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(Alliance News) - Stock prices in London are seen opening slightly higher on Monday as investors await US inflation data later this week, as well as potential comments from the US Fed chair on the direction of monetary policy.
In early company news, contract-for-difference trading provider Plus500 said it is considering a new share buyback programme, as annual revenue was expected above market forecasts. Valve actuators maker Rotork named its new chief executive. Generic drugmaker Hikma Pharmaceuticals launched a new sterile compounding business.
IG futures indicate the FTSE 100 index will open 11.42 points higher at 7,496.70. The blue-chip index closed up 34.91 points, or 0.5%, at 7,485.28 Friday.
Plus500 said it delivered an "outstanding" operational and financial performance throughout 2021 that was ahead of market expectations.
For 2021, Plus500 said revenue is estimated around USD718 million, supported by customer income - a key underlying growth metric - of USD702 million. The revenue figure is below USD872.5 million posted in 2020, but higher than company-compiled analyst forecasts of USD655.2 million.
In addition, Plus500 said its base of active customers during 2021 remained well ahead of pre-pandemic levels, at 406,000, with the number of new customers on-boarded reaching 196,150. The development of the customer base was driven by continued investment in marketing technology, the company explained.
Turning to shareholder returns, Plus500 said that, following the completion of its current share buyback programme and the conclusion of the current closed period, a new programme will be considered by the board.
Since its initial share buyback programme commenced in 2017, Plus500 has acquired around 14.9 million shares at a cost of more than USD211 million, it said.
"This represents a clear validation of the board's confidence in the group's business model and future prospects. In addition, it highlights on-going evidence of the board's diversified approach regarding capital returns to shareholders, which also incorporates dividend payments," Plus500 asserted.
Chief Executive Officer David Zruia commented: "We are pleased to have delivered another strong year of financial performance, as well as making significant progress with our strategic and operational plans to strengthen our position as a leading global multi-asset fintech group. With the group having further strengthened its positioning during 2021, the board remains confident about the future for Plus500 and continues to expect that the group will deliver sustainable growth over the medium to long term."
Manufacturer Rotork said it promoted Kiet Huynh to chief executive officer, having previously been managing director Rotork's Water & Power and Chemical, Process & Industrial divisions.
Huynh has joined the Rotork board and assumed the role of CEO with immediate effect.
Back in August, Rotork had said that Kevin Hostetler planned to return to the US. Hostetler has stepped down from the board and as CEO but will remain available to support a smooth transition, the company said.
Hikma Pharmaceuticals said it has launched a new 503B sterile compounding business focused on providing ready-to-administer injectable medications customised to the specific needs of patients in the US.
Sterile compounding is the process of combining, mixing or altering ingredients to create medications in ready-to-administer formats tailored to the needs of healthcare providers.
Hikma said the launch of Hikma 503B builds on the company's expertise and position as a supplier of injectable medicines to US hospitals. It is registering for state licenses across the US and expects to be operating nationwide by the end of 2022.
Riad Mishlawi, president of Injectables at Hikma said: "There is substantial demand for outsourced sterile compounded medicines among the thousands of hospitals we currently serve, representing a large opportunity to meet a growing and not fully met need within the US health care system. Hikma 503B is uniquely positioned to bring pharmaceutical manufacturing standards to the space, which we believe will establish us as a significant player in the market over time."
In Asia on Monday, the Shanghai Composite ended up 0.4%, while the Hang Seng index in Hong Kong was up 1.1%. The S&P/ASX 200 in Sydney closed down 0.1%. Financial markets in Japan were closed for the Coming of Age Day holiday.
The international economic calendar has eurozone unemployment at 1000 GMT on Monday.
Ahead in the economic calendar this week, consumer price index readings from China and the US due on Wednesday and a UK monthly gross domestic product print is scheduled for Friday. In addition, US Federal Reserve Chair Jerome Powell will testify before the Senate Banking Committee on Tuesday.
"European futures are up today as investors await key inflation reports to be published this week. Investors should note that US consumer prices were on a rampage in 2021, rising by 6.8% [in December], the steepest surge in nearly four decades. This is why the Federal Reserve has pulled the breaks on its ultra-easy monetary policy by not just speeding up its tapering timeline but also reducing its exposure to treasuries and likely raising interest rates sooner," said AvaTrade analyst Naeem Aslam.
Meanwhile, UK Prime Minister Boris Johnson is under pressure from Tory members of Parliament to set out plans to ease Covid-19 restrictions and deliver a vision for living with the virus.
Cabinet minister Nadhim Zahawi ruled out universal free lateral flow tests being scaled back yet, but suggested the reduction of isolation times could be used to ease staffing issues.
Chancellor Rishi Sunak was among ministers keen on the economic benefits of reducing the period from seven to five days, according to the Daily Telegraph.
Former chief whip Mark Harper, an influential lockdown-sceptic within the Tory party, urged the prime minister to declare an end to coronavirus restrictions.
Harper warned Johnson he could suffer an even greater rebellion than when he introduced his Plan B measures if he tries to extend them later this month.
The prime minister, however, was understood to be unlikely to set out further plans while cases rates remain so high and the NHS strains under significant pressures.
The pound was quoted at USD1.3585 early Monday, up from USD1.3572 at the London equities close Friday.
The euro stood at USD1.1332, lower against USD1.1343. Against the Japanese yen, the dollar was trading at JPY115.77, up from JPY115.64.
Brent oil was quoted at USD81.90 a barrel Monday morning, down slightly from USD81.99 late Friday. Gold stood at USD1,793.46 an ounce, marginally higher from USD1,791.80.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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