UK stocks trod water at the opening following gains overnight in Asia and in Friday’s trading in New York.
After finishing up more than 100 points or 1.4% on Friday, the FTSE 100 index of leading stocks slipped 0.1% to 7,230.
The week ahead sees the UK hold its third election in four years as well as interest rate decisions from the European Central Bank (ECB) and the US Federal Reserve Bank.
Stocks in the news included supermarket giant Tesco (TSCO), which put out a press release yesterday saying it was reviewing its options for its stores in Malaysia and Thailand after receiving what it called ‘inbound interest’ . Shares jumped 4.4% to 242p.
In its interim results released in October the Asian business contributed revenues of £2.6bn out of a group total of £28.3bn, with sales up more than 8% in local currencies but down 1.3% on a like-for-like basis.
Industrial component-maker Senior (SNR) also confirmed that it was ‘reviewing all strategic options’ for its Aerostructures unit, which manufactures airframe and system components for aircraft manufacturers Airbus, Boeing and Bombardier. Shares add 2.4% to 283p.
Just East (JE.) shares added 1%% to 783p after South Africa's Prosus raised its offer for the takeaway delivery firm from 710p to 740p per share.
Another cut from Tullow
In contrast, independent oil and gas firm Tullow Oil (TLW) lowered its production forecasts from 2020 onwards due to ‘significantly’ lower output from its main producing assets in Ghana. It also suspended the dividend until further notice due to lower expected cash flows. Before today’s news the shares were yielding over 5%.
Tullow cut its production forecast less than a month ago to 87,000 barrels of oil per day from its July guidance of 89,000 to 93,000 barrels.
Output is now expected to drop to 75,000 barrels next year and to average around 70,000 barrels for the next three years. Shares collapsed 51% to 72p.
All change at the top
As well as cutting guidance, Tullow announced that chief executive officer Paul McDade and exploration director Angus McCoss had resigned with immediate effect. An interim chief executive has been appointed while the group looks for a permanent replacement.
Solihull-based lender Secure Trust Bank (STB) also announced a shuffling of the deck with the news that chief financial officer Neeraj Kapur would step down at the end of next March to take up the same role at credit provider Provident Financial (PFG).
Shares in Secure Trust shed 1.4% to £13.80 while shares in Provident dipped 1.2% to 420p.
Guarantor loan provider Amigo Holdings (AMGO) revealed even more sweeping changes at the top with the chief executive, chairman and chair of the remuneration committee all stepping down after the founder and previous chief executive James Benamor was appointed to the board. Shares added 2.2% to 60.5p.
