The FTSE 100 closed down 0.5% on Wednesday as equities ate into
their gains from the past two sessions, says Chris Beauchamp, chief
market analyst at IG. OPEC's decision to make a significant cut in
output spooked markets, with the move potentially leading to
further price rises, Beauchamp says. "The prospect of two million
barrels of daily oil output being eliminated raises the specter of
inflation again, just as the market began to hope that oil prices
at least had calmed down," Beauchamp adds. The U.K. index's top
fallers were Ocado Group, Next and St. James's Place, closing down
10%, 5.3% and 4.9%, respectively.
Companies News:
Tesco 1H Pretax Profit Fell on Increased Costs; Backs FY 2023
Guidance
Tesco PLC said Wednesday that its pretax profit fell in the
first half of fiscal 2023 on increased costs, and it backed its
guidance for the full year despite post-coronavirus market
normalization and customer cost-of-living increases.
---
Vertu Motors Launches GBP3 Mln Share Buyback
Vertu Motors PLC said Wednesday that it has agreed a further 3
million pounds ($3.4 million) share buyback.
---
Assura Portfolio Performed Well in 1H; Annualized Rent Rose
Assura PLC said Wednesday that it has performed well in
developing its portfolio in the first half of fiscal 2023, with its
annualized rent toll rising on year.
---
Hyve Group Says China Uncertainty to Continue; Expects Revenue
Rise for FY 2022
Hyve Group PLC said Wednesday that it expects the uncertainty
around running events in China to continue in fiscal 2023 due to
the Covid-19 pandemic, and that it expects to report a rise in
revenue for fiscal 2022.
---
PCF Group Suspends New Lending, Accelerates Business Review
PCF Group PLC said Wednesday that it will suspend any new PCF
Bank lending activities until further notice, effective
immediately, and accelerate a review process of its operational
structure.
---
LondonMetric Property Says 1H Occupancy Remained High
LondonMetric Property PLC said Wednesday that occupancy has
remained high in the first half of fiscal 2022 and it is operating
with a low earnings from operational activities cost ratio.
---
Vertu Motors 1H Pretax Profit Fell on Higher Costs; FY 2023
Profits Seen Ahead of Views
Vertu Motors PLC said Wednesday that pretax profit fell in the
first half of fiscal 2023 after booking higher costs, and that the
board anticipates full-year profits to be ahead of market
expectations.
Market Talk:
LondonMetric Seen Well-Placed to Face Rising Interest Costs
1044 GMT - LondonMetric Property's update ahead of its 1H
results is reassuring, given that the group seems to be well placed
to mitigate costs amid the current backdrop and despite a share
price fall of 37% year-to-date, Peel Hunt analysts Matthew Saperia
and James Carswell say in a research note. The U.K. real-estate
investment trust has shown a top-line growth through the capture of
reversion, letting and portfolio activity, the analysts say. This,
combined with low-cost leakage, offers a strong base from which to
absorb rising interest rates, they add. Peel Hunt has a buy rating
on the stock and a target price of 275 pence.
(michael.susin@wsj.com)
Halfords's Latest Acquisition Looks Strategically Sound
1030 GMT - Halfords Group gains 3% after the U.K. bike and
car-accessory retailer said it was buying the holding company of
tyre retailer Lodge Tyre for GBP37.2 million to expand its
garage-services business and focus more on motoring services.
Halfords's latest move to pivot away from discretionary spending
toward more needs-based revenue is important strategically,
Hargreaves Lansdown says. "The business-to-business
automotive-services sector has an extra level of resilience as
fleet managers have no choice but to replace worn or damaged
tyres," HL Head of Equity Research Derren Nathan writes.
"Considering the synergies Halfords has identified, we believe
they're paying fair value for Lodge Tyre," he says.
(philip.waller@wsj.com)
Tesco's 1H Was Resilient But Outlook Remains Mixed
0940 GMT - Tesco's interim results met expectations with a
resilient first half, but the outlook remains challenging,
Jefferies says. The British grocer delivered stable gross profit in
the first half, offsetting accelerating operating expenditure
pressures, but more cautious fiscal 2023 guidance suggests this
balance may be more difficult to achieve in the coming months--and
most likely in fiscal 2024, Jefferies analysts say in a research
note. Tesco's earnings revision momentum is likely to remain
negative for now, with downside protection provided by heightened
inflation on its working capital and, by extension, its free cash
flow, Jefferies says. The U.S. bank retains its hold rating and
260.0 pence price target. Shares are down 2.4% at 205.0 pence.
(joseph.hoppe@wsj.com)
Tesco's Lower Guidance Shows It Isn't Immune to Weak
Environment
0923 GMT - Tesco may be more resilient than most in a weak
consumer environment as it sells essential staples rather than
discretionary items, but it isn't immune as its modestly lowered
profit guidance shows, AJ Bell investment director Russ Mould says
in a research note. The British grocer has to try and offer
attractive prices to stave off the competitive threat from German
discounters Aldi and Lidl, and while it can rely on its purchasing
power to some extent, it is still having to sacrifice margins to
meet this challenge, Mould says. "The uncertainty is palpable in
the company's outlook comments and inevitably this will make the
market rather nervous," Mould says. Shares are down 2.2% at 205.4
pence. (joseph.hoppe@wsj.com)
Tesco's Dominance Should Give It Cushion of Support
0913 GMT - Tesco's first-half sales are up and profits are down,
a refrain to be expected from supermarkets in the months to come as
the sector weathers the storm of higher inflation and squeezed
consumer budgets, IG Group says. Shares in the U.K.'s biggest
grocer are only slightly down, but would likely slip further were
it not for the recovery in general risk appetite, IG chief market
analyst Chris Beauchamp says in a research note. "Now the focus
will be on which of the supermarkets can perform best in such an
environment, and in this Tesco's dominance of the space is
something that should give it a cushion of support for the time
being," Beauchamp says. Shares are down 3.7% at 51.8 pence.
(joseph.hoppe@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 05, 2022 12:34 ET (16:34 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Grafico Indice FTSE 100
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Grafico Indice FTSE 100
Da Dic 2022 a Dic 2023
