(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.
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FTSE 100 - WINNERS
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GVC Holdings, up 2.9%. The sports-betting and gaming group raised it earnings guidance for 2020 as it hailed a strong performance in the third quarter, driven by its online business. GVC said in its third quarter from July 1 to September 30, group net gaming revenue rose 12% year-on-year - or 14% in constant currency - aided by online net gaming revenue which surged by 26%, or 28% in constant currency. GVC added it has seen continued momentum in the US, with full-year net revenue for the territory now expected to be ahead of expectations at USD150 million to USD160 million. Its joint venture with MGM Resorts BetMGM is now live in eight states, with a further three expected to launch before the end of 2020. Full-year group earnings before interest, tax, depreciation and amortisation is expected to be between GBP770 million to GBP790 million, around GBP50 million ahead of previous guidance.
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FTSE 100 - LOSERS
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Hargreaves Lansdown, down 5.4%. The fund supermarket said its revenue was higher in its first quarter thanks to "strong stockbroking revenues". Hargreaves's revenue for the three months ended September 30 was GBP143.7 million, a 12% increase from the year before. This in spite of the FTSE All Share being down 18% for the comparative period. Closing assets under administration for the period came to GBP106.9 billion, 2.8% higher than the opening AUA of GBP104.0 billion, thanks to a GBP2.1 billion positive market movement plus new business. For comparison, in the same period of 2019, the closing AUA of GBP101.8 billion was 2.5% higher than the opening AUA of GBP99.3 billion. New business in the period was GBP800 million, down from GBP1.7 billion the year before - though the year before figure was also GBP800 million excluding back book transfers.
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FTSE 250 - WINNERS
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TalkTalk Telecom, up 16% at 97.00 pence. The telecommunications firm said it has received a takeover proposal from major shareholder Toscafund Asset Management. The offer for TalkTalk's entire share capital is priced at 97p per share, has a full unlisted share alternative, and is to be made by a newly formed company. TalkTalk has 1.15 billion shares in issue, meaning the offer would be worth around GBP1.12 billion. Having considered the proposal's terms, TalkTalk has agreed to progress the proposal further with 29% stakeholder Toscafund, and is taking advice from its advisers. Sky News reported in July that TalkTalk had rejected a GBP1.5 billion, 135 pence per share, takeover bid from Toscafund. At that time, Sky reported, the offer was rejected by the board - led by founder & Executive Chair Charles Dunstone. The latest proposal from Toscafund includes a number of pre-conditions before any firm intension to make an offer is announced. This includes that Toscafund receives an irrevocable undertaking from Dunstone to support the offer, including election for any unlisted share alternative for his entire 30% holding.
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FTSE 250 - LOSERS
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Cairn Energy, down 3.7%. Peel Hunt cut the oil and gas exploration company to Add from Buy.
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CMC Markets, down 3.0%. The online trading firm said it expects full-year net operating income to be towards the upper end of guidance following a strong performance in its first half. CMC said its performance in its first half ended September 30 was driven by a focus on retaining and acquiring high value clients, diversification through its institutional business-to-business and stock broking business and elevated volatility as the Covid-19 pandemic increased client trading activity. This resulted in contracts-for-difference trading revenue of around GBP200 million, up from GBP85 million the year prior, CMC explained. Stockbroking net revenue is expected to increase to around GBP26 million from GBP14 million. "Following the strong performance in the first half, the board is confident that net operating income will be towards the upper end of the current range of consensus, while operating costs are anticipated to be moderately above consensus," CMC Markets stated.
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OTHER MAIN MARKET AND AIM - WINNERS
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Asiamet Resources, up 51%. The copper and gold miner has entered into a non-binding heads of agreement with PT Wasesa Indo Nusa, an Indonesian private company, to acquire Asiamet's wholly-owned subsidiary Indokal. Indokal holds the Kalimantan Surya Kencana contract of work, including the BKM copper project, Indonesia. PT Wasesa intends to list on the Indonesian Stock Exchange early next year. The total consideration for the deal is USD163.4 million which will be paid in cash and equity, including a 22.5% stake in PT Wasesa when it lists in Indonesia. "The Asiamet board fully endorses and supports this transaction. While it is recognised that there are still a number of steps to completion, the proposed transaction has the potential to unlock very significant unrecognised value for Asiamet shareholders and most importantly secures a clear road map for the funding and development of the BKM copper project," said Executive Chair Tony Manini.
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By Lucy Heming; lucyheming@alliancenews.com
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