LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - WINNERS
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J Sainsbury, up 14%. The supermarket chain said its full-year underlying pretax profit will be "moderately ahead" of consensus after it achieved growth in sales in the second quarter of its financial year. Sainsbury's said that total retail sales in the 16 weeks to September 26 grew 0.3% excluding fuel, but fell 1.8% including fuel. Like-for-like retail sales, however, declined for the seventh consecutive quarter, falling 1.1% excluding fuel and 3.3% including fuel. "Year-to-date we have traded well, with both sales and cost savings ahead of expectations. Should current market trends continue, we expect our full year underlying profit before tax to be moderately ahead of our published consensus," said Chief Executive Mike Coupe. The news helped shares of rivals Tesco, up 4.9%, and Wm Morrison Supermarkets, up 6.2%, higher.
Glencore, up 13%. The multi-commodities miner and trading house moved to defend its financial position following recent concerns about its debt pile which have caused its shares to plunge, exacerbating declines it had faced due to the tough conditions in commodities markets. Glencore said it has "taken proactive steps to position our company to withstand current commodity market conditions", adding the company "remains operationally and financially robust" and has "positive cash flow, good liquidity and absolutely no solvency issues." The stock had gained 17% on Tuesday after dropping 29% on Monday.
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FTSE 250 - WINNERS
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Victrex, up 4.5%. The chemicals company was initated with a Buy rating and 2,200 pence price target by Liberum, which said the company's valuation looks attractive following a recent sell-off and the completion of a major investment programme will herald a period of strong cash flow and further cash returns potential. Victrex shares stood at 1,734.00p on Wednesday.
Saga, up 2.9%. The over-50s products company said its pretax profit surged in the first half on lower costs, improved margins and better revenue, driven by strong performances for its motor insurance and travel arms. Saga said its pretax profit in the first half to the end of July was GBP101.3 million, more than double the GBP42.2 million it made a year earlier. The profit rise was driven by the group posting higher revenue, better gross margins and lower administrative and financing costs in the half.
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FTSE 250 - LOSERS
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Entertainment One, down 9.2%. The media company said it has agree to buy 70% of 'Peppa Pig' producer and creator Astley Baker Davies, which it will fund through a significantly discounted rights issue to raise GBP193.6 million. Entertainment One said it plans to raise the GBP195.3 million by way of a 4 for 9 rights issue of around 131.5 million new shares at a price of 153.0 pence, a 44% discount to its closing price of 272.0p Tuesday. Astley Baker Davies jointly holds the ownership rights to the 'Peppa Pig' franchise, a big growth driver for Entertainment One. The company said that through this acquisition it will increase its interest in the related share of the earnings from 'Peppa Pig' to 85% from 50%. Analysts from Numis and N+1 Singer were supportive of the deal, with Numis calling it "strategically sensible".
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MAIN MARKET AND AIM - WINNERS
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DQ Entertainment, up 39%. The production and distribution company said it has received a requisition for a general meeting from shareholders holding a cumulative 51.78% of the company, seeking to appoint new directors to the company. The requisition came from Platinum Consulting Group, Anil Chintapalli and Corporate Computer Services, together holding 29.1 million shares in the company. The request is for Chintapalli, and Suresh Chitturi, to be appointed as directors with immediate effect. The company said it is currently seeking advice in regards to the validity of the requestion, and will make a further announcement in due course.
Strat Aero, up 35%. The unmanned aerial vehicle company said it has entered into an agreement to acquire unmanned aerial vehicle company Geocurve Holdings in cash and shares. Geocurve is a privately-owned company which focuses on providing UAV-operated topographical surveys an inspection services, counting the likes of French energy company EDF Energy and UK construction firm Carillion amongst its clients. Strat Aero said the deal is in line with its strategy of building a vertically-integrated UAV product offering, covering all aspects of the value chain, including software, hardware and services.
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MAIN MARKET AND AIM - LOSERS
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Koovs, down 31%. The Indian online fashion retailer reported a pretax loss in its last financial year as it increased marketing and overhead costs in a bid to build the online retailing business, although revenue rose as visits to the website continue to grow. Koovs said that it made a pretax loss of INR922.6 million in the year ended March 31, 2015, although revenue rose to INR204.1 million. This compares with a INR202.2 million loss in the six months to March 31, 2014 on revenue of INR64.4 million. Profit was hit by higher marketing expenditure in an Indian market which Koovs said is "growing extremely quickly", adding that heavier-than-anticipated marketing investment will continue in order for it to achieve its goals in the competitive environment.
Microsaic Systems, down 29%. The mass spectrometry instruments company said it will raise GBP3.2 million to fund the development of its product portfolio, as it said its pretax loss widened in the first half because of a fall in revenue. Microsaic said it will raise GBP3.2 million in funding via the placing of 9.7 million shares at 33.00 pence per share. The company said it will use the funding to provide the additional working capital required to support the accelerated commercialisation of its products. The placing was announced as the company said its pretax loss for the six months to the end of June was GBP1.8 million, compared to a GBP1.5 million loss a year earlier, as revenue more than halved to GBP291,139 from GBP610,985.
Rurelec, down 22%. The power generation company posted a massively wider pretax loss for the first half due to writedowns and impairment charges. Rurelec said its pretax loss in the half to the end of June was GBP14.1 million, compared to a GBP1.8 million loss a year earlier. Revenue was marginally higher, up to GBP620,000 against GBP252,000, but the loss was driven by a GBP3.8 million provisional writedown on its Peruvian assets, a GBP2.7 million impairment charge, a GBP3.9 million impairment on loans to its Argentina business and foreign exchange losses of GBP1.6 million.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
23 Mar 2016 14:32
