CMC Markets Share News (CMCX)

(Alliance News) - Stocks in London were mixed in midday trade on Monday, with investors hesitant ahead of some major UK data releases later this week.

The blue-chip FTSE 100 index slipped, but the mid-cap FTSE 250 was pushed higher by Cineworld and CMC Markets.

The FTSE 100 index was down 6.78 points, or 0.1%, at 7,341.13 Monday. The FTSE 250 index was up 56.30 points, or 0.2%, at 23,613.82. The AIM All-Share index was up 1.54 points, or 0.1%, at 1,254.25.

The Cboe UK 100 index was down 0.1% at 727.63. The Cboe 250 was up 0.2% at 21,071.57, and the Cboe Small Companies up 0.5% at 15,634.41.

In mainland Europe, the CAC 40 in Paris was up 0.4%, while the DAX 40 in Frankfurt was up 0.1% on Monday.

"The FTSE 100 made a tepid start to the week on Monday despite some positive economic news from China," said AJ Bell investment director Russ Mould.

London market focus already has switched to the week's other major data points: UK unemployment on Tuesday and then inflation, due on Wednesday.

The economic indicators come after the Bank of England's recent decision to hold interest rates at the record low level of 0.10%, despite markets bracing for a 15 basis point hike and the central bank itself warning that inflation is expected to peak around 5% in April next year. This would be sharply above the BoE's inflation target of 2%.

Sterling was quoted at USD1.3417 on Monday, trading flat against USD1.3413 at the London equities close on Friday as investors await the key jobs and price data.

More broadly, the currency trading was subdued as caution dominated. The euro traded at USD1.1445, soft against USD1.1450 late Friday. Against the yen, the dollar was marginally lower at JPY113.85, versus JPY113.88 late Friday in London.

Gold was quoted at USD1,863.75 an ounce on Monday, higher than USD1,861.52 on Friday. Brent oil was trading at USD81.11 a barrel, down from USD82.26 late Friday.

Brushing off hesitation in Europe, Wall Street is on course for a higher start to the week. The Dow Jones was called up 0.3%, the S&P 500 up 0.2%, and the tech-heavy Nasdaq Composite up 1.3%.

At the top of the FTSE 100 was Avast, surging 7.1%, after news that its takeover by NortonLifeLock is on track. NortonLifeLock on Monday said the waiting period under the US Hart-Scott-Rodino Act has expired, satisfying a regulatory condition. The deal still remains subject to approval by Avast shareholders at a meeting this week.

Royal Dutch Shell shares rallied on plans to streamline its dual 'A' and 'B' share structure into a single one.

'A' shares were up 1.7% and 'B' shares up 1.3%. Instead of this dual share structure, Shell is proposing a singular one. This will allow for an acceleration in distributions by way of share buybacks, reduce risk for shareholders, and let Shell manage its portfolio with greater flexibility, the company said. Shell also will align its tax residence to the UK.

Shell will retain its current share listings and will still be eligible for FTSE UK indices. One change, however, will be its name - losing the 'Royal Dutch' to become just Shell PLC.

Shell explained: "Carrying the Royal designation has been a source of immense pride and honour for Shell for more than 130 years. However, the company anticipates it will no longer meet the conditions for using the designation following the proposed change."

B&M European Value Retail was the worst performer, down 3.3% after both RBC and Goldman Sachs downgraded the variety story retailer. This followed the company last week reporting a weak start to the new quarter.

Sat atop the mid-cap FTSE 250 index was Cineworld, up 12% after the cinema operator said revenue globally came tantalisingly close to pre-virus levels last month, as a strong slate of releases drew filmgoers back to the cinema.

Promisingly, Cineworld was free cash flow positive once again in October, "an important milestone" as it plots its recovery from Covid-19 hurt. Its UK & Ireland arm alone saw revenue top 2019 levels in October.

CMC Markets shares trimmed earlier gains to sit 5.8% higher at midday after confirming it is in the "very early stages" of evaluating a separation of the trading services provider between leveraged and non-leveraged divisions.

Following the launch of a business-to-business and direct-to-consumer offering announced back in June, the company has "two strong underlying" units. Leveraged products are contracts-for-difference, while non-leveraged products include shares and investment funds.

"Both businesses have benefited from significant investment and each have strong growth prospects in sizeable markets with excellent competitive positions," CMC explained.

The worst mid-cap performer was Kainos Group, down 9.8% as it reported margin growth was "constrained".

The Belfast, Northern Ireland-based information technology provider reported revenue growth in the six months to September 30 to GBP142.3 million, up 33% from GBP107.2 million posted a year ago. Pretax profit, meanwhile, edged up 3% to GBP24.8 million from GBP24.0 million.

Overall gross margin was 47.4% for the period, down from 52.1% a year ago.

"The return of utilisation to normal levels, salary increases, the elevated use of contract staff and the resumption of some 'in person' expenses has constrained our profit margin growth; we view current profit margin levels as our expected long-term profit trend," the company said.

Elsewhere in London, Avon Protection shares stabilised after Friday's 51% plunge. The stock was trading 13% higher Monday midday, though still remains 67% lower since 2021 began

By Lucy Heming; lucyheming@alliancenews.com

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