UK stocks retreated on Thursday with the FTSE 100 index down 33 points or 0.5% to 7,171 led by Metals, Mining and Oil Services stocks.
Mining stocks came under pressure after analysts at Liberum cut their forecast for iron ore prices and downgraded Anglo American (AAL), BHP (BHP), Ferrexpo (FXPO) and Rio Tinto (RIO) to Sell.
Also weighing on the index was copper miner Antofagasta (ANTO), down 1.5% to 807p despite reporting higher first half copper sales and a 44% increase in operating profits.
Better volumes helped offset a 6% decline in copper prices but chief executive Ivan Arriagada cautioned that ‘the outlook for the copper market remains uncertain’ due to the ongoing trade wrangle between the US and China.
SHOT IN THE ARM
Propping up the market are healthcare stocks with shares in NMC Health (NMC) soaring as much as 42% to £27.48 after it emerged that two groups, one backed by China’s Fosun, are competing to buy a 40% stake in the company ‘at a premium to the market price’.
NMC shares were trading at a 12-month low yesterday, having fallen by around 30% this year. The company has been a favourite of short-sellers with over 5% of the shares out on loan according to shorttracker.com.
The company also released strong first half results today with revenues up 32% to $1.24bn and underlying net income up 30% to $151m, as well as announcing that it would buy back up to $200m of its own shares.
Pharmaceutical giant GlaxoSmithKline (GSK) reported positive phase III results for its long-lasting injectable HIV treatment co-developed with America’s Pfizer and Japan’s Shionogi.
The results mean that people living with HIV could keep the virus at bay with just six treatments per year instead of a daily oral treatment. Shares in Glaxo tread water at £16.85.
After a rare setback yesterday, peer AstraZeneca (AZN) reported more positive news today with the Chinese approval of its anaemia treatment for patients with chronic kidney disease. Astra shares also trade sideways at £74.10.
Shares in animal genetics company Genus (GNS) rise 1% to £26.15 after it announced the appointment of current finance director Stephen Wilson to the post of chief executive from next month.
Following a review of internal and external candidates Wilson was ‘by far the strongest candidate’ to replace Karim Bitar, who moved to medical technology firm ConvaTec (CTEC) earlier this year.
GAME ON
Bingo-hall and casino operator Rank Group (RNK) gains 0.5% to 153p after it reported flat full year revenues but an improvement in online gaming income.
The second half of the year to 30 June showed a sharp improvement in both like for like revenue growth and profitability as operating costs were trimmed thanks to its ‘transformation plan’.
The acquisition of Stride Gaming, which is expected to complete early next year, should create ‘significant value’ from synergies with the rest of the group.
Shares in gambling technology group Playtech (PTEC) gain 1.4% to 390p after it announced a 68% increase in first half revenues and a 31% increase in operating profits. Both the consumer business and the commercial business grew and the company is sticking with its full year operating profit target of €390m to €415m.
READING THE LEAVES
One-time market darling, now fashion tiddler, Laura Ashley (ALY) falls 11% to 1.6p after it swung to a full year loss of £9.8m in the 12 months to the end of June compared with a profit of £5.6m the previous year.
Fashion sales were up 9% on a like-for-like basis but Home Furnishing sales dragged the group back. Hopes now rest on a roll-out of the fashion brand in China and the licensing of Laura Ashley tea rooms of all things.
