Disappointing UK growth figures put a spanner in the works for the FTSE 100 in early trade on Wednesday, defying expectations that Tuesday’s rally would continue. The benchmark index around 0.3% to 7,277.92 but the falls remain marginal, so far.
Gross domestic product in the world’s fifth-biggest economy increased 1.1% in the third quarter to the end of September, weaker than a preliminary estimate of 1.3% growth, as global supply chain problems weighed on manufacturers and building firms.
Yet analysts believe investors are generally becoming a little less concerned about the fallout from the latest Covid-19 variant and its impact on the global economy. Asian markets were broadly up on Wednesday as the risk appetite of global investors rises heading into year-end, despite the surging number of Omicron cases around the world.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.24% in afternoon trade, having been higher earlier in the day.
CRODA’S CHEMICALS SALE
Speciality chemicals group Croda (CRDA) has agreed to sell most of its bio-based industrial business to US-based food processing firm Cargill in a $1billion deal.
The UK’s Croda had launched a strategic review earlier this year of its two businesses for industrial customers, including the performance technologies unit it is now selling. The company, which supplies vaccine delivery components to Pfizer for its Covid-19 shot, has been refining the performance tech unit to focus more on high-tech markets, including renewable technology and electric vehicles.
Croda shares drifted 1% to £98.74.
Healthcare investor Syncona (SYNC) jumped 9% to 218p after announcing that portfolio company Gyroscope Therapeutics would be sold to Novartis for up to $1.5 billion.
The deal included an upfront payment of $800 million and up to $700 million contingent on the achievement of milestones related to clinical development, regulatory approvals and reimbursement.
Hospital owner Spire Healthcare (SPI) firmed 0.4% to 246p after it agreed to sell a medium-sized hospital in Cheshire to NWI Jersey for £89 million.
Spire, which would lease back the asset, said the deal would generate a book profit of around £23 million on gross assets of £66 million.
ELSEWHERE ON THE MARKET
Therapeutics firm Avacta (AVCT:AIM) jumped 20% to 127.55p after its lateral flow test received a CE mark for self-testing in the UK and EU.
The company, which specialises in cancer therapies and diagnostics, has developed the AffiD SARS-CoV-2 antigen lateral flow test in partnership with Medusa Healthcare. Medusa is a medical diagnostics business recently set up by Richard Hughes and Mahmud Kamani, both founder shareholders of Boohoo.com (BOO:AIM).
Ready meals provider Parsley Box (MEAL:AIM) dropped 10% to 38.75p, as it forecast a slight rise in full-year revenue that was 'marginally' above its most recent forecast, following a drop off in the second half.
Parsley Box said stock availability was significantly constrained, resulting in a reduction of about 20% in order numbers and therefore revenue in the second half compared to the first.
Real-estate company LondonMetric Property (LMP) was broadly flat at 274.15p following news it had acquired Savills IM UK Income and Growth Fund in a deal valued at £122.2 million.
The related property portfolio had a weighted average unexpired lease term of 11 years.
Challenger lender Metro Bank (MTRO) added 0.8% to 88.65p despite being fined £5.4 million by Britain's prudential regulator for failings in its regulatory reporting.
The Prudential Regulation Authority said the fine related to reporting of Metro Bank’s capital position and for failing to act with due care regarding regulatory reporting governance, controls and investment.
