Home Discount rate FTSE nears decline, adverse energy developments could hit sterling

FTSE nears decline, adverse energy developments could hit sterling

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Adverse energy developments could hit the British pound

The pound is likely to be moved by external drivers this week in the absence of major UK catalysts to influence market expectations for Bank of England interest rate hikes, according to ING. “For now, money markets are pricing in another five bulls by the end of the year, which likely offers some support for the GBP in the background,” ING analysts said. However, unfavorable energy developments caused by potential new sanctions on Russia could weigh on the pound, with GBP/USD possibly falling below 1.3100 by the weekend, they said. GBP/USD is up 0.1% at 1.3130 and EUR/GBP is stable at 0.8366.

 
Companies News: 

Iomart sees fiscal year 2022 in line with expectations

Iomart Group PLC said on Tuesday it expects performance in fiscal 2022 to be in line with market expectations, but lower than a year earlier.

SRT Marine announces a pre-tax loss for the financial year 2022 and sales in line with market views

SRT Marine Systems PLC said on Tuesday it expects to report lower revenue and a wider pre-tax loss for the 2022 financial year, and that its performance was in line with market expectations.

CML Microsystems Sees FY2022 Performance Ahead of Expectations

CML Microsystems PLC said on Tuesday that results for the 2022 financial year are expected to be slightly above current market expectations after a positive performance and a disposal of real estate assets.

Arden Partners Moves to Fiscal 2021 Pre-Tax Profit; Says Outlook is positive

Arden Partners PLC on Tuesday announced a shift to a pre-tax profit for the financial year 2021 as it benefited from a sustained performance in UK stock markets

Intercede Sees 2022 Revenue Below Market Views; Fall in stocks

Shares of Intercede Group PLC fell on Tuesday after the company said fiscal 2022 revenue would fall below market expectations due to delays in major transactions, but it expects to remain profitable.

W Resources halts production at Spanish mine; Suspended actions

W Resources PLC announced on Tuesday that it has halted production at its La Parrilla tungsten-tin mine in Spain due to a dispute between truckers and rising petrol prices. Its shares on London’s AIM are now suspended.

Rambler Metals Q1 copper production was flat in the quarter

Rambler Metals & Mining PLC on Tuesday reported stable copper production and higher gold production from its Ming mine in Canada for the first quarter.

AdvT shares fall on return from trading halt

The shares of AdvancedAdvT Ltd. fell 16% on Tuesday as the company resumed trading after being suspended since January when it confirmed its interest in buying British advertising firm M&C Saatchi PLC.

London Stock Exchange Group to buy Global Data Consortium for undisclosed amount

The London Stock Exchange Group PLC announced on Tuesday that it has agreed to buy identity verification data firm Global Data Consortium Inc for an undisclosed sum.

 
Market Talk: 

Next Fifteen from FY2023 on good profit momentum, customer wins

0958 GMT – Next Fifteen Communications Group has started fiscal 2023 well and management continues to see robust trends in customer spending despite macroeconomic uncertainty, says Peel Hunt. Shares of the growing technology and data-focused consultancy have outperformed rivals year-to-date and rebounded well from the decline seen in Q4 2021, reflecting earnings momentum, a strong client win and its consistent outperformance. Peel Hunt changes its recommendation on the stock to add to buy, but raises its target price to 1,580 pence from 1,475 pence.

UK PMI data signals strong momentum for economy, but outlook darkens

09:32 GMT – The UK’s economic recovery gained considerable momentum in the first quarter, but worries about the near-term outlook are growing and could weigh on growth, according to Pantheon Macroeconomics. S&P global PMI data indicates the economy has held up despite the further rise in Covid-19 cases and war-related uncertainty in Ukraine, according to the economic research firm. However, the drop in future indices suggests that companies are worried about the crisis in the cost of living, which is expected to affect household disposable income, according to Pantheon. “We continue to expect GDP growth to slow from now and [Bank of England’s] Monetary Policy Committee to stop raising the bank rate once it raises it to 1.00% from 0.75% next month,” he said.

Moonpig’s Strong 4Q update is a giveaway for shareholders

0931 GMT – Moonpig’s fourth quarter update was as strong as a shareholder could hope for, with business performance remaining solid at year end, Jefferies said. The online greetings and gift card platform guided FY2022 revenue to £300m, boosted by Mother’s Day and the opportunity presented by the Omicron coronavirus variant, and management continued to see little impact from price inflation or any headwinds in the demand for freebies, according to the U.S. bank. “We maintain our positive attitude, viewing a 15% mid-term growth algorithm as highly achievable for Moonpig, and valuing its compact and resilient model, market leadership and strong cash generation,” Jefferies said. Jefferies retains its buy rating and 510 pence price target on Moonpig shares. The shares are up 1.3% at 241.0 pence.

Moonpig shares look good value after overcorrection

0920 GMT – The market’s revaluation of Moonpig’s shares in the face of macroeconomic uncertainty – down 36% year-to-date – seems over the top given its business model and recent financial performance, according to Citi. The online greeting and gift card platform confirmed that performance at the end of fiscal 2022 remains strong and that it expects revenue for the year to be around 300 million pounds, ahead of Citi’s estimate of £283m and market consensus of £287m. . Moonpig shareholders concerned about the transitory effect of the company’s pandemic-related momentum should also be reassured by management’s comments about permanently increasing customer numbers, Citi said. The US bank retains its buy rating on the stock and its price target of 370 pence. The shares are up 0.5% at 239.2 pence.

Moonpig’s Pleasing 4Q update leads to upgrades

0919 GMT – Moonpig’s fourth quarter update was positive given the tough external conditions, defying industry headwinds with its near-unique proposition, Peel Hunt said. The online greeting and gift card platform maximized the opportunity offered by the Omicron coronavirus variant and, more importantly, enjoyed Happy Valentine’s Day and Mother’s Day, according to the house of brokerage. “There are no signs of supply chain pressures affecting the outlook, or a slowdown in consumer confidence here, and we are improving this year by 5% today,” said Peel Hunt, wearing his Ebitda forecast for FY2022 at £66m from £63m. Peel Hunt retains its add rating and 300 pence price target on Moonpig shares. The shares are up 0.3% at 238.6 pence.

Pearson must meet its targets following the rejection of offers

0918 GMT – Pearson must now meet its targets after rejecting three offers from US private equity group Apollo, Berenberg says. The FTSE 100-listed education company still faces a downside scenario as downsides remain due to risk in US higher education and the college testing industry continues to face challenges, it says . “Pearson’s track record has been very poor in terms of execution, and investors should factor in a significant discount rate to reflect the risk that the company will not deliver on its strategic plan,” the German brokerage said. . Berenberg has a holding rating on the stock with a target price of 742 pence.

Gooch & Housego earnings warnings lead to downgrades to forecasts

0908 GMT – Gooch & Housego’s limited half-year production and expected lower pre-tax profits for the financial year 2022 lead Peel Hunt to revise its guidance downwards. Peel Hunt now expects the British optical maker’s pre-tax profit and EPS for the full year to fall 18.6%. However, a strong 1H backlog and the hopefully short-term nature of the production issue as a result of the coronavirus mean no change to guidance for fiscal year 2023, Peel Hunt said. The UK brokerage cut its target price to 1,200 pence from 1,450 pence. The shares fell 6% to 964.00 pence.

Echo Energy shares rise as update confirms positive performance and outlook

08:58 GMT – Echo Energy shares rise 6.9% after reporting a 6% sequential increase in first-quarter production. Additionally, the Argentina-focused company said it had signed two new liquids supply contracts and was in talks around new annual gas deals. This production update is very encouraging and confirms strong operational and production performance over the past quarter, as well as a good outlook for realized prices, Shore Capital said. Echo Energy is a corporate client of Shore Capital.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

(END) Dow Jones Newswire

April 05, 2022 06:32 ET (10:32 GMT)

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