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Burberry Alliance News (BRBY)

Alliance News for Burberry (BRBY)

Share Price: 1,794.50Bid: 1,794.00Ask: 1,794.50Change: -10.00 (-0.55%)Faller - Burberry Grp
Spread: 0.50Spread as %: 0.03%Open: 1,803.00High: 1,803.00Low: 1,785.00Yesterday’s Close: 1,804.50

LONDON MARKET OPEN: Ex-Divs Drag; AB Foods Rises On Busy Primark Sales

Thu, 6th Jul 2017 08:41

LONDON (Alliance News) - Stocks in London opened slightly lower on Thursday, as ex-dividends weighed on the FTSE 100, despite a lift from strong revenue for Associated British Foods and the news that small-cap specialist insurer Novae has accepted a takeover offer.

The FTSE 100 index of large caps was down 0.1%, or 2.59 points, at 7,365.01. The FTSE 250 index was down 0.1% at 19,422.77 points, and the AIM All-Share index was down 0.2% at 958.91.

The BATS UK 100 index was down 0.1% at 12,487.14 and the BATS 250 was down 0.1% at 17,643.80. The BATS Small Companies was flat at 11,935.35.

The pound was quoted at USD1.2936 at the open on Thursday, rising from USD1.2922 at the London equities close on Wednesday.

Among early movers, Associated British Foods was top of the FTSE 100, rising 5.2% as a strong performance from clothing retailer Primark

Group revenue for the 40 weeks ended June 24 increased by 10% from the same period the year before on a constant currency basis, and for the third quarter alone, revenue growth at constant currency was at 13%. AB Foods' subsidiary Primark saw year-to-date sales up 13% from the same period the prior year on a constant currency basis.

"The underlying operating performance of the group during the third quarter was ahead of our forecast as a result of a stronger profit delivery from Primark which has marginally improved our group outlook for the full year. We continue to expect to report good growth in adjusted operating profit and adjusted earnings per share for the group," AB Foods said in a statement.

However, shares in consumer peer Reckitt Benckiser were down 1.1%. The company said it has made "good progress" in getting its key applications and systems back on track after the cyber attack which hit many companies globally in June, but warned the attack will hit revenue in the second quarter of 2017.

As a result of the cyber attack and tax changes in India, Reckitt now expects net revenue in the second quarter to fall by 2% year-on-year. Excluding the cyber attack and India tax, revenue would be flat. Reckitt also said it now expects full-year like-for-like net revenue growth of around 2%, from a previous estimate of 3%.

Shares in Novae surged 21% to 701.50 pence after the insurance company confirmed it has agreed to be taken over by Bermuda-based Axis Capital for GBP467.6 million. Novae said it will be bought at 700.00 pence per share, a premium of around 20% to its closing price of 581.50p on Wednesday. The announcement confirmed a report in the Financial Times.

The news sent the stock of FTSE 250 specialist insurer Lancashire Holdings up 2.9%.

A number of stocks were going ex-dividend, meaning new shareholders no longer qualify for the latest payout. Among them were Next, down 3.1%, and Burberry, down 2.0%.

In economic news, the US Federal Reserve said it intends to begin shrinking its asset sheet but did not specify when it would begin, in minutes of June's Federal Open Market Committee meeting released on Wednesday evening.

"Several" policy makers were in favour of starting the reduction of its USD4.5 trillion balance sheet within a "couple of months", the minutes of the meeting the US central bank's policy-setting body said.

This suggests two likely dates for the announcement ? September or December FOMC meeting," said Roiana Reid of investment bank Berenberg.

"Expect a September announcement as long as the economy continues to grow at a moderate pace and inflation starts to turnaround, barring any significant fiscal policy disruptions in the fall. But the split among the Committee, reflected in the minutes, lowers this conviction," added Reid.

Analysts at Deutsche Bank said the Federal Reserve is likely to keep US interest rates on hold in September, noting concerns over a slowdown in inflation in the minutes. The analysts said they expect a further rate hike in December.

In mainland Europe, the CAC 40 index in Paris was down 0.2%, but the DAX 30 in Frankfurt was up 0.2%.

Germany's factory orders recovered on foreign demand in May, data from Destatis showed Thursday. Factory orders grew 1% month-on-month in May, reversing a revised 2.2% fall in the previous month. However, the pace of growth was weaker than the expected 1.9%.

Excluding major orders, new orders declined 0.3% from the previous month. Domestic orders fell 1.9% from April, while foreign orders grew 3.1%. Orders from the euro area climbed 1.7% and orders from other countries advanced 4%.

In Asia, the Japanese Nikkei 225 index closed down 0.4%. In China, the Shanghai Composite closed up 0.2%, while the Hang Seng index in Hong Kong was trading down 0.2%.

In the economic calendar on Thursday, US mortgage applications are at 1200 BST, while ADP employment changes are at 1315 BST. The trade balance is at 1330 BST, as well as initial and continuing jobless claims.

Markit US services PMI is at 1445 BST, while the ISM non-manufacturing PMI is at 1500 BST. The EIA crude oil stocks are at 1600 BST.

By Adam Clark; adamclark@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

Alliance News

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[6 Jul '17 07:41]

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