Global growth concerns and a sharp sell-off in US technology stocks yesterday put pressure on the FTSE 100 with the index trading down 13 points at 7,170 early on.
Grabbing the headlines are shares in Woodford Patient Capital Trust (WPCT), which are trading down 9% to 69.5p following the suspension of the LF Woodford Equity Income Fund (BLRZQ62) yesterday. After today’s fall the trust now trades on a discount of 22% discount to the last reported net asset value of 89.61p.
Read more about the suspension HERE
On a more positive tack, Royal Dutch Shell (RDSB) said that it could potentially distribute $125bn or more to shareholders over the five-year period from 2021 to 2025 through share buybacks and dividends. The shares are trading down 1% at £24.62.
The oil giant also said that it was on track to deliver on its 2020 commitments and had increased its organic free cash flow outlook to around $35bn for 2025 at $60 per barrel.
By the end of next year, Shell said it planned to complete its $25bn share buyback programme in combination with reaching a gearing level of 25% and delivering $28bn-to-$33bn of organic free cash flow.
By comparison, it has paid out $52bn in the 2011-2106 period and is on track to distribute around $90bn in the 2016-2020 time frame. At current price levels the dividend yield is almost 6%.
Bucking the market today are shares of budget carrier Wizz Air Holdings (WIZZ), up 21p to £32.95, as it flew 22% more passengers in the month of May after it added new routes to and from Poland and Ukraine.
Passenger volumes in May rose to 3,470,889, up from 2,836,380 on-year.
Seat capacity rose by 20%, while the company's load factor improved by 2.0 percentage points to 93.9.
Photonics system developer Gooch & Housego (AIM:GHH) slumped 22% after it booked a fall in first-half profit and cut its full-year outlook, amid ongoing US-China trade tensions.
Online gaming company 888 Holdings (AIM:888) were flat at 132p, as it reports a 6% like-for-like increase in revenues in the period from 1 January to 18th May.
The company sees new customers up 20% driven by strong momentum in Sports and Casino which saw a 29% and 13% increase, respectively. This was off-set by a challenging poker market, where revenues are down 28% in the period.
Online electrical-appliance retailer AO World (AO.) dropped 4p to 206p as it reported a wider pre-tax loss which it pinned, in part, on changes to driver scheduling arrangements in Germany.
Equipment rental specialist VP (VP.) rallied 9% to 807p as it posts a 12% rise in annual profit, buoyed by higher sales in the UK. The dividend is increased by 16% for the full year to 30.2p.
