LONDON MARKET PRE-OPEN: Glaxo Gets Positive Results From Zejula Study

(Alliance News) - Stock prices in London are seen opening slightly higher on Monday, tracking gains in Chinese equity markets despite a reported slowdown in economic growth there.In early UK company news, pharmaceutical company GlaxoSmithKline reported positive test results for one of its oncology drugs, Mike Ashley's Sports Direct delayed the release of its annual results, and Grainger secured funding for a big development in Leeds. IG futures indicate the FTSE 100 index is to open up 0.63 point at 7,506.60. The blue chip index closed 3.85 points lower, or 0.1%, at 7,505.97 on Friday.Drugmaker AstraZeneca said it has issued a complete response letter to the US Food & Drug Administration regarding the supplemental New Drug Application for diabetes treatment Farxiga. AstraZeneca said it will work with FDA on the next steps for Farxiga.Peer GlaxoSmithKline said it achieved positive results from the Phase 3 study of Zejula, for use for treatment of late-stage ovarian cancer. Glaxo said the study of its niraparib therapy - branded Zejula in the US and Europe - met the primary endpoint and produced statistically significant improvement in progression free survival."Almost 300,000 women around the world are diagnosed with ovarian cancer every year, yet only about 15% of patients are currently eligible to receive pharmacological inhibitors as their initial therapy. These exciting data demonstrate that Zejula has the potential to significantly benefit even more women with this devastating cancer," said Chief Scientific Officer Hal Barron.Sports Direct International said it will delay the release of its annual results, which were originally set for Thursday. The company said the reasons for the delay were due to the "complexities of the integration" of department store chain House of Fraser into the existing business and the current uncertainty regarding the future trading performance of that acquisition. As such, accounting firm Grant Thornton has asked for more time to complete its audit. Sports Direct said there are some "key areas to conclude" which could hurt the guidance given in December. The company now expects its audited results to be published between July 26 and August 23. Separately, Sports Direct said it has secured acceptances for 84% of video game retailer Game Digital's issued share capital. Residential landlord Grainger said it completed forward funding of a 216 home private rented sector development called Fabrik in Leeds for GBP34 million. Grainger said construction of the scheme, which has full planning consent, has recently started with completion expected in late 2021. The company expects the investment to generate a gross yield on cost of over 6.5% once stabilised. In China, the Shanghai Composite is up 0.4%, while the Hang Seng index in Hong Kong is up 0.1%. Financial markets in Japan are closed for the Marine Day public holiday.China's economy grew 6.2% in the second quarter of the year, the slowest pace since the government began publishing the data, in 1992.Economic growth slowed from 6.4% in the first three months of the year, the National Bureau of Statistics said Monday.The rate is still within the growth target set by the government for this year, of at least 6% growth, but it shows how the world's second-largest economy is being stymied by its trade war with the US. The sluggish manufacturing sector is largely responsible for the economic slowdown, with housing and consumption remaining resilient, experts say.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.9%, S&P 500 up 0.5% and Nasdaq Composite up 0.6%.All three of Wall Street's main indices hit fresh record highs on Friday, ending the week on a strong note as investors grew increasingly confident the Federal Reserve will cut US interest rates at the end of the month. The S&P 500 closed above the 3,000-mark for the first time ever.The pound was quoted at USD1.2566 early Monday, firm against USD1.2554 at the London equities close Friday.Tory leadership contenders Boris Johnson and Jeremy Hunt will go head to head for what is expected to be the final time as the race for No 10 enters its closing stages.The two men will take part in a debate, hosted by The Sun and talkRadio, in front of a live studio audience in London on Monday in what could be the last chance to change the course of the battle to succeed Theresa May.Johnson remains the clear favourite to enter Downing Street on July 24 but supporters of Hunt believe that he is gaining ground.It had been thought that most of the ballot papers from the party's 180,000 grassroots members would have been returned by this stage of the contest.However reports suggest the votes have been coming in more slowly than expected, suggesting many members have been keen to see how the two candidates perform in the campaign before making up their minds.There are no major events remaining in the economic calendar on Monday after the release of the Chinese data.