UK stocks were becalmed on Monday following the news that yet another deadline for crucial talks on Britain’s exit from the European Union had passed with no agreement on a definitive trade deal.
At 8.15am the FTSE 100 index of leading stocks dipped 8 points or 0.1% to 6.539 points as gains for banks and housebuilders were offset by weakness in healthcare and consumer goods stocks.
The pound continued to test overhead resistance at $1.34 while Brent crude oil prices gained 1.3% to $50.70 per barrel and gold prices slipped back 0.2% to $1,833 per ounce.
COMPANY NEWS
In a surprise announcement, pharmaceutical giant AstraZeneca (AZN) revealed it had inked a deal to buy US rare-disease specialty drug-maker Alexion in a $39 billion cash-and stock deal.
The purchase is Astra’s largest deal since the 1999 combination of the English and Swedish firms and was described by chief executive Pascal Soriot as ‘an important step in the history of the company’. Shares reacted negatively, dropping 6.7% to £76.10.
Shares in games software maker Codemasters (CDM:AIM) jumped 18% to 630p after the firm’s board rejected the existing 485p per share bid from Take-Two Interactive in favour of a new 604p per share offer from rival US group Electronic Arts, well known for its FIFA and Star Wars games franchises.
Specialist staffing firm SThree (STEM) posted full year results which showed a significant sequential improvement in the fourth quarter from the third quarter, with group net fees down 7% in the three months to November compared with a 14% drop in the previous period.
For the full year, net fees from contract hiring - which makes up three quarters of group revenues - was down just 7% while permanent hiring fees were down 13%. By region, the US - SThree’s second largest market - saw a 2% improvement in fees while Germany, the firm’s largest market, saw a 4% contraction. Shares added 1.7% to 298p.
Entertainment firm Hollywood Bowl (BOWL) reported a positive end to its full year with ‘strong customer demand and better than expected performance in August and September leading to revenues down one third on the same two months of last year but an increase in average spend.
The company also reported a successful launch for its Puttstars mini-golf concept with three new centres opened as well as three refurbishment and rebrands. Shares rose 1.6% to 193p.
Specialist investor BP Marsh (BPM:AIM) confirmed that is Nexus underwriting subsidiary would meet its pre-Covid earnings targets despite the economic upheaval thanks to better than expected trading in UK and US financial lines and trade credit.
BP Marsh management see Nexus continuing to grow its earnings at over 30% per year and has every confidence the business will hit its 024 target of gross written premiums of $1 billion. Shares rallied 2% to 271p.
Shares in estate agency portal OnTheMarket (OTMP:AIM) leapt 11% to 136p after the company raised its guidance for full year revenues and earnings thanks to ‘continued operational progress and strong consumer engagement’.
The firm said it expected turnover to be no less than £22.5 million and adjusted operating profits of no less than £1.5 million. In addition, as of the end of November the business had net cash of £10.9 million and zero debt.
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