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(Alliance News) - Stock prices in London were seen opening higher on Friday, with the FTSE 100 within striking distance of the 7,000-point mark, following robust economic growth figures from China.
In early UK company news, online grocer Ocado Group made an investment in autonomous vehicle company Oxbotica. Building materials firm Grafton Group launched a review into the sale of some of its businesses. Belgian bank KBC Group is looking at a potential exit in Ireland. musicMagpie announced plans for an initial public offering on AIM, while NFT Investments starts trading on Aquis after raising GBP35 million in its IPO.
IG futures indicate the FTSE 100 index is set to open 14.90 points higher at 6,998.40. The blue-chip index closed up 43.92 points, or 0.6%, at 6,983.50 Thursday.
Ocado Group said it has launched a commercial partnership with Oxbotica to collaborate on hardware and software interfaces for autonomous vehicles, enhancing and integrating Oxbotica's autonomy software platform into a variety of vehicles.
Ocado expects that the development of vehicles that operate in low-speed urban areas or in restricted access areas, such as inside its customer fulfilment centre buildings or yards, may become a reality sooner than fully autonomous deliveries to consumers' homes.
However, it said, all aspects of autonomous vehicle development will be within the scope of the collaboration. Ocado expects to see the first prototypes of some early use cases for autonomous vehicles within two years.
Under the terms, Ocado will invest GBP10 million in Oxbotica as part of Oxbotica's latest Series B equity funding round and will also take a seat on Oxbotica's board.
Alex Harvey, chief of Advanced Technology at Ocado, commented: "We are excited about the opportunity to work with Oxbotica to develop a wide range of autonomous solutions that truly have the potential to transform both our and our partners' CFC and service delivery operations, while also giving all end customers the widest range of options and flexibility."
Grafton Group said that it has appointed Rothschild & Co to undertake a review of some of its traditional merchanting businesses, which "may or may not result in the sale of some or all of these businesses".
Grafton said the strategic review is focused solely on the Buildbase, Civils & Lintels, PDM Buildbase, Timber Group, Bathroom Distribution Group and NDI businesses. No other businesses form part of the strategic review.
Bank of Ireland Group said it has entered into a memorandum of understanding with KBC Bank Ireland to acquire substantially all of KBC Bank Ireland's performing loan assets and liabilities.
The transaction remains subject to customary due diligence, further negotiation and agreement of final terms and binding documentation, as well as regulatory approvals, it said.
Bank of Ireland said KBC's remaining non-performing mortgage loan portfolio in Ireland, which is not part of the MoU, is currently being analysed whereby KBC is reviewing its options to divest this NPL portfolio.
The completion of these two transactions would result in Brussels-based KBC Group's withdrawal from the Irish market.
KBC Bank Ireland Chief Executive Peter Roebben said: "KBC Bank Ireland remains committed to offering its quality retail banking and insurance services. For the time being nothing changes, neither for existing nor for new customers. Our customers do not need to take any action as a result of today's announcement. KBC Bank Ireland continues to benefit from a strong liquidity and capital position.
"The board and the executive committee of KBC Bank Ireland are fully conscious of our responsibilities to our customers and colleagues, and the role of KBC as part of the Irish banking system, and we are fully committed to assuming those responsibilities while the talks with Bank of Ireland are ongoing".
Meanwhile, the IPO market boom in London continued with musicMagpie the latest firm to announce plans for a listing on AIM.
musicMagpie is to raise GBP15 million for company and GBP95 million for selling shareholders in its initial public offering. Based on the placing price of 193 pence, it expects a market capitalisation of GBP208 million on admission. The company expects to start trading on AIM on April 22.
Founded in 2007, musicMagpie is a re-commerce of consumer technology, including smartphones, tablets, consoles and computers. It has an established presence in the UK, with operations in Stockport, Greater Manchester, and in the US in Atlanta, Georgia.
The IPO market in London is in good health so far this year after many firms abandoned plans to list in 2020 due to the coronavirus crisis.
Sky News reported on Thursday that investment bank Peel Hunt is considering an initial public offering in London, 20 years after it was taken private. Peel Hunt has appointed Evercore as adviser for a possible flotation that could value it at GBP350 million, Sky News said, citing "insiders".
Meanwhile, NFT Investments, which invests in non-fungible tokens, said its IPO raise of GBP35 million was a record for the Aquis Stock Exchange. NFT said the placing was oversubscribed with an order book in excess of GBP100 million. It starts trading on AQSE on Friday.
The Japanese Nikkei 225 index ended up 0.1% on Friday. In China, the Shanghai Composite was up 0.9%, while the Hang Seng index in Hong Kong was up 0.8%. The S&P/ASX 200 in Sydney ended 0.1% lower.
China's economy expanded at its fastest pace on record in the first quarter of 2021, data showed, in a sharp turnaround from the historic contraction caused by the coronavirus outbreak.
The 18% explosion in gross domestic product from a year ago was the fastest pace since quarterly records began three decades ago, accelerating sharply from growth of 6.5% in the fourth quarter.
The world's second largest economy was the only major one to grow at all in 2020, supported by strong retail spending and industrial activity as well as better-than-expected exports as the coronavirus hit markets around the world.
"Markets in Asia appear to be ending the week on a largely positive note with the main focus on this morning's Q1 China GDP numbers which showed the economy expanded by 18.3% year on year, and 0.6% on a quarterly basis. This looks set to translate into a positive European open, with all eyes on the FTSE 100 and whether it can crack above the 7,000 level," remarked CMC Markets analyst Michael Hewson.
In the US on Thursday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, S&P 500 up 1.1% and Nasdaq Composite up 1.3%.
The rally in New York came on the back of figures showing US jobless claims came in at their lowest level since the pandemic began, while retail sales soared 9.8% on-month in March as Americans began spending their USD1,400 stimulus handouts, helped by the rollout of vaccines.
The pound was quoted at USD1.3738 early Friday, down from USD1.3788 at the London equities close on Thursday.
The euro was priced at USD1.1961, flat from USD1.1965. Against the Japanese yen, the dollar was quoted at JPY108.87, up from JPY108.71.
Brent oil was trading at USD67.38 a barrel Friday morning, up sharply from USD66.58 late Thursday. Gold was quoted at USD1,761.70 an ounce, down from USD1,766.35.
The economic events calendar on Friday has eurozone inflation figures at 1000 BST.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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