FTSE 100 Lags Wider Market Amid Basic Resources Weakness

The FTSE 100 closed slightly down on Thursday as weakness in basic resources caused it to lag the wider market, CMC Markets UK Chief Market Analyst Michael Hewson says in a research note. Anglo American and Antofagasta came out with disappointing first-quarter production reports, following that of Rio Tinto on Wednesday, Hewson says. Rentokil shares were on the up though, finishing 1.8% higher, after a rise in first-quarter revenue and comments that it was trading in line with expectations. ITV finished the day as the top gainer, up 6.5%, with British Airways owner International Consolidated Airlines Group close behind at 6.2% up. Anglo American was the furthest in the red after a guidance cut, finishing down 8.8%.

 
Companies News: 

Taylor Maritime Investments 4Q NAV Rose; Declares Dividend, to Consider Extraordinary Dividend

Taylor Maritime Investments Ltd. said Thursday that its quarterly net asset value was up around 22% on quarter at the end of its fiscal fourth quarter, it has declared an interim dividend for the period and is considering an extraordinary dividend.

---

NatWest Group: UK Govt Cuts Stake to 47.98% Versus 48.03%

NatWest Group PLC said Thursday that Her Majesty's Treasury has reduced its shareholding in the bank to 47.98%.

---

Induction Healthcare FY 2022 Revenue Rose

Induction Healthcare Group PLC said Thursday that revenue for fiscal 2022 rose in line with views, with adjusted earnings before interest, taxes, depreciation and amortization also in line with expectations.

---

Anglo American Increases 2022 Cost Guidance by 9%

Anglo American PLC said Thursday that it has raised its cost guidance for 2022 by 9%, reflecting stronger currencies in commodity-producing countries, inflationary pressures and lower expected production volumes.

---

Meggitt 1Q Revenue Rose on Organic Basis But Defense Orders Fell

Meggitt PLC said Thursday that revenue in the first quarter rose 5% on an organic basis, but that revenue in its defense division fell 16% amid weaker ordering from the U.S. Defense Logistics Agency in the aftermarket.

---

Antofagasta 1Q Production Fell as Expected, 2022 Capex Seen at High End of Range

Antofagasta PLC said Thursday that its copper production fell in the first quarter as expected, and capital expenditure in 2022 will be at the high end of the guidance range.

---

Rentokil 1Q Revenue Rose, but Disinfection Business Continues to Be Hit

Rentokil Initial PLC said Thursday that 2022 started well as it achieved revenue growth in the first quarter, though its disinfection business continued to be hit as expected.

---

Barclays PLC Places 63 Mln Shares in Absa Group at $10.91

Barclays PLC said Thursday that it has sold 63 million ordinary shares of Absa Group Ltd. at 164.0 South African rand ($10.91) a share, as first announced late Wednesday.

---

RELX PLC Starts Year Well; Backs Guidance

RELX PLC said Thursday that the new year has started well with growth in all key business metrics, and backed its full-year guidance.

---

Foxtons Group 1Q Revenue Rose 8.3%, Boosted by Lettings Business

Foxtons Group PLC said Thursday that revenue for the first quarter rose 8.3%, driven by the lettings business.

---

PensionBee's 1Q Revenue, Assets Under Management Rose Significantly

PensionBee Group PLC said Thursday that it achieved strong year-on-year growth in the first quarter of 2022 across its key targets, with assets under administration and revenue increasing significantly.

 
Market Talk: 

Rio Tinto Shares Look Set to Face Demand Pressure

0946 GMT - Rio Tinto shares are among the biggest FTSE 100 fallers, down 2.8% to 5689 pence after Berenberg cuts its recommendation on the miner to hold from buy and its price target to 6500p from 6700p. While Rio and rivals have done well so far this year, recent Chinese government statements about curtailing of steel production, weak demand, ongoing lockdowns in key steel-making hubs such as Tangshan and a volatile local property sector indicate that while the iron-ore market is likely to remain fairly tight, mainly in supply terms, further immediate price gains are unlikely, Berenberg says. "We think dampening sentiment from a demand standpoint will temper further gains in Rio shares," Berenberg analysts say in a note.

---

Anglo American Shares Dive After Surprisingly Weak 1Q

0754 GMT - Anglo American reported a surprisingly weak 1Q, with production affected by Covid-19, weather, safety and operational challenges, RBC mining analyst Tyler Broda says in a note. Full-year production guidance was lowered for platinum group metals, iron ore and coal, and therefore Broda expects meaningful consensus downgrades on the back of this update. The higher cost guidance is surprising considering the previous outlook was given in December, he says. "We continue to like Anglo American's growth and strategic positioning but clearly today's result complicates the near-term outlook," the analyst says. The mining group is the FTSE 100's worst performer on Thursday morning, with shares plunging 6.6%.

---

Metals Slip on Weak Economic Outlook, China Lockdown

0746 GMT - Prices for both industrial and precious metals are slipping in early trading, as weak economic sentiment pushes investors away. Three-month copper prices in London are down 0.2% to $10,230 a metric ton, while gold futures also fall 0.1% to $1,954 a troy ounce. China's continuing lockdowns have further weakened sentiment for traders that the economy is unlikely to bounce back in the near future. This is despite stronger industrial data from the International Aluminium Institute, which noted that global aluminum production rose to 183.6kt per day in March from 182.8kt per day in February.

---

Rentokil's 1Q Was Strong, Ahead of Views, Citi Says

0741 GMT - Rentokil Initial's 1Q revenue rise shows a strong start to the year, Citi analysts Marc Van'T Sant, Arthur Truslove and Avinash Mundhra say in a research note. The pest-control, hygiene and workwear services provider's 1Q organic growth on-year, excluding its disinfection business, was ahead of Citi's expectations, the U.S. bank's analysts said. "We are bullish about the Terminix deal, which stacks up financially and strategically," Citi's analysts say. Citi reiterate their buy recommendation on the stock and target price of 650.00 pence a share. Shares are up 2.4% at 527.20 pence.

---

Antofagasta 1Q Production Was Well Behind Expectations

0732 GMT - Shares in Antofagasta fall 1.9% after the copper miner reported first-quarter production of 139,000 tons. This was well behind consensus expectations of 153,000 tons, and net cash costs were also higher than expected, RBC analyst Tyler Broda says in a note. While full-year guidance has been reiterated, the company noted that there has yet to be any precipitation in northern Chile, which is likely to continue to hurt production through the year until the desalination plant is commissioned in the second half, the analyst says. "Today's result with weaker production, higher costs and higher capex for the Pelambres expansion reaffirms our view that Antofagasta is at risk from a valuation perspective," Broda warns.

---

UK 10Y Gilt Yields Trade Higher Ahead of IMF Seminar

0724 GMT - The yield on the benchmark 10-year U.K. government bond, also known as gilt, trades higher Thursday ahead of an IMF Seminar on the global economy. The 10-year gilt yield trades last at 1.943%, after closing lower day on day the previous day, according to Tradeweb. "After a major selloff so far in April, sovereign bonds have pared back their losses over the last 24 hours as investors await comments today from Fed Chair Powell and European Central Bank president Christine Lagarde, who'll be appearing together on an IMF panel on the global economy in the New York afternoon," says Deutsche Bank Research in a note.

---

BHP Output Weak, But Cash Flow Too Strong to Ignore

0719 GMT - Citi upgrades BHP's London stock to buy from neutral despite what it calls a soft 3Q production result. That's because the miner's cash flow is too strong to ignore, Citi analyst Ephrem Ravi says in a note. "BHP's cash flow generation is up strongly on our revised [iron ore] price deck and we think market outperformance can continue" given expectations of a hefty cash build, he says.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [e-mail]

(END) Dow Jones Newswires

April 21, 2022 12:54 ET (16:54 GMT)

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