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FTSE Edges Lower, Adverse Energy Developments Could Hit Sterling

Adverse Energy Developments Could Hit Sterling

The pound looks set to be moved by external drivers this week in the absence of major U.K. catalysts to influence the market's expectations for interest-rate rises from the Bank of England, ING says. "For now, money markets are embedding five more hikes by the end of the year, which is likely offering some support to GBP in the background," ING analysts say. However, adverse energy developments caused by potential new sanctions against Russia could take a toll on sterling with GBP/USD possibly falling below 1.3100 by the weekend, they say. GBP/USD rises 0.1% to 1.3130 and EUR/GBP is flat at 0.8366.

 
Companies News: 

Iomart Sees FY 2022 in Line With Expectations

Iomart Group PLC said Tuesday that it expects performance for fiscal 2022 to be in line with market expectations, but below that of the year before.

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SRT Marine Says FY 2022 Pretax Loss, Revenue Hit in Line with Market Views

SRT Marine Systems PLC said Tuesday that it expects to report a decline in revenue and a widened pretax loss for fiscal 2022, and that its performance has been in line with market expectations.

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CML Microsystems Sees FY 2022 Performance Ahead of Expectations

CML Microsystems PLC said Tuesday that fiscal 2022 results are expected to be slightly ahead of current market expectations after a positive performance and an investment property asset divestment.

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Arden Partners Swung to FY 2021 Pretax Profit; Says Outlook Is Positive

Arden Partners PLC reported on Tuesday a swing to a pretax profit for fiscal 2021 as it benefited from a buoyant performance of equity markets in the U.K.

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Intercede Sees 2022 Revenue Below Market Views; Shares Fall

Intercede Group PLC shares fell on Tuesday after the company said that revenue for fiscal 2022 will be below market views due to delays on large deals, but it expects to remain profitable.

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W Resources Halts Production at Spanish Mine; Shares Suspended

W Resources PLC said Tuesday that it has halted production at its La Parrilla tungsten-tin mine in Spain due to a truck-drivers' dispute and gas-price increases. Its shares on London's AIM are now suspended.

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Rambler Metals 1Q Copper Production Was Flat on Quarter

Rambler Metals & Mining PLC on Tuesday reported flat copper production and higher gold output from its Ming mine in Canada for the first quarter.

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AdvancedAdvT Shares Fall on Return From Trading Halt

Shares of AdvancedAdvT Ltd. fell 16% on Tuesday as the company returned to trading having been suspended since January when it confirmed an interest in buying U.K. advertising company M&C Saatchi PLC.

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London Stock Exchange Group to Buy Global Data Consortium for Undisclosed Sum

London Stock Exchange Group PLC said Tuesday that it has agreed to buy identity verification data company Global Data Consortium Inc for an undisclosed sum.

 
Market Talk: 

Next Fifteen Starting FY 2023 Well on Earnings Momentum, Client Win

0958 GMT - Next Fifteen Communications Group has started fiscal 2023 well and management continues to see robust trends in client spend despite macro uncertainty, says Peel Hunt. Shares in the tech and data-driven growth consultancy have outperformed rivals year to date and rebounded well from the dip seen in the fourth quarter of 2021, reflecting earnings momentum, a large client win and its consistent outperformance. Peel Hunt changes its recommendation on the stock to add from buy, but increases its target price to 1,580 pence from 1,475 pence.

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UK PMI Data Signal Strong Momentum for the Economy, But Outlook Darkens

0932 GMT - The U.K.'s economic recovery had considerable momentum in 1Q, but worries about the short-term outlook are mounting and could weigh on growth, Pantheon Macroeconomics says. Data from the S&P Global PMIs signal that the economy was resilient despite the renewed increase in Covid-19 cases and the uncertainty from the war in Ukraine, the economic-research firm says. However, the fall in future indices suggests that firms are worried about the cost-of-living crisis, which is set to hit households' disposable incomes, Pantheon says. "We continue to expect GDP growth to decelerate from now on and the [Bank of England's] Monetary Policy Committee to stop raising the bank rate once it has increased it to 1.00%, from 0.75%, next month," it says.

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Moonpig's Strong 4Q Update Is a Gift to Shareholders

0931 GMT - Moonpig's fourth quarter update was as robust as a shareholder could hope for, with business performance remaining strong at the end of the year, Jefferies says. The online greeting-card-and-gift platform has guided for fiscal 2022 revenue of GBP300 million, boosted by Mothers' Days and the opportunity brought on by the Omicron coronavirus variant, and management has continued to see little impact from price inflation or any headwinds in gifting demand, the U.S. bank says. "We retain our positive stance, seeing a 15% medium-term growth algorithm as very achievable for Moonpig, and valuing its compact, resilient model, dominant market position, and strong cash generation," Jefferies says. Jefferies retains its buy rating and 510 pence price target on Moonpig's stock. Shares are up 1.3% at 241.0 pence.

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Moonpig Shares Look Good Value After Overcorrection

0920 GMT - The market's revaluation of Moonpig's shares in the face of macro uncertainty--slipping 36% in the year to date--looks overdone given its business model and recent financial performance, Citi says. The online greeting-card-and-gift platform has confirmed performance at the end of fiscal 2022 remains strong and that it expects revenue for the year to be around GBP300 million, ahead of the Citi's estimate of GBP283 million and a market consensus of GBP287 million. Moonpig shareholders concerned about the transient effect of the company's pandemic-related boost should also be comforted by management comments about permanently higher customer numbers, Citi says. The U.S. bank retains its buy rating on the stock and 370 pence price target. Shares are up 0.5% at 239.2 pence.

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Moonpig's Pleasing 4Q Update Leads to Upgrades

0919 GMT - Moonpig's fourth quarter update was positive given difficult external conditions, defying sector headwinds with its near-unique proposition, Peel Hunt says. The online greeting-card-and-gift platform maximized the opportunity brought about by the Omicron coronavirus variant and more important enjoyed good Valentine's and Mothers' Days, the brokerage says. "There is no sign of supply chain pressures impacting forecasts, or of any slowdown in consumer confidence here, and we are upgrading this year by 5% today," Peel Hunt says, raising its fiscal 2022 Ebitda forecast to GBP66 million from GBP63 million. Peel Hunt retains its add rating and 300 pence price target on Moonpig's stock. Shares are up 0.3% at 238.6 pence.

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Pearson Must Deliver on Targets Following Offer Rejections

0918 GMT - Pearson must now deliver on its targets having rejected three offers from U.S. private equity group Apollo, Berenberg says. The FTSE 100 listed education company still faces a bear-case scenario as downsides remain owing to risk in U.S. higher education and the academic testing business continuing to face challenges, it says. "Pearson's track record has been very poor in terms of execution, and investors should factor in a meaningful discount rate to reflect the risk that the company fails to deliver on its strategic plan," the German brokerage says. Berenberg has a hold rating on the stock with a target price of 742 pence.

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Gooch & Housego's Profit Warnings Drive Downgrades to Forecasts

0908 GMT - Gooch & Housego's constrained half-year output and expected pretax profit decline for fiscal 2022 lead Peel Hunt to lower its forecasts. Peel Hunt now expects the U.K. manufacturer of optical products' full-year pretax profit and EPS to fall by 18.6%. However, a strong order book in 1H and the hopefully short-term nature of the output issue as a result of the coronavirus means no changes to fiscal 2023 forecasts, Peel Hunt says. The U.K. brokerage cuts its target price to 1,200 pence from 1,450 pence. Shares drop 6% to 964.00 pence.

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Echo Energy Shares Rise as Update Confirms Positive Performance, Outlook

0858 GMT - Shares in Echo Energy rise 6.9% after reporting a 6% sequential increase in production for the first quarter. In addition, the Argentina-focused company said it has signed two new liquids supply contracts and that it is in discussions around new annual gas deals. This production update is very encouraging and confirms a strong operational and production performance in the most recent quarter, as well as a healthy outlook for realized prices, Shore Capital says. Echo Energy is a corporate client of Shore Capital.

 

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

(END) Dow Jones Newswires

April 05, 2022 06:32 ET (10:32 GMT)

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