LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Tuesday.
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FTSE 100 - WINNERS
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SABMiller, up 9.0% at 3,946.50 pence. The Anglo-South African brewing giant has reached a deal to be acquired by larger rival Anheuser-Busch InBev, which increased its offer to GBP44 per share from GBP43.50 on day previously. A formal offer at that price would value SABMiller at GBP71.28 billion, with the combination of the two companies to create a global beer giant with a roughly GBP280 billion market cap. AB InBev now has until 1700 BST on October 28 to decide whether to make an firm offer or walk away.
GlaxoSmithKline, up 1.0% at 1,318.50 pence. JPMorgan upgraded the pharmaceutical company to Neutral from Underweight, and raised its price target to 1,370 pence from 1,320p.
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FTSE 100 - LOSERS
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Royal Mail, down 4.3% at 451.90 pence. The UK government said it has sold the majority of its 14% stake in Royal Mail PLC for around GBP591.0 million under an accelerated bookbuilding process announced the previous day. The government sold a 13% stake in Royal Mail, comprising around 130.0 million shares, at a placing price of 455.0 pence per share. The remaining 1% stake, equivalent to about 10.0 million shares, will be "gifted" to Royal Mail employees in the UK, marking the government's final disposal of shares.
Barclays, down 2.9%. The lender reportedly plans to name JPMorgan investment banker Jes Staley as its new chief executive, with confirmation to come in the next two weeks depending on regulatory approval. Such a move would put a high profile investment banker in charge at a time when there are big questions about the role of Barclays' investment banking division. Under the ousted Antony Jenkins, a retail banker, Barclays had set about reducing its overall reliance on the division as a source of earnings.
Glencore, down 5.4%. The commodities trader and mining company was down due to concerns about China's economy health. Anglo American, another miner, was down 3.3% and BHP Billiton down 2.0%. China's exports declined at a moderate pace in September as the devaluation of yuan helped it from falling sharply amid weak global demand. At the same time, imports plunged due to a drop in commodity prices and subdued domestic demand.
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FTSE 250 - WINNERS
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Bellway, up 3.5%. The housebuilder said it should be able to grow volumes by up to 10% in its current financial year, as it reported a 44% jump in pretax profit to GBP354.2 million in the year ended July 31 and raised its dividend to 77.0 pence from 52.0p.
Michael Page International, up 2.1%. The recruitment consultancy said Non-Executive Chairman Robin Buchanan plans to step down, as it reiterated its expectations for its full year. The company said its gross profit in the third quarter of 2015 rose 4.8% to GBP139.2 million from GBP132.9 million in the previous year. This growth was hit by volatility in foreign exchange rates, and at constant currency gross profit would have risen 10.2%.
Sophos Group, up 3.3% at 232.00 pence. Liberum initiated coverage of the security software and hardware developer at Buy with a 290p price target, saying the company has attractive cash dynamics and expects its earnings before interest, taxes, depreciation and amortisation to more than double over the next five years.
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FTSE 250 - LOSERS
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Weir Group, down 3.7% at 1,298.00 pence. The engineering company was hit by broker price-target cuts. Morgan Stanley cut its price target on Weir Group to 1,200 pence from 1,360p, and reiterated its Underweight rating. Meanwhile, UBS cut its price target on the company to 1,800p from 2,000p, and reiterated a Buy rating.
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MAIN MARKET AND AIM - WINNERS
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Flybe Group, up 6.6%. The airline on Tuesday boasted double-digit increases in seat capacity, passenger numbers and revenue in its second quarter, but reported a slight decline in passenger load factor.
Mediazest, up 34%. The audio-visual products company said it has secured new business worth a cumulative GBP1.0 million since announcing full-year results in August. It also had won new clients including Diesel SpA, Molson Coors Brewing Co and the John Lewis Partnership, and signed new business with existing clients, such as Hyundai Motor Co, Adidas AG and the Post Office Ltd.
RWS Holdings, up 18%. The patent translation and search company said it enjoyed a "significant" recovery in the second half of its last financial year, a boost after the flat sales performance in the opening six months of the year. The 2% increase in full-year sales, which reached GBP95.1 million, means the numbers were ahead of market expectations prior to the announcement.
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MAIN MARKET AND AIM - LOSERS
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Arrow Global, down 9.4% at 246.25 pence. Chief Executive Tom Drury, Chief Financial Officer Robert Memmott and other executives, together with an unnamed institutional investor, sold GBP27.5 million of shares in the debt manager. The 11 million shares were sold at 250 pence apiece overnight Monday to Tuesday. They represent a combined stake of 6.3%.
Galantas Gold Corp, down 14%. The company said that an individual intends to challenge its application for planning permission to allow the company to mine underneath the open pit at the Cavanacaw mine in Northern Ireland.
Auhua Clean Energy, down 14%. Chairman David Sumner has resigned due to "increasing demands on his time from his other business commitments", the company said. Raphael Tham has assumed the role of non-executive chairman. Tham was previously vice-chairman.
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By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Barclays (BARC)
Anglo American (AAL)
RWS Holdings (RWS)
Bellway (BWY)
Mediazest (MDZ)
Weir Group (WEIR)
Glaxosmithkline (GSK)
Glencore (GLEN)
