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Pin to quick picksOcado Share News (OCDO)

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UK WINNERS & LOSERS SUMMARY: Travel, Retail Firms Dive On Tier 4 Rules

Mon, 21st Dec 2020 10:38

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Monday.

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FTSE 100 - WINNERS

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Ocado, up 4.1% and Just Eat Takeaway.com, up 3.0%. The two stocks - both involved in the business of delivering food, the former an online grocer and the latter a takeaway platform - are poised to gain from tighter restrictions in the UK. On Saturday, UK Prime Minister Boris Johnson announced that from Sunday, areas in the South East currently in Tier 3 will be moved into a new Tier 4, effectively returning to the lockdown rules of November, after scientists said a new coronavirus variant is spreading more rapidly. Non-essential shops, gyms, cinemas, hairdressers and bowling alleys have been forced to close for two weeks – with people being restricted to meeting only one other person from another household in an outdoor public space.

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FTSE 100 - LOSERS

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International Consolidated Airlines, down 11%. The emergence of a new Covid-19 strain, leading to tighter restrictions in the south east of England and to other countries closing their borders to the UK, heaped pressure on the British Airways owner.

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Royal Dutch Shell, 'A' and 'B' shares down 5.5% and 5.9% respectively. The oil major said it expects charges of up to USD4.5 billion due to impairments, asset restructuring and onerous contracts in the fourth quarter. For Integrated Gas, production is expected to be between 900,000 and 940,000 barrels of oil equivalent per day in the fourth quarter. LNG liquefaction volumes are expected to be between 8.0 and 8.6 million tonnes. In Upstream, production is expected to be between 2.3 million and 2.4 million barrels of oil equivalent per day. The unit is expected to post an adjusted loss in the current price environment, the firm said. Post-tax charges, in total, between USD3.5 billion to USD4.5 billion in relation to impairments, asset restructuring and onerous contracts are expected in the fourth quarter.

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FTSE 250 - LOSERS

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Hammerson, down 13%. As well as the travel sector, the retail industry was coming under pressure on Monday, with shares in shopping centre owner Hammerson falling. "Tier 4 restrictions could be catastrophic for retailers and lead to the demise of further companies in what is already a fragile sector," said Russ Mould at AJ Bell.

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Frasers Group, down 11%. The Sports Direct and House of Fraser owner said it has withdrawn its guidance for its current financial year due to the closure of non-essential retail in London, the south east and the east of England. The sports equipment and clothing retailer said the new restrictions enacted during the peak trading period and combined with the high likelihood of further lockdowns nationwide over the coming months means it can no longer commit to its guidance of a 20% to 30% improvement in underlying earnings before interest, tax, depreciation, and amortization for its financial year ending April 2021.

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OTHER MAIN MARKET AND AIM - WINNERS

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Kibo Energy, up 9.7%. The energy company said its UK subsidiary Sloane Developments Ltd has progressed the acquisition of the 9 megawatts flexible gas power project. Kibo said the latest progress is based on the parties making their reciprocal due diligence investigations, which have now reached the point where the parties are in the process of finalizing a definitive share purchase agreement. Sloane is seeking listing on the London Stock Exchange, after which it will be renamed Mast Energy Developments Projects PLC. Admission will be accompanied by an initial public offering, which will seek to raise sufficient funds to complete the acquisition. Kibo intends to maintain a strategic interest in Mast post the initial fundraise and admission of at least 51% ensuring continued upside from future developments.

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OTHER MAIN MARKET AND AIM - LOSERS

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Premier Oil, down 12%. Berenberg cut the oil and gas company to Sell from Hold.

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By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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