LONDON (Alliance News) - UK blue-chip stocks closed flat Friday, but down on the week, as the European Central Bank offered some much-needed relief to Greek banks by raising its emergency liquidity assistance to help with accelerated withdrawals.
The Financial Times reported that the ECB granted a smaller rise than the EUR3 billion increase in assistance requested by the Bank of Greece and is intended to cover Greek banks from Friday until close of business on Monday.
The ECB also warned that Greek banks may not open on Monday, Reuters reported, citing officials who took part in the Eurogroup meeting on Thursday.
Deposit flight may force Greece to impose capital controls, becoming only the second country after neighbouring Cyprus to use such a measure in the euro area. In 2013, Cyprus imposed capital controls amid a banking crisis and removed the last of them this past April.
After a nervous weekend, market participants will be looking ahead to the emergency meeting of eurozone finance ministers on Monday in Brussels, as the deadline for Greece's EUR1.6 billion payment to the International Monetary Fund moves closer.
"We continue to believe the most likely outcome is a deal. This is the rational outcome – Grexit would be costly for both sides — and is what Greek citizens want, according to opinion polls," said economists at Deutsche Bank.
"In our view, Greek PM [Alexis] Tsipras needs to show the left wing of Syriza that he drove the bargaining process to the edge of the cliff. A balanced compromise may not be compatible with Syriza's electoral manifesto," they added.
The FTSE 100 closed flat at 6,710.45 points, but ended the week down 1.1%, as Greek concerns weighed on stocks throughout the week. The FTSE 250 ended up 0.1% Friday at 17,688.73, and the AIM All-Share closed up 0.5% at 768.06.
In Europe, the French CAC 40 closed up 0.3%, but the DAX 30 in Frankfurt ended down 0.5%.
US stock indices were reversing some of Thursday's gains at the London close Friday, with the DJIA trading down 0.2% and the S&P 500 and Nasdaq Composite both down 0.1%.
On the corporate front, Hikma Pharmaceuticals ended amongst the top FTSE 100 gainers, up 2.7%, after being upgraded by Citigroup to Buy from Neutral. Meanwhile, Ashtead Group closed up 1.0% after Exane BNP upgraded the industrial equipment rental company to Outperform from Neutral.
London Stock Exchange Group closed up 2.3% after it named Donald Brydon, the current chairman of Royal Mail and formerly of the London Metal Exchange, to take on the same role at the bourse. The group has been looking for a successor to Chris Gibson-Smith since last July, when he said he would be leaving the LSE. Gibson-Smith will step down on July 1, but will be available to advise the board until the end of August.
Colt Group ended as the biggest gainer in the FTSE 250, up 21% at 189.43 pence, after American financial services group Fidelity made a bid to buy up the remainder of UK telecommunications and IT services provider, which Fidelity founded, to take the company private. However the independent directors of Colt replied that the 190 pence per share offer "undervalues" Colt.
The offer from FMR LLC and FIL Ltd, together known as Fidelity, values Colt at around GBP1.72 billion. Fidelity said this offer price will not be increased.
FMR currently has a 62.43% shareholding in Colt. Fidelity said it has received irrevocable undertakings to accept the offer for 70.15 million shares, or around 7.8% of Colt's issued share capital, or 23.4% of Colt's share capital that is held by independent shareholders.
Card Factory closed down 7.7% at 332.00p after the greeting card retailer said some of its directors and members of its senior management team have sold 14.8 million shares in the company at 330p each, representing approximately 4.3% of its issued share capital. At that price, the sale was worth GBP48.8 million.
The selling shareholders, which included Chief Executive Richard Hayes and Chief Financial Officer Darren Bryant, continue to have an interest in 49.1 million shares between them, representing 14.4% of the issued share capital.
In a quiet economic calendar Monday, the Bank of Japan releases its monthly economic survey at 0600 BST, and the Chicago Federal Reserve national activity index is at 1330 BST. At 1500 BST there are US existing home sales and preliminary eurozone consumer confidence data.
In the UK corporate calendar, the only scheduled corporate releases are from Polar Capital Holdings, which provies full-year results, and JZ Capital Partners, with an interim management statement.
The changes announced in the latest FTSE review will be implemented on Monday and will see Aggreko drop to the FTSE 250 from the FTSE 100, replaced by Inmarsat.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
Copyright 2015 Alliance News Limited. All Rights Reserved.
UK earnings, trading statements calendar - next 7 days
Wednesday 21 September | |
Alphawave IP Group PLC | Half Year Results |
City Pub Group PLC | Half Year Results |
Dianomi PLC | Half Year Results |
Eagle Eye Solutions Group PLC | Full Year Results |
Frontier Developments PLC | Full Year Results |
Galliford Try Holdings PLC | Full Year Results |
Hostmore PLC | Half Year Results |
Ingenta PLC | Half Year Results |
Keywords Studios PLC | Half Year Results |
LBG Media PLC | Half Year Results |
MyHealthChecked PLC | Half Year Results |
Pendragon PLC | Half Year Results |
Pennant International Group PLC | Half Year Results |
Petershill Partners PLC | Half Year Results |
S4 Capital PLC | Half Year Results |
Strix Group PLC | Half Year Results |
Supermarket Income REIT PLC | Full Year Results |
Surgical Innovations Group PLC | Half Year Results |
Ten Entertainment Group PLC | Half Year Results |
Warpaint London PLC | Half Year Results |
Thursday 22 September | |
Aquis Exchange PLC | Half Year Results |
Biome Technologies PLC | Half Year Results |
Brave Bison Group PLC | Half Year Results |
Ceres Power Holdings PLC | Half Year Results |
Computacenter PLC | Full Year Results |
CVS Group PLC | Full Year Results |
Distribution Finance Capital Holdings PLC | Half Year Results |
Ebiquity PLC | Half Year Results |
Fonix Mobile PLC | Full Year Results |
Forward Partners Group PLC | Half Year Results |
Halma PLC | Trading Statement |
Hansard Global PLC | Full Year Results |
JD Sports Fashion PLC | Half Year Results |
Judges Scientific PLC | Half Year Results |
Learning Technologies Group PLC | Half Year Results |
Life Science REIT PLC | Half Year Results |
Osirium Technologies PLC | Half Year Results |
Pantheon Infrastructure PLC | Half Year Results |
PensionBee Group PLC | Half Year Results |
Playtech PLC | Half Year Results |
Polymetal International PLC | Half Year Results |
PZ Cussons PLC | Full Year Results |
Safestyle UK PLC | Half Year Results |
Time Finance PLC | Full Year Results |
Wilmington PLC | Full Year Results |
Friday 23 September | |
Biffa PLC | Trading Statement |
European Opportunities Trust PLC | Full Year Results |
Investec PLC | Trading Statement |
Smiths Group PLC | Full Year Results |
TheWorks.co.uk PLC | Full Year Results |
Monday 26 September | |
Atome Energy PLC | Half Year Results |
Chapel Down Group PLC | Half Year Results |
Concurrent Technologies PLC | Half Year Results |
CPPGroup PLC | Half Year Results |
Devolver Digital Inc | Half Year Results |
Dillistone Group PLC | Half Year Results |
Finsbury Food Group PLC | Full Year Results |
Frenkel Topping Group PLC | Half Year Results |
Immotion Group PLC | Half Year Results |
Likewise Group PLC | Half Year Results |
Microlise Group PLC | Half Year Results |
Next Fifteen Communications PLC | Half Year Results |
SpaceandPeople PLC | Half Year Results |
XLMedia PLC | Half Year Results |
Xpediator PLC | Half Year Results |
Tuesday 27 September | |
AG Barr PLC | Half Year Results |
Animalcare Group PLC | Half Year Results |
Billington Holdings PLC | Half Year Results |
Boku Inc | Half Year Results |
Card Factory PLC | Half Year Results |
Close Brothers Group PLC | Full Year Results |
Diaceutics PLC | Half Year Results |
Digitalbox PLC | Half Year Results |
ECSC Group PLC | Half Year Results |
Ergomed PLC | Half Year Results |
Ferguson PLC | Q4 Results and Full Year Results |
FireAngel Safety Technology Group PLC | Half Year Results |
GENinCode PLC | Half Year Results |
Instem PLC | Half Year Results |
LifeSafe Holdings PLC | Half Year Results |
Medica Group PLC | Half Year Results |
Mission Group PLC | Half Year Results |
Mortgage Advice Bureau PLC | Half Year Results |
NAHL Group PLC | Half Year Results |
Next Fifteen Communications Group PLC | Half Year Results |
Origin Enterprises PLC | Full Year Results |
United Utilities Group PLC | Trading Statement |
Personal Group Holdings PLC | Half Year Results |
S&U PLC | Half Year Results |
Saga PLC | Half Year Results |
Serica Energy PLC | Half Year Results |
SSP Group PLC | Trading Statement |
tinyBuild Inc | Half Year Results |
Transense Technologies PLC | Full Year Results |
Yu Group PLC | Half Year Results |
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