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(Alliance News) - Stock prices in London are set to open higher on Friday, rebounding from the global sell-off on Thursday, as investors look to scoop up potential bargains.
IG futures indicate the FTSE 100 index is to open 214.32 points, or 4.1%, higher at 5,451.80. The FTSE 100 closed down 639.04 points, or 11%, at 5,237.48, its lowest level since 2012. London's leading stock measure is down 22% in the past week.
The pound was quoted at USD1.2564 early Friday, firm from USD1.2512 at the London equities close Thursday. The euro was at USD1.1199 early Friday, up from USD1.1077 late Thursday.
Against the yen, the dollar was trading at JPY105.51 early Friday in London, marginally down from JPY105.62 late Thursday.
The Nikkei 225 index closed down 6.1% in Tokyo on Friday. The Hang Seng index in Hong Kong is down 2.2%. The Shanghai Composite closed down 1.2%. However, Sydney closed higher. The S&P/ASX 200 index ended 4.4% higher after having been down 4.2% in earlier in the day.
The Dow Jones Industrial Average dropped 2,352.60 points, or 10% on Thursday. The S&P 500 lost 9.5% and the Nasdaq Composite 9.4%.
The sell-off on Wall Street came despite the US central bank announcing on Thursday a massive increase to its cash injections into American financial markets to quell the growing uncertainty caused by the coronavirus pandemic.
The New York Fed, which has ramped up short-term funding to markets in recent days, said it will offer USD500 billion in three-month funds called repurchase agreements or "repos" on Thursday and Friday, and USD500 billion in one-month repos on Friday.
Over the coming month, it will provide USD500 billion a week of one- and three-month repos. That is on top of the at least USD175 billion daily in overnight funding, and twice-weekly offers of at least USD45 billion in two-week repos.
"If the additional Fed liquidity couldn't get investors excited, it is perhaps because the sell-off isn't due to a thinning liquidity. In contrary, there is a gradual rise in trading volumes across the leading market indices as the sell-off deepens. This means that buyers are around, the liquidity is not drying up," said Swissquote analyst Ipek Ozkardeskaya.
In early UK company news, Premier Oil said it continues to perform well with production to the end of February of 76,600 barrels of oil equivalent a day. The company's annual output guidance stands between 70,000 to 75,000 barrels of oil equivalent a day, excluding the proposed UK acquisitions.
With regards to the proposed acquisitions and extension to the company's credit facilities, the court hearing to sanction the creditor schemes of arrangement is scheduled to start on Tuesday next week, Premier noted.
Elsewhere, Premier said it retains "significant" liquidity. It has unrestricted cash of USD135 million and undrawn facilities of USD330 million, as at the end of February. As well as maintaining liquidity, Premier is focused on managing its forward covenant position which could be hurt by the current oil price weakness, the company said.
Brent oil was quoted at USD34.04 a barrel, up from USD32.82 late Thursday. Brent oil started 2020 around USD66 mark, but the price has dropped significantly in recent weeks amid lower demand due to coronavirus and a breakdown in a output-limiting accord between OPEC and other big producing nations.
UK independent hospital company Spire Healthcare said it has been asked for, and has offered, its support to the NHS during "this challenging time". The move follows a meeting with NHS England and representatives from across the private sector to discuss future COVID-19 planning.
"The exact nature, extent and the timing of this support is yet to be determined; in the meantime, we continue to offer a full service to our patients," the company said in its statement Friday.
Saga, which provides products and services for life after 50, noted that the health and safety of customers and colleagues is its "number one priority". Therefore, the company said it has suspended operations of its cruises until the beginning of May.
The decision comes despite "very positive" demand for Saga's cruises, with bookings of around 80% of the full year revenue target, it said.
While cancellations had increased in recent weeks, Saga said the average booked load factor for the remaining five cruise departures in March was 79% and the average booked load factor for five April departures was 85%.
Turning to earnings reports, UK manufacturer, distributor and recycler Eurocell reported pretax profit up 5% in 2019 to GBP23.1 million, as revenue grew by 10% to GBP279.1 million. Excluding acquisitions, revenue was 8% higher year-on-year, the company noted.
Eurocell said it opened four new branches during the year and saw an increase in use of recycled material to 13,400 tonnes from 9,500 tonnes in 2018.
The company declared a 6.4 pence a share dividend for 2019, up 3% from 6.2p paid a year prior.
"Despite the impact of very wet weather so far this year, we have made a good start to 2020. Sales and margins for the first two months are in line with our expectations, and notwithstanding macroeconomic and political uncertainty, we expect to deliver further progress this year," said Chief Executive Mark Kelly.
In commodities, gold was quoted at USD1,587.66 an ounce early Friday, higher than USD1,572.65 late Thursday.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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