Upstream Share Discussion Threads

[master rsi] 31/10/2024 21:59

ITS HALLOWEEN Tue, 31 October 2024
----------------------------
THG timetable
Rough guide on possible upcoming event dates:

11th Nov - Transfer approved into new shares category

15th Nov - Last day for circular release

22nd Nov - Last day to nominate holdings in Ingenuity/THG

20th Dec - demerge of Ingenuity

March 2025 - FTSE250 inclusion

[master rsi] 31/10/2024 21:45

THG 46.74p +0.28 (0.60%)

Director/PDMR Shareholding
The Company has received notification that on 30 October, the Independent Non-Executive Chairman in addition to members of the Board including the Senior Independent Director, purchased in aggregate 857,073 ordinary shares of £0.005 in the capital of the Company.

Director - Shares Purchased

Charles Allen 542,000

Sue Farr 104,346

Helen Jones 104,084

Gillian Kent 53,500

Dean Moore 53,143

[master rsi] 31/10/2024 21:24

MARKET REPORT
LONDON MARKET CLOSE: Stocks see red as budget dampens rate cut hopes

(Alliance News) - Stock prices in London closed lower on Thursday, amid analyst speculation that the "sizeable fiscal loosening" announced by UK Chancellor Rachel Reeves in Wednesday's budget rules out two interest rate cuts this year.

The FTSE 100 index closed down 49.53 points, or 0.6%, at 8,110.10. The FTSE 250 ended down 305.16 points, or 1.5%, at 20,388.96, and the AIM All-Share closed down 1.0%, or 7.42 points, at 737.10.

The Cboe UK 100 ended down 0.6% at 813.47, the Cboe UK 250 closed down 1.7% at 17,963.17, and the Cboe Small Companies ended down 1.3% at 16,421.81.

"Previously market expectations were for the base rate to fall to 4.5% by the end of this year, and then to under 4% by the middle of 2025. But the inflationary nature of the measures announced in the Budget are forecast by the OBR to add 0.4% to CPI inflation in the next tax year, thereby putting pressure on the Bank of England to keep rates at higher levels for longer," said AJ Bell's Laith Khalaf.

"Although rate expectations have been scaled back, the forthcoming interest rate decision feels like it might be a banana skin, where markets take a tumble. Expectations of rate cuts were previously heightened by some dovish rhetoric from Andrew Bailey, and a benign inflation reading for September, with CPI coming in under the Bank of England's 2% target for the first time in three years. That was just one month's reading, and reflected life before October's rise in the energy price cap. We've also had the Budget which looks to have materially changed the inflationary path and may well make the Bank's rate-setters sit on their hands for the time being."

UK Chancellor Rachel Reeves has said she does not want to repeat the GBP40 billion tax rises she implemented in her first budget "ever again".

The fiscal announcement was a chance to "wipe the slate clean" following the Conservatives' time in power, the Chancellor told broadcasters as she defended the Budget on Thursday morning.

Choices made by Reeves will see the overall tax burden reach a record 38.3% of gross domestic product in 2027-28, the highest since 1948.

The post-budget reaction saw UK bond yields higher. The yield on the 10-year gilt spiked above 4.40% on Thursday.

In European equities on Thursday, the CAC 40 in Paris ended down 1.2%, while the DAX 40 in Frankfurt ended down 1.0%.

Consumer price inflation accelerated in the eurozone amid higher food prices in October, while the rate of unemployment remained unchanged in September, preliminary data published by Eurostat showed Thursday.

The harmonised consumer price index rose 2.0% on-year in October, according to the flash estimate, accelerating from 1.7% in September, which in turn had been a deceleration from 2.2% in August. October's inflation rate was higher than the FXStreet-cited market consensus of 1.9%.

Meanwhile, seasonally-adjusted unemployment rate was 6.3% in the eurozone for September, unchanged from August, and downwardly revised from 6.4% reported in early October.

The pound was quoted at USD1.2870 at the London equities close on Thursday, compared to USD1.3006 at the close on Wednesday.

The euro stood at USD1.0859 at the European equities close on Thursday, against USD1.0863 at the same time on Wednesday. Against the yen, the dollar was trading at JPY152.45, down compared to JPY153.03 late Wednesday.

In London, Evoke continued its surge, with the 888 owner adding 3.8% to its rally, after a 12% jump on Wednesday. The gambling sector was spared from a feared tax raid in the budget.

Also on the up in London, Coca-Cola HBC rose 2.0% and Shell added 3.5%, as earnings from the duo were well-received.

Soft drink bottler HBC upped its outlook. Oil major Shell announced a new USD3.5 billion buyback, but reported an earnings fall on dwindling refining margins.

Anglo American rose 0.6% after BHP suggested it may not have "moved on" from an M&A saga after all.

BHP clarified comments made by its chair at the miner's annual general meeting, suggesting they should not be interpreted as a sign that the firm no long intends to make an offer for smaller peer Anglo American.

Chair Ken MacKenzie said at the miner's annual general meeting in Brisbane on Wednesday that BHP believed the two companies could have created "something unique and special". He described a BHP-Anglo tie-up as a "one plus one equals three opportunity".

"Unfortunately, Anglo American shareholders had a different view, and they thought there was more value in the plan that their management wanted to execute. And so they moved on. And quite frankly, so have we," MacKenzie added.

BHP explained on Thursday: "The UK Takeover Panel Executive has confirmed that the comments made will not be treated as a statement of intention not to make an offer in respect of Anglo American."

BHP's pursuit of Anglo American was rebuffed in May. UK takeover rules mean BHP is now unable to make another approach for Anglo American until late-November. That would be six months after it said in May that it did not intend to make a firm offer for Anglo.

BHP shares were down 1.1%.

Smith & Nephew tumbled 13% as it cut its outlook amid China woes. The medical devices maker said its third-quarter performance was "held back by China, where we have seen a period of reduced end-customer demand".

The group cut its forecast for full-year underlying revenue growth to around 4.5%, from a previous range of 5.0% to 6.0%.

Stocks in New York were lower at the London equities close, with the DJIA down 0.6%, the S&P 500 index down 1.4%, and the Nasdaq Composite down 2.2%.

A key US inflation gauge did not soften as expected, numbers on Thursday showed.

According to the Census Bureau, the core personal consumption expenditures index rose 2.7% on-year rise in September, in line with the pace of growth in August.

The reading was hotter than the FXStreet cited consensus. It had been expected to fade to 2.6%. 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 eased to 2.1% last month, from 2.2% in August, in line with consensus.

Separately, numbers showed initial jobless claims declined in the recent week, and were below expectations.

Initial jobless claims in the week to October 26 amounted to 216,000, fading from the prior week's level of 228,000. The previous reading was upwardly revised from 228.000.

The current reading had been expected to show a pick-up in claims to 230,000.

Brent oil was quoted at USD72.67 a barrel at the London equities close on Thursday, up from USD72.17 late Wednesday.

The oil market extended gains following an unexpected decline in US crude oil stocks.

Official US crude oil inventories fell by 520,000 barrels for the week that ended October 25 to 420.6 million barrels, the US Energy Information Administration reported on Thursday.

Gold was quoted at USD2,742.90 an ounce at the London equities close on Thursday against USD2,786.80 at the close on Wednesday.

The yellow metal retreated on Thursday, after flirting with a record high earlier in the day, as investors scrambled to hedge potential risks linked to the upcoming US election.

Safe-haven demand for gold remains strong, with investors seeking refuge from the uncertainty surrounding the outcome of the US presidential race, ActivTrades analyst Ricardo Evangelista said. American will vote on Tuesday next week.

"Persistent doubts over who will emerge as the winner continue to impact financial markets, decreasing risk appetite and leading to losses in equities while supporting assets like gold," Evangelista said.

Investors are waiting for US core personal consumption index, the US Federal Reserve's preferred gauge, and the US non-farm payrolls. Both these economic reports are due out on Friday and could influence US interest rate decision.

In Friday's UK corporate calendar, there are no events scheduled.

The economic calendar for Friday has a number of manufacturing PMIs, including from China, the UK, and the US.

[master rsi] 31/10/2024 21:11

DOW

Finished 378 points down

[master rsi] 31/10/2024 16:25

How the UPS are performing today

[master rsi] 31/10/2024 16:08

The Market is very volatile at the moment

Gold is well down -$47
BTC-Bitcoin much the same -$1770

[master rsi] 31/10/2024 15:50

GGP 6.75p +0.25p

Is rising today on a very high volume, just move over 100M

[master rsi] 31/10/2024 15:36

United Oil & Gas shares jump as it steps away from Egypt

(Alliance News) - United Oil & Gas PLC on Thursday revealed it has almost completed its withdrawal from Egypt as it looks to focus on advancing its core projects.

The AIM-listed listed oil and gas firm revealed the completion of all of the necessary paperwork to withdraw from its 22% stake in the Abu Sennan Concession, which is part of the Western Desert region of Egypt.

It noted that it still requires formal approvals from the Egyptian General Petroleum Corp and the Minister for the Deed of Assignment, but expects to receive them in due course.

Shares in the United jumped 13% to 0.16 pence on Thursday afternoon in London.

United will transfer USD220,000 to the non-default parties of Kuwait Energy Egypt Ltd and Global Connect Ltd to satisfy the outstanding cash calls related to the concession.

This will come from its net receivables balance of USD840,000 due from the EGPC, with United owed the outstanding balance of USD620,000.

The firm noted the continuation of positive engagements with the EGPC regarding the recovery of these funds.

United stated that the withdrawal from Egypt allows the firm to focus on progressing its core projects, "particularly the Jamaican work programme and ongoing farmout process".

[master rsi] 31/10/2024 15:13

DOW

Well down with 417 points

[master rsi] 31/10/2024 14:12

Pan African Resources commissions Mogale tailings plant

Pan African Resources PLC - Rosebank-headquartered gold producer - Commissions Mogale Gold Pty Ltd's tailings storage facilities. Pan African acquired Mogale Gold and Mintails' SA Soweto Cluster Pty Ltd from Mintails Mining SA Pty Ltd for ZAR50.0 million in October 2022. Says Mogale tailings retreatment operation was commissioned in early this month, with an inaugural gold pour at the plant's smelting facility. Ramp-up is in progress, with steady-state production and plant throughput of 800,000 kilogrammes per month expected by December 2024.

Chief Executive Officer Cobus Loots says the gold producer has established an "enviable" track record in executing tailings retreatment projects. Says this USD135.1 million project was delivered under budget and ahead of schedule, with construction completed in only 14 months. A study in June 2022 showed that the Mogale Gold project had the potential to increase Pan African's gold production, with re-mining of tailings storage facilities expected to add about 50,000 ounces a year over 13 years.

[master rsi] 31/10/2024 12:42

Winking Studios plans IPO on London's junior market
(Alliance News) - Winking Studios Ltd on Thursday revealed its intention to list on London's AIM market in a bid to expand the firms global presence.

The Singapore-based game development business involved in art outsourcing intends to float on London's junior market in November.

Key details of the firm's listing have not yet been disclosed, including its anticipated market capitalisation on admission, the issue price of its shares and the level of capital it is trying to raise.

The firm's shares are currently traded on Singapore's Catalist board, with its shares closing up 3.5% today at SGD0.30 in Singapore. Its current market capitalisation is SGD116.41 million, which is about GBP67.58 million.

Winking said that the funds raised from the dual listing will bolster its existing cash resources of USD30 million, with the proceeds allocated towards: establishing a stronger presence in Europe and North America, enhancing its operational capabilities and pursuing strategic acquisitions and joint ventures in Asia and Europe.

An additional benefit acknowledged was the diversification of its shareholder base through access to a larger pool of knowledgeable tech investors.

The firm is headed up by Chief Executive Officer Johnny Jan who founded the company in 2004 and currently owns 6% of its shares. Its Chief Financial Officer Oliver Yen owns just below 1%.

Other key shareholders include Acer Gaming Inc with 55%, Acer SoftCapital Inc with 8% and Flying Way International Corp with 7%.

Winking Studios Chief Executive Johnny Jan said: "We believe Winking Studios has a significant opportunity to expand its presence globally, and dual listing on AIM will further support our global ambitions and position us to accelerate growth.

"London feels like the obvious choice, as it gives us a foothold in a market known for its deep understanding of the global gaming industry and support for ambitious international firms like Winking Studios.

"Operating in a fast-growing industry, with a proven track record of delivery and relationships with the majority of the world's biggest game developers, we plan to build on our success to date and capitalise on the fragmented nature of the industry landscape to drive future growth."

[master rsi] 31/10/2024 12:18

How the UPS are performing during last month

[master rsi] 31/10/2024 12:00

How the UPS are performing today

[master rsi] 31/10/2024 11:38

UK house sales jumped 9% on-year in September
(Alliance News) - The number of home sales in September was 9% higher than the same month last year, according to figures from HM Revenue & Customs.

Across the UK, an estimated 91,820 house sales took place in September, which was also a fraction higher than in August.

This marked the first time that sales increased month on month, although by less than 1%, since May, HMRC said.

In the financial year so far, April to September, an estimated 547,350 home sales have taken place.

Hope has started to return to the housing market but sales growth has stagnated in recent months, property experts said.

Nick Leeming, chair of estate agency group Jackson-Stops, said home-buyers have been "pressing on with their searches amid falling interest rates and positive wage growth".

"Yet, transaction levels are becoming more stagnant month on month due to the lack of available stock on the market at this time which would enable more purchases," he said.

Experts also pointed out that the chancellor's decisions on stamp duty in Wednesday's budget could squeeze first-time and second-home buyers next year.

The property sector was dealt a blow with Rachel Reeves announcing an increase to stamp duty charges on second homes and failing to extend tax relief for first-time buyers.

Nathan Emerson, chief executive of Propertymark, said: "As we move towards the end of the year, it remains upbeat to witness a real transformation within the housing sector with an overall trend of growth."

Activity could pick up further with the Bank of England widely expected to cut the UK interest rate again next week, from the current level of 5%.

"However, there are some aspects contained within yesterday's budget which are extremely disappointing, with first-time buyers feeling the brunt," Emerson said.

Jackson-Stops Chair Leeming added: "The budget missed a clear opportunity to introduce stamp duty reform, something that could have also helped to stimulate greater activity within the market."

[master rsi] 31/10/2024 11:07

Eurozone inflation back up to 2% target as energy deflation eases

(Sharecast News) - Eurozone inflation met the European Central Bank's target level of 2% in October after rebounding strongly from its lowest rate in three years the previous month.

According to data from Eurostat on Thursday, the harmonised index of consumer prices rose at a year-on-year pace of 2.0% this month, up from 1.7% in September, the lowest reading since April 2021.

The market had widely expected price growth to accelerate to 1.9%. But, according to Oxford Economics, the upside surprise likely "won't spook the ECB".

"The slight uptick in eurozone inflation in October was expected following the base effect-driven dip in September. Given weak underlying growth dynamics, we think inflation will undershoot ECB forecasts next year and allow for a sustained pace of rate cuts in H1 2025," said Rory Fennessy, senior economist at Oxford Economics.

Prices in the services sector rose by 3.9% year-on-year, unchanged from September, while inflation in food, alcohol and tobacco accelerated to 2.9% from 2.4%. Non-energy industrial goods prices rose 0.5%, up from 0.4% previously, but energy price deflation eased to just -4.6% from -6.1% the month before.

The core rate of inflation, which strips out volatile items like energy, food, alcohol and tobacco, held steady at 2.7% over the month; the consensus forecast was for a fall to 2.6%.

In other news, the eurozone unemployment rate held steady at 6.3% in September, surprising analysts who had pencilled in a slightly tick-up to 6.4%.

[master rsi] 31/10/2024 08:43

Shell beats forecasts and launches USD3.5 billion buyback
(Alliance News) - Shell PLC on Thursday said it will maintain the pace of quarterly share buybacks despite reporting a decline in earnings on softer refining margins.

The London-based oil major said total revenue in the third-quarter of 2024 fell 7.1% on-year to USD72.46 billion from USD78.01 billion, sending its pretax profit 36% lower to USD7.27 billion from USD11.29 billion.

Adjusted earnings slipped 3.1% to USD6.03 billion from USD6.22 billion. Nonetheless, this was above market consensus for USD5.4 billion.

Adjusted earnings before interest, tax, depreciation and amortisation was down 2.0% to USD16.01 billion from USD16.34 billion.

Chief Executive Officer, Wael Sawan said it was "another set of strong results".

"We continue to deliver more value with less emissions, whilst enhancing the resilience of our balance sheet," he asserted.

Shell said it grappled with "lower crude prices and weaker refining margins". It noted a "strong operational performance in Integrated Gas, Upstream and Marketing", however.

Shell announced a USD3.5 billion share buyback, which is expected to be completed by the time of its fourth-quarter results announcement. This is scheduled for January 30.

The buyback amount is the same as announced at the end of the second quarter, amid market concerns that lower oil prices could put shareholder distributions under pressure.

It marks the 12th consecutive quarter in which Shell has announced USD3 billion or more in buybacks.

Shell also declared a USD0.3440 per share cash dividend for the third quarter, in line with the second quarter's, and up 3.9% on-year from USD0.3310.

Shell said cash capital expenditure for 2024 is expected to be below the lower end of the USD22 to USD25 billion range.

Cash flow from operations of USD14.7 billion for the quarter included a working capital inflow of USD2.7 billion, mainly due to lower prices, Shell said. Net debt was reduced by USD3.1 billion over the quarter to USD35.2 billion.

Shares in Shell were 1.0% higher at 2,516.00 pence each in London on Thursday morning.

[master rsi] 31/10/2024 08:21

FTSE

Opening 44 points lower

[master rsi] 31/10/2024 00:02

US close: Stocks lower following preliminary GDP reading

(Sharecast News) - Wall Street stocks were in the red at the close of trading on Wednesday as market participants digested Q3 earnings and a preliminary Q3 GDP reading.

At the close, the Dow Jones Industrial Average was down 0.22% at 42,141.54,
while the S&P 500 lost 0.33% to 5,813.67
and the Nasdaq Composite saw out the session 0.56% weaker at 18,607.93.

The Dow closed 91.51 points lower on Wednesday, extending losses recorded in the previous session.

Wednesday's primary focus was Q3 earnings from Meta Platforms, which fell short of user growth expectations and warned of a jump in AI spending in FY25, and Microsoft, which told investors that a boom in AI had fuelled double-digit growth in its cloud business.

Elsewhere, Eli Lilly shares headed south after sales of its obesity drug fell well and truly short of expectations, and trade bellwether Caterpillar was in the red after posting weaker-than-expected earnings.

Wednesday's other key headline was news that America's economy expanded at a steady clip during the third quarter on the back of robust consumer outlays. According to preliminary figures from the Department of Commerce, in seasonally adjusted terms the country's gross domestic product grew at an annual rate of 2.8%.

[master rsi] 30/10/2024 23:26

Broker tips: Bridgepoint, Elementis, IAG, EasyJet
Citi downgraded its stance on alternative asset fund management group Bridgepoint on Wednesday to 'neutral' as it said there were limited near-term catalysts after the shares have risen 80% over the past year.

The bank said it was constructive on Bridgepoint's medium-term growth prospects and sees notable upside to consensus earnings from FY26E.

However, a lack of near-term growth and/or catalysts and a need to demonstrate cost control and raising SMAs mean it sees less pressing need for investors to buy the shares.

"The recent decisions to stop the SBB (following rerating) and sell previously locked-up shares at an 11% discount within a relatively short period were also weak signals, in our view," Citi said. "After the capital markets day we increase our target price to £3.50 but downgrade rating to neutral."

Citi said it believes the shares could become more attractive as we progress through the next fundraising cycle and approach BE VIII activation, which is expected mid-FY26.

Analysts at Berenberg lowered their target price on specialty chemicals business Elementis from 190.0p to 170.0p on Wednesday after the group's Q3 results a day earlier.

Berenberg stated that despite "a stalled recovery" for the industrial chemicals sector in H2, Elementis' qualitative trading update was "in line with investor expectations", with these having already been raised at the half-year.

The German bank, which has a 'buy' rating on the stock, noted that a ruling from the Court of Justice of the European Union in a long-running tax dispute related to state aid went in Elementis' favour.

However, Berenberg also said that the most important factor for the stock price in the last few weeks has been concern over the status of talc, and this has not become clearer.

"The main reason is the recommendation in September from the Risk Assessment Committee of the European Chemicals Agency to classify talc as a 1B carcinogen. This would categorise the substance as having carcinogenic potential that is presumed, often based on animal data. We suspect that most investors aware of the review had been anticipating a less severe Category 2 classification," said Berenberg.

"The EU Commission is expected to make a decision on this topic by Q1 2026, after which a grace period for existing producers would apply. The industry body (Eurotalc) is likely to appeal. In essence, we think that the status quo is, from a legal perspective, likely to persist for most of the 2020s, even under a 1B classification."

Jefferies initiated coverage on a raft of European airline stocks on Wednesday as it argued that the market was overstating the risks by pricing in 20-60% downgrades in 2026.

"The sector does face a challenging period as carbon headwinds enter the P&L and yield expansion is uncertain," Jefferies said. "However, the market fails to recognise self-help measures and efficiency gains. Our flight plan favours exposure to new generation fleet delivery, non-flight revenue streams and turnaround opportunities."

It started coverage of British Airways and Iberia owner IAG and easyJet at 'buy' with price targets of 270.0p and 680.0p, respectively.

As far as IAG was concerned, Jefferies pointed to the re-rating and earnings opportunity, while on easyJet, it also pointed to a re-rating opportunity, saying the budget airline should benefit from its growing package holiday business, fleet renewal and self-help opportunities through optimising winter trading and ancillaries.

[master rsi] 30/10/2024 22:39

SRT 45p +7.50p - SRT Marine Systems inks Kuwait deal worth USD213 million

SRT Marine Systems PLC - global provider of maritime domain awareness systems - Inks contract with the Kuwait Ministry of Interior, worth USD213 million, to deliver an integrated SRT maritime surveillance system. The contract is for a state-of-the-art national maritime surveillance system for the Kuwait Coast Guard and other relevant agencies. Says that implementation starts immediately, and is expected to take up to two years, followed by ten years of support, training and maintenance.

Chief Executive Officer Simon Tucker says: "Winning this landmark contract is a huge honour and achievement for SRT and reflects our many years of technology and project delivery capacity investment. This system will undoubtedly be amongst the most sophisticated maritime surveillance systems in the world, incorporating several significant innovations along with full integration and digitisation of surveillance and command and control which will provide a powerful tool to enhance national security and maritime safety and environment protection and sustainability. We look forward to working with our new sovereign partner to deliver this contract and more in the coming years."

[master rsi] 30/10/2024 22:03

DOW

After being almost all day UP finished 91 points lower