Mike Ralston, CEO of Blencowe Resources (BRES) and Manuel Pablo Zúñiga-Pflücker, President and CEO of PetroTal (PTAL) will be presenting and taking live Q&A at focusIR's Investor Webinar on Tuesday 25th February. Please register here.

Less Ads, More Data, More Tools Register for FREE
Sponsored Content
Don't want ads? Click here
Sponsored Content
Don't want ads? Click here

Pin to quick picksNEX.L Share News (NEX)

  • There is currently no data for NEX

Watchlists are a member only feature

Login to your account

Timelines are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET OPEN: Fresnillo drops on 2022 production warning

Wed, 26th Jan 2022 09:12

(Alliance News) - Stock prices in London opened sharply higher on Wednesday ahead of a US Federal Reserve rate decision later in the day and following hefty selling at the start of the week, but miner Fresnillo sank after warning production for 2022 is likely to take a hit.

The FTSE 100 index was up 102.94 points, or 1.4%, at 7,473.60 early Wednesday. The mid-cap FTSE 250 index was up 223.29 points, or 1.1%, at 21,879.00. The AIM All-Share index was up 6.62 points, or 0.6%, at 1,090.83.

The Cboe UK 100 index was up 1.3% at 742.32. The Cboe 250 was up 1.3% at 19,568.71, and the Cboe Small Companies up 0.4% at 15,252.05.

In mainland Europe, the CAC 40 stock index in Paris was up 1.1%, while the DAX 40 in Frankfurt was up 1.2%.

"The UK has certainly not escaped the pressures currently being experienced on a global scale, but it has been rather less susceptible to the volatility which has dominated market sentiment so far, partly due perhaps to its limited exposure to the likes of big tech. Following a decent open driven by a broad mark-up of oil and travel-related stocks, the UK's premier index remains ahead, having added 1.2% in the year to date," said interactive investor's Richard Hunter.

In the FTSE 100, travel-related stocks were the best performers. International Consolidated Airlines was up 5.1%, InterContinental Hotels up 4.5%, and Whitbread up 3.9%.

Oil majors BP and Shell 'A' and 'B' were up 3.1%, 3.0% and 2.8% respectively - tracking spot oil prices higher. Shell formally adopted its new name Shell PLC, dropping the 'Royal Dutch' moniker.

Brent oil was quoted at USD88.66 a barrel on Wednesday morning, up sharply from USD87.57 late Tuesday.

At the other end of the large-caps, Fresnillo was by far the worst performer, down 14%, after the Mexican precious metals miner posted disappointing production numbers.

For 2021, Fresnillo delivered attributable silver production of 53.1 million ounces, which was below guidance of 53.5 million to 59.5 million ounces. The company said output was below guidance due to lower grades and less ore at the Saucito and Fresnillo mines.

Fresnillo reported 2021 gold production of 751,200 ounces, down 2.4% on 2020 but ahead of guidance of 675,000 to 725,000 ounces of gold. It attributed the lower gold production to lower ore grades at Cienega and at San Julian Veins.

Looking ahead, Fresnillo forecasts 50.5 million to 56.5 million ounces attributable silver - including Silverstream - in 2022. Fresnillo also guided for 600,000 to 650,000 ounces attributable gold production in 2022. Both are down on 2021.

Fresnillo said the 2022 guidance is in light of the ongoing and new operational challenges caused by the virus pandemic and its resulting effects on workforce availability, as well as the implementation of the new labour laws that limit use of contractors.

In the FTSE 250, Playtech was the worst performer, down 2.0%. The gambling software firm said its board continues to recommend that shareholders vote in favour of the takeover offer from Australia's Aristocrat Leisure.

"Whilst Playtech has made significant strategic and operational progress and is in a strong position for the future, Aristocrat's proposal provides an attractive opportunity for shareholders to accelerate the delivery of Playtech's longer-term value," the company said.

Playtech was responding to a report by Sky News late Tuesday that the company is considering a break-up of the business if a group of Asian-based shareholders block the takeover by Aristocrat. A shareholder vote on the deal is scheduled for Wednesday next week.

National Express shares were up 3.4% and Stagecoach shares up 0.6%, even as the UK Competition & Markets Authority served an initial enforcement order in relation to the planned merger between the two public transport operators.

Noting the announcement, Stagecoach said the CMA indicated that the purpose of the order is to maintain the businesses in their current shape whilst it commences its review of the merger.

As such, the order will delay completion of the proposed sale of the marketing, retail and customer service activities of Stagecoach's inter-city coach businesses to ComfortDelGro Corp beyond February 28.

Stagecoach said that both its board and that of National Express continue to believe the Stagecoach inter-city coach business sale represents a "comprehensive solution" to any competition concerns that might arise from their overlapping coach operations.

In Asia on Wednesday, the Japanese Nikkei 225 index closed down 0.4%. In China, the Shanghai Composite ended up 0.7%, while the Hang Seng index in Hong Kong finished flat. Financial markets in Sydney were closed on Wednesday for Australia Day.

The pound was quoted at USD1.3502 early Wednesday, up from USD1.3491 at the London equities close Tuesday.

The euro was priced at USD1.1298, higher against USD1.1279. Against the yen, the dollar was trading at JPY113.93, unmoved from JPY113.92.

Gold stood at USD1,849.07 an ounce, slightly higher against USD1,846.58 late Tuesday.

Wednesday's economic calendar is headlined by interest rate decisions from the US Federal Reserve at 1900 GMT and press conference from Chair Jerome Powell at 1930 GMT. Ahead of that, the Bank of Canada's announces policy at 1500 GMT.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

More News
4 Feb 2022 12:02

LONDON MARKET MIDDAY: Oil lifts FTSE but CAC, DAX fall before US jobs

LONDON MARKET MIDDAY: Oil lifts FTSE but CAC, DAX fall before US jobs

Read more
26 Jan 2022 12:16

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

LONDON MARKET MIDDAY: Markets brace for aggressive US Fed tightening

Read more
26 Jan 2022 10:52

Stagecoach merger with National Express reviewed by UK regulator

Stagecoach merger with National Express reviewed by UK regulator

Read more
26 Jan 2022 10:30

Regulator to probe National Express-Stagecoach merger

(Sharecast News) - The competition watchdog is to investigate the proposed £1.9bn merger of National Express and Stagecoach, it was confirmed on Wednesday.

Read more
26 Jan 2022 07:56

LONDON MARKET PRE-OPEN: Fresnillo silver production misses forecast

LONDON MARKET PRE-OPEN: Fresnillo silver production misses forecast

Read more
6 Jan 2022 13:46

Berenberg upgrades Restaurant Group, downgrades Wetherspoons

(Sharecast News) - Berenberg reviewed its ratings on a number of leisure stocks on Thursday from pubs to restaurants and travel firms.

Read more
20 Dec 2021 17:09

LONDON MARKET CLOSE: Stocks dive on lockdown fears and Biden bill blow

LONDON MARKET CLOSE: Stocks dive on lockdown fears and Biden bill blow

Read more
14 Dec 2021 17:05

LONDON MARKET CLOSE: Stocks fall as concerns over Omicron spread mount

LONDON MARKET CLOSE: Stocks fall as concerns over Omicron spread mount

Read more
14 Dec 2021 12:21

LONDON MARKET MIDDAY: Ocado lifts FTSE but CAC and DAX tread water

LONDON MARKET MIDDAY: Ocado lifts FTSE but CAC and DAX tread water

Read more
14 Dec 2021 12:03

National Express buys Stagecoach for £468m

(Sharecast News) - National Express has agreed to buy Stagecoach in a deal the combines two of Britain's biggest public transport operators in the wake of the pandemic.

Read more
14 Dec 2021 10:43

TOP NEWS: National Express and Stagecoach agree GBP2 billion merger

TOP NEWS: National Express and Stagecoach agree GBP2 billion merger

Read more
14 Dec 2021 10:11

UPDATE 2-FTSE 100 slips as Rentokil weakness, Omicron worries outweigh mining gains

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Rentokil top FTSE 100 loser* BT Group falls as Drahi raises stake* National Express to acquire Stagecoach* FTSE 100 down 0.2% , FTSE 250 dr...

Read more
14 Dec 2021 09:43

Stagecoach sells intercity services as merger deadline looms

(Sharecast News) - Stagecoach has agreed to sell Megabus and two other intercity coach services for £8.75m to head off potential competition barriers to its proposed merger with National Express.

Read more
8 Dec 2021 15:05

Stagecoach says UK travel demand picks up amid National Express talks

Stagecoach says UK travel demand picks up amid National Express talks

Read more

Free Investment Tools

Register for FREE

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.