LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.
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FTSE 100 - WINNERS
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Glencore, up 4.6%. The multi-commodities miner and trading house reiterated its full-year earnings guidance and said it aims to have reduced its net debt by up to 15% before the end of the year. Glencore said it aims to have its net debt down to below USD25.00 billion before the end of 2015 and to have net funding of around USD40.00 billion. If it hits that debt target, it would represent a 15% drop from its net debt at the end of June. In the longer term, net debt is expected to fall to the "low USD20s billion" by the end of 2016. The company also reiterated its full-year guidance to produce earnings before interest and tax of USD2.50 to USD2.60 billion from its marketing division for the full year. Rival miners also were trading higher, with Anglo American up 4.6%, Antofagasta up 2.3%, Rio Tinto up 2.2%, Fresnillo up 2.2% and BHP Billiton up 2.2%.
Marks & Spencer Group, up 3.2%. The clothing, food and homewares retailer reported a drop in profit in the first half of its financial year, but a slight rise in sales as its food business once again outperformed the weaker general merchandise division. M&S said pretax profit in the 26 weeks ended September 26 fell 23% to GBP216.0 million from GBP279.4 million the year before, although revenue grew 1% to GBP4.95 billion from GBP4.90 billion. M&S said that its food business delivered sales growth of 3.3%, offsetting a 0.4% decline in general merchandise.
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FTSE 100 - LOSERS
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Persimmon, down 2.7%. The housebuilder said activity in the UK housing market improved as expected into the autumn season, driving up its private sales rate in the second half so far and keeping pricing robust across its regional markets. The group said its private sales rate has increased 12% year-on-year in the weeks since it published its interim results on August 18, building on the 5.0% increase it posted in the summer weeks following the end of the first half at the end of June. Despite the robust trading, other housebuilders also followed Persimmon lower, with Berkeley Group Holdings down 3.6%, Taylor Wimpey down 2.9% and Barratt Developments down 2.7%.
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FTSE 250 - WINNERS
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Premier Oil, up 5.6%, Petrofac, up 4.7%, Amec Foster Wheeler, up 4.7%, John Wood Group, up 3.8%, Hunting, up 3.5%, Ophir Energy, up 2.8%, Weir Group, up 2.7%. Oil and gas-related stocks, both explorers and services companies, were trading higher as the Brent oil price rose 0.9% to USD50.65 per barrel. RBC Capital raised Weir to Sector Perform from Underperform.
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FTSE 250 - LOSERS
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Countrywide, down 12%. The property services group said its housing sales transaction volumes are set to fall year-on-year after the expected uptick in activity following the UK General Election in May has not materialised. Countrywide said it has traded well across its portfolio, but said housing transactions remain at lower levels year-on-year. For the third quarter to the end of September, total house exchanges fell 8.0% year-on-year and were down 10% for the nine months to the end of September. Fellow estate agent Foxtons Group followed Countrywide lower, down 8.0%.
JD Wetherspoon, down 4.5%. The pub operator said its operating margin has deteriorated in recent weeks, though like-for-like and total sales have increased. The company said its total sales rose 6.1% in the 13 weeks to October 25, as like-for-like sales rose 2.4%, boosted by the Rugby World Cup taking place in the latter part of the period. But the group's operating margin for the period fell to 6.2%, from 7.7% a year earlier, due to increases in the starting rates for hourly-paid staff, which had added a total of 13% of those costs. It dragged on Enterprise Inns shares, which were down 3.4%, while Marston's fell 1.9%.
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MAIN MARKET AND AIM - WINNERS
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Plethora Solutions Holdings, up 136% to 6.48 pence. The specialty pharmaceutical company said it has reached an agreement to be acquired by Hong Kong-based Regent Pacific for GBP122.6 million, or 12.5p per share. The offer is a 39% premium to the last time Plethora sold shares in August 2014, and a massive premium to its closing price of 2.75p per share on Tuesday.
ImmuPharma, up 16%. The pharmaceutical company reported progress has been made on the phase III clinical trial of its Lupuzor lupus treatment. ImmuPharma said the recruitment of the first patients to the study is due to start this year after the trial was approved by a major, unnamed Central Institutional Review Board which will allow several test sites to take part under a single agreement. The first sites in the US are set to be initiated in late November or early December and will start recruiting patients thereafter. The study is also making progress in Europe, with expectations the first sites will be initiated in January, with patient recruitment to start after that.
Craven House Capital, up 34%. The investment company said it has signed a GBP30.0 million financing agreement with GEM Global Yield Fund. Under the agreement, New York-based Global Emerging Markets Group will provide Craven House with up to GBP30.0 million through a stock subscription agreement with the Global Yield fund. The funds will be provided at Craven House's discretion and will provide the company with the equity capital it needs to pursue future investments.
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MAIN MARKET AND AIM - LOSERS
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Galasys, down 30%. The theme park technology provider said it has received a court order in Malaysia contending two former directors should remain with the company. Hee Chee Keong and Chin Chee Seong have entered the order with the High Court in Kuala Lumpur, Galasys said. Keong stepped down as chief financial officer in October, while Seong is a non-executive director. The order requires the pair to be reinstated to the board of the company until a hearing is held on November 17. Galasys said it has hired a solicitor to help it resolve the situation.
TyraTech, down 22%. The life sciences company said it has conditionally raised GBP3.2 million via a share placing and subscription. TyraTech is issuing a total of 105.3 million shares at 3.00 pence per share. Shares in the company were down 21% to 3.24 pence on Wednesday following the news. The funding will be used to back the growth of its Vamousse headlice treatment in the US and UK, along with an expansion into Germany and Australia.
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By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
19 Jan 2016 07:49
