FTSE 100 Rises as Oil, Mining Stocks Gain Ahead of Powell Speech
0836 GMT - The FTSE 100 rises 0.3% to 7352.74, led by gains in heavyweight oil and mining stocks as the price of a barrel of Brent crude rises 0.9% to $83.71, while base-metal prices edge higher. Traders stay cautious, however, ahead of a speech later by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, where any suggestion that rates could rise further would hurt risk appetite and weigh on equities. "It would take a brave person to load up on shares just before Federal Reserve chair Jerome Powell makes his speech later today," writes Russ Mould, investment director at AJ Bell. Chilean miner Antofagasta rises 2% while oil giant BP is up 1.2%. (jessica.fleetham@wsj.com)
COMPANIES NEWS:
John Lewis Partnership to Hire Over 10,000 New Staff in Coming Months
The John Lewis Partnership is planning to hire more than 10,000 people across the country over the coming months, of which 8,400 are Christmas temporary jobs.
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CMC Markets Warns of Fall in Operating Income Due to Weaker Market Conditions
CMC Markets said net operating income for fiscal 2024 is expected to fall on the back of lower revenue, amid subdued market conditions.
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DWF Group's Pretax Profit Fell on Higher Costs; Halts Dividend Due to Takeover Offer
DWF Group said its pretax profit fell in fiscal 2023 due to a rise in administrative costs, and that it won't declare a dividend due to the proposed takeover offer by Inflexion.
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Kazatomprom Profit Soars on Higher Uranium Prices
NAC Kazatomprom net profit for the first half of 2023 rose sharply on the back of a significant improvement in the uranium market, the company said Friday.
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Shearwater Group 1Q Revenue to Beat Prior Year
Shearwater Group has now received a number of delayed contracts and said revenue for the first quarter of the year has beat that for the comparable period a year earlier.
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Mast Energy Developments' Pretax Profit Widens on Higher Costs, Lower Revenue
Mast Energy Developments' pretax loss widened in the first half of the year due to lower revenue and higher costs, it said Friday.
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Premier African Minerals to Raise $5 Mln to Fund Zimbabwe Project
Premier African Minerals has launched a discounted share placing and direct subscription in order to raise 4 million pounds ($5 million) to fund the development of the Zulu project in Zimbabwe.
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Zenova Pretax Loss Narrows on Improved Sales
Zenova Group's first-half pretax loss narrowed on the back of improving revenue generation as international sales contracts commenced, it said Friday.
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Watches of Switzerland Shares Dive on Rolex's Acquisition of Bucherer
Shares of Watches of Switzerland Group fell as much as 29% in early trade after Rolex agreed to buy watch retailer Bucherer in a deal that will give it more control over how its watches are sold.
MARKET TALK:
Watches of Switzerland Could Be Cannibalized by Rolex's Plans
0829 GMT - Watches of Switzerland investors could be fearing that Rolex's acquisition of Bucherer would confirm that Rolex's mid to long-term strategy is to capture more of the value chain, RBC Capital Markets analysts Piral Dadhania and Richard Chamberlain say in a note. Rolex's distribution consolidation through its own network would cannibalize other retail players, including Watches of Switzerland, they say. "Bucherer is a foot in the door, and now that it is capitalised by Rolex, it could pursue a more aggressive expansion plan if it chooses too," the analysts add. This distribution-strategy shift has a precedent in sporting goods retailers, with brand owners like Nike and Adidas building their own retail distribution over the time, they add. (michael.susin@wsj.com)
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Watches of Switzerland's Share Drop Brings Buy Opportunity, RBC Says
0812 GMT - Watches of Switzerland's share drop after Rolex's acquisition of Bucherer is likely based on unsubstantiated fears around Rolex's longer-term distribution strategy, which brings a potential near-term buying opportunity, RBC Capital Markets analysts Piral Dadhania and Richard Chamberlain say in a note. Rolex could mainly be securing stability for one of its key distribution partners given the specific succession considerations, and is unlikely to further venture into retail activities, they say. In this scenario, Bucherer would continue to operate at arms length while Rolex would maintain a normal relationship with all other partners, the analysts highlight. RBC has an outperform rating on Watches of Switzerland stock and a price target of 900 pence. Shares are down 28% to 500 pence. (michael.susin@wsj.com)
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Moneysupermarket.com Share Price Doesn't Reflect Potential
0740 GMT - Moneysupermarket.com's positive first-half results and its commitment to invest in its product aren't adequately reflected in the current share price, Shore Capital analyst Roddy Davidson writes in a research note. Shares in the London-listed price-comparison website have surprisingly dropped since it issued positive interim results last month, which gently exceeded headline market expectations and led to an upgrade to Shore Capital's adjusted EPS forecast, the analyst says. "We do not believe that these positive dynamics or the competitive advantage derived from Moneysupermarket.com's longstanding commitment to investing in the quality and functionality of its offering are adequately reflected in its current stock valuation," Davidson says. Shore Capital rates the stock buy with a 241 pence price target. Shares are up 0.3% at 241.40 pence. (christian.moess@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
08-25-23 0453ET
