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(Alliance News) - Markets continued to be whip-sawed by news about the Omicron variant of Covid-19, but there was some good news from GlaxoSmithKline early Thursday.
GSK said that preclinical data showed sotrovimab, an investigational monoclonal antibody treatment for Covid-19, retains activity against key mutations of the new variant.
The findings were generated through pseudo-virus testing of specific individual mutations found in Omicron. GSK, alongside collaboration partner Vir Biotechnology, are now completing in vitro pseudo-virus testing to confirm the results. An update is expected by the end of 2021.
"Though early, these pre-clinical data support our long-held view on the potential for sotrovimab to maintain its activity as the virus continues to mutate," said Hal Barron, chief scientific officer & president for R&D at GSK.
Separately, the UK Medicines & Healthcare products Regulatory Agency on Thursday said it has authorised sotrovimab to treat people at high risk of developing severe Covid-19.
"It is too early to know whether the omicron variant has any impact on sotrovimab's effectiveness, but the MHRA will work with the company to establish this," the regulator said.
Glaxo shares were up 0.3% amid an overall down market.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 1.0% at 7,098.63
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Hang Seng: up 0.5% at 23,765.78
Nikkei 225: closed down 0.7% at 27,753.37
S&P/ASX 200: closed down 0.2% at 7,225.20
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DJIA: closed down 461.68 points, or 1.3%, at 34,022.04.
S&P 500: closed down 53.96 points, or 1.2%, at 4,513.04
Nasdaq Composite: closed down 283.64 points, or 1.8%, at 15,254.05
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EUR: down at USD1.1314 (USD1.1325)
GBP: down at USD1.3283 (USD1.3315)
USD: up at JPY113.29 (JPY113.02)
Gold: down at USD1,775.13 per ounce (USD1,785.55)
Oil (Brent): down at USD69.88 a barrel (USD71.88)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Thursday's key economic events still to come
OPEC and non-OPEC ministerial meeting
1100 CET EU unemployment
1100 CET EU producer price index
0830 EST US initial jobless claims
1030 EST US EIA weekly natural gas storage report
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Major oil producers are due to meet Thursday to decide on output levels from January onwards, which could be frozen as the new Covid variant Omicron sparks turmoil. The OPEC+ alliance led by Saudi Arabia and Russia has so far resisted US-led pressure to significantly boost output to rein in surging energy prices, AFP reports. The emergence of the new variant has further complicated the equation, leading to countries reinstating travel bans and mulling further restrictions that could tighten demand and hurt oil prices. The 13 members of the Organization of the Petroleum Exporting Countries and their 10 allies are due to meet from 1300 GMT via video conference after technical discussions. Analysts predict the alliance will decide to stop modestly increasing output by 400,000 barrels per day every month as they had planned and as they have been doing since May.
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BROKER RATING CHANGES
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RBC RAISES SUPERDRY TO 'OUTPERFORM' (SECTOR PERFORM) - PRICE TARGET 425 (390) PENCE
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COMPANIES - FTSE 100
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Dechra Pharmaceuticals and Electrocomponents will join the FTSE 100 index on December 20 at the expense of Darktrace and Johnson Matthey, FTSE Russell announced late Wednesday.
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COMPANIES - FTSE 250
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In the FTSE 250, Petershill Partners and Provident Financial will replace AO World and Restaurant Group on December 20.
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Outsourcer Serco reiterated 2021 guidance and laid out new medium-term targets. Ahead of a capital markets day being held on Thursday, Serco said it expects its addressable market to grow around 2% to 3% per year over the medium-term, and it expects its own revenue will grow at twice this rate, at around 4% to 6% from a base year of 2022. It is targeting margin growth of 50 to 100 basis points to 5% to 6%, as well as the conversation of at least 80% of operating profit into cash. Serco plans to reduce dividend cover to around 3 times from 4 times. Chief Executive Rupert Soames said reduced government spending on the pandemic will knock revenue and profit in 2022, but he anticipates good growth in the parts of the business not involved in Covid services.
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AJ Bell rewarded shareholders with a special dividend after reporting a record year. The retail investment platform also said it has appointed Peter Birch as chief financial officer. He joins from accountants Deloitte, where he is currently a financial services audit and assurance partner. AJ Bell's total customers rose 30% to 382,754 and assets under administration grew to stand at GBP72.8 billion on September 30, up 29% from a year ago. Revenue in the financial year increased 15% to GBP145.8 million and pretax profit expanded 13% to GBP55.1 million. AJ Bell raised its final dividend by 13% to 4.50p and, in light of the strong results, also declared a special payout of 5.00p. This took the year's total dividend to 11.96p, nearly double the 6.16p paid out for the year before. Chief Executive Andy Bell said the special dividend reflects the company's confidence in its outlook. Looking ahead, AJ Bell said it expects customer activity to remain at normalised levels following elevated activity during lockdown. However, it noted that any increase in interest rates is likely to have a favourable impact on recurring ad valorem revenue.
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Luxury car maker Aston Martin said Kenneth Gregor is stepping down as chief financial officer for personal reasons, departing no later than June 30. Aston Martin has started looking for his successor.
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COMPANIES - MAIN MARKET AND AIM
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Lord Rothermere's acquisition vehicle raised its takeover offer for Daily Mail & General Trust by 5.9% to 270 pence per share in cash from 255p previously. Rothermere Continuation also lowered its acceptance condition to 50% of DMGT, including its own shares. It said it currently owns or has acceptance for its offer for 41.8% of DMGT shares. The independent directors of DMGT unanimously recommended the new offer to shareholders. In addition to the 270p per shares, all shareholders will receive a special distribution of 568 pence and 0.5749 of a Cazoo share per DMGT share.
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Ryanair's November traffic jumped to 10.2 million after carrying just 2.0 million passengers a year ago. However, the figure was the lowest since July, when traffic was 9.3 million, having carried in excess of 11 million passengers in October. The Irish low-cost airline operated over 62,300 flights in November with an 86% load factor, improved from 62% a year prior.
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COMPANIES - GLOBAL
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Tesla says it has officially moved its corporate headquarters from Silicon Valley to a large factory under construction near Austin, Texas. The electric car company made the announcement late on Wednesday in a filing with US securities regulators. Chief Executive Elon Musk had said at the company's annual meeting in October that the move was coming. The filing said the relocation from Palo Alto, California, to what Tesla calls a "gigafactory" near Austin was done on Wednesday. In US regulatory filings at the end of last year, Tesla said it had about 71,000 employees worldwide. Company news releases in 2020 said about 10,000 worked at the Palo Alto headquarters and 10,000 at its factory in Fremont, California.
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Thursday's shareholder meetings
Apollon Formularies PLC - AGM
CQS New City Yield Fund Ltd - AGM
DCD Media PLC - GM re sale of business to 108 Media
essensys PLC - AGM
Ferguson PLC - AGM
Limitless Earth PLC - AGM
VinaCapital Vietnam Opportunity Fund Ltd - AGM
Starcrest Education Ltd - EGM re acquisition of National Training Co
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By Tom Waite; thomaslwaite@alliancenews.com
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