UK stocks opened slightly weaker on Friday as investors nervously awaited the latest US monthly job numbers this afternoon, a key barometer of the strength of the economic recovery.
The consensus expectation is for around 728,000 jobs to have been created in August.
Overnight, there was a surprise resignation by Japanese prime minister Yoshihide Suga, whose support has slumped over his handling of the pandemic.
Nonetheless, the Japanese Nikkei 225 index surged 2% as investors took the view that Suga’s resignation increased his party’s chances of re-election later this month.
China’s SE Composite index lost 0.45%.
In early trade the FTSE 100 index of leading shares was down just two points at 7,162.
CORPORATE ROUND-UP
Pharmaceutical giant AstraZeneca (AZN) said its drug Ultomiris used for treating serious ultra-rare blood disorders in children and adolescents had been approved for use in the EU after positive results from final phase three trials.
The drug was first approved in the EU in 2019 for treating adults while in June this year the US Food and Drug Administration approved an expanded use of Ultomiris for children and adolescents, the first and only treatment for this age group in the US. The shares added 0.4% to £86.47.
IN LINE GUIDANCE
UK housebuilder Berkeley (BKG) confirmed it was on track to meet its profit guidance and deliver a pre-tax profit for the year at or above the £518 million reported for the year ended 30 April 2021.
With a B-share capital return of £451 million due to be completed later this month, subject to shareholder approval, Berkeley continues to anticipate that a large part of the second half of the surplus capital return (a further £228 million) due by March 2023 will be allocated to land expenditure.
Following the B-share payment, the next scheduled shareholder return is the £141 million in respect of the six months to 30 September 2022.
Given the resilient performance since the year-end, Berkeley said its intention is to make the return through either dividends or share buy-backs in the intervening period. The shares gained 0.4% to £47.85.
Engineering company Weir (WEIR) said chairman Charles Berry will retire following the 2022 AGM, having completed his full nine-year term with the board.
The board has announced the appointment of Barbara Jeremiah as chair-designate, with immediate effect. Jeremiah will succeed Berry as chair at the conclusion of the Company's AGM, currently scheduled for April 2022. The shares dipped 0.2% to £17.82.
Emerging market specialist fund manager Ashmore (ASHM) said assets under management rose 13% to $94.4 billion for the full year ended 30 June.
However, adjusted net revenue fell 9% to £296.6 million which the company said reflected its ‘stage in the recovery cycle and impact of mix effects on net management fee margin’.
The stand-out performer was the relatively small equities division which saw assets under management increase 61% to $2.8 billion as it delivered ‘excellent’ investment performance.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) dropped 12% to £195.7 million and adjusted pre-tax profit fell 14% to $193.8 million.
The company proposed a final dividend of 12.1p per share, taking total dividends for the year to 16.9p, flat year-on-year. The shares dropped 4% to 378,6p.
CARBON NEUTRAL GOAL
Private healthcare services firm Mediclinic International’s (MDC) Southern Africa division has entered into an agreement with Energy Exchange of Southern Africa to procure renewable electricity.
Mediclinic has set a target to become carbon neutral by 2030. Procuring renewable energy, specifically electricity, forms part of this strategy.
Mediclinic Southern Africa has agreed to acquire electricity through Energy Exchange, a platform where independent power producers in South Africa can sell renewable energy. The shares dropped 1.5% to 311p.
The board of technology solutions firm Watchstone (WTG) maintained its opposition to a 38p final bid from investment firm Polygon for the business.
The directors believe that the final offer still significantly undervalues Watchstone and its prospects, both in respect of the lack of premium to the current share price and the underlying value of the group's assets. The shares were unchanged at 40.2p.
