FTSE 100 closes as investors draw attention to growth stocks

The FTSE 100 closed down 0.06% on Thursday and, for a second straight day, the legion of banks, miners and oil stocks that make up the index’s heavyweights slipped. “Investors are switching trades today, returning to growth stocks after the recent selloff while trimming profits in the FTSE 100 after a strong run for this index,” said Chris Beauchamp, chief analyst at IG Group. . The recent trend of shifting investments to household names from growth stocks took a bit of a hit on Thursday, but as with the concurrent rebound in the US, it’s not yet clear whether the reversal of fortune of the day is likely to turn into something more sustained. , said Mr. Beauchamp.

 
Companies News: 

Tesco permanently appoints new leaders for underwriting arm

Tesco PLC announced on Thursday that it has appointed Debbie Walker as chief risk officer and Gary Duggan as chief insurance officer and managing director of Tesco Underwriting, a subsidiary of Tesco Bank, with immediate effect.

Norway Oil Fund pays $299.5m for 50% stake in UK property portfolio

Norway’s $1.4 trillion sovereign wealth fund, the world’s largest, has purchased a portfolio of 14 UK logistics properties with joint venture property partner Prologis Inc.

Production of Novolipetsk Steel 4Q increased by 16%

Novolipetsk Steel on Thursday reported that its steel production rose 16% in the fourth quarter, bringing 2021 growth to 10%.

As inflation bites, power sits higher up the food chain – Update

The food companies best positioned to fight inflation are the ones investors are least likely to know about.

Hercules Site Services hopes to raise £5.5m by floating on AIM

Hercules Site Services PLC said on Thursday it expects to raise around 5.5 million pounds ($7.5 million) floating on London’s AIM.

Arecor Therapeutics 2021 Performance Lines Up With Opinions

Arecor Therapeutics PLC said on Thursday that its performance for 2021 was in line with expectations and that it ended the year with a strong cash balance.

ContourGlobal sells its hydroelectric business in Brazil for $318 million

ContourGlobal PLC on Thursday announced that it has sold its majority-owned hydroelectric generation subsidiary in Brazil for 1.73 billion Brazilian reais ($318.1 million), net proceeds of approximately $110 million.

Rockwood Realization Names Noel Lamb as President

Rockwood Realization PLC announced on Thursday that it has appointed Noel Lamb as independent non-executive chairman effective immediately, while interim chairman Simon Pyper will resume his role as non-executive director.

GetBusy sees 2021 revenue slightly ahead of market views

GetBusy PLC said Thursday that its revenue for 2021 is expected to be slightly above market expectations and that it expects its adjusted pre-tax loss for the year to be in line with views.

Netcall sees a 10% increase in revenue in the first half

Netcall PLC said on Thursday it expects revenue to increase by 10% for the first half of fiscal 2022 and adjusted Ebitda is expected to increase by 17%.

 
Market Talk: 

Countryside Properties Considered Well-Positioned, But Facing Issues

13:19 GMT – Countryside Properties is facing headwinds despite a positive outlook in its partnerships business, says Peel Hunt, removing its recommendation for the UK homebuilder not to buy. “Following last week’s earnings warning, we are cutting our EPS estimates by 49%, moving our price target from 560p to 330p and lowering our hold recommendation,” analysts at Peel Hunt said. “While we believe Countryside remains well positioned as the largest player in the Structural Growth Partnerships space, the company is clearly facing operational challenges. Assessing the group’s recovery trajectory following the ongoing internal review is a tough call at this point, but we’re optimistic it’ll be faster than [that of] others in the sector.” The shares fell 2.9% to 319p.

Rentokil Initial’s Terminix deal could boost US outlook

13:16 GMT – Rentokil Initial’s proposed acquisition of U.S. group Terminix Global Holdings Inc. bodes well for the pest control and hygiene company’s U.S. prospects, Citigroup said, raising its rating on the group to buy of neutral. The deal could propel Rentokil to the top spot in pest control in the United States with an estimated 25% market share, according to Citi. “Based on state-by-state branch footprint analysis, we are confident that Rentokil can significantly exceed management’s synergy target, possibly 2x. We are improving our rating to buy,” say Citi analysts.

PayPoint’s 3rd quarter seen online, but some companies saw their net income drop

1203 GMT – PayPoint’s Q3 performance was in line with expectations, but the payments company saw different results across its businesses, according to Liberum. The Parcels and Handepay businesses were the best performers, but a number of its businesses saw lower net revenues, such as ATMs, which saw a 5.3% drop in net revenues to 2 £.4million, according to the UK brokerage. Liberum stands by its FY2022 Ebitda estimate of £59.3m for PayPoint, saying Handepay’s continued progress and Parcels’ strong performance are offsetting mild weather elsewhere. “PayPoint is expanding its addressable universe and growing business lines could represent 70% of the group in three years,” said the brokerage firm. Liberum is pricing the stock purchase and has a target price of 1,000 pence.

Wincanton cost headwinds appear to be moderating

11.51 GMT – Wincanton’s concern over potential labor shortages and driver costs has proven excessive as those headwinds appear to be weakening, Liberum said. The British road transport and warehousing company is currently expecting full-year profit to beat market expectations, boosted by a strong peak season, while headwinds did not appear to be as severe as Wincanton expected due to its exposure to open-book contracts, the UK investment bank says. Liberum raises 2022 EPS forecast by 7% and has a buy rating on the stock with a target price of 520.0 pence. Wincanton shares are up 13% at 394.0 pence.

Spirent Communications is beginning to see the benefits of its investments

11:50 GMT – Spirent Communications’ investments in technologies, solutions, customer segments and geographies over the past five to six years now appear to be paying off, and this should increase growth levels going forward, Jefferies said. “With the 5G investment cycle still at an early stage and new customer segments like hyperscalers opening up, we think the stock is attractive,” said stock analyst Will Kirkness. Orders for 2021 are expected to have grown at a double-digit rate, supporting a good outlook for 2022, according to the US bank. Jefferies has a buy rating with a target price of 340 pence. Shares of the FTSE 250 testing, assurance and analytics services provider rose 6.6% to 245.6p.

AJ Bell’s AuA boost could give room for upgrades

11:15 GMT – AJ Bell’s total increase in assets under administration in the first quarter above forecast leaves room for further upgrades, Shore Capital said. The UK investment firm said AuAs were 2% higher than expected, but market performance and flows were slightly lower than expected. “We expect upgrades to materialize as the AuA rises and the market takes this moment to reassess how the business benefits from higher interest rates.” , said Shore. The brokerage has a buy rating on the stock. AJ Bell shares were up 0.23% at 347.4 pence.

N. Brown needs more detail visibility for clearer forecasts

11:11 GMT – Retailer N. Brown’s Q3 update confirms that its very strong growth in clothing and footwear sales was more than offset by a weaker performance in home and gifts, according to Shore Capital. The company’s number of active customers returned to growth for the first time in nearly four years, ending the period at 2.9 million, and it is carrying out major work that will have a significant effect on its medium-term profits , said Shore. Still, it has several notable moving parts and the company’s forecast to the extent Shore Capital analysts would like remains difficult as visibility has yet to materialize. “With many heavy loads now undertaken [albeit not yet completed], we see significant value in the N. Brown stock,” Shore says

Entain Dividend Payment May Resume Soon, Says Interactive Investor

1107 GMT – Entain continues to benefit from growth momentum despite pandemic-fueled prior-year comparisons and there are also hopes that dividend payment will resume soon, Interactive Investor said. As online gaming net revenue fell, ending more than 20 consecutive quarters of double-digit growth, retail gaming net revenue jumped around 60% as outlets opened on the streets main ones replace stores largely closed during the restrictions, he says. The NGR drop online is also better than analysts expected. “Overall, and with continued growth and industry M&A still present, consensus analyst sentiment continues to point to a strong buy,” said investment analyst Keith Bowman. Entain shares are trading up 1% at 1,727.5 pence.

 

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

 

(END) Dow Jones Newswire

January 20, 2022 12:28 p.m. ET (5:28 p.m. GMT)

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

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