LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Wednesday.----------
FTSE 100 - WINNERS----------
Prudential, up 5.0%. The insurer is to divide its business into two - splitting its UK from US and Asian operations - as it announced its intention to demerge M&G Prudential to create two-separately listed companies. Prudential is to spin-off M&G Prudential which comprises its UK operations from Prudential PLC, which will cover Asia, Africa and the US, "resulting in two separately-listed companies with different investment characteristics and opportunities". Shareholders will hold interests in both Prudential PLC and M&G Prudential. It also said M&G Prudential has agreed the sale of
GBP12 billion of its UK annuity assets to Rothesay Life. In addition, Prudential said total IFRS pretax profit in 2017 rose to
GBP3.30 billion from
GBP2.28 billion the year before, as total revenue net of reinsurance rose to
GBP86.56 billion from GBPP71.84 billion. Prudential raised its full-year dividend by 8% to
47.00 pence, from 43.50p the year before. ----------
Anglo American, up 2.0%, Antofagasta, up 1.9%, Glencore, up 1.8%, BHP Billiton, up 1.2%. Goldman Sachs issued a positive research note on the European Metals & Mining sector, adding Anglo American to its Conviction Buy List from Neutral and upgrading Antofagasta and BHP to Neutral from Sell. Moreover, data released early on Wednesday showed China's industrial production expanded the most since mid-2017 and retail sales grew strongly, suggesting that the economy sustained robust growth at the start of the year. Data from the National Bureau of Statistics showed industrial output climbed 7.2% year-on-year in January to February period, while growth was seen at 6.2%, the same as in December. This was the biggest expansion since last June, when output gained 7.6%.----------
GKN, up 1.2%. The Financial Times said Dana is looking to convince the engineer's investors to back its
USD6.10 billion agreement to merge with GKN's automotive business rather than accept the hostile
GBP8.10 billion bid from Melrose Industries to buy all of GKN. Dana Chief Executive Officer Jim Kamsickas began a two-day tour of GKN's investors on Tuesday, the day after Melrose raised its bid for GKN. The Financial Times reported Dana Finance Director Jonathan Collins had said a secondary listing in London was "absolutely an option" if GKN investors required it to support its deal. On Friday, GKN agreed to merge its Driveline business with Dana to create a new UK company listed solely in New York to be called Dana PLC.----------
FTSE 100 - LOSERS----------
WM Morrison Supermarkets, down 1.5%. The supermarket chain declared a special return to shareholders for its recently ended financial year, as it recorded stronger like-for-like sales growth than the year before. Morrisons is proposing a special dividend to shareholders of
4.00 pence per share on top of a final dividend of 4.43p. Without the special dividend, the total for the year to February 4 is 6.09p compared to 5.43p, but including it the return is up 86% year-on-year to 10.09p. This special return, the company said, reflects progress made so far and expectations for continued growth. On a reported basis, pretax profit increased 17% year-on-year to
GBP380.0 million, and underlying pretax profit rose 11% to
GBP374.0 million. "The announcement of a special dividend likely helped to attract a few buyers early this morning, however without a commitment to further special dividends, and capping a more than 10% rally from February's lows, many shareholders are deciding to take profits and run," said Accendo Markets analyst Henry Croft. ----------
FTSE 250 - WINNERS----------
Dignity, up 15%. The funeral services provider reported flat profit for its recently ended financial year, with the firm noting a "step change" in simple funerals after its January price reductions. Pretax profit for the 52 weeks to December 29 was flat at
GBP71.2 million, though on an underlying basis it increased by 3% to
GBP77.8 million. Dignity's revenue rose by 3% to
GBP3224.0 million, while deaths during the period were flat at 590,000. The company is maintaining its final dividend at 15.74p per share, taking the total payout to 24.38p, which is a 3% increase on its previous year. In mid-January the company said increased price competition was affecting trading, and as a result it reduced its simple funeral prices. Initial analysis, Dignity said, of the mix of funerals in the first seven weeks since the price of the simple funeral was reduced indicates a "step change in simple funerals conducted has occurred, as expected". ----------
Hikma Pharmaceuticals, up 10%. The drugmaker's shares were higher despite sinking to a loss in 2017 amid impairments due to a tough generics market in the US, as its new boss takes the helm. In 2017, Hikma sunk to a
USD738 million pretax loss from a profit of
USD210 million the year prior. Revenue edged marginally lower to
USD1.94 billion from
USD1.95 billion the year before. Profit performance was hurt by
USD1.07 billion in exceptional costs for 2017, up from just
USD149 million the year prior. This was chiefly due to impairments associated with Hikma's 2016 West-Ward Columbus acquisition due to difficult US generic drug market conditions. Hikma proposed a 23 US cents final dividend, up from
22 cents in 2016. For the full year, Hikma's dividend increased to
34 cents from
33 cents the year prior. "We delivered a solid performance in 2017 at a challenging time for our industry, demonstrating the benefit of our diversified business model," Hikma Executive Chairman Said Darwazah said. ----------
MAIN MARKET AND AIM - WINNERS----------
MTI Wireless Edge, up 8.5%. The flat panel antenna manufacturer said it currently is in merger discussions with its majority shareholder, Tel Aviv-listed MTI Computers & Software Services, which holds a 52% interest. The proposed merger is currently in discussion and would be subject to corporate and regulatory approvals if agreed. If so, the deal would see MTI Computers's business and assets merged into MTI Wireless, and the former would cease to exist, while the latter would remain listed on AIM. Approvals are required from the Israeli Securities Authority, Israeli court and Israeli Tax Authority, and also from the shareholders of both companies. The enlarged company would have revenue 30% above MTI Wireless's current revenue, at
USD26.4 million for 2017. The merger also would broaden the company's business base and increased liquidity, as well as costs savings and efficiency from being traded on one stock exchange.----------
MAIN MARKET AND AIM - LOSERS----------
Yu Group, down 14% at 970.00p. The gas and electricity supplier said it raised
GBP12.0 million through the placing of 1.2 million shares. Yu placed the shares - through an accelerated bookbuild process - at a price of
1,000 pence each, an 11% discount to the closing price on Tuesday. The placed shares represented 8.5% of Yu's share capital prior to the placing. After admission to trading - expected next Wednesday - the placed shares will be equivalent to 7.9% of its total 15.3 million shares outstanding. Late Tuesday, Yu had said the placing proceeds will be used to support the collateral required for the company's letters of credit that supports the its energy hedging policy. It will also be used to invest in the company's infrastructure and for general working capital purposes.----------
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