London’s blue-chip stocks endured a mini last minute sell-off to close Friday in the red but managed to post modest gains for the week. In a typically quiet session the FTSE 100 tracked largely sideways, with a late slide into negative territory leaving the benchmark index 0.2% down at 6,489.33.
That meant ending around 1% ahead on the week with UK investors seemingly happy to sit on the sidelines. Mid-caps were much stronger, the FTSE 250 rallying 1.2% to close out at 21,066.87.
US markets made a firm start on Friday despite another disappointing number from the US jobs market. Non-farm payroll data, while in line with expectations, rose 49,000 in January, following the 227,000 decline in December, which was revised down from the initial 140,000 print last month.
The S&P 500 and Nasdaq Composite set new all-time highs on Thursday, closing at 3871.74 and 13777.74 respectively, and had made further progress early on Friday. The pan-European Eurostoxx 50 index chalked-up gains of 0.4% at its close.
THE BEAZLEY BOUNCE
Insurance company Beazley (BEZ) soared 16% higher to 373.49p after making reassuring noises over the return of dividend payments this year. Chief executive Andrew Horton said the company has the ‘capital strength to support our growth plans’ which will support shareholder payouts, news that was welcomed by investors.
The update came alongside word that Beazley swung to an annual loss in 2020 following a deterioration in its combined ratio amid a wave of Covid-19 related claims. However, gross written premiums jumped 19% to almost $3.6 billion, supported by rate rises across most of its divisions.
Pharmaceutical giant AstraZeneca (AZN) fell 1.5% to £72.75 despite conceding that its head and neck cancer drug candidate Imfinzi failed to meet its primary and secondary objectives in a clinal trial.
Out of fashion chain French Connection (FCCN) surged more than 66% after confirming buyout talks with a pair of possible suitors. Both Spotlight Brands and Go Global Retail are mulling making a possible takeover, although talks with both potential acquirers ‘remain at a very early stage’.
The once cutting-edge fashion label has been struggling for years, which explains its microcap sub-£30 million valuation even after the stock surged 10.4p to 26.06p.
Life science investor Syncona (SYNC) has noted that its portfolio company Achilles Therapeutics expects to consider additional capital raising options this year, which could include an initial public offering in the United States. Its shares were up close on 7% at 270p.
Student residential real estate company GCP Student (DIGS) reported a slight decline in quarterly net assets and said it would collect between 55% and 60% of budgeted total income for the 2020/21 academic year as ongoing Covid-19 lockdowns dent occupancy. The stock edged 0.6% higher to 145.8p.
SMALL CAP WRAP
Warehouse REIT (WHR) plans to raise £45.9 million through a share issue to purchase more industrial units, weakening its stock price 2.5% to 123.5p. The group issuing is shares at 121p compared to the closing price of shares last night of 126p.
RF and microwave semiconductors developer CML Microsystems (CML) was virtually unmoved at 380p on news of its completion of the $49 million sale of its storage division Hyperstone to Swissbit. The disposal that will enable CML to refocus exclusively on the high-growth global communications market.
Cyber security services minnow Falanx (FLX:AIM) jumped 12.5% to 1.35p on news of new contract wins and renewals across both divisions and that the company is in talks to secure the UK government-backed coronavirus loan to support acquisitions and growth.
African-focused Savannah Energy (SAVE:AIM) lost earlier strength to nudge just 1.8% ahead at 16.7p after inking a gas sales agreement with Mulak Energy, a deal that takes Savanah into a compressed natural gas market that chief executive Andrew Knott sees as ‘offering strong growth potential for our business over the course of the next decade’.
