(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
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FTSE 100 - WINNERS
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Rolls-Royce, up 16% at 226.80 pence. The jet engine maker has had a stellar string of sessions following share price weakness last week after the company set out plans for a balance sheet boosting GBP2 billion rights issue, a GBP1 billion bond offering and the possibility of GBP2 billion more in loans. Last Friday, the stock hit a low of 100.80p - the worst price in 17 years. This week so far, though, the stock has doubled from closing last Friday at 113.6p.
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British Land Co, up 3.8%. The London-based real estate investment trust said it will resume dividend payments, with all of its retail assets and 86% of stores now open. British Land temporarily suspended its dividend in March given the "unprecedented circumstances" of the Covid-19 pandemic. "Like many businesses, we continue to face challenges as a result of the Covid-19 pandemic, but we also recognise the importance of the dividend to shareholders. We benefit from the strong financial position we have established over several years, a unique and world-class portfolio of real estate and are reassured by the improving operational performance of our assets over recent months," said British Land. Consequently, it will be resuming dividends, paid semi-annually rather than quarterly. Future dividends are to be paid at 80% of British Land's underlying earnings per share, based on the most recently completed six-month period so as to "reflect the impact of development completions, acquisitions, disposals, and trading conditions as they change over time." A dividend will be declared on this basis along with its results in November.
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FTSE 100 - LOSERS
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Persimmon and Taylor Wimpey, both down 0.8%. Barclays initiated both housebuilders with an Equal Weight rating.
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FTSE 250 - WINNERS
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Redrow, up 3.7%. Barclays started the mid-cap housebuilder with an Overweight recommendation.
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FTSE 250 - LOSERS
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Petropavlovsk, down 2.9%. Russian gold miner said it expects full year 2020 production to be below its previous guidance but assured that the impact on profitability will be less significant given the lower margins on third-party production processing. Petropavlovsk said it expects total production of between 560,000 to 600,000 ounces, down from previous forecasts of between 620,000 to 720,000 ounces, blaming the underperformance on lower than expected grades - primarily from third-party material - and logistical issues associated with Covid-19 impacting deliveries of third-party concentrates. For comparison, gold production in 2019 was 517,300 ounces. It added it has decided to delay full commissioning of the Pioneer plant from the fourth quarter of 2020 until the second quarter of 2021 due to delays to the commissioning of some equipment items and a desire to avoid full commissioning during the winter months. It stated that it will continue to process stockpiles of lower grade non-refractory ore at the Pioneer RIP plant.
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TP ICAP, down 2.6%. The interdealer broker confirmed that it will acquire New York-based electronic trading network Liquidnet Holdings for a price ranging from USD575 million to USD700 million. Liquidnet is said to be a specialist in equities dark trading, with a growing presence in fixed income. For the year to the end of June, Liquidnet generated adjusted earnings before interest, tax, depreciation and amortisation of USD64 million, on revenue of USD339 million. The payment comprises an upfront consideration of USD525 million on the completion of the deal, and a deferred consideration of USD50 million. TC ICAP will pay up to a further USD125 million depending on the performance of the Liquidnet Equities business over the three-year period from the start of 2021. TP ICAP expects to pay USD100 million in cash funded from its existing debt facilities on the completion of the deal, and then USD425 million in cash, raised through a rights issue, which will be fully underwritten by HSBC Bank.
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OTHER MAIN MARKET AND AIM - WINNERS
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Marston's, up 20%. The UK Competition & Markets Authority said it has cleared the proposed joint venture between UK brewer and pub operator Marston's and Carlsberg. In May, Marston's and Carlsberg announced the formation of a new joint venture for brewing and distribution in the UK. Under the agreement, FTSE 250-listed Marston's would receive a 40% stake in the Carlsberg Marston's Brewing Co joint venture, plus a balancing cash payment of up to GBP273 million. The joint venture valued Marston's brewing business at GBP580 million and Carlsberg's UK brewing business at GBP200 million. Marston's had said it would use the proceeds from the joint venture to cut debts. The monopoly watchdog's decision on Friday follows a probe announced in August into several possible ways in which the deal could harm competition in the supply of beer and cider in the UK. Commenting on the approval, Marston's said: "We are pleased to report that the Competition & Markets Authority have cleared the proposed joint venture, and the antitrust condition to completion has now been satisfied."
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By Lucy Heming; lucyheming@alliancenews.com
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