FTSE gains, gilt yields rise as market sentiment rebounds

Gilt yields rise as market sentiment rebounds

1205 GMT – Yields on UK government bonds rise for the second straight day as risk appetite improves. The yield on benchmark 10-year government debt, or gilt, rose nearly seven basis points to 1.488% from the previous day’s close, according to Tradeweb. Shares are rising sharply, with the pancontinental Stoxx Europe 600 adding 3% on bets that further stimulus could be on the way to shield the bloc’s economies from the fallout from the Russia-Ukraine war. The FTSE 100 is up 1.6%. The United Kingdom announced on Tuesday that it would phase out imports of Russian oil and petroleum products by the end of 2022 and consider banning its natural gas, which has worsened gold sales since the announcement.

 
Companies News: 

Mothercare suspends its activities in Russia following the invasion of Ukraine

Mothercare PLC announced on Wednesday that it has suspended all activities in Russia following the invasion of Ukraine.

Tullow Oil 2021 net loss narrowed on lower costs and guidance

Tullow Oil PLC said on Wednesday its 2021 net loss narrowed after recording lower costs and supporting its guidance for the year.

Biffa expects to close the 2022 financial year with significant growth in net income

Biffa PLC said on Wednesday that it performed in line with management’s expectations in the second half of fiscal 2022 and that net revenue for the first 11 months of the fiscal year increased significantly.

Stagecoach Group agrees to further £594.9 million takeover by Pan-European Infrastructure

Stagecoach Group PLC said on Wednesday it had accepted a further 594.9 million pound ($779.4 million) takeover by Pan-European Infrastructure III, and therefore withdrew its previous recommendation of the bid for its counterpart National Express Group PLC.

Polymetal operations in Russia and Kazakhstan continue despite sanctions

Polymetal International PLC said Wednesday that all of its operations in Russia and Kazakhstan continue uninterrupted despite sanctions imposed on Russia and some Russian companies after the country invaded Ukraine.

Evraz says operations have not been hit with sanctions amid Russian invasion of Ukraine

Evraz PLC said on Wednesday it was unaffected by international sanctions imposed on Russia in connection with the invasion of Ukraine and continues to support the spin-off of its assets, consolidated under PJSC Raspadskaya. .

Legal & General 2021 operating profit increased on alternative assets; Increase the dividend

Legal & General Group PLC said on Wednesday operating profit for 2021 increased in line with the board’s views, boosted by its portfolio of alternative assets.

STV Group Says 2021 Pre-Tax Profit Increased on Higher Revenue; Had a good start to 2022

STV Group PLC said on Wednesday that 2021 profit and pre-tax revenue had increased and it had started 2022 well.

Kier 1H’s pre-tax profit increased despite lower revenue

Kier Group PLC said on Wednesday that its pre-tax profit for the first half of the 2022 financial year increased despite lower revenue.

Ibstock moved to 2021 pre-tax profit as revenue grew; Says 2022 has started well

Ibstock PLC said on Wednesday it moved to pre-tax profit for 2021 as its revenue grew and its performance in 2022 got off to a good start.

 
Market Talk: 

Headlam’s capital return still leaves money to play

1216 GMT – Headlam’s 2021 results met expectations and it is progressing well on its strategic initiatives, but the main event was the return of £30m of capital to shareholders, Peel Hunt said. The flooring distributor plans to launch a £15million share buyback program along with a special dividend of 17.7p per share on top of the normal dividend, the brokerage said. “This will still leave the business in a net cash position, leaving the business well positioned to invest in the business, undertake follow-on acquisitions or realize new returns,” Peel Hunt said. The brokerage retains its buy rating and target price of 670 pence on the stock. The shares are up 7.3% at 370.0 pence. (

AFC Energy’s development in 2021 bodes well for the future

1208 GMT – AFC Energy’s 2021 results largely met financial expectations, with its technological and operational development particularly strong, said Peel Hunt. The hydrogen technology company had a very positive year in terms of rapidly developing its new high energy density fuel cell technology, demonstrating its ability to use liquid ammonia fuels and of methanol, and the addition of several new business partnerships, according to the brokerage firm. AFC should see a number of system deployments with several of these partners in 2022, which should lead to product validation and increased commercial sales in due course, Peel Hunt said. The brokerage retains its buy rating and target price of 195 pence on the stock.

Breedon’s winning strategy should help again in 2022

1207 GMT – Breedon Group achieved an impressive result in 2021, delivering record volumes, revenues and profits despite the backdrop of high cost inflation, according to Davy Research. Key to the building materials business’s success was strong pricing and a successful hedging strategy, which fully mitigated cost increases – a strategy that should protect the group again in 2022, according to the Irish research firm . Breedon’s cash performance has also been impressive, further supporting capital spending and dividend increases, while leaving room for acquisitions, Davy said. “Like its industry peers, the stock has suffered in recent weeks, but management is executing well in a challenging cost environment,” the company said, retaining its outperform rating. The shares are up 1.5% at 80.7 pence.

Breedon’s future looks solid despite volatility

11:56 GMT – Breedon’s outlook is relatively upbeat given the uncertainties in the broader macro backdrop, with management underscoring market expectations for mid-single-digit growth in 2022, Goodbody said. The building materials company noted volatility is likely to persist in raw material costs, but said increasingly buoyant prices in its market will make it easier for it to recoup any increases in input costs. “At this early stage of the year, the underlying EBIT guidance of £142m looks well supported,” said Goodbody, adding that its share price looked relatively low. Goodbody retains its buy rating on Breedon shares. The shares are up 2.1% at 81.2 pence.

Equity and commodity markets show limited impact of US ban on Russian oil imports

11:55 GMT – News of the US ban on Russian oil imports had a limited impact on equity and commodity markets as they had already adjusted to reports of Russian energy sanctions earlier this week, according to Davy Research. The US and UK sanctions are unlikely to have a substantial impact due to the countries’ limited exposure to Russian imports; while the EU’s plan to reduce dependence on Russian gas will be more difficult, says Davy. He expects the ECB to adopt a cautious tone at its policy meeting on Thursday and delay the reduction in asset purchases, and may indicate that it is ready to act “if necessary to support the economy”. .

Breedon looks attractive to infrastructure investors

11:37 GMT – Breedon’s 2021 results are expected to be well received by the market, with revenue and underlying earnings slightly above market consensus and Shore Capital forecasts, according to the investment group. The building materials company is a great opportunity for those looking to capitalize on infrastructure demand in the UK and Ireland, which is in the midst of a long cyclical recovery, says Shore. “It also has the potential to grow by acquisition in the UK, Ireland and now North America and under the auspices of a disciplined and valued management team,” the investment group said. Shore retains its buy recommendation. The shares are up 1.9% at 81.0 pence.

Gaming Realms’ new license and current performance bodes well for Outlook

11:22 GMT – Gaming Realms’ new license to operate in the Canadian province of Ontario, along with its positive start to the 2022 financial year, bolsters Peel Hunt’s confidence in its outlook for the company, according to the UK brokerage . The London-listed gaming company is well positioned to get its games live with operators when the market opens in Ontario on April 4, notes Peel Hunt. Meanwhile, revenue is exceeding management’s expectations, he adds. The shares are up 2.00 pence, or 8.2%, at 26.30 pence.

888 Holdings Q4 performance was in line, but focus on M&A

1101 GMT – 888 Holdings’ Q4 2021 performance update showed improvement in line with expectations, but it is the acquisition of William Hill that will drive growth, Jefferies said. The US bank expects 888 to launch a £500m fundraising round to acquire the assets of William Hill. He also expects the deal to take place in the second quarter of 2022. Jefferies says William Hill will drive the stock price up 888 with an EPS increase of around 50% and a positive revaluation due diversification by product and by geography. Jefferies has a buy recommendation on the stock and a target price of 480.0. The shares are down 3% at 187.3 pence.

 

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

(END) Dow Jones Newswire

March 09, 2022 08:25 ET (13:25 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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