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FTSE 100 Closed Up Despite Continuing Inflation, Geopolitics Issues

The FTSE 100 closed higher on Monday as markets have primarily been caught up with the simple day to day of doing business instead of being focused on geopolitics, monetary policy and inflation, AJ Bell says. "The issues that dogged markets of throughout the end of 2021 and into 2022 remain with us, but once again stocks have demonstrated their remarkable ability to come storming back," IG says.

 
Companies News: 

Thruvision Sees FY 2022 Revenue Rising; Finance Director to Step Down

Thruvision Group PLC said Monday that the second half of its fiscal 2022 showed a significant improvement over the first and it expects to report increased revenue, and that its finance director is stepping down.

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Fulham Shore Sees FY 2022 Revenue Ahead of Market Views

Fulham Shore PLC said Monday that it expects revenue and Ebitda for fiscal 2022 to be ahead of market expectations due to strong momentum compared with prepandemic levels.

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i3 Energy Raises 2022 Income Outlook as Production Reaches Record -- Energy Comment

i3 Energy PLC on Monday reported that it has achieved record weekly production, and increased its income guidance for 2022 on the back of higher prices and well results. Here's what the oil-and-gas company had to say:

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EJF Investments Offers Share Rollover; Launches Placing Program

EJF Investments Ltd. said Monday that it will hold a rollover offer allowing shareholders to convert 2022 zero dividend preference shares into new 2025 ZDP shares and will launch a placing program to raise funds.

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Devolver's 2021 Pretax Profit Rose Backed by Back-Catalogue Sales

Devolver Digital Inc. said on Monday that its pretax profit for 2021 increased, driven by increased earnings and revenue, robust back-catalogue sales and eight new titles.

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Cloudbreak Discovery Shares Fall on Swing to 1H Pretax Loss

Cloudbreak Discovery PLC shares fell Monday after it said that it swung to a first half pretax loss, largely due to a loss on the market value of stock holdings and increased administrative expenses.

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Diurnal CEO Martin Whitaker Steps Down

Diurnal Group PLC said Monday that Chief Executive Officer Martin Whitaker has decided to step down with immediate effect to pursue other business opportunities.

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Distribution Finance Capital Sees 2022 Below Views

Distribution Finance Capital Holdings PLC said Monday that it expects to report either a net loss or breakeven income for 2022 amid lower demand for assets and a decrease in loan book growth.

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Credit Suisse Says It Has Taken Steps to Prevent Repeat of Greensill Hit

Credit Suisse Group AG said Monday that it has made changes to the way it operates to avoid a situation similar to the one it faced when Greensill Capital collapsed, but that it won't publish its investigation into the issue due to pending litigation.

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OPG Power Ventures Appoints New CEO Amid Transition Strategy Acceleration

OPG Power Ventures PLC said Monday that it will change its board in order to accelerate its energy transition strategy due to the current fuel price spike.

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DBAY Advisors Mulls GBP850 Mln Offer for CareTech Holdings

DBAY Advisors Ltd. said Monday that it has forwarded a proposal to CareTech Holdings PLC to buy the social-care and education-services provider for 850 million pounds ($1.11 billion).

 
Market Talk: 

Harbour Catalysts in Sight as Gas Exposure Boosts Income

0933 GMT - Harbour is a key beneficiary from the increase in European gas prices, as 50% of its production is exposed to it and hedges will roll off in coming years, Bank of America says. As a result, the company is expected to generate $2.6 billion of free cash flow in 2022, around four times higher than in 2021, which will take net debt to essentially nil by the end of the year, BofA says. In addition, the bank says imminent first gas at Tolmount, the expected approval of the buyback authority on May 11, and upside optionality from exploration in Indonesia later in the second quarter are near-term catalysts for Harbour shares to re-rate.

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Aviation Sector Recovery Proving Chaotic as Customers Face Delays, Cancellations

0932 GMT - The aviation sector's recovery is proving chaotic as it faces long delays and cancelled flights, AJ Bell says. Although rising fuel prices look to weigh on corporate earnings unless extra costs are passed on, this may be risky as customers face rising inflation and might not stomach higher ticket prices, the U.K. brokerage says. All of this could result in customers choosing not to fly this year and wait instead until everything settles down, AJ Bell says. "If the current disruption continues into the Easter weekend, we could easily see airlines like easyJet have to downgrade their earnings forecasts," it says. IAG shares are down 1.3% at 139.36 pence, with easyJet down 2% at 543.80 pence and Wizz Air down 1.4% at 2,824 pence.

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Fulham Shore Seems Able to Thrive Amid Consumer Budget Pressure

0926 GMT - Fulham Shore announced Monday that it expects revenue for fiscal 2022 to be ahead of market expectations, which shows its able to thrive even in a difficult environment by having the right offering, AJ Bell says. The Franco Manca pizza chain owner managed to be well positioned in a context where consumers are spending more on experiences, rather than products, amid inflationary pressures on household budgets, the U.K. brokerage says. "This makes sense when you consider how long people were prevented by Covid restrictions from enjoying activities like eating out and socializing," it says. Shares are up 6.45% at 16.5 pence.

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H&T Group's Investment Case Is 'Compelling' After Conclusion of Watchdog's Review

0906 GMT - The conclusion of the U.K. financial regulator's review into H&T Group's unsecured high-cost short-term loan business has removed an impediment to the company's investment case, Shore Capital says. The U.K. pawnbroker's forex services should have an increase in demand as travel picks up, and its retail division is performing well, Shore says. "H&T is trading well, and we believe the investment case for the stock is compelling in the current environment, with higher inflation likely to increase demand for pawnbroking services while a rising gold price may also help support demand and margins in the gold purchasing and pawnbroking scrap businesses," it says. Shore has H&T Group as a house stock. Shares rise 0.6% to 341 pence.

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Endeavour Confirms Robust Long-Term Profile of Senegal Gold Mine

0906 GMT - Endeavour Mining on Monday published a definitive feasibility study for the expansion of the Sabodala-Massawa gold mine in Senegal, which confirmed a robust long-term production profile bolstered by the construction of the BIOX processing plant, RBC Capital Markets says. Capital expenditure of $290 million is around 30% higher than in the prefeasiblity study, reflecting scope changes and inflation on steel and concrete, but this will be easily absorbed by free cash flow, the bank says. "Overall, we view the update constructively in outlining the future at the flagship asset, confirming strong production profile of around 350 Koz over the next decade," RBC says. Shares in the FTSE 100 mining company rise 4.0% after the announcement.

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Devolver Digital Looks Set For Further Growth

0905 GMT - Devolver Digital seems ready to build upon its 2021 momentum by improving its organic growth, partnering with more developers and increasing its development pipeline, Shore Capital says. Devolver's balance sheet is well funded following the intellectual property sale of its popular game Fall Guys, and it sees further strong internal cash generation, the U.K. investment group adds. Shore doesn't have a coverage on the stock yet. Shares are up 2.4% at 169.0 pence.

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Gemfields Auction Results Suggest Emerald Market Remains Strong

0844 GMT - Gemfields rich run of form continues with another record auction result, Liberum says after the miner reported $42.3 million revenue from the latest emerald tender. The investment bank says that it had slight concerns that the strength in the company's auction results last year was propelled by restocking action, but it is now clear that market demand remains very strong and suggests a promising outlook for the year. "With the strength of the market in emerald and rubies, we believe that Gemfields can offer bother attractive growth and yields," Liberum says. Shares rise 4% after the announcement. Gemfields is a corporate client of Liberum.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

 

(END) Dow Jones Newswires

April 04, 2022 12:03 ET (16:03 GMT)

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