UK stocks drifted into negative territory by Monday lunchtime as investors braced themselves for a volatile opening in the US on contagion concerns around losses building up at hedge funds and investment banks due to the market volatility of the last few months.
Credit Suisse shares fell 13% after it flagged losses related to a US hedge fund while Japan’s biggest brokerage company Nomura dropped 16% after it also flagged losses related to a US hedge fund.
At 12pm the FTSE 100 index of leading shares was 0.1% lower at 6,738 points.
COMPANY NEWS
Investment platform AJ Bell (AJB) raised its full year revenue guidance after ‘strong customer acquisition’ in the six months to March and elevated levels of customer dealing.
While the firm said it expected activity to moderate in the six months to September, it already sees revenues at least £6 million above market forecasts. The shares added 1.7% to 415.5p.
There was also positive news from biotech firm Destiny Pharma (DEST:AIM) which announced positive top-line results from Phase 2b clinical trials of its XF-73 nasal gel to prevent post-surgical infection by MRSA.
As well as meeting its endpoints ‘with an exceptionally high statistical significance’, the treatment showed no negative side effects. The shares jumped 22% to 195p.
Customer relationship management software provider Cerillion (CER) revealed it had signed its largest ever contract, worth $18.4 million over 10 years, with a full-service telecom network operator in Latin America.
The order comes on the heels of recent major new customer wins in Europe and the Middle East. The shares climbed 11.6% to 449.8p.
Indoor activity centre operator Ten Entertainment (TEG) posted a 57% drop in revenues for the year to December and an operating loss of £7.9 million against a profit of £23.6 million, but said it was ‘operationally fit for purpose’ and ready to re-open as soon as restrictions are lifted.
The firm also said it was well-placed to benefit from a cut in capacity in the UK leisure market as rivals struggle, with £18 million of liquidity headroom. The shares eased 2.2% to 225p.
Biofuel maker Quadrise Fuels (QFI:AIM) posted a first half loss of £2.3 million, similar to the previous year, but said it had sufficient funds in place to progress to commercial revenues and sustainable cash generation by July next year, assuming positive tests and trials lead to commercial contracts. The shares dipped 0.7% to 3.4p.
Online food delivery firm Deliveroo, which floats on the London market on Wednesday in what could be London’s biggest listing for a decade, said it had seen strong investor demand for its shares despite several large institutions saying they would avoid the stock due to governance concerns.
The shares are expected to be priced in a range between 390p and 460p giving the firm a market value of £7.6 billion to £8.8 billion.
Disclaimer: AJ Bell is the owner and publisher of Shares magazine. The author owns shares in AJ Bell.
