(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - LOSERS
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HSBC, down 0.6%. The bank is planning to expand its exchange traded fund range in 2020 in order to revitalise its underperforming asset management business, the Financial Times reported. Nicholas Moreau, who was appointed chief executive of HSBC's asset management division in August, has devised a series of initiatives aimed at reinvigorating growth at a time when the London-listed bank is aggressively cutting costs, the FT said. In the first half of 2020, HSBC will launch eight ETF's employing environmental, social and governance metrics to tap into rising investor demand for ESG-focused strategies. HSBC also plans to develop a fixed income ETF platform in 2020 and to launch a range of precious metals tracker funds later in the year, the FT noted.
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FTSE 250 - WINNERS
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CLS Holdings, up 0.8%. The company said it will sell a portfolio of 19 regional offices in the UK for GBP65.0 million to Capital Partners, a Singaporean investment firm. The offices are located across the UK outside of the South East. Therefore the sale is in line with the FTSE 250-listed company's strategy of actively recycling its capital and focusing the UK portfolio on London and the South East, it said. Following the completion of the transaction, CLS will hold only two assets in the UK outside of the South East. "We continue to see significant opportunities for acquisitions across our core markets, and this transaction will allow us to recycle capital to capitalise on those opportunities," explained Chief Executive Fredrik Widlund.
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OTHER MAIN MARKET AND AIM - WINNERS
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Redx Pharma, up 28%. The drug discovery and development company said it has been in discussions with Samuel Waksal, the founder of ImClone Systems and Kadmon Pharmaceuticals, about a possible cash takeover offer. Redx cautioned, however, there was as yet no "firm intention" to make an offer and there can be no certainty that the offer will be made. Waksal has until 1700 GMT on January 28 to make a firm offer, the company said. Redx also said it has been in discussions with shareholders and third-party healthcare specialist investors regarding longer-term funding of the company, in order to advance its medicines for cancer and fibrosis to the next stage trials. Therefore the company is asking shareholders for permission to agree to the capitalisation of a GBP2.5 million loan into ordinary shares at 5.25 pence per share. Back in June, the company had signed a loan agreement with Moulton Goodies - which has 18% stake in Redx - for a fixed-rate secured loan note facility of up to GBP2.5 million.
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Lansdowne Oil & Gas, up 18%. The exploration company said it has further extended the repayment date of its outstanding GBP1.0 million loan with LC Capital Master Fund, which had been due on Tuesday, to June 30 next year. The move follows a previous half-year extension, reported on June 28. Also at that time, the AIM-listed company had secured debt funding of GBP150,000 from LC Capital and GBP150,000 from Brandon Hill Capital by way of loan note. Lansdowne said that debt facility was expected to provide sufficient funds to carry the company through to the end of 2019. The company did not provide any further update regarding its cash position.
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OTHER MAIN MARKET AND AIM - LOSERS
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Bango, down 9.2%. The mobile commerce company reported continued growth in end-user spend, which is expected to achieve GBP1.1 billion in 2019, resulting in revenue growth for the year of 40% to "at least" GBP9.3 million. Adjusted earnings before interest, taxes, depreciation, and amortization for the full year is positive and in excess of GBP400,000. The year before, the company recorded an adjusted Ebitda loss of GBP870,000. However, this strong results will be still below market forecasts primarily due to a Customer Data Platform license and Marketplace supply deal not concluding in December as expected. These deals are now expected to close in early 2020, Bango said. The company said operating costs remain stable and in line with expectations. Bango said it continues to invest in research & development, growing the data monetisation business and boosting the Bango platform.
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By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
CLS Holdings (CLI)
HSBC Holdings (HSBA)
Redx Pharma (REDX)
Bango (BGO)