Sunday, May 28

FTSE 100 Rises in Early Trade; Oil Stocks, Miners Shine

FTSE 100 Rises in Early Trade; Oil Stocks, Miners Shine

0748 GMT – The FTSE 100 index rises 1.1% to 7617.44 as U.K. markets reopen after two public holidays at the end of last week, with heavyweight miners and oil-linked stocks among the main risers due to higher oil prices after a price hike by Saudi Arabia. Gains are broad-based, however, with real estate, travel and financial stocks all higher. “In the U.K., investors took their cue from the more buoyant moves within Asian markets after an extended Jubilee holiday weekend,” Richard Hunter, head of markets at Interactive Investor, says in a note. Melrose is the biggest gainer, up 4.2% after announcing plans to sell its Ergotron business for around $650 million. ([email protected])

Companies News: 

Amarin Names Reilly Chief Financial Officer as Kalb Resigns >AMRN

Amarin Corp. on Monday said Michael Kalb has resigned as senior vice president and chief financial officer to pursue other interests.

MC Mining Secures New $3.9 Mln Loan to Fund Makhado Project

MC Mining Ltd. said Monday that it has agreed to a new $3.9 million loan facility that will be used toward the Makhado hard coking coal project.

[email protected] Appoints Albert Ganyushin as Independent Nonexecutive Chairman

[email protected] Capital PLC said Monday that Albert Ganyushin has been appointed as independent nonexecutive chairman with effect from the end of its annual general meeting, scheduled for the end of June.

Kanabo Group’s 2021 Pretax Loss Widened on Higher Costs

Kanabo Group PLC said Monday that its 2021 pretax loss widened after booking higher costs, and that it anticipates CE accreditation from the EU for its Vapepod medical device this year.

IG Design Group Shares Rise After Extending Banking Agreement

Shares in IG Design Group PLC traded up 9.9% on Monday after the company said it has extended the term of its existing banking agreement to March 31, 2024.

Empresaria Group Chairman Tony Martin Retires

Empresaria Group PLC said Monday that Nonexecutive Chairman Tony Martin is retiring with immediate effect after 18 years in the role.

Ashtead Technology Swung to 2021 Pretax Profit After Strong End to Year

Ashtead Technology Holdings PLC said Monday that it swung to a pretax profit for 2021 after a strong end to the year, ahead of expectations at the time of its initial public offering in November.

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Brave Bison Signs Two Contracts Worth GBP1.7 Mln

Brave Bison Group PLC said Monday that it has signed two new contracts worth a total of 1.7 million pounds ($2.1 million), adding further revenue visibility this fiscal year.

Vaalco Energy Shares Rise on Successful Drilling Campaign in Gabon

Vaalco Energy Inc. shares rose Monday after the company said it had successfully drilled the offshore South Tchibala 1HB-ST well in Gabon.

Caspian Sunrise Says Its Main Impact From Sanctions Against Russia Is Oil Price Discount

Caspian Sunrise PLC said Monday that the main impact on its business from sanctions against Russia remains the discount at which its oil is traded.

ADVFN Shares Drop as 2H Sales Disappointing, Dividends Suspended

Shares in ADVFN PLC traded down 31% on Monday after it said sales in the second half to date have been disappointing and that it was suspending dividend payments.

Nanoco Proposes GBP2.3 Mln Fundraise; To Beat Full-Year Revenue Expectations

Nanoco Group PLC said Monday that it is proposing to raise 2.3 million pounds ($2.9 million) to provide cash to the business and that it now expects 2022 revenue to be ahead of its previous expectations after it secured a new contract.

London & Associated Properties Says Bisichi Expects 1H Results to Top FY 2021

London & Associated Properties PLC said Monday that its partly owned subsidiary Bisichi PLC expects this year’s first-half results to be substantially above those from full-year 2021.

Eve Sleep Begins Strategic Review; No Longer Expects to Meet FY Revenue Expectations

Eve Sleep PLC said Monday that it is starting a review to look at strategic and financing options, including a possible sale of the company, and that it no longer expects to achieve its previous full-year revenue expectations.

Base Resources’ Operations in Kenya Hit by Heavy Rainstorm

Base Resources Ltd. on Monday warned that its Kwale mineral-sands project in Kenya has been affected by abnormal rainstorms in the region.

Bisichi Sees 1H Results ‘Very Substantially Ahead’ of 2021

Bisichi PLC said Monday that it expects results for the first half of 2022 to be “very substantially ahead” of those for 2021.

M&C Saatchi Removes Vin Murria From Board With Immediate Effect

M&C Saatchi PLC said Monday that board member Vin Murria will be removed from her role with immediate effect due to her ties to AdvancedAdvT Ltd.

Market Talk: 

Sterling Seen Supported by Optimism Over UK PM Confidence Vote

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1258 GMT – Sterling is the best-performing G10 currency on a one-day view on hopes a confidence vote in U.K. Prime Minister Boris Johnson’s leadership will allow the government to move beyond scandal and distraction, Rabobank says. “Whether or not Johnson survives the confidence vote, GBP investors will be hoping it will clear the air and allow government to move on with the job in hand,” Rabobank forex strategist Jane Foley says in a note. However, sterling remains exposed to poor U.K. economic fundamentals, she says. Rabobank expects EUR/GBP to rise to 0.86 in three months from 0.8544 currently. The confidence vote, which follows revelations of a series of lockdown parties in Downing Street, is expected between 1700 GMT and 1900 GMT. ([email protected])

European Airline Bookings Come Under Pressure From High Comparison Base, But Prices Improve

1237 GMT – European airline bookings for the week ended May 29 were down 18% compared with the same week in 2019, before the coronavirus pandemic, but prices improved, Bank of America analysts say in a research note. The previous week, bookings were just 8% short of the corresponding period in 2019, BofA says. The steeper decline this week is likely due to the fact that some European public holidays fell at a later date in 2019, meaning that the comparison base was higher, BofA says. However, average prices improved in the week to May 29, and were 8% higher than during the same period in 2019. ([email protected]; @_cristinaroca)

EnQuest Debt-Refinancing Faces Energy-Tax Spotlight

1228 GMT – EnQuest looks set to face debt pressure from the U.K.’s planned windfall tax on energy companies, says Barclays, downgrading the North Sea oil producer and explorer to under-weight from equal-weight. “We estimate the Energy Profits Levy cuts EnQuest’s 2023-26 cash flows by $450m, reducing our discounted cash flow-based equity valuation by 36%,” Barclays analyst James Hosie says in a note. “It also puts debt-refinancing plans back in focus, just as higher oil prices and improved operating performance had eased concerns. We downgrade to under-weight, given a higher relative valuation.” Barclays also cuts its price target on the shares to 23 pence from 40p. The stock drops 6% to 27p. ([email protected])

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AstraZeneca’s New Breast-Cancer Drug Forecast to Bring $2 Bln in Sales

1207 GMT – AstraZeneca’s Enhertu cancer drug, which reduces by 50% the risk of progression or death for a type of breast cancer, is set to boost the company’s sales, Berenberg analysts say in a note. The treatment, which is used on a type of metastatitc breast cancer known as HER2-low, could help AstraZeneca secure at least $2 billion in potential sales, the analysts say. According to a forecast from the German bank, Enhertu’s peak sales could be as high as $10 billion, and the analysts say that their confidence in AstraZeneca’s top-tier revenue outlook has increased. ([email protected])

Intermediate Capital Group Seen in Earnings Upgrade Cycle

1202 GMT – Intermediate Capital Group remains in an earnings upgrade cycle, with strong momentum going into fiscal 2023, Peel Hunt analysts Robert Sage and Stuart Duncan say in a note. A meaningful sign from the FTSE 100 asset manager was the raised fundraising guidance, which is the key driver of future income and earnings growth, the analysts say. Peel Hunt increases its fundraising estimates to 20% for fiscal 2023 and 27% for fiscal 2024. The U.K. brokerage upgrades its recommendation on the stock to buy from add, and raises its target price to 2,625 pence from 2,580 pence. ([email protected])

Pound Could Fall Amid Weaker UK Economic Outlook

1152 GMT – Sterling should depreciate as a weaker U.K. economic outlook limits the extent of interest rate rises by the Bank of England, Monex Europe says. “Amid the bleaker macroeconomic outlook, the BOE’s hands are tied,” Monex forex analysts say. With a further 115 basis points of rate rises priced into sterling overnight index swap contracts by year-end, a cautious policy stance will weigh on sterling, they say. If the BOE tries to tame inflation at the expense of economic growth, raising near-term rates may not necessarily support sterling, they say. Monex expects GBP/USD to fall to 1.24 over the coming month, from 1.2563 currently, before extending losses to 1.22 in three months. ([email protected])

GSK’s Affinivax Deal Looks Consistent With Bolt-On Strategy

(MORE TO FOLLOW) Dow Jones Newswires

June 06, 2022 09:51 ET (13:51 GMT)

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