Latest Share Chat

UK WINNERS & LOSERS SUMMARY: HSBC Sinks As Profit Misses Expectations

Tue, 18th Feb 2020 10:30

(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.

----------

FTSE 100 - WINNERS

----------

Severn Trent, up 1.3%. JPMorgan raised the utility to Neutral from Underweight.

----------

Flutter Entertainments, up 1.0%. The bookmaker said its merger with Canada's Stars Group has been granted informal approval by the Australian Competition & Consumer Commission. The proposed merger remains subject to approval from the Australian Foreign Investment Review Board, as well as other international regulatory bodies.

----------

FTSE 100 - LOSERS

----------

HSBC, down 6.5%. The Asia-focused lender reported a fall in annual earnings which missed consensus estimates. For 2019, HSBC's pretax profit fell by 33% to USD13.34 billion as revenue rose by 4.3% to USD56.10 billion. The reported pretax profit fell way short of market expectations of USD20.03 billion. HSBC's return on tangible equity stood at 8.4%, down 20 basis points from 8.6% the prior year. In addition, the bank plans to cut 15% of its global workforce as it embarks on a radical cost-cutting plan, the banking giant's interim chief said Tuesday.

----------

Glencore, down 3.0%. The commodities house said annual profit was hurt by weak commodity prices and trade uncertainty, though it did beat market forecasts. Swiss firm Glencore, which also has a significant commodities trading unit, posted adjusted earnings before interest, tax, depreciation and amortisation of USD11.60 billion for 2019, 26% lower than the year before. However, according to company-compiled analyst consensus the market had forecast adjusted Ebitda of USD11.25 billion.

----------

FTSE 250 - WINNERS

----------

Petrofac, up 1.1%. The oilfield services firm has been awarded USD1.65 billion worth of contracts with Abu Dhabi National Oil Co. The two engineering, procurement, transportation, construction, commissioning, and offshore installation contracts cover Abu Dhabi National Oil Co's Dalma gas development project at Arzanah island and its surrounding offshore fields. The other package, this time a 30-month lump sum contract, is worth USD591 million and involves Petrofac leading a joint venture with SapuraKencana Abu Dhabi.

----------

OTHER MAIN MARKET AND AIM - WINNERS

----------

Craven House Capital, up 15%. The investment company has raised USD2.0 million through a placing with a new undisclosed investor. The investor subscribed for 200,000 shares at USD10 per share, more than twice Craven House's USD4.60 closing price on Monday. Craven House noted that while the subscription price is a sharp premium to Monday's close, it is only a 1.1% premium to the firm's May 31 net asset value per share of USD9.89. Craven House said the placing proceeds will go towards further investments and be used "for working capital purposes".

----------

Amigo Holdings, up 10%. The guarantor loans provider confirmed it has received interest from "several" parties after putting itself up for sale. Amigo launched a strategic review and formal sale process at the end of January. "Amigo has received indications of interest from several parties. Interested parties have entered into non-disclosure agreements with the company and discussions are ongoing," Amigo said.

----------

OTHER MAIN MARKET AND AIM - LOSERS

----------

Tekmar, down 30%. The subsea cable protection systems maker said financial 2020 earnings will miss market expectations due to disruptions caused by the effects of the coronavirus. In its year ended March 2019 Tekmar posted pretax profit of GBP2.0 million on revenue of GBP28.1 million. The Newton Aycliffe-based business said mandatory business shut-downs in China and travel restrictions hurt performance. All projects scheduled for shipment to China have been delayed, the company said. Additionally, the company noted its Shanghai office, which serves all of the Asia Pacific, has been placed on official shut-down. China accounts for around 10% of the company's expected revenue for the year ending March 31.

----------

By Arvind Bhunjun; arvindbhunjun@alliancenews.com