading suggests that a rate cut in June looks even less likely, he notes. "The FTSE 100 dropped on the news but has rapidly found its footing. Faced with such an uncertain outlook for the U.S., where valuations are much higher, investors continue to find the unloved U.K. market a compelling destination," he adds. Grocer Tesco was the index's top performer, with shares up 3.3% after the company guided for a profit increase supported by an improving consumer demand. HSBC was the second best performer followed by RS Group, up 2.9% and 2.2%, respectively.
COMPANIES NEWS:
Direct Line Insurance Taps Aviva's Jane Poole to Replace Neil Manser as CFO
Direct Line Insurance Group has appointed Jane Poole as new chief financial officer, replacing Neil Manser in October.
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Tesco Guides for Higher Profit as Consumer Sentiment Improves
Tesco expects profit to rise in the year ahead, signaling improving consumer demand as inflation tapers off.
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M&C Saatchi Pretax Profit Falls Amid Challenging Environment
M&C Saatchi reported a lower pretax profit and lower revenue reflecting challenging environment but said that its costs reduction plan and structural changes will lead to growth.
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THG Pretax Loss Narrows as Lower Costs Offset Revenue Decline
THG said its pretax loss narrowed on lower costs, although revenue fell due to the discontinuation of loss-making categories, and backed its guidance.
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NATS Appoints former Rolls-Royce CEO Warren East Chairman
NATS (En Route) said it has appointed former Rolls-Royce Chief Executive Warren East as Chair, succeeding Paul Golby, and that he will take up his post on Sept. 1.
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Speedy Hire to Meet Lower End of Targets, Revenue Set to Fall
Speedy Hire said it expects to report full fiscal-year results in the lower end of the board's expectations, and that revenue is set to fall on year.
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Treatt Expects Higher Pretax Profit Despite Lower Revenue
Treatt reported a strong half year with a higher adjusted pretax profit despite a decline in revenue reflecting the impact of destocking in the first quarter.
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e-Therapeutics Shares Fall on London Delisting Plan; Mulls Move to New York
Shares of e-Therapeutics fell 12% after the company said it is considering switching its listing to New York, a move that would deal a further blow to the London bourse following a spate of defections in recent months.
MARKET TALK:
Treatt Is Severely Undervalued Compared to Peers
0956 GMT - Treatt's shares are trading at a substantial discount compared to its peers, Peel Hunt analysts Charles Hall and Andrew Ford write in a research note. The U.K. supplier of flavor and fragrance ingredients' strong order book and pipeline of new business should boost confidence for growth in the second half, the analysts say. However, "the valuation gap between Treatt and peers is at extreme levels, reflecting some caution on short-term trading and U.K. smallcap discount," the U.K. brokerage adds. Shares are up 11% at 450.00 pence. (najat.kantouar@wsj.com)
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M&C Saatchi's Challenges Remain, But New CEO Should Bring More Stability
0925 GMT - M&C Saatchi's trading backdrop remains challenging, but new Chief Executive Officer Zaid Al-Qassab's start in May should add more certainty to the group, Peel Hunt analysts Jessica Pok and Melanie Yang write in a note. The U.K. advertising company is making strong progress driven by its cost-savings program, the analysts say. "Management is making big strides in simplifying the business and further progress is expected this year." However, for the shares to improve, the company need to see positive momentum in top-line growth, they add. Shares are down 2.3% at 171.00 pence. (najat.kantouar@wsj.com)
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HSBC's Sale of Argentina Business a Positive Move
0843 GMT - HSBC's decision to sell its Argentina business is a positive move, as it is in line with its business strategy of disposing non-core business to streamline operations, DBS Group Research analysts write in a note. By letting go of the "volatile business," HSBC can use the capital for operations elsewhere with better returns, they say. The valuation of the sale was also in line with similar deals in the region, they add. DBS has a buy rating on the stock with a target price of HK$74.60. Shares closed 1.4% higher at HK$64.80. (kimberley.kao@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
04-10-24 1228ET
