(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.
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FTSE 100 - WINNERS
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WPP, up 1.4%. The advertising giant recovered some of the 3.4% loss suffered on Friday. Shares in WPP were hit late last week by a negative read-across from French peer Publicis. After the market close on Thursday, Publicis guided for a decline in organic revenue in 2019 due to "very cautious" spending approaches by some clients.
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FTSE 100 - LOSERS
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NMC Healthcare, down 4.2%. Jefferies cut the price target for the private hospital operator to 1,925 pence per share from 1,986p prior whilst retaining its Underperform recommendation. Shares in NMC were trading at 2,595p Monday morning in London.
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Lloyds Banking Group and Royal Bank of Scotland were 3.3% and 3.0% lower, respectively. This was after the two UK-focused lenders surged 12% on Friday amid optimism for a Brexit deal. Over the weekend, some of that optimism was tempered by cautious remarks from both UK and EU leaders.
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FTSE 250 - WINNERS
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Sophos Group, up 35%. The cybersecurity firm agreed a GBP3 billion takeover by US-based private equity firm Thoma Bravo. Thoma Bravo has offered USD7.40, or 583 pence, per share. Cybersecurity company Sophos closed at 425.5p on Friday in London, meaning the offer price is at a 37% premium. The price values Sophos, a member of the FTSE 250 index, at GBP3.01 billion, and gives it an enterprise value of GBP3.11 billion when including its debt. "It is the view of the Sophos board this is a compelling offer for Sophos shareholders which secures the delivery of future value for shareholders today. Thoma Bravo has deep sector expertise in cybersecurity software as well as a long and successful track record of partnering with and investing in its portfolio companies to support long-term growth and success," said Peter Gyenes, chair at Sophos. Thoma Bravo, which manages funds worth over USD35 billion, said Sophos is an "attractive opportunity" to increase its exposure to the cybersecurity market.
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Hochschild Mining, up 3.1%. Berenberg upgraded its recommendation for the rare earth minerals miner to Hold from Sell following a steep recent fall in its share price, despite cutting its price target to 180 pence per share from 190p prior. Shares were trading at 184.80 pence Monday morning in London.
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FTSE 250 - LOSERS
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Jupiter Fund Management, down 5.9%. Barclays cut its price target for the financial services firm to 310 pence per share from 350p prior, retaining its Underweight recommendation. Shares in Jupiter were trading at 315.30 pence in London on Monday.
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OTHER MAIN MARKET AND AIM - WINNERS
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Bacanora Lithium, up 18%. The miner reported the remaining relevant approval for the strategic investment by Ganfeng Lithium Co has been received and, as a result, the company has now received GBP21.9 million of funds. The funds from Ganfeng were received in exchange for a 29.99% equity interest in Bacanora and a 22.5% joint venture investment in the Sonora lithium project in Mexico. At the Sonora project, Bacanora's project team is continuing to progress the final design work for the mine, concentrator and kiln sections of the processing plant. Ganfeng's technical team has started work on the hydrometallurgical circuit and is reviewing sourcing key sections of the lithium production equipment from suppliers in China.
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OTHER MAIN MARKET AND AIM - LOSERS
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Keywords Studios, down 5.0%. The video games services firm secured up to a EUR140 million credit facility with four lenders to fund further acquisitions. Chief Executive Andrew Day said: "We are pleased to have finalised this facility which is a significant expansion on our previous arrangement and remains in line with our intention of maintaining a conservative mix of equity and debt funding. This facility gives us further flexibility and headroom to invest in building our business both organically and through acquisition." The company added that it has a strong pipeline of potential acquisitions.
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By Ahren Lester; ahrenlester@alliancenews.com
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