LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
----------
FTSE 100 - WINNERS
----------
Royal Mail, up 2.2%. Cantor Fitzgerald upgraded the postal operator to Buy from Hold, arguing that markets have underestimated the strength and value of the group's brand and network and have overstated concerns about its wage negotiations, future pension costs and regulatory risks. Royal Mail currently trades at 10.5 times 2016 earnings estimates, compared to 15.1 times for the wider mail and logistics sector. Though the business faces challenges in the next couple of years, it looks better prepared to meet these than before, analyst Robin Byde said, and the benefits of its established brand and networks are not fully appreciated.
Tesco, up 1.6%. Deutsche Bank upgraded the supermarket to Buy from Hold following a recent fall in its share price and on confidence it will be able to outpace its rivals on margin progression despite its lacklustre like-for-like sales performance. Despite its disappointing top-line, Deutsche said Tesco has the strongest valuation support among the UK supermarkets.
----------
FTSE 100 - LOSERS
----------
Next, down 5.2%. The fashion and homeware retailer reported a rise in sales in the year to January 2, although growth was below the bottom end of its prior guidance, and said it expects full-year profit to remain within its previously guided range. Next also declared another special dividend. The retailer said total brand sales rose 3.7% in the year to January 2, with Next Retail up 2.1% and Next Directory up 6.1%. This was below its previously guided range of between 4% and 6% growth for total sales. In the 60 days from October 26 to December 24, total brand sales grew 0.4%, as a 2% increase in Next Directory offset a 0.5% decline in Next Retail. Next said its performance in the fourth quarter was "disappointing" due to unusually warm weather in November and December, while Next Directory was hit by poor stock availability from October onwards. The weak update from Next appeared to be dragging on other retailing stocks, amid concerns that Next's report signalled a poor Christmas for UK retailers generally, with Marks & Spencer Group down 0.9% and mid-cap department store operator Debenhams falling 2.2%.
Aberdeen Asset Management, down 5.8%. Barclays cut the emerging markets-focused asset manager to Underweight from Equal Weight, claiming concerns about the company go beyond a simple macroeconomic call on weak investor sentiment toward emerging markets. Barclays said it holds concerns about equity performance, the challenging outlook for investment flows, and "poor" dividend cover. Barclays said other areas exposed to potential outflows include Aberdeen's underperforming global equities desk, high yield in fixed income, the life book of the Scottish Widows Investment Partnership business acquired from Lloyds Banking Group in April 2014, and the multi-asset area of its Solutions arm.
----------
FTSE 250 - WINNERS
----------
Spire Healthcare Group, up 2.6%. JPMorgan Cazenove upgraded its price target on the private hospitals operator to 395 pence from 310p, keeping a Neutral rating on the stock. Spire shares were trading at 311.90p.
----------
MAIN MARKET AND AIM - WINNERS
----------
MySQUAR, up 11%. The Myanmar-based social media and entertainment platform operator said its total user base was in excess of 2.0 million at the end of 2015. The company said the rise brought its user base to two-and-a-half times the level it had been at the end of May 2015. "As 2015 developed it became clear that we were meeting our targets well ahead of expectations, and this latest update on user acquisition robustly maintains that trend," said Chief Executive Eric Schaer.
Bango, up 9.6%. The mobile payments company said it has deepened its relationship with Microsoft so that customers running the technology giant's latest operating system, Windows 10, on a PC or tablet can buy digital content by charging the costs to their mobile phone bill. Bango said the availability with specific operators will be disclosed as the carrier-billed payments are launched starting in January.
----------
MAIN MARKET AND AIM - LOSERS
----------
Mosman Oil & Gas, down 15%. The oil and gas company said it has issued a review notice to Origin Energy over the acquisition of the South Taranaki licence in New Zealand after the Brent oil price benchmark dropped below USD40 per barrel. Brent was trading at USD36.84 a barrel Tuesday morning. Mosman is acquiring a 70% stake in the licence from Origin but has now issued the notice in order to enter good faith negotiations of amendments to the agreement given the fall in world oil prices. If no agreement is reached within 30 days on an amended deal, either party has the option to terminate the agreement, Mosman said.
Motive Television, down 9.2%. The television technology company said it has agreed a deal with the largest investor in its convertible loan notes, in a move designed to get the company's balance sheet in order. The deal means Motive Television will buy convertible loan notes with a face value of GBP1.4 million from the investor for GBP100,000, plus a five-year warrant that allows the holder to acquire 5.0% of the company. Completion of the acquisition is expected no later than January 15.
----------
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
UK earnings, trading statements calendar - next 7 days
Friday 23 February | |
City of London Investment Group PLC | Half Year Results |
Irish Residential Properties REIT PLC | Full Year Results |
Standard Chartered PLC | Full Year Results |
Monday 26 February | |
Base Resources Ltd | Half Year Results |
Bunzl PLC | Full Year Results |
EnSilica PLC | Half Year Results |
Kosmos Energy Ltd | Full Year Results |
Made Tech Group PLC | Half Year Results |
Tristel PLC | Half Year Results |
Tuesday 27 February | |
abrdn Equity Income Trust PLC | Full Year Results |
abrdn PLC | Full Year Results |
Croda International PLC | Full Year Results |
Kitwave Group PLC | Full Year Results |
McBride PLC | Half Year Results |
PCI-PAL PLC | Half Year Results |
Smith & Nephew PLC | Full Year Results |
Synectics PLC | Full Year Results |
Uniphar PLC | Full Year Results |
Unite Group PLC | Full Year Results |
Wednesday 28 February | |
AB Dynamics PLC | Trading Statement |
ASA International Group PLC | Trading Statement |
Aston Martin Lagonda Global Holdings PLC | Full Year Results |
Avingtrans PLC | Half Year Results |
Bluefield Solar Income Fund Ltd | Half Year Results |
Derwent London PLC | Full Year Results |
Glenveagh Properties PLC | Full Year Results |
Grit Real Estate Income Group Ltd | Half Year Results |
Harmony Energy Income Trust PLC | Full Year Results |
Hutchmed China Ltd | Full Year Results |
International Personal Finance PLC | Full Year Results |
Just Eat Takeaway.com NV | Full Year Results |
Primary Health Properties PLC | Full Year Results |
Reckitt Benckiser Group PLC | Full Year Results |
Renewables Infrastructure Group Ltd | Full Year Results |
RHI Magnesita NV | Full Year Results |
St James's Place PLC | Full Year Results |
Taylor Wimpey PLC | Full Year Results |
Thursday 29 February | |
Cairn Homes PLC | Full Year Results |
CVS Group PLC | Full Year Results |
Drax Group PLC | Full Year Results |
Faron Pharmaceuticals Ltd | Full Year Results |
Haleon PLC | Full Year Results |
Hammerson PLC | Full Year Results |
Howden Joinery Group PLC | Full Year Results |
Hunting PLC | Full Year Results |
International Biotechnology Trust PLC | Full Year Results |
London Stock Exchange Group PLC | Full Year Results |
Macfarlane Group PLC | Full Year Results |
Man Group PLC | Full Year Results |
Mobico Group PLC | Full Year Results |
Nexus Infrastructure PLC | Full Year Results |
Ocado Group PLC | Full Year Results |
PPHE Hotel Group Ltd | Full Year Results |
Schroder Oriental Income Fund Ltd | Full Year Results |
Schroders PLC | Full Year Results |
Serco Group PLC | Full Year Results |
Shaftesbury Capital PLC | Full Year Results |
Spectris PLC | Full Year Results |
Spire Healthcare Group PLC | Full Year Results |
Vesuvius PLC | Full Year Results |
Weir Group PLC | Full Year Results |
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. |