FTSE 100 Rises on Hopes of Chinese Economic Stimulus

0931 GMT - The FTSE 100 rises 0.8% to 7588 points, supported by China-linked companies as investors hope that the Chinese government will provide further stimulus to its economy, AJ Bell investment director Russ Mould says in a note. Mining firm Glencore gains 1.9% on improved sentiment on Chinese economy while hospitality firm InterContinental Hotels Group is the biggest gainer, up 3.4% after reporting strong 1H net profit this week. Insurer Hiscox shares are down 6.2% after 1H pretax profit missed forecast and weak growth in its retail division while betting firm Flutter Entertainment is down 5.1% due to less emphatic outlook from its Australian division. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Hikma Appoints Bill Larkins as President of Injectables Business

Hikma has appointed Bill Larkins as president of its injectables business, effective Sept. 1.

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Bellway Sees Weaker Performance Ahead After Housing Revenue Fell in Line With Views

Bellway has warned of a decrease in home completions in the fiscal year ahead after housing revenue fell in line with guidance in fiscal 2023.

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TP ICAP Pretax Profit Rose, Launches GBP30 Mln Share Buyback

TP ICAP Group launched a share buyback program of up to 30 million pounds ($38.2 million) and said it is on track to meet full-year targets after first-half pretax profit rose against strong comparatives.

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4imprint Pretax Profit, Revenue Rose as Customer Demand Reached Record Levels

4imprint Group said pretax profit rose for the first half as revenue grew on customer demand reaching record levels, and backed its guidance for the year.

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Polymetal International Backs Production Guidance on Russian Operations Boost

Polymetal International reported a rise in revenue for the second quarter and backed full-year production guidance despite current disruptions to concentrate shipments.

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Codex Acquisitions Shares Leap as Trading Resumes

Shares of Codex Acquisitions rose 43% in early trade after the company returned from suspension having posted its 2022 annual report.

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Secure Trust Bank Sees Better Profitability in 2H After Charge Hits Pretax Profit

Secure Trust Bank expects profitability improvements in the second half of 2023 after it posted a fall in first-half pretax profit due to an impairment charge, despite higher lending and deposits.

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D4t4 Solutions Gets Contract That Was Delayed From FY 2023

D4t4 Solutions has been awarded a contract with an existing banking customer, most of which will be delivered in the first half of fiscal 2024.

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RM PLC Shares Tumble After Going-Concern Warning

Shares in RM PLC fell after the company said there was material uncertainty about its ability to continue as a going concern until it reaches an agreement with banks, and that it expects to breach its Ebitda banking covenant from the third quarter of fiscal 2023.

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Inspired PLC Confident of Meeting Forecasts on Continued Momentum

Inspired PLC said momentum from the first quarter has continued into the second quarter and that it is confident to meet market forecasts for the full year.

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Bank of Cyprus Pretax Profit Jumped on Interest Rates Boost

Bank of Cyprus Holdings is on track to meet its targets for the year after the company reported a significant rise in first-half pretax profit on higher income from interest rates.

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CLS Holdings Swung to Pretax Loss on Higher Revaluation Losses

CLS Holdings swung to a pretax loss for the first half after booking higher revaluation losses and costs, and said it expects the economic backdrop for the property market to remain challenging until interest rates peak.

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PCI-PAL Sees Higher Full-Year Revenue on Contract Wins

PCI-PAL expects its fiscal 2023 results to be aligned with its expectations as new contracts in its second half boosted its sales.

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Star Energy Backs 2023 Production Targets After 1H Increase

Star Energy backed its production guidance for the year following a first-half increase.

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Hargreaves Services Pretax Profit Fell on Higher Costs

Hargreaves Services pretax profit for fiscal 2023 fell on higher costs but the outlook for its trading activities is strong, the company said Wednesday.

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KEFI Gold & Copper Outlines Development Plans for Ethiopia, Saudi Arabia Projects

KEFI Gold & Copper expects aggregate mineral resources from projects under development at its Ethiopian and Saudi Arabia sites to amount 4.7 million ounces of gold-equivalent, with aggregate production of 326,000 ounces of gold-equivalent at the three sites.

MARKET TALK:

Watches of Switzerland Sales Expected to Fall, Uphold Guidance

0946 GMT - Watches of Switzerland Group is expected to report a low single-digit sales fall in 1Q due to a shift in the Rolex deliveries schedule, while full-year guidance is likely to remain, Shore Capital analysts Eleonora Dani and Clive Black say in a note. However, the luxury-watch retailer is expected to keep its growth momentum and trading picking up in the latter half of the year, with a 8.4% sales revenue increase at GBP1.67 billion, in line with its guidance range of GBP1.65 billion to GBP1.70 billion, the analysts say. EBIT margin for the year is expected to be maintained, resulting in an EBIT of GBP175 million, they add. (michael.susin@wsj.com)

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Bellway's FY 2024 Looks Set for Declines, But No Worse Than Peers

0940 GMT - Bellway's business update points to full-year results broadly in line with expectations, a solid performance in light of the volatile trading backdrop, Numis says. The house builders' sector however is deteriorating after the most recent hike in mortgage rates, and Numis now takes a more prudent view of upcoming volumes and margins and cuts its fiscal 2024 pretax profit forecast by 33% to GBP264 million, analyst Chris Millington says in a research note. That said, this forecast fall in profit is no worse than Bellway's traditional house building peers, and it looks one of the better-placed companies in the sector, given its well-timed land investment in 2020-21, the U.K. brokerage says. Numis retains its buy rating on the stock and 3,000 pence price target. Shares are down 0.6% at 2,202 pence. (joseph.hoppe@wsj.com)

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Bellway Set to Slightly Miss Market Views

0902 GMT - Bellway's likely to deliver fiscal 2023 results slightly below market expectations, with average selling prices coming in stronger than forecast but the margin weaker, based on its business update, Davy Research says. The house builder's average price was GBP310,000, down just over 1% on year but ahead of guidance of GBP300,000, while the margin is set for 16%, missing a market consensus of 16.5%, Davy analysts say in a research note. "Reservation rates remain subdued and given the level of uncertainty, the group will wait until full-year results in October to provide [fiscal 2024] volume guidance. The only steer given today is that completions are expected to decrease materially," the Irish research firm says. Davy retains its outperform rating and 2,926 pence price target. Shares are down 0.5% at 2,204 pence. (joseph.hoppe@wsj.com)

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Bellway's Update Shows UK House Affordability Strain

0852 GMT - Bellway's fiscal 2023 business update shows a hit to both revenue and the underlying operating margin, unsurprising given housing affordability is being constrained by higher mortgage rates, Interactive Investor says. The U.K. house-building sector has been struggling with build-cost inflation and a softening market as well as rising borrowing costs, which have dented demand from potential buyers, Interactive's Head of Investment Victoria Scholar says in a market comment. "As it draws closer, the end of the rate-hiking cycle and cooling inflation could provide some support for the sector," Scholar says. Shares are down 0.5% at 2,204.0 pence. (joseph.hoppe@wsj.com)

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Flutter's 1H Shows Positive Outcome of US Market Focus

0814 GMT - Flutter Entertainment's 1H performance shows that the group focus in the U.S. market is bearing fruit as it is positioning itself to become a market leader in the region, Interactive Investor head of markets Richard Hunter says in a note. The U.S. revenue now accounts for 38% of the gambling and betting group's revenues, compared to 25% for each of the U.K. and Ireland and International divisions, Hunter says. Flutter continues to expect that the total addressable market in the U.S. should reach more than $40 billion by 2030, Hunter adds. Shares are down 5.3% following a 68% increase over the last year, indicating a potential profit taking, Hunter says. Overall, however, investor tendency would likely remain to buy, he adds. (michael.susin@wsj.com)

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UK January 2033 Gilt Has Attractive Relative Value, Auction Likely to Attract Demand

0807 GMT - The U.K. January 2033 gilt looks attractive in relative value terms considering the bond is approaching the end of its tapping cycle, RBC Capital Markets analysts say in a note. The Debt Management Office sale of GBP3.5 billion in the January 2033 gilt at 0900 GMT is likely to attract strong demand given the bond's attractive relative value, RBC says. In addition, gilts are likely to rally ahead of the U.K. inflation and labor market report next week, and this should support demand at Wednesday's auction, RBC says. (miriam.mukuru@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-09-23 0618ET