ACA.L Share News (ACA)

LONDON (Alliance News) - Stocks in London were marginally higher at midday on Monday, with miners restricting gains in the FTSE 100 and IWG leading the FTSE 250.The FTSE 100 index was up 0.1%, or 7.34 points at 7,444.40. The FTSE 250 was up 0.4%, or 72.87 points, at 19,784.58, and the AIM All-Share was up 0.4%, or 4.08 points, at 946.02.The Cboe UK 100 index was up 0.2% at 12,626.21. The Cboe UK 250 was up 0.5% at 17,719.80, and the Cboe UK Small Companies was up 0.3% at 11,355.88.In Paris the CAC 40 was up 0.2%, while the DAX 30 in Frankfurt was up 0.1%. "European equity markets are subdued this morning on the back of a strong finish on Friday. It seems likes investors are taking a breather, and the lack of volatility in Asia overnight prompted some dealers to sit on their hands this morning," said CMC Markets analyst David Madden. The Japanese Nikkei 225 index closed up 1.4%. In China, the Shanghai Composite closed down 0.3%, while the Hang Seng index in Hong Kong ended down 0.3%.In the FTSE 100, WPP was up 1.3%. The London-listed advertising and marketing firm was benefiting from a positive read-across from French peer Publicis Groupe. The French advertising and public relations company reported that its net revenue for the first-quarter of 2019 was EUR2.12 billion, up 1.7% from EUR2.08 billion in 2018. On organic basis, net revenue for the quarter was down 1.8%, or 1.6% excluding Publicis Health Solutions, mainly reflecting attrition of a handful of fast-moving consumer goods clients.At the other end of the large cap index, Compass Group was the worst performer, down 2.0% after Barclays downgraded the contract caterer to Equal Weight from Overweight. Barclays said the catering company's the valuation has now reached levels that make the upside more limited on a 12-month view and took a cautious stance on its near term prospects. Miners were weighing on the blue chip index, with BHP down 1.5%, Anglo American down 1.3% and Antofagasta down 0.9%. "Mining stocks on the FTSE will no doubt be sensitive to the most recent batch of Chinese data, with GDP, industrial production and retail sales all due out overnight on Tuesday. There's a feeling that the Chinese economy has bounced back in recent months, aided no doubt by a surge in credit, and investors will be hoping for some confirmation of this from hard data out at 3am Wednesday morning," said XTB analyst David Cheetham. Rio Tinto was down 1.3% after the Anglo-Australian miner said it has committed USD302 million of additional funding to advance its Resolution Copper project in the US state of Arizona. The investment will fund additional drilling, ore-body studies, infrastructure improvements and permitting activities as the miner looks to progress the project to the final stage of the project's permitting phase.In the FTSE 250, IWG was the best performer, up 23% after the office provider agreed to sell its Japanese operations to Tokyo-listed TKP for GBP320 million in cash, as the group targets more international partnerships. TKP will be able to operate IWG's Regus, Spaces and OpenOffice brands in Japan under a long-term master franchise agreement. IWG Chief Executive Officer Mark Dixon said the strategic partnership was part of the group's increased focus on relationships with international partners. The divested Japanese business generated GBP94.4 million in revenue and GBP20.6 million in earnings before interest, taxes, depreciation and amortisation. As at December 31, the total gross asset value of the divested business was GBP98.3 million. "The sale of its Japanese operations has been well-received at flexible office space provider IWG because it could help address concerns about the company's mounting debt. Franchise businesses are often seen as attractive by investors as they have the capacity for significant growth without substantial demands on capital," said AJ Bell's Russ Mould. In addition, Credit Suisse double upgraded IWG to Outperform from Underperform. At the other end of the midcaps, Acacia Mining was down 3.2% after the gold miner reported its production in the first quarter was 13% lower than the year before due to lower production at its North Mara and Buzwagi mines in Tanzania. In the three months to March 31, Acacia produced 104,899 tonnes of gold, 15% below the prior year. The company's gold ounces sold in the first quarter were in line with production. Acacia saw the North Mara mine produce 66,324 ounces in the first quarter, 14% lower than the prior year. Acacia attributed the drop on a fall of ground in the Gokona underground mine at the end of December 2018 as well as an excavator breakdown in the Nyabirama open pit. Acacia said it remains on track for production guidance of between 500,000 tonnes to 550,000 tonnes.The pound was quoted at USD1.3100, flat compared to USD1.3108 at the London equities close on Friday."The pound is having a break from being buffeted by Brexit news as Parliament has stopped for recess until April 23 and any talk of leadership challenges, potential second referendums and general elections waits until the country finishes its Easter egg hunts," said City Index analyst Fiona Cincotta. On the political front, UK Foreign Secretary Jeremy Hunt is using a visit to Japan to tell business leaders that the UK is focused on avoiding a no-deal Brexit.Following withdrawal from the EU being delayed until October 31, Hunt will stress on Monday that Britain is seeking "tariff-free frictionless trade" with the bloc."The UK has always been an outward-looking global power. That cannot change after Brexit. I look forward to our relationship with Japan getting even closer in the years after we leave the EU," Hunt said. On the economic front, the average asking price on a home jumped by nearly GBP3,500 in April - marking the biggest month-on-month uplift in over a year - according to property website Rightmove.Across the UK, the average price of new-to-the-market properties increased by an average of 1.1% or GBP3,447 in April, Rightmove said. It was the biggest month-on-month increase since March 2018.Estate agents said that "bored of Brexit" property buyers and sellers cannot keep putting their lives on hold and want to get on with moving.The average asking price on a house in the UK is now GBP305,449 - still 0.1% lower than a year ago.Stocks in New York were set for a flat to higher open as earnings season in the US continues, with banking giants Goldman Sachs and Citigroup set to report earnings before the opening bell in New York.The DJIA was called up 0.2%, while the S&P 500 index were both called flat. Last week, JPMorgan & Chase set the bar as it reported that first-quarter profit and revenue exceeded analysts' estimates on higher interest rates. The Fed hiked rates four times last year. Peers Bank of America and Morgan Stanley will report their respective earnings on Tuesday.US bank stocks have taken a hit after a more dovish stance from the US Federal Reserve and on concerns lower interest rates in 2019 may hurt profit. The central bank's dovish stance reversed what had been a pattern of quarterly rate hikes, amid signs of slowing economic growth. Slowdown concerns have also hit US 10-year treasury yields.Over the weekend US President Donald Trump renewed his war with the Fed as he once again called for cuts to interest rates."If the Fed had done its job properly, which it has not, the Stock Market would have been up 5,000 to 10,000 additional points, and GDP would have been well over 4% instead of 3% ... with almost no inflation," Trump tweeted.