LONDON (Alliance News) - UK corporate news was thin on the ground Friday, with stock indices struggling for direction in early trade, though shares hedge fund manager Man Group rose after it reported stable funds under management in a volatile first quarter of 2016.
The FTSE 250-listed company said funds under management edged down slightly to USD78.6 billion from USD78.7 billion in the three months ended March 31, a result of net inflows of USD0.5 billion, a USD0.7 billion hit from the value of investments, and a USD0.8 billion boost from the weakening of the dollar against the yen and euro.
In addition, Man reported other negative movements of USD0.7 billion, citing "negative investment exposure adjustments" and collateralized loan obligation and guaranteed product maturities.
"Against the backdrop of challenging market conditions for the global investment management industry, we have delivered results for the first three months of the year that demonstrate the value and benefits of a diversified business model. Investment performance across our quantitative strategies and net inflows meant that group funds under management remained stable over a highly volatile quarter," Man Chief Executive Officer Manny Roman said in a statement.
The stock was one of the best performers in the FTSE 250, up 4.1%.
The FTSE 100 traded down 0.57 points to 6,364.53 just after the open. The FTSE 250 down 0.3% at 16,957.81 and the AIM All-Share was flat at 732.47.
The CAC 40 index in Paris was down 0.4% as was the DAX 30 in Frankfurt.
In Asia on Friday, the Shanghai Composite ended down 0.1%, and the Japanese Nikkei 225 index closed down 0.4%, while the Hang Seng in Hong Kong is down 0.2%.
The National Bureau of Statistics showed Chinese GDP expanded 6.7% year-on-year in the first quarter of 2016. This was in line with expectations but slower than the 6.8% economic growth seen in the three months prior.
The growth rate fell in the range of the Chinese government's 2016 growth target of between 6.5% to 7.0%, which it set in mid-March.
The Chinese bureau also released a report showing industrial production gained 6.8% annually in March, topping forecasts for 6.0% growth and up from 5.9% in February.
Retail sales advanced 10.5% from a year before, beating expectations for 10.3% growth and accelerating from 10.2% in the previous month.
William Hill traded down 2.2% after Goldman Sachs cut the bookmaker to Neutral from Buy. Meanwhile, Poundland Group was one of the worst performers in the FTSE All-Share, down 2.3% after HSBC cut the discount retailer to Hold from Buy.
Electronic products designer and distributor Acal said its underlying earnings for it financial year to the end of March are set to slightly outpace its expectations.
Acal said trading in the final weeks of the financial year was strong, with group sales ending the year up 6.0% year-on-year and up 14% in constant currencies. The stock traded up 2.9%.
Patagonia Gold said its loss swelled in 2015 after its operations became unprofitable due to lower production and higher operating costs, as the company seeks to develop or acquire an asset to replace its soon-to-be closed Lomada mine in Argentina.
The miner operating within in the southern Patagonia region of Argentina, Chile and Uruguay said its pretax loss widened to USD18.5 million in 2015 from the USD6.8 million loss booked in 2014 as revenue dropped, making its operations unprofitable, and costs increased.
Patagonia said revenue fell to USD26.1 million from the USD35.9 million generated a year earlier, which swung the company to a gross loss of USD3.6 million from a USD9.8 million gross profit.
The stock was the biggest faller in the AIM All-Share Friday morning, down 14%.
In the economic calendar, the eurozone trade balance is at 1000 BST, the Empire State manufacturing index is at 1330 BST, industrial production and capacity utilisation are both at 1415 BST, and a preliminary reading of the Reuters/Michigan Consumer Sentiment Index is at 1500 BST.
The International Monetary Fund and World Bank's Spring meetings take place in Washington on Friday through to Sunday.
By Neil Thakrar; neilthakrar@alliancenews.com; @NeilThakrar1
Copyright 2016 Alliance News Limited. All Rights Reserved.
