LONDON MARKET OPEN: Phoenix Group falls as abrdn offloads stake

(Alliance News) - Stock prices in London on Friday were lower in early trade, defying calls for a higher open, as a highly volatile week for equities winds down, while Phoenix Group fell after a substantial stake sale by abrdn.

The FTSE 100 index was down 53.78 points, or 0.7%, at 7,531.23 early Friday. The mid-cap FTSE 250 index was down 85.42 points, or 0.4%, at 21,772.12. The AIM All-Share index was down 0.70 of a point at 1,085.94.

The Cboe UK 100 index was down 0.3% at 748.21. The Cboe 250 was up 0.2% at 19,557.88, and the Cboe Small Companies down 0.1% at 15,521.69.

In mainland Europe, the CAC 40 stock index in Paris was down 0.3% and the DAX 40 in Frankfurt was 1.0% lower.

In the FTSE 100, ITV was the best performer, up 2.6%, after Barclays upgraded the broadcaster to Overweight from Equal Weight.

UK fashion house Burberry Group was up 1.1% in a positive read-across from French rival LVMH Moet Hennessey Louis Vuitton, which was up 3.9% in Paris.

The Christian Dior, Fendi and Givenchy brands owner, late Thursday, reported a record year in 2021 as it bounced back from pandemic disruption.

Revenue for 2021 of EUR64.22 billion was up 44% on 2020 and 20% above 2019, a pre-pandemic period. Profit from recurring operations doubled year-on-year to EUR17.15 billion from EUR8.31 billion, and was up 49% on 2019. Net profit jumped to EUR12.04 billion from EUR4.70 billion in 2020.

At the other end of the large-caps, Phoenix Group was the worst performer, down 4.3% at 656.60 pence, after abrdn offloaded shares in the insurer. Shares in abrdn were up 0.8%.

The fund manager sold 40 million shares in Phoenix to institutional investors, at a price of 660 pence per share raising gross proceeds of GBP264 million.

Phoenix will not receive any proceeds from the placing, as it was of existing shares. Following the disposal, abrdn will have just above a 10% stake remaining in Phoenix Group, and abrdn will continue to appoint a director to Phoenix's board.

abrdn intends to return the cash from the Phoenix share sale to abrdn shareholders, with the timing of the return to be announced after the company's results on March 1.

Associated British Foods was down 3.0% after Goldman Sachs downgraded the Primark shop owner to Sell from Neutral.

In the FTSE 250, Cineworld Group was down 3.5% as its court battle with Canada's Cineplex continued to play out.

Cineplex has submitted a cross-appeal to Cineworld's own appeal of the decision of the Ontario Superior Court of Justice to award huge damages to Cineplex from Cineworld over the cancelled acquisition of Cineplex by Cineworld.

The court had ordered Cineworld to pay CAD1.23 billion, about GBP720 million, in damages Cineplex's cross-appeal said that it should be awarded alternative forms of damages if the Ontario Court of Appeal determines that the damages award of the Ontario Superior Court of Justice is incorrect.

In response, Cineworld on Friday repeated that it disagrees with the decision of the Canadian court, and it also disagrees with the submissions of Cineplex in its cross-appeal.

Markets in Asia were mixed on Friday. The Japanese Nikkei 225 index closed up 2.1%. In China, the Shanghai Composite ended down 1.0%, while the Hang Seng index in Hong Kong lost 1.0%. The S&P/ASX 200 in Sydney closed up 2.2%.

The dollar was stronger against rivals. The pound was quoted at USD1.3380 early Friday, down from USD1.3393 at the London equities close Thursday.

The euro was priced at USD1.1130, down from USD1.1152. Against the yen, the dollar was trading at JPY115.65, up from JPY115.42.

Brent oil was quoted at USD89.77 a barrel on Friday morning, down from USD89.88 late Thursday. Gold stood at USD1,796.80 an ounce, firm from USD1,794.49.

The international economic calendar has eurozone business climate at 1000 GMT, followed by US personal consumption expenditures at 1330 GMT.

By Arvind Bhunjun; arvindbhunjun@alliancenews.com

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