Upstream Share Discussion Threads

[master rsi] 29/11/2024 09:21

Going to a meeting in a few minutes, and most likely lasting all the trading day

[master rsi] 29/11/2024 09:13

MARKET REPORT
LONDON MARKET OPEN: Tepid trade ahead of eurozone inflation data

(Alliance News) - Stock prices in London opened a touch higher on Friday, though the FTSE 100 is set to cling to its monthly gain, as traders await a eurozone inflation reading later in the morning.

The FTSE 100 index fell 8.73 points, 0.1%, at 8,272.49. It is up some 2.0% so far this month.

The FTSE 250 rose 32.01 points, 0.2%, at 20,794.79, and the AIM All-Share added 0.94 of a point, 0.1%, at 731.85.

The Cboe UK 100 was down 0.1% at 831.08, the Cboe UK 250 added 0.3% at 18,302.17, and the Cboe Small Companies rose 0.2% at 15,821.92.

The CAC 40 in Paris was down 0.2%, and the DAX 40 in Frankfurt slipped 0.1%.

Eurozone consumer price inflation data is reported at 1000 GMT.

With markets somewhat divided between whether the European Central Bank cuts by 25 or 50 basis points next month, a softer than expected reading later this morning could strengthen the case for the latter.

According to consensus cited by FXStreet, the rate of consumer price inflation in the single currency area is expected to have accelerated to 2.3% in November, from 2.0% in October.

"A softer-than-expected read will certainly keep the ECB doves in charge of the market and cap the euro appetite limited into the 1.06 psychological level, while a stronger-than-expected number should encourage the euro bulls to push for a further recovery," Swissquote analyst Ipek Ozkardeskaya commented.

"Speaking of inflation, inflation in Tokyo came in stronger than expected in November.

Markets in New York re-open for an abbreviated session on Friday. Traders focused on Tokyo inflation that backed the growing expectation that the Bank of Japan would hike rates in the December meeting. As such, the rise of the hawkish BoJ expectations shortly pushed the USDJPY below the 150 mark. I believe that a sustainable move below this level is possible, if the BoJ goes ahead and hikes rates in its December 18-19 meeting."

The pound was quoted at USD1.2714 early Friday, up from USD1.2677 at the time of the London equities close on Thursday. The euro stood at USD1.0570, rising from USD1.0549. Against the yen, the dollar was trading at JPY150.11, falling from JPY151.50.

In China, the Shanghai Composite rose 0.9%, the Hang Seng Index in Hong Kong traded 0.3% higher. The Nikkei 225 in Tokyo fell 0.4%, while the S&P/ASX 200 lost 0.1%.

In London, M&A developments once again provided a spark.

Spire Healthcare shares rose 9.8%. The Economic Times in India reported Bangalore-based Narayana Health is sizing up acquiring a controlling stake in private hospital company Spire.

Narayana is in talks with shareholders in Spire to acquire the stale, The Economic Times reported, citing people "aware of the matter".

TI Fluid shares rose 1.9%. It accepted a GBP1.04 billion offer by Canadian automotive components maker ABC Technologies.

ABC, owned by affiliated funds of Apollo Global Management IX LP, will pay 200.0 pence in cash for each TI Fluid share, a 55% premium to the thermal management and fluid handling systems provider's share price of 129.5p on September 13.

September 13 was the last trading day before TI Fluid entered an "offer period".

The deal gives TI Fluid a GBP1.83 billion enterprise value, including debt.

In September, TI Fluid rejected two approaches from ABC Technologies, worth 165p and 176p per share respectively.

In October, the firm said it was "minded to recommend" a 200p per share offer, after spurning two further proposals at 188p and 198p per share respectively.

The Oxford, England-based maker of thermal management and fluid handling systems, noted the significant disruption currently affecting the global automotive industry, and the adverse impacts on some of its larger European customers.

Against this backdrop, TI Fluid thinks it will be "more challenging" to achieve its financial objectives in the near term.

TI Fluid said it also believed its long-term potential has not, over time, been entirely reflected in the share price and market valuation.

TI Fluid Chair Tim Cobbold said. "The combination will result in a larger, more diversified business with a broader range of products and customers, better positioned to navigate the current challenges facing the automotive industry and deliver sustainable long-term growth."

Miner Anglo American and engineering firm Imi each rose 2.8%. Jefferies raised Anglo to 'buy', while Bank of America did the same for Imi.

Also on the up, 888 and William Hill owner Evoke climbed 3.5%. JPMorgan placed it on 'positive catalyst watch'.

Elsewhere in London, Peel Hunt fell 2.1%. It reported a swing to half-year profit, but noted UK budget and US election uncertainty hit recent trading.

The broker said it achieved pretax profit of GBP1.2 million in the six months to September 30, swinging from a loss of GBP773,000 a year prior. Revenue rose 26% to GBP53.8 million from GBP42.7 million.

The first half was aided by "a more positive macroeconomic backdrop". Investment Banking revenue surged 31% on-year to GBP22.6 million.

"We saw improved performance in our core equity capital markets business, particularly in the first quarter of FY25, where we acted as joint global coordinator on a Main Market IPO and nominated adviser and sole bookrunner on an AIM IPO," it explained.

Research & Distribution revenue rose 30% to GBP13.6 million, "despite continued outflows from UK equities".

Execution Services was up 19% to GBP17.6 million.

Peel explained: "Trading volumes increased across Execution Services in the first four months of FY25 but slowed towards the end of H1 given uncertainty around the outcomes of the UK budget, particularly concerns about the withdrawal of inheritance tax relief on AIM companies, and the US election."

Peel said trading in the first few weeks of the second half has been "in line with management expectations".

Brent oil was quoted at USD72.41 a barrel early Friday, down from USD72.74 at the time of the London equities close on Thursday. Gold climbed to USD2,657.33 an ounce, from USD2,641.60.

[master rsi] 29/11/2024 09:02

SFOR 36.62p +0.92p

Early move-up this morning
The late move yesterday has been a follow-up this morning, a very good welcome to the followers of this bounce-back share.

[master rsi] 29/11/2024 08:55

It does not pay to put things under the carpet, as later it is found out ...
Louise Haigh resigns as UK transport secretary

(Alliance News) - Louise Haigh has resigned as UK transport secretary after it emerged she pleaded guilty to a criminal offence related to incorrectly telling police that a work mobile phone was stolen in 2013.

It is understood the incident was disclosed to Keir Starmer when she joined the shadow cabinet.

In a letter to the prime minister, she said she is "totally committed to our political project" but believes "it will be best served by my supporting you from outside government".

"I am sorry to leave under these circumstances, but I take pride in what we have done. I will continue to fight every day for the people of Sheffield Heeley who I was first and foremost elected to represent and to ensure that the rest of our programme is delivered in full," she wrote.

Starmer thanked Haigh for her work to deliver the government's transport agenda.

On Thursday evening, Sky News and the Times newspaper reported that Haigh had admitted an offence in 2014 following the incident. She had reported to police the device was stolen when she was "mugged" in 2013.

Haigh said she discovered "some time later" that the phone had not been taken.

She said the matter was a "genuine mistake" from which she "did not make any gain", and that magistrates gave her the "lowest possible outcome".

Haigh has been Sheffield Heeley MP since 2015 and held a number of shadow ministerial and shadow cabinet roles before becoming Transport Secretary when Labour won the election in July. Before she entered politics she spent time as a special constable.

In her letter to Starmer, she wrote: "I gave the police a list of my possessions that I believed had been stolen, including my work phone.

"Some time later, I discovered that the handset in question was still in my house. I should have immediately informed my employer and not doing so straight away was a mistake.

"I appreciate that whatever the facts of the matter, this issue will inevitably be a distraction from delivering on the work of this government and the policies to which we are both committed."

[master rsi] 29/11/2024 08:41

TI Fluid backs GBP1 billion ABC Technologies bid

(Alliance News) - Stocks in London are to open lower on Friday, ahead of an abbreviated trading day in New York following Thanksgiving, with eyes on eurozone inflation data.

With markets somewhat divided between whether the European Central Bank cuts by 25 or 50 basis points next month, a softer than expected reading later this morning could strengthen the case for the latter.

According to consensus cited by FXStreet, the rate of consumer price inflation in the single currency area is expected to have accelerated to 2.3% in November, from 2.0% in October.

Analysts at ING commented: "Germany's preliminary harmonised [consumer price index] inflation for November was unchanged from October at 2.4% year-on-year. Still, other German national measures increased, and make it less likely that the ECB will deliver 50bp rate cuts in December. There is further euro area inflation data out today, which will potentially shape this story further."

In early UK corporate news, TI Fluid accepted a takeover bid and Peel Hunt reported a swing to half-year profit despite UK budget uncertainty hanging over markets.

[master rsi] 29/11/2024 08:20

FTSE

Opening level with yesterday's close

[master rsi] 28/11/2024 22:21

THG 44.86p +1.56p as UT but spread at close was 45.38 v 45.52p

The Moving Average of 8 v 21 days has become bullish as is ready to cross over, as a matter of fact, it would have been if the price at close was the spread.

1 month chart

[master rsi] 28/11/2024 21:59

MARKET REPORT
LONDON MARKET CLOSE: Blue chips flat amid M&A frenzy, missing US spark

(Alliance News) - London's FTSE 100 struggled for direction on Thursday, although a wave of M&A action sparked life into an otherwise quiet trading day due to a public holiday in New York.

Bids for Direct Line, Renewi and Loungers saw all three soar, while reports suggested the takeover of the Royal Mail owner is closer.

The FTSE 100 index rose 6.47 points, 0.1%, at 8,281.22. The FTSE 250 climbed 146.81 points, 0.7%, at 20,748.44, and the AIM All-Share eased 0.49 of a point, 0.1%, at 730.91.

The Cboe UK 100 ended down slightly at 831.61, the Cboe UK 250 added 0.9% at 18,248.71, and the Cboe Small Companies gained 0.6% to 15,789.72.

In New York, financial markets are closed for Thanksgiving.

It was a brighter picture in Europe, where the CAC 40 in Paris ended up 0.5%, while the DAX 40 in Frankfurt rose 0.8%.

French Prime Minister Michel Barnier announced a major concession in a bid to end a standoff with the opposition over the budget, which has caused jitters on financial markets and risks bringing down his minority government.

In a U-turn, Barnier told the Le Figaro daily that a previously planned increase for an electricity tax would no longer be included in the budget.

"Almost everyone asked me to make a change," from among his own right-wing ranks and the left-wing and far-right opposition, Barnier said.

The far right under Marine Le Pen, which as a parliamentary bloc holds the key to the government's survival, welcomed the move but said more needed to be done and reiterated a warning it could topple Barnier.

Finance Minister Antoine Armand, speaking on BFM television, told the opposition that "just because we have nothing in common" does not mean "that we plunge the country into budgetary and financial uncertainty".

Providing a further boost to the mood, consumer confidence in the eurozone ticked up a notch in November, data published by the European Commission showed.

The economic sentiment indicator edged up to 95.8 in the eurozone in November, from 95.7 in October. It had been expected to decline.

Citi said: "The surprising improvement in confidence among manufacturers, despite Trump election and tariffs threats, suggests some near-term stabilization in industrial activity may be under way (frontloading output ahead of escalating protectionism?). On the other hand, cooling sentiment among consumers and services point to a weakening domestic picture, with worsening labour markets."

The pound was quoted at USD1.2677 late on Thursday afternoon in London, down from USD1.2687 at the time of the European equities close on Wednesday. The euro stood at USD1.0549, down from USD1.0579.

Against the yen, the dollar was trading at JPY151.50, rising from JPY150.71.

In London, investors weighed a burst of takeover action, on an otherwise thin trading day.

Direct Line shares jumped 41%, while Aviva faded 2.0%. After the market close on Wednesday, London-based Aviva said it had made an approach to buy Direct Line which was rejected.

The FTSE 100 listed insurer said the cash and shares proposal was made on Tuesday last week. Direct Line shareholders would be entitled to receive 112.5 pence per share in cash and 0.282 of a new Aviva share for each Direct Line share.

Based on Aviva's closing share price on November 18, the day before the proposal was submitted, the proposal valued Direct Line at 250p per share, or around GBP3.26 billion.

It is the third bid for Direct Line this year, following two unsuccessful tilts by Belgian insurer Ageas. The two approaches valued each share in Direct Line at 233p and 239p per share, respectively.

Jefferies said given that Aviva's proposal is a relatively small uplift from the previous two offers, "we are unsurprised that the bid was rejected".

The investment bank previously suggested an acquirer might need to offer at least 270p per share.

"Direct Line has tremendous brand strength in the general insurance market and significant scale, which makes it a highly attractive takeover target. While there are a few issues to iron out, longer-term it's easy to see why a rival would want to buy the company," said Dan Coatsworth, investment analyst at AJ Bell.

But Direct Line, a Bromley, England-based motor and home financial services group, said it had concluded that the Aviva proposal was "highly opportunistic and substantially undervalued the company".

Direct Line sector peer Admiral shot up 3.0%.

Renewi said it would recommend a new takeover proposal worth over GBP700 million from Macquarie Asset Management should a firm offer materialise.

Macquarie Asset Management announced a "final possible cash offer" on Thursday, which valued the Milton Keynes, England-based waste management company at around GBP700.9 million. The offer comes over a year after the suitor walked away, following previous approaches being rebuffed.

Renewi said the offer "is at a value that the board would be minded to recommend" to shareholders.

Loungers shot up 28% to 304.80p, for a market value of GBP309.8 million.

It backed a roughly GBP340 million takeover offer from private equity firm Fortress Investment Group. Fortress will pay 310 pence in cash for each share in the operator of cafes and bars, giving a GBP338.3 million equity value and a GBP350.5 million enterprise value. It is a 30% premium to the 238p closing price on Wednesday.

Food retailers Tesco and J Sainsbury were boosted by positive comments from JPMorgan which double-upgraded both to 'overweight' from 'underweight', rising 2.3% and 3.2% respectively, while a 'buy' note from Citi supported Spirax, up 3.8%.

But housebuilder Vistry, down 3.3%, and retailer Frasers, down 2.1%, were out of favour. Both are set to exit the FTSE 100 in the latest quarterly reshuffle.

FTSE Russell provided indicative index changes late Tuesday. It said B&M European Value Retail would also exit the blue-chip index, with wealth manager St James's Place PLC, up 2.3%, set to re-join the top table.

The final index review is announced next week Wednesday, based on data as of the market close the day before.

Elsewhere, Dr Martens jumped 12%. The iconic boot maker said results for the half-year that ended September 29 were in line with its expectations. Revenue declined 18% to GBP324.6 million from GBP395.8 million, with the bottom line sinking to a pretax loss of GBP28.7 million from a profit of GBP25.8 million.

However, revenue was modestly above the consensus of GBP316 million, while a loss of GBP28 million had been projected.

Dr Martens added: "Trading since the start of the [autumn-winter 2024] season has been encouraging, with all three regions positive, albeit the peak weeks of trading remain ahead of us. Encouragingly, trading has been driven by good DTC sales of new products supported by our new product-led marketing approach."

Brent oil was quoted at USD72.74 a barrel late Thursday afternoon, down slightly from USD72.79 at the time of the London equities close on Wednesday. Gold eased to USD2,641.60 an ounce from USD2,643.13.

Friday's global economic diary sees eurozone consumer price inflation data and Canadian gross domestic product figures.

The local corporate calendar has half-year results from broker Peel Hunt.

[master rsi] 28/11/2024 16:22

How the UPS are performing during last month

[master rsi] 28/11/2024 16:11

How the UPS are performing today

[master rsi] 28/11/2024 15:43

FTSE 250 movers: Direct Line, Renewi surge; Energean slips
FTSE 250 (MCX) 20,785.12 0.89%

Direct Line surged on Thursday after it rejected a £3.3bn takeover proposal from Aviva.

In a press release after the close on Wednesday, the insurer said Aviva had offered 112.5p per share in cash and 0.282 new Aviva share, valuing the group at 250p per share. This is a 59.7% premium to the closing Direct Line share price on 18 November, which was the day before the proposal was submitted.

Direct Line dismissed the offer as "highly opportunistic", saying that it "substantially undervalued the company".

"The board has considerable conviction in the capabilities of our newly established leadership team and stands firmly behind their delivery of our strategy," it said. "Under this strategy, the company continues to make early progress towards our financial targets, and expects to deliver attractive growth in profitability, capital generation and shareholder returns."

Renewi shares rocketed after the waste management company said it was minded to recommend a £700m takeover proposal from Australian investment firm Macquarie Asset Management, should a firm offer be made.

Responding to earlier press speculation, Renewi said Macquarie had offered 870p per share in cash. This is a premium of 57% to the closing share price on Wednesday.

Renewi noted that the final offer follows a number of approaches made by Macquarie.

In October 2023, Macquarie abandoned its pursuit of Renewi after the company rejected an offer at 810p a share.

Shares in Dr Martens took off on signs of "encouraging" trading since the start of the autumn/winter season despite the troubled footwear maker swinging to a loss for the half year as its woes in the US continued.

Outgoing chief executive Kenny Wilson said the company expected to make £25m of cost savings, at the top end of its guidance range. Around two thirds of this figure were job cuts with the majority of people made redundant leaving the business at the end of the first half.

"Our new marketing campaigns are showing encouraging early signs, with strong sales of new product, giving us confidence that we will return USA direct-to-consumer to positive growth in the second half," Wilson said.

Pre-tax losses came in at £28.7m for the six months to September, compared with a £25.8m profit a year earlier. Revenue fell 18% to £324.6m.

Shares in the iconic brand surged by as much as 14% in London but the stock has lost 85% since its floated on the London stock exchange in 2021.

Dr Martens, famed for its chunky-soled lace up boots, introduced a new line of footwear in an attempt to bolster flagging sales in the US, its key market. Sales in the Americas fell 22.3% to £115m driven by weaker footfall at its 60 stores in the region.

Energean called third-quarter trading "strong" on Thursday, with improved earnings and a jump in production, despite conflict in the Middle East.

Updating on trading for the nine months to 30 September, the Mediterranean-focused oil and gas firm said group production was 156,000 barrels of oil equivalent a day, a 31% jump on the previous year.

Adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses from continuing operations was $706m, a 61% increase.

Mathios Rigas, chief executive, said: "We are pleased to announce another strong quarter.

"Our production in Israel remains unaffected by geopolitical events, recording a 39% year-on-year increase, and we welcome the announcement of the ceasefire in Lebanon."

However, looking to the full year, London-listed Energean said total production from continuing operations would likely come in between 110,000 and 115,000 boed, down on previous guidance for between 115,000 and 125,000 boed.

"The reduction is due to Israel," Energean said, "which reflects lower-than-expected sales in November owing to weather conditions and market dynamics and, for the lower end, an assumption of flat month-on-month sales for December."

Ithaca Energy fell as the stock traded without entitlement to the dividend.

Market Movers

FTSE 250 - Risers

Renewi (RWI) 803.00p 44.95%

Direct Line Insurance Group (DLG) 223.60p 40.89%

Dr. Martens (DOCS) 64.85p 12.20%

TI Fluid Systems (TIFS) 188.80p 5.47%

Auction Technology Group (ATG) 531.00p 4.73%

Raspberry PI Holdings (RPI) 346.30p 3.37%

OSB Group (OSB) 395.80p 3.29%

Vesuvius (VSVS) 421.00p 2.93%

Wizz Air Holdings (WIZZ) 1,317.00p 2.89%

Bluefield Solar Income Fund Limited (BSIF) 97.00p 2.86%

FTSE 250 - Fallers

Ithaca Energy (ITH) 104.70p -12.90%

Energean (ENOG) 1,029.00p -6.03%

Foresight Group Holdings Limited NPV (FSG) 438.00p -2.67%

Bellway (BWY) 2,476.00p -2.29%

PayPoint (PAY) 829.00p -1.89%

Fidelity Emerging Markets Limited Ptg NPV (FEML) 666.00p -1.62%

Foresight Solar Fund Limited (FSFL) 79.60p -1.61%

Volution Group (FAN) 562.00p -1.23%

BlackRock World Mining Trust (BRWM) 501.00p -1.18%

Target Healthcare Reit Ltd (THRL) 84.10p -1.18%

[master rsi] 28/11/2024 15:18

Vela Technologies shares fall on plan to reinvest in favourable stocks

(Alliance News) - Vela Technologies PLC on Thursday reported an increase to its portfolio value but said the markets "stubbornly fail to reflect the excellent results" of some of its investee companies.

The Yorkshire, England-based investing company's Executive Director James Normand said it "can no longer simply wait for the long-expected upturn in markets" and plans to realise a proportion of its existing portfolio and recycle the proceeds into "investment opportunities that offer the prospect of more favourable returns".

---------
Ethernity progresses with new contracts, warns of potential order cuts

(Alliance News) - Ethernity Networks Ltd on Thursday reported good progress in a new chip development venture and fulfilment of a US aerospace contract, but warned it could face order cuts due to rising costs.

The Israeli supplier of data processing semiconductor technology for networking appliances said it was in talks with two original equipment manufacturers to evolve its circuit technology. Ethernity is interested in developing a custom-designed data chip known as an application-specific integrated circuit or ASIC.

"The company is in meaningful discussions with several well-established tier-1 third-party ASIC vendors that have expressed their interest in development of the ASIC," Ethernity said. "Should it commence, the company plans to select one of them".

[master rsi] 28/11/2024 13:56

German inflation rises to 2.2% in November - flash estimate

(Sharecast News) - German inflation has risen to 2.2% for November, according to a flash estimate from the Federal statistics office.

The figure compares with 2% in October and 1.6% in September.

Core inflation, which excludes volatile items such as food and energy, is expected to be 3.0%.

[master rsi] 28/11/2024 13:40

HUM 1.80p (0.43p / 31.39%% )- CIG stake in Hummingbird to be 72% after debt-to-equity deal

Hummingbird Resources PLC - AIM-listed gold mining company based in London - Conditionally agrees with Nioko Resources Corp, its largest shareholder with 42% of its shares and a wholly owned subsidiary of CIG Ltd, to issue 863.1 million new ordinary shares at 2.68 pence each. The deal will convert around GBP23.1 million, representing a USD30 million loan facility from CIG, into equity.

The issuance will raise CIG's stake to 72% in two stages. CIG then must announce a voluntary cash offer for the remaining shares at the same price of 2.68p. Hummingbird's independent directors, excluding two, consider the terms of the subscription "fair and reasonable". CIG "is still conducting its due diligence on the company and, while discussions are continuing, there can be no certainty that any firm offer will be made," Hummingbird says.

[master rsi] 28/11/2024 13:19

RBGP 2.35p +0.325 (16.05%) - Moving higher since Tuesday, after boom floor for some time

City lawyer Rosenblatt launches boardroom coup attempt
RBG Holdings' founder wants the company to appoint a trio of new directors in order to arrest a calamitous fall in its share price, Sky News understands
Mark Kleinman - City editor Monday - 25 November 2024 14:40, UK

The founder of one of the London stock market's few listed law firms has launched a bid to oust a trio of board members after a disastrous fall in its valuation.

Sky News has learnt that Ian Rosenblatt, who is the single-largest shareholder in RBG Holdings, has hired restructuring experts at Teneo to advise on options to strengthen the company's finances and rebuild its reputation.

Sources said that both Mr Rosenblatt and Teneo had written to RBG's board on Monday, with the law firm's founder demanding the immediate resignation of Jon Divers, its chief executive, and two of its non-executive directors.

One insider said the company's recent financial performance had led Mr Rosenblatt to seek the appointment of an experienced professional services turnaround team in their place.

The prospective replacements are understood to be Jonathan Fox, a former managing partner of accountancy firm Saffery Champness, who would be installed as RBG's chairman; Adil Taha, a former banker and private equity executive who has worked in professional services businesses such as Gunnercooke and Kingsley Wood.

Mr Taha would be installed as RBG's chief executive, while Jonathan Watmough, a former City law firm managing partner, would join the board as a non-executive director.

RBG is understood to have been given a deadline of the end of Monday to respond to Mr Rosenblatt's ultimatum.

[master rsi] 28/11/2024 12:51

MARKET REPORT
LONDON MARKET MIDDAY: M&A bonanza provides impetus as New York closed

(Alliance News) - Stocks traded mixed on Thursday afternoon, with the FTSE 100 struggling for direction, but some takeover action breathed life into the London equity market, in what is set to be an otherwise quiet day due to a public holiday in New York.

Renewi said it would be minded to accept a bid from Macquarie, which came back to the negotiating table after walking away more than a year ago. Direct Line rebuffed an Aviva tilt, however. Loungers agreed to a private equity bid, while a report suggests the takeover of the Royal Mail owner is closer.

The FTSE 100 index added 5.24 points, 0.1%, at 8,279.99. The FTSE 250 rose 129.27 points, 0.6%, at 20,730.90, and the AIM All-Share slipped just 0.15 of a point at 731.25.

The Cboe UK 100 was up slightly at 832.06, the Cboe UK 250 added 0.8% at 18,232.17, and the Cboe Small Companies rose 0.2% at 15,721.33.

The CAC 40 in Paris and the DAX 40 in Frankfurt each rose 0.5%.

Direct Line shares jumped 42%, while Aviva faded 3.1%. After the market close on Wednesday, London-based Aviva said it had made an approach to buy Direct Line which was rejected.

The FTSE 100 listed insurer said the cash and shares proposal was made on Tuesday last week. Direct Line shareholders would be entitled to receive 112.5 pence per share in cash and 0.282 of a new Aviva share for each Direct Line share.

Based on Aviva's closing share price on November 18, the day before the proposal was submitted, the proposal valued Direct Line at 250p per share, or around GBP3.26 billion.

It is the third bid for Direct Line this year, following two unsuccessful tilts by Belgian insurer Ageas. The two approaches valued each share in Direct Line at 233p and 239p per share, respectively.

Jefferies said given that Aviva's proposal is a relatively small uplift from the previous two offers, "we are unsurprised that the bid was rejected".

The investment bank previously suggested an acquirer might need to offer at least 270p per share.

Direct Line sector peer Admiral shot up 2.9%.

"It's normal to see other companies in the same sector jump when there is takeover activity as investors consider who else might be bid targets or are trading too cheaply. There is no suggestion that someone will bid for Admiral but that hasn't stopped it having its moment in the sun," AJ Bell analyst Dan Coatsworth commented.

"Royal Mail's owner International Distributions Services is already in a takeover situation and there are reports the sale is close to being finalised. Daniel Kretinsky's EP Group has made a series of promises to keep part of Royal Mail going as before, including on elements of pricing and branding. Longer-term, it's likely that the Czech billionaire will change the way the business is run, as the current set-up is riddled with flaws. It needs to be run more efficiently and that will require big changes. For now, it feels like he's offering enough guarantees to reassure the government that he's a responsible owner for one of the UK's most iconic businesses."

The sale of International Distribution Services to EP Group could be confirmed in the next two weeks, the BBC reported on Thursday.

According to BBC sources, Kretinsky has agreed to make extra concessions in order to clinch the takeover.

Unions have been meeting with Kretinsky's advisors this week, and while some sources say they remain "wary" of him, the Communication Workers Union said meetings with the EP Group have been "constructive", the report noted.

The deal will still have to be approved under the National Security and Investment Act although officials carried out a similar review when he increased his stake in the company, the BBC said.

International Distributions Services added 1.3%.

Renewi said it would recommend a new takeover proposal worth over GBP700 million from Macquarie Asset Management should a firm offer materialise.

Macquarie Asset Management announced a "final possible cash offer" on Thursday, which valued the Milton Keynes, England-based waste management company at around GBP700.9 million. The offer comes over a year after the suitor walked away, following previous approaches being rebuffed.

Renewi said the offer "is at a value that the board would be minded to recommend" to shareholders.

Macquarie Asset Management, part of Sydney-listed Macquarie Group, said the final possible offer of 870 pence per share follows several approaches to Renewi and the announcement comes "in response to press speculation".

Renewi shares spiked 45% to 801.00 pence, giving it a market capitalisation of GBP666.6 million.

Finally, Loungers shot up 28% to 304.80p, for a market value of GBP309.8 million.

It backed a roughly GBP340 million takeover offer from private equity firm Fortress Investment Group. Fortress will pay 310 pence in cash for each share in the operator of cafes and bars, giving a GBP338.3 million equity value and a GBP350.5 million enterprise value. It is a 30% premium to the 238p closing price on Wednesday.

The pound was quoted at USD1.2664 early Thursday afternoon, down from USD1.2687 at the time of the London equities close on Wednesday. The euro faded to USD1.0546 from USD1.0579. Against the yen, the dollar rose to JPY151.86 from JPY150.71.

Still to come on Thursday's economic diary is a German inflation reading, the headline economic release of the afternoon. Thursday would usually see US initial jobless claims data released, though that came out a day earlier than usual due to the Thanksgiving holiday.

Markets in New York re-open on Friday for an abbreviated session.

Pepperstone analyst Michael Brown commented: "I'd strongly suggest that today is a good day for putting one's feet up, and indulging in a chosen pastime, given the thin conditions that are likely to prevail, and the barren economic data docket.

"Said conditions are likely to persist into Friday as well, with most US participants enjoying their long weekends to the fullest, meaning subdued trade is likely into the weekend, barring any potential unexpected news flow."

Back in London, FTSE 250-listed Dr Martens jumped 12%, a share price jump only topped by M&A-driven gains at fellow mid-caps Renewi and Direct Line.

Dr Martens said results for the half-year that ended September 29 were in line with its expectations. Revenue declined 18% on GBP324.6 million from GBP395.8 million, with the bottom line sinking to a pretax loss of GBP28.7 million from a profit of GBP25.8 million.

However, revenue was modestly above the consensus of GBP316 million, while a loss of GBP28 million had been projected.

Dr Martens added: "Trading since the start of the [autumn-winter 2024] season has been encouraging, with all three regions positive, albeit the peak weeks of trading remain ahead of us. Encouragingly, trading has been driven by good DTC sales of new products supported by our new product-led marketing approach."

Tullow Oil fell 9.7%. The Africa-focused oil & gas exploration and production company expects 2024 group production of 62,000 barrels of oil equivalent per day. In the year-to-date production has averaged around this level, 62,000 boepd, in line with guidance, Tullow said.

This was consistent with comments made in August that full year production is expected to be at the lower end of the 62,000 to 68,000 boepd range, similar to 62,700 boepd recorded in 2023.

But free cash flow is expected to be USD150 million to USD200 million, below previous guidance of USD200 million to USD300 million due to timing of payments, namely the incremental Jubilee lifting now expected in early January 2025 and overdue gas payments from the government of Ghana.

In 2023, free cash flow was USD170 million.

Brent oil was quoted at USD72.85 a barrel midday Thursday, edging up from USD72.79 at the time of the London equities close on Wednesday. Gold rose to USD2,646.73 an ounce from USD2,643.13.

The ministerial meeting of the Opec+ alliance initially scheduled for Sunday has been pushed back to December 5, the Vienna-based Organization of the Petroleum Exporting Countries said.

The meeting of the 22-member Opec+ group led by Saudi Arabia and Russia has "been rescheduled to... 5 December 2024, as several Ministers will be attending the 45th Gulf Summit in Kuwait City," their statement said on Thursday.

[master rsi] 28/11/2024 12:33

How the UPS are performing during last month

[master rsi] 28/11/2024 12:21

How the UPS are performing today

[master rsi] 28/11/2024 12:07

THG Holdings receives Investment Bank Analyst Rating - 1 hour ago


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THG (THG) Share Forecast, Price Targets and Analysts ...

In the current month, THG has received 4 Buy Ratings, 3 Hold Ratings, and 1 Sell Ratings. THG average Analyst price target in the past 3 months is 76.75p.

[master rsi] 28/11/2024 11:29

CRL 34 (-5.40 / -13.71%) - Creightons interim profit nearly six times higher due to reduced costs

(Alliance News) - Creightons PLC on Thursday said profit surged nearly six times higher in the first half of its current financial year, due to reduced expenses.

The Peterborough, England-based beauty and wellbeing consumer goods manufacturer said pretax profit for the six months that ended September 30 was GBP1.7 million, multiplying from GBP302,000 the year before.

This was primarily due to cost of sales reducing by 4.5% to GBP15.2 million from GBP15.9 million, while administrative expenses were down 5.5% to GBP8.8 million from GBP9.3 million as a result of the completed integration of its Emma Hardie subsidiary into the group.

Distribution costs also decreased 30% to GBP1.4 million from GBP1.9 million, due to the group beginning to package its finished goods in-house rather than outsourcing to third-party providers.

Revenue, however, fell 1.8% to GBP27.1 million from GBP27.6 million last year, due to cost reduction efforts and stock-keeping unit rationalisation.

Its branded product revenue was down 15% to GBP8.9 million from GBP10.4 million, while contract manufacturing revenue declined 25% to GBP3.8 million from GBP4.9 million.

Managing Director Philippa Clark said: "The next 6-12 months will see more new product development being delivered to support private label sales growth, but also to reverse brands which have declined in a focused drive back to growth. This will include a number of exclusive brand extensions with key retail partners in order to compete with 'dupe' product offerings, alongside strategic new developments for long-term brand growth.

[master rsi] 28/11/2024 10:35

SMALL-CAP WINNERS & LOSERS: Tullow Oil slumps on cash flow outlook cut
SMALL-CAP - WINNERS

Sabre Insurance Group PLC, up 1.6% at 132.51 pence, 12-month range 124.40p-182.00p.

Shares in the insurer rise amid M&A developments elsewhere in the sector. Aviva PLC said late Wednesday it had made an approach to buy Direct Line Insurance Group PLC, which had been rejected. The cash and shares deal valued motor and home insurer Direct Line at GBP3.26 billion. Sabre provides motor insurance "through a broad network of insurance brokers" and through its Insure 2 Drive, and Go Girl brands.

SMALL-CAP - LOSERS

Tullow Oil PLC, down 10% at 20.52p, 12-month range 20.00p-40.32p.

The Africa-focused oil & gas exploration and production firm lowered its free cash flow outlook amid payment delays and reiterated production would be at the low-end of prior guidance. Free cash flow is expected to be USD150 million to USD200 million, below previous guidance of USD200 million to USD300 million due to timing of payments, namely the incremental Jubilee lifting now expected in early January 2025 and overdue gas payments from the government of Ghana.

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Macfarlane Group PLC, down 1.1% at 102.89p, 12-month range 100.75p-147.50p.

The packaging company expects a 2024 outturn "broadly in line with its full year expectations". Revenue in the 10 months to October 31 is down 4% on-year, "with continued challenging market conditions resulting in weaker volumes and lower pricing impacting most sectors".
"These impacts are being offset by improved new business performance, effective management of pricing and costs and the completion of two acquisitions during the period, both of which are performing well," it adds. Macfarlane explains it expects an increase in employers' national insurance rates and the national minimum wage announced in last month's budget to up yearly costs by GBP1.5 million from April. "Mitigation actions are currently being reviewed to minimise the impact," Macfarlane says.

[master rsi] 28/11/2024 10:13

Galliford Try confident as UK ups infrastructure investment

Galliford Try Holdings PLC - Uxbridge, England-based construction group - Ahead of its annual general meeting, Galiford says it is trading in line with expectations in the current financial year as momentum continues from financial 2024. Confidence in the future is supported by a high-quality order book and robust pipeline of opportunities, it says.

Growth in chosen markets is supported by planned investment in economic and social infrastructure in the UK, with this underpinned by the Labour government's autumn statement. Galliford says it remains confident in meeting objectives for the current financial year and progressing its sustainable growth strategy to 2030. Galliford says GBP2.1 million of its GBP10.0 million share buyback has been completed.

Current stock price: up 0.1% at 370.33 pence on Thursday morning in London

[master rsi] 28/11/2024 09:55

MARKET REPORT
LONDON MARKET OPEN: Solid start in Europe amid US holiday

(Alliance News) - Stock prices in London opened higher on Thursday, with the grocers, M&A developments and Dr Martens adding some impetus on a day where market drivers from New York will be scarce due to the Thanksgiving holiday.

The FTSE 100 index added 17.45 points, 0.2%, at 8,292.20. The FTSE 250 rose 133.28 points, 0.7%, at 20,734.91, and the AIM All-Share added 0.32 of a point at 731.72.

The Cboe UK 100 was up 0.2% at 833.22, the Cboe UK 250 added 0.9% at 18,246.36, and the Cboe Small Companies was down 0.1% at 15,681.97.

The CAC 40 in Paris and the DAX 40 in Frankfurt each rose 0.6%.

In New York overnight, the Dow Jones Industrial Average lost 0.3%, the S&P 500 fell 0.4%, and the Nasdaq Composite declined 0.6%.

In China on Thursday, the Shanghai Composite ended 0.4% lower, while the Hang Seng in Hong Kong fell 1.2%. Tokyo's Nikkei 225 added 0.6%, while the S&P/ASX 200 in Sydney climbed 0.5%.

Investors were digesting another slew of US economic data which showed a pick up in an inflation measures and continued robust growth.

According to the Bureau of Economic Analysis the core personal consumption expenditures index rose 2.8% on-year in October, picking up speed from 2.7% in September.

The reading was in line with the FXStreet-cited market consensus. The core PCE is the Federal Reserve's preferred inflation gauge.

The headline PCE index, which unlike the core data factors in food and energy, showed the pace of annual inflation rose to 2.3% last month, from 2.1% in August, also in line with consensus.

On month, headline PCE rose 0.2% while the core measure increased 0.3%, both as expected.

In a separate report, the BEA said the US economy expanded 2.8% quarter-on-quarter on an annualised basis in the three months to September 30, in line with a prior estimate.

Growth slowed from 3.0% in the second-quarter but was in line with expectations.

"Overall, there was no big surprise in yesterday's data," Swissquote analyst Ipek Ozkardeskaya commented.

The pound was quoted at USD1.2649 early Thursday, down from USD1.2687 at the time of the London equities close on Wednesday. The euro faded to USD1.0540 from USD1.0579. Against the yen, the dollar rose to JPY151.84 from JPY150.71.

Brent oil was quoted at USD71.96 a barrel, falling from USD72.79. Gold slipped to USD2,640.96 an ounce from USD2,643.13.

Direct Line jumped 37% to 217.42 pence, giving it market capitalisation of GBP2.83 billion.

Aviva said late Wednesday it had made an approach to buy Direct Line Insurance Group, which was rejected. London-based Aviva said the cash and shares proposal was made last week Tuesday.

Direct Line shareholders would be entitled to receive 112.5 pence per share in cash, and 0.282 new Aviva shares per Direct Line share. Based on Aviva's share price on the day before the proposal was submitted, the plan valued Direct Line at 250p per share, around GBP3.26 billion as a whole.

But Aviva said Direct Line on Tuesday had rejected the proposal as substantially undervaluing Direct Line, and has declined to engage further with Aviva.

In a statement, Direct Line, the Bromley, London-based motor and home financial services group, said it had concluded that the plan was "highly opportunistic and substantially undervalued the company".

In March, Ageas withdrew a proposed bid for Direct Line after failing to secure the backing of its UK peer. The Belgian insurer had made two proposals to buy Direct Line, but its advances were rejected.

Aviva lost 2.2%, while Direct Line peers Admiral and Sabre rose 3.8% and 2.3%. Admiral was the best large-cap performer, while Direct Line was the best of the 250s.

Also rising sharply on M&A developments, Loungers jumped 28% to 305.55p.

It backed a roughly GBP340 million takeover offer from private equity firm Fortress Investment Group. Fortress will pay 310 pence in cash for each share in the operator of cafes and bars, giving a GBP338.3 million equity value and a GBP350.5 million enterprise value. It is a 30% premium to the 238p closing price on Wednesday.

Loungers Chair Alex Reilley said: "We remain very confident about Loungers' future prospects and the half year results that we announced separately today clearly demonstrate the strong momentum that we have in the business. Loungers has come a long way since we opened our first site in Bristol in 2002, and we are hugely proud of the jobs we've created, the positive impact we've made on the UK's high streets, and the outstanding hospitality our amazing teams have provided since then. We are more ambitious than ever and we see Fortress as being an ideal partner to help us take Loungers into the next phase of its growth journey. We believe that the Acquisition represents a compelling proposition for all of our stakeholders and will allow us to execute our ambitious growth plans even more decisively and effectively."

Dr Martens was also on the front foot, jumping 15%. The firm reported half-year results, which Peel Hunt expect to be the boot maker's "nadir".

"Overall, the brand is clearly fine, the company is addressing operational challenges, but recovery is a multi-year event," Peel Hunt analysts said.

On the decline among London-listed mid-caps, Ithaca Energy slumped 11%. Shares in the North Sea operator have gone ex-dividend, meaning new buyers will not qualify for the latest payout.

Shares are still up some 5% over the past month.

James Latham plunged 17% as it warned of annual earnings fall. The distributor of timber, panels and decorative surfaces said pretax profit in the half-year to September 30 declined 17% to GBP13.6 million from GBP16.4 million a year prior.

Revenue fell 2.3% on-year to GBP186.6 million from GBP190.9 million.

The firm said: "We were expecting the market to show signs of improvement in the second half of this year but so far this has not materialised. We have seen considerable challenges in our marketplace, including a significant competitor going into administration and others looking to quickly turn inventories into cash, which has affected short-term margins in some product groups. This has created opportunities to increase our market share and enabled us to take on three new brands of melamine and laminate panel products as well as some key specialist salespeople to help promote these new products."

Nonetheless, it expects results for the full-year will "fall slightly below last year's results". An expected improvement in market conditions is now not expected "until the middle of 2025".

On the up, Sainsbury's added 3.1% and grocer peer Tesco rose 2.4%. JPMorgan double upgraded the duo to 'overweight' from 'underweight', also placing the FTSE 100 listings on 'positive catalyst watch'.

The economic diary has a eurozone consumer confidence reading at 1000 GMT and German inflation data at 1300 GMT.

[master rsi] 28/11/2024 09:49

KEEP an EYE

THG 46.30p ( 46.20 v 46.40 )

News earlier
Retracement done of 1st 23.6% and then next about 38.%
time to bounce back
--------------- Intraday ----------------------------------- 2 months --------------------------------------- 1 year ---------------
INDICATORS

[master rsi] 28/11/2024 09:14

OPEC+ postpones meeting on output curbs to Dec 5

The OPEC+ coalition is set to hold its next meeting on December 5, likely in a virtual format instead of at its Vienna headquarters, as initially planned, as per media reports.

Delegates have indicated that no invitations or logistical arrangements for an in-person gathering have been made, signaling a shift online for the third consecutive time.

The alliance, comprising 23 nations led by Saudi Arabia and Russia, has increasingly opted for virtual sessions since the Covid-19 pandemic, with only two meetings in Vienna since Russia’s 2022 invasion of Ukraine strained relations with European countries.

Currently, crude prices hover around $75 per barrel, a level insufficient for many OPEC members to meet budgetary needs.

Saudi Arabia, in particular, requires prices closer to $100 per barrel to support its ambitious economic reforms, according to the International Monetary Fund.

OPEC+ has delayed its plan to gradually restore 2.2 million barrels per day of production twice already, pushing the timeline to January 2024 from the original start in October. The decision to extend or modify this plan will likely dominate the discussions, the reports said.

Oil prices have dropped 15% since July, driven by weak demand from China and rising U.S. supplies.

This decline further intensifies the challenges faced by the coalition, which is already managing three distinct production cut agreements—a formal cap restricting output to 39.725 million barrels per day, a voluntary reduction of 1.7 million bpd through 2025, and an additional 2.2 million bpd cut that is scheduled to begin phasing out in December