London stocks drop as investors get cautious; Rising oil stocks

The FTSE 100 drops 0.3% to 7,057.57 as investors worry about the prospects of tightening monetary policy, rising bond yields and lingering uncertainty over whether the Chinese developer in trouble Evergrande will make a key interest payment. Real estate stocks are among the biggest drops, while financials are also losing ground. Oil-related stocks rise however, boosted by higher crude oil prices, while AstraZeneca rises 2.5% after pharmaceutical major reports positive results in its Phase 3 trial Propel for cancer treatment prostate. Severn Trent drops 1% after a trade update. “Next week the focus will be on Monday’s German election and the US stimulus and debt ceiling debates,†said Steen Jakobsen, chief investment officer at Saxo Bank.

 
Companies News: 

Gresham Technologies signs AU $ 21 million contract extensions

Gresham Technologies PLC said on Friday it had signed new contracts with its largest customer worth more than A $ 21 million ($ 15.3 million) for the year through September 30, 2022.

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Fusion Antibodies Says Revenue Growth Consistent With Previous Financial Period

Fusion Antibodies PLC said on Friday that revenue growth for the fiscal year ending March 31, 2022 was consistent with the previous fiscal year and in line with board expectations.

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Kingswood 1H pre-tax loss nearly halved thanks to higher revenues, lower costs

Kingswood Holdings Ltd. on Friday reported a nearly halved pre-tax loss for the first half of 2021 thanks to higher revenues and lower costs, noting stronger performance in the UK and US.

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Tortilla Mexican Grill will float on London AIM

Tortilla Mexican Grill PLC announced on Friday that it plans to float on junior AIM from London, with trading scheduled to begin on October 8.

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Shell completes sale of Egyptian assets to Cairn and Cheiron

Royal Dutch Shell PLC announced on Friday that it has completed the sale of its onshore Western Desert assets in Egypt to Cairn Energy PLC and Cheiron Petroleum Corporation for up to $ 926 million.

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Judges Scientific 1H Profit before taxes Rose; Expect full year to surpass market views

Judges Scientific PLC posted higher first-half profit before tax on Friday thanks to higher revenues, and said it expects to perform above consensus expectations for the full year.

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Amte Power appoints James Hobson as new CFO

Amte Power PLC announced on Friday that it had appointed James Hobson as CFO-designate, replacing Adam Westcott.

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Chaarat Gold appoints Mike Fraser as CEO

Chaarat Gold Holdings Ltd. announced Friday that it has appointed Mike Fraser as chief executive officer.

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Profit before taxes Iofina 1H, turnover up

Iofina PLC said on Friday that profit before tax increased in the first half of the year thanks to the increase in revenue, but that iodine production during the period was affected by extreme winter weather and the decline in the brine supply to its oil and gas partners.

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Peel Hunt to raise £ 112million through stock offering

Peel Hunt Ltd. said on Friday that it plans to raise 112 million pounds ($ 153.7 million) through an oversubscribed stock offering that has attracted strong support from high-quality institutional and retail investors.

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Novatek director Mark Gyetvay arrested in US for tax charges

Novatek’s chief financial officer and former chief financial officer Mark Gyetvay has been arrested in the United States on charges of hiding money in offshore accounts to avoid taxes, the Justice Department said Thursday.

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Tintra Shares Rise Following Loan Share Conversion Announcement

Shares of Tintra PLC rose on Friday after the company said Tintra Acquisitions Ltd. Thursday issued a conversion notice for 50,000 pounds ($ 68,595) of its convertible loan shares.

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Nmcn obtains capital extensions for refinancing and proposes a change of listing

Nmcn PLC said on Friday it had obtained extensions of its capital subscription and an existing uncommitted overdraft as it seeks to refinance itself and has proposed a change in listing.

 
Market Talk: 

Higher pound sterling hedging costs would make long-term gilts unattractive

09:25 GMT – Hedging costs for foreign investors in pounds sterling are set to rise, making long-term UK government debt relatively less attractive, Mizuho said. Traders advanced their bets on the timing of the first rate hike after the Bank of England signaled concerns over rising inflation, which is expected to increase the cost of sterling hedging. “With the market now forecasting increases so early, [the] 3 months SONIA [Sterling Overnight Index Average swap] will start to rise, making the costs of currency hedging for foreign investors in GBP more expensive, â€they say, adding that long-term gilts will therefore look very unattractive compared to Treasuries.

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Oersted could get around £ 3bn for 50% of the Hornsea II project, RBC estimates

0909 GMT – The price for a 50% stake in Oersted’s Hornsea II offshore wind project would be just under £ 3bn, or £ 4m per megawatt, RBC estimates. This compares to the £ 6million per megawatt obtained on the Hornsea I farmdown, which had higher contract selling prices, according to the bank. More recently, the cost of shutting down Oersted’s Borssele I and II was € 3.7 million per megawatt, according to RBC. Norges Bank Investment Management and Greencoat Capital, the advisor to Greencoat UK Wind, have reportedly submitted bids for 50% of the 1.4-gigawatt Hornsea II project, which is expected to be commissioned in mid-2022, RBC said.

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AstraZeneca Prostate Cancer Trial Boosts Sales

0857 GMT – Positive results from AstraZeneca’s Propel phase three trial for its Lynparza in first-line prostate cancer treatment suggest significant business opportunity beyond current consensus, Jefferies said. “In the United States, approximately 30,000 and 50,000 patients with metastatic castration-resistant prostate cancer are eligible for first-line treatment per year, suggesting a potential business opportunity of $ 3-5 billion for a treatment period of 18 months, â€notes Jefferies. Shares are up 2.2% to 8,857.00 pence.

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Mitie Group’s Full Year Forecast Raises Market Estimates

0829 GMT – Mitie Group’s improved forecast for pre-tax operating income for fiscal 2022 will likely increase the consensus estimate of earnings per share for the year from 18% to 28%, Jefferies said after the UK outsourcing group released a positive business update. Mitie’s forecast is well ahead of the market consensus of £ 124million and Jefferies’ estimate of £ 125million, according to the bank. Jefferies has a buy rating on the stock and a target price of 99.00 pence. Shares are up 2.1% to 72.40 pence.

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Iofina 1H results indicate recovery in iodine market

0804 GMT – Iodine producer Iofina achieved record results in the first half of the year despite production disruptions related to weather conditions and brine supply during the period, showing that the recovery of the iodine market s ‘speeds up, according to finnCap. The U.S. brokerage firm says spot iodine prices are now higher than its long-term forecast due to higher demand and the iodine market is expected to continue to improve. “Alongside a strengthened balance sheet [this] provides management with a lot of firepower to pursue the next phase of its incremental growth strategy, â€said the brokerage. finnCap has a target price of 25 pence. The shares are stable at 16 pence.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

09-24-21 0546ET