FTSE 100 Live Thursday
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GSK shares rise on Zantac settlement
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Tritax EuroBox gets £1.1bn bid
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Auction Technology shares jump
Market update: GSK and insurers higher in FTSE 100, US inflation figures due
10:28 , Graeme Evans
GSK’s $2.2 billion Zantac settlement today put its shares top of the FTSE 100, albeit still well short of their level before litigation started in summer 2022.
The drugs group rose 5% or 77.5p to 1535.5p, a relief rally following two years of uncertainty caused by US courtroom claims that Zantac caused cancer.
GSK said the settlements involving 80,000 or 93% or cases were with no admission of liability and would have no impact on its “growth agenda or investment plans”.
The shares were near 1800p in 2022, falling as far as 1315p in July 2023.
Analysts at Jefferies said last night’s developments should “clear much indigestion”, adding that the figure was towards the bottom end of its $2 billion-$3.5 billion estimate.
The City firm said the focus will now be on GSK’s vaccines, where concerns linger over sales expectations for respiratory syncytial virus product Arexvy and the performance of Shingrix given potential worries around uptake in China.
The rise by GSK shares came in a session when the FTSE 100 index surrendered an initial modest rise to stand 5.88 points lower at 8237.86.
In contrast to London’s recent lacklustre performance, optimism over the US economy last night helped the S&P 500 index to set its 44th record high this year. The benchmark is up 21.4% so far in 2024, its strongest performance at this point of the year since 1997.
The focus this afternoon will be on US inflation, with September’s figure set to slow to an annual rate of 2.3% from 2.5% the previous month.
Fears over the cost of Hurricane Milton have impacted Lloyd’s of London insurers in recent days, although Hiscox and Beazley both rose 1.5% today after the storm was downgraded to category one as it passed off the Florida coast.
Stocks trading without the entitlement to their latest dividend dominated the fallers board, led by Taylor Wimpey after a decline of 4% or 7p to 152.8p. Kingfisher, Tesco and WPP were also lower for the same reason.
The profit warning pressure on the affordable housing builder Vistry continued as shares fell 13.5p to 931p.
The FTSE 250 index drifted 82.62 points to 20,739.76.
Annual results by Volution caused shares in the ventilation products firm to fall away from their recent record levels with a decline of 28p to 584p.
Auction Technology Group jumped 11% or 44.5p to 456.5p after its year-end trading update highlighted a significantly improved margin performance.
Buyers return to Auction Technology Group after robust update
09:30 , Graeme Evans
Auction Technology Group shares have jumped 11% after the company behind the platforms BidSpotter and The Saleroom posted a year-end update.
It reported momentum in gross merchandise value in the second half as the adoption of new services offset ongoing headwinds in end markets.
The group forecast 5% growth in annual revenues to $174 million, along with a much improved adjusted margin in the second half due to the phasing of costs.
The FTSE 250-listed shares, which were 600p when the company joined the stock market in 2021, rose 43p to 455p.
Momentum continues for air quality firm Volution
09:06 , Graeme Evans
FTSE 250-listed ventilation firm Volution has marked the tenth anniversary of its stock market listing with an 8.7% rise in annual profits to £70.7 million.
The shares recently set a record high but today fell back 35p to 577p.
Since the IPO in 2014, the compound annual growth rate of adjusted earnings per share has been 12.3% and total shareholder return 272%, compared with the FTSE 250’s 71%.
From a largely UK-centric ventilation business, Volution has grown its operations into continental Europe and recently announced its largest ever acquisition with a deal to buy Fantech in Australia and New Zealand.
Its performance has been boosted by increasing awareness of the importance of indoor air quality and the focus on decarbonising buildings.
With momentum across many parts of the business, chief executive Ronnie George said the company was confident in another year of good progress.
FTSE 100 higher, Auction Technology Group jumps 11% in FTSE 250
08:39
GSK’s 6% improvement at the top of the FTSE 100 index came in an otherwise lacklustre session, with the next best stock being Informa after a 2% rise.
Stocks trading without the entitlement to their latest dividend dominated the fallers board, led by Taylor Wimpey with a decline of 3% or 5.1p to 154.75p.
Kingfisher, Tesco and WPP were also lower for the same reason.
The profit warning pressure on the affordable housing builder Vistry continued as shares fell 2% or 18.5p to 926p.
The FTSE 250 index drifted 26.50 points to 20,795.88.
Annual results by Volution caused shares in the ventilation products firm to fall away from their recent record levels with a decline of 22p to 590p.
Auction Technology Group jumped 11% or 46.5p to 458.5p after its year-end trading update highlighted a significantly improved margin performance.
Centaur Media shares fall after profit warning
08:18 , Jonathan Prynn
Shares in London publishing and business intelligence firm Centaur Media, the company behind The Lawyer and Marketing Week titles, crashed by more than a fifth today after it issued a profit warning.
The company told shareholders that sales and profits will be “significantly below” market expectations as a result of “curtailment of marketing budgets” leading to reduced spend by clients, particularly with its Xeim business intelligence unit.
In early trading the shares were down 6.5p, or 21.3% at 24p. The shares are down by more than half this year.
It said: “The marketing sector headwinds caused by macro-economic challenges have continued to drive restructurings in the marketing functions of many blue-chip customers of Xeim…The prolonged impact of these challenges is materially reducing revenue and profit during the second half of 2024.”
GSK shares up 6% after Zantac settlement
08:09 , Graeme Evans
GSK shares are 6% higher after last night’s $2.2 billion settlement to resolve about 80,000 or 93% of court cases involving heartburn drug Zantac.
The removal of uncertainty following two years of litigation involving claims that the drugs caused cancer helped the FTSE 100 stock up 91p to 1549p.
GSK said the cost of the settlements, which were agreed with no admission of liability, will have no impact on its “growth agenda or investment plans”.
The FTSE 100 index is up 23.14 points to 8266.88.
Tritax EuroBox bid battle takes fresh twist
07:49 , Jonathan Prynn
Canadian property giant Brookfield today made a dramatic intervention in the takeover battle for specialist property company Tritax EuroBox with a recommended £1.1 billion cash bid that trumped a previous offer from warehouse developer Segro.
The Toronto headquartered company which is 50% owner of Canary Wharf alongside the Qatari Investment Authority and has around $1 trillion of assets under management, has offered 69p in cash.
That represents a 6% premium to the Segro all share proposal which was worth 65.1p to Tritax shareholders.
The new offer values Tritax at £557 million and implies an enterprise value of approximately £1.102 billion including debt.In the UK Brookfield also owns the Center Parks holiday resorts business as well as trophy City office buildings including 100 Bishopsgate and 1 Leadenhall.
JD Williams firm N Brown hails turnaround progress
07:49 , Graeme Evans
N Brown, the Manchester-based digital retailer whose brands include JD Williams, Simply Be and Jacamo, said it continues to make progress after last year’s return to profit.
Results today showed adjusted profits of £3.6 million for the six months to 31 August, having improved its gross profit margin 1.6 percentage points to 49.2%.
Revenues of £277.2 million were 6.7% lower but with the decline continuing to slow as product sales fell 2% in the first five weeks of the third quarter.
Chief executive Steve Johnson said the progress reflected a focus on maximising profitable sales and managing the cost base in a soft trading environment.
He reiterated earnings guidance for the year as he looks to position the business for “sustainable profitable growth.”
S&P 500 index posts another record high
07:31 , Graeme Evans
US economic optimism last night helped the S&P 500 index to set its 44th record high this year, having improved by another 0.7%.
Deutsche Bank said the benchmark’s 21.4% year-to-date advance means that this is its strongest performance at this point of the year since 1997.
The resilience of the US economy has reduced the chances of rapid interest rate cuts by the Federal Reserve, particularly after last night’s September meeting minutes showed policymakers in favour of a gradual pace.
The base case is for another cut in November, although there is now some speculation that the Fed might not cut at all. This has helped the US dollar to continue its strong run so far in October.
On Asia markets, the Shanghai Composite has risen by 2% after yesterday’s reverse of more than 6% while the Hang Seng index is up by 3%.
FTSE 100 seen higher amid GSK focus, US inflation figures due
07:19 , Graeme Evans
GSK shares will be in focus today after it agreed a $2.2 billion settlement to resolve about 80,000 or 93% of court cases involving heartburn drug Zantac.
The wider FTSE 100 index is seen about 17 points higher at 8261, having closed up by 0.6% last night.
The progress follows a strong session on Wall Street, with the Dow Jones Industrial Average up 1% and the S&P 500 index 0.7% higher.
Later today, economists expect a decline in the annual rate of US inflation to 2.3% from 2.5% seen last month.
Brent Crude stands at $77.12, while the pound is at $1.307.