FTSE 100 Edges Lower as Miners Fall After Weak China Trade Data, Glencore Earnings

0905 GMT - The FTSE 100 falls 0.2% to 7538 points after weak Chinese trade data gave evidence of a stuttering economy, weighing on commodity prices and pushing heavyweight mining stocks lower. "Sluggish economic growth and weaker overseas demand saw China slump to its largest exports fall in recent years," writes Interactive Investor head of markets Richard Hunter. Mining firm Glencore falls 3.5% after reporting a big decline in 1H pretax earnings, with other mining stocks also weaker. Investment company Abrdn is the biggest faller, down 8.3% after reporting larger-than-expected outflows in 1H. Insurers Beazley and Hiscox are the biggest risers, up 3.4% and 3% respectively. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Spirax-Sarco CEO Nicholas Anderson to Retire; Nimesh Patel Named Successor

Spirax-Sarco Engineering's Chief Executive Officer Nicholas Anderson plans to retire early next year after ten years in the role and will be replaced by Chief Financial Officer Nimesh Patel.

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Wealth firm 7IM downsizes London HQ as private equity buyers circle -- Financial News

UK wealth manager moves into premises a quarter of the size of its offices in 55 Bishopsgate

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InterContinental Hotels Group Net Profit Rose on Improved Conditions

InterContinental Hotels Group said first-half net profit and revenue increased, driven by improved trading conditions, but that it expects the comparatives to 2022 in the second half to get tougher due to continuing economic uncertainties.

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Abrdn Pretax Loss Narrows; Extends Buyback

Abrdn posted a narrower pretax loss for the first half of 2023 as it reported higher-than-expected net outflows and extended its share buyback program.

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STM Group Gets Extension for PSF Capital Takeover Plan

The U.K. Takeover Panel has extended the deadline for PSF Capital Reserve to make an offer for STM Group, or walk away, until Aug. 22 so that the parties can continue talks and the due diligence process.

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SIG Says Pretax Profit Fell on Higher Costs; Conditions to Remain Challenging

SIG reported lower first-half pretax profit after booking higher costs, and said it expects conditions to remain challenging across end markets in the second half alongside further moderation in price inflation.

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Quilter Sees 2023 Profit Ahead of Views; Assets Under Management and Administration Rise

Quilter expects its adjusted profit for the year expected to be meaningfully ahead of current market expectations, assuming broadly stable markets after it reported a rise in its assets under management and administration for the first half.

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Adriatic Metals Raises GBP25.1 Mln via Share Placing

Adriatic Metals said it has raised 25.1 million pounds ($32.1 million) via the share placing first announced late Monday, slightly more than planned.

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IWG Pretax Loss Flat; Outlook Cautiously Optimistic

IWG's pretax loss for the first half was flat after it booked higher costs, but its outlook for the full year remains cautiously optimistic due to growing demand for hybrid working solutions.

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Rotork Pretax Profit Rose on Higher Revenue Due to Divisional Growth

Rotork said pretax profit rose in the first half as revenue increased on growth across all divisions, and that it entered the second half with a record order book.

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Amur Minerals Ends Takeover Talks With Ascent Resources

Amur Minerals said talks over a possible 2.4 million pound ($3.1 million) all-share takeover from Ascent Resources have ended.

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PHSC Shares Soar on Swing to Pretax Profit, Potential Share Buyback

PHSC shares soared on Tuesday after the company reported a swing to pretax profit for fiscal 2023, saying that it didn't book any impairments, and that the board is considering a third share buyback program.

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MyHealthChecked Shares Fall After Dwindling Covid-19 Test Demand Hits Revenue

MyHealthChecked shares slumped to more-than three-year lows on Tuesday after the company said its first-half revenue was hurt by the reduction in demand for its Covid-19 lateral flow test kits for at-home use.

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Kore Potash Shares Fall on Discounted $1 Mln Fundraise

Shares in Kore Potash fell after the company announced it would raise $1 million via a discounted subscription and a convertible loan issue, and that it will use proceeds toward a contract related to the Kola potash project located in the Republic of Congo.

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Smartspace Software Backs FY 2024 Guidance After Revenue Rose

Smartspace Software said that revenue for the first half of fiscal 2024 rose 15% and that it expects to meet full-year market expectations on a constant-currency basis.

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TI Fluid Systems Shares Rise After Hiked Guidance, Dividend Policy

Shares in TI Fluid Systems jumped after the group raised its 2023 guidance and changed its dividend policy to target progressive annual growth, increasing shareholder payouts.

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Tirupati Graphite to Beat FY 2023 Production, Revenue by End of Month After Strong 1Q

Tirupati Graphite has reported a large rise in production and sales for the first quarter of fiscal 2024 and said that it expects to exceed last year's figures before the end of August.

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Videndum Delays Publication of 1H Results

Videndum is delaying the publication of its first-half results as it needs more time to finalize the report.

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Fletcher King Optimistic for FY 2024 After Rise in Pretax Profit, Revenue

Fletcher King fiscal 2023 pretax profit and revenue rose, and the company is optimistic for the forthcoming period, it said Tuesday.

MARKET TALK:

Abrdn's Woes Persist; More Radical Changes Should Be Considered

0908 GMT - Abrdn's first-half print shows challenges are persisting, Numis analyst David McCann says in a note after the investment group posted results below consensus views. "Most key measures were very slightly weaker than expected, with the various pressures on the business (persistent net outflows, sticky costs) not significantly easing in the period," the analyst writes. The extension of the share buyback to GBP300 million from GBP150 million was in line with previous promises, he says. However, to really turn the group around and maximise value Numis still thinks that a more radical strategy is needed. For example, the break-up or sale of the group would return capital to shareholders, McCann adds. Numis rates the stock hold. Shares drop 8.7% at 199.5 pence. (elena.vardon@wsj.com)

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Abrdn's Larger-Than-Expected Outflows Disappoint

0900 GMT - Abrdn's net flows miss is seen driving share weakness, RBC Capital Markets analyst Mandeep Jagpal writes in a note after the investment manager's first-half results. The group posted net outflows of GBP5.2 billion, missing consensus expectations of GBP2.6 billion. Despite positive net flows from Insurance clients, "net flows (ex liquidity) of -GBP5.9bn in Institutional & Retail were materially worse than our forecast of -GBP3.2bn and consensus of -GBP2.0bn suggesting a return to growth for core asset management business could be set back further," the analyst says. RBC rates the stock underperform. Its shares are the FTSE 100's worst performer, down 8.4% at 200.2 pence.(elena.vardon@wsj.com)

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Glencore's Free Cash Flow Is Still Strong, Jefferies Says

0848 GMT - Glencore's cash flow continues to be strong despite a weaker coal price environment, analysts at Jefferies say in a research note. The commodity giant announced a $2.2-billion top-up to capital returns, with around $1 billion in special dividends and a $1.2 billion buyback, in line with its capital-allocation framework. "Based on its $10 billion net debt target and its capital-allocation policy, it continues to deliver substantial capital returns despite using some cash for acquisitions," the analysts say. The earnings decline in the industrial segment is mainly due to weaker coal prices as well as higher costs, Jefferies says, but Ebitda is expected to rebound as coal prices stabilize and copper and zinc prices increase. (giulia.petroni@wsj.com)

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UK March 2039 Index-Linked Gilt Trades Cheap, Auction Should Go Well

0808 GMT - The U.K. Debt Management Office sale of GBP 900 million in the U.K. March 2039 index-linked gilt at 0900 GMT is expected to go well given the gilt's cheap valuation, say RBC Capital Markets analysts in a note. "With 15-year real yields trading towards the year-to-date cheaps, 15-year breaks trading towards the year-to-date cheaps on a cross-market basis and the March 2039 index-linked gilt trading cheap on relative value terms, we think the auction should go well," they say. In addition, GBP45 million of coupons set to be paid on August 10 could be supportive of Tuesday's auction, RBC says. (miriam.mukuru@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-08-23 0525ET