UK stocks sank in late trading on Wednesday as the chancellor's autumn statement failed to spur much buying.
Much of the good news on wage hikes and public spending had already been leaked and was already priced in by market, although hospitality shares enjoyed a rally thanks a 50% cut in business rates and money off a pint of beer.
At 4.35pm the FTSE 100 index of leading shares had given up 25 points or 0.3% to close at 7,253 with mining stocks the main laggards throughout the day.
COMPANY NEWS
Pharmaceutical giant GlaxoSmithKline (GSK) was one of the better performers on the FTSE, initially climbing 3.5% to £14.85 after it posted a strong increase in third quarter revenues and raised its full year earnings outlook. By the close the shares had settled up 0.5% at £14.34.
Group sales were £9.1 billion, a rise of 10% on a constant currency basis driven by better growth in oncology and other drugs. Meanwhile, the firm lifted its full year earnings guidance from a mid-to-single digit fall to a decline of between 2%$ and 4%.
Insurer Admiral (ADM) was the worst performer on the FTSE all day, falling 5.5% to £28.80 after major investor Munich Re placed 12.1 million shares or 4% of the market cap at £29.40, a discount of around 3.7% to Tuesday's closing price.
Munich Re still owns roughly 18 million shares in Admiral or another 6% of its market cap, although there was no indication the German firm was looking to sell the rest of its holding.
Mining company Fresnillo (FRES) was the second-worst performer down 3.9% to 852p after it said third quarter production fell 1.51% to 12.7 million ounces from the second quarter, mainly driven by lower ore grade at San Julian disseminated ore body.
Quarterly attributable silver production (including Silverstream) decreased 4.7% from a year earlier. Meanwhile attributable gold production slipped 13.8% to 172,500 ounces versus 2Q21,
The company said it was on track to meet its 2021 full year guidance of 53.5 to 59.5 moz of silver and 675 to 725 koz of gold.
It continued to monitor the impact of labour shortages, potential inflationary pressures, and an impact from the devaluation of the Mexican peso versus the US dollar.
International home repairs and improvements company Homeserve (HSV) said it had completed the acquisition of CET Structures, a UK home emergency assistance business, for about £53 million.
CET provided emergency plumbing, heating, and electrics services to home insurance policy holders on behalf of consumer brands, via its digital claims handling and job management platform. The shares gained 3.5% to 831p.
DIY group Wickes (WIX) fell 4.5% to 226p after it said said third quarter revenues through September fell 1.6% year-on-year against tough comparatives but noted that they were 16% ahead of 2019 levels.
The company said supply shortages had no impact in the period but noted inflationary pressures had accelerated with the company focused on cash margin recovery while maintaining its ‘leading’ price position.
TENDER OFFER
Shares in bus company First Group (FGP) accelerated 5% higher to 96.2p after the company announced a tender offer to return up to £500 million to shareholders at 105p, a 9.2% premium to yesterday's closing price.
The board said it will consider making further distributions in due course as the company crystalises monies from the sale of US assets.
SURPRESSED TRADING
Shares in online travel group On The Beach (OTB:AIM) collapsed almost 10% to 305p after it experienced suppressed trading in the second half of its financial year through September and refrained from providing any earnings guidance for the current year.
The company said it had decided to extend its off-sale period for holidays from 30 June to 31 August, considering UK government policies on leisure travel.
The company restarted selling holidays to travel from early September, when it became clearer that overall confidence to book a holiday had increased.
Shares technology solutions provider Accesso Technology (ACSO:AIM) climbed 2.4% to 870p after it upgraded its sales outlook amid ongoing momentum driven by demand from its end markets.
The company said it now expects revenue for the full year 2021 to be no less than $124 million, while full-year EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin was expected to exceed 20%.
A list of FTSE 100 index movers can be seen HERE
